technology incubator program ’s draft model
DESCRIPTION
Technology Incubator Program ’s draft model. Valdis Avotins, LIDA. Aims of the presentation. To present draft model of the program Receive feedback/ comments to the model Discuss linkage with pre-seed and seed scheme. Technology Incubator Scheme. Why? Goals Selection criteria - PowerPoint PPT PresentationTRANSCRIPT
Aims of the presentation
• To present draft model of the program• Receive feedback/ comments to the model• Discuss linkage with pre-seed and seed
scheme
Technology Incubator Scheme
• Why?
• Goals
• Selection criteria
• Financing
• Decision mechanism
• Supporting measures
Goals
• Stimulate development of new technology intensive SMEs by supporting innovative entrepreneurs in the early stages of technological entrepreneurship
• Stimulate export of technology intensive products• Motivate scientists and engineers that once left Latvia
to establish business in Latvia• Facilitate attraction of VCF investments in R&D /
technology intensive NSMEs• It is not regional instrument
It is necessary because
• The lowest amount of SMEs (18 per 1000 inhabitants) among the EU candidate countries
• Mental and psychological barriers to establish first company
• No sufficient support / guidance available to inventors
• Few R&D intensive projects among NSMEs• No real success in existing few “incubators”
Target groups
• Engineers and designers from private sector (industry)
• Academy (scientists, PhD students, engineers from universities)
• High-level scientists and specialists that have left Latvia, including engineers abroad
Selection Criteria for New SMEs
Evaluation done by private TI operator:• Knowledge intensive SMEs (R&D investment
exceeds 3% from annual turnover) • Explicit orientation towards global market
(export) • Market potential• Management capability• Acceptable time scale• IPR transferred to NSMEs (signed commitment
letter)
SME’s liabilities
• The SME has a liability to repay the received grant as regular payments from sales
• It is done by paying ~3% of yearly revenues till the 100% of the received grant is repayed
• These revenues government re-circulates within TI support program.
TI services to SMEs
• basic infrastructure
• basic (management, marketing, strategy) services
• specialized technology services
• Provision of financing for new SMEs
• IPR services
Grant model to private TI operator
• approved TI activity business plan • This grant is given max for 3 years. It can be used
only for ensuring TI activities and not for investing in new SME
• Up to 75% of operation’s costs = 25% private financing required
• Next project 3Y period grant reduced (e.g. 65%)• Maximal grant for one TI is 350 000 EUR per year
Selection criteria for TI applicants
Evaluated by SAP Commission:• TI business plan (deal flow)• TI management experience • Experience of TI manager / team • Amount of offered financing for TI operation• Ability to invest 20% in NSMEs• Availability of infrastructure
Eligible costs
• Management costs• basic (general) services and consultations• specialized technological services and
consultations• finance management consultations• training of employees• marketing expenses• IPR protection costs
Split of shares
Registration• author of technology idea (inventor) – not less than
50%;• TI operator – 20%;• Management, employees, mentors – up to 10%;
After registration• Rised capital during next 24 month• TI is allowed to invest• Negotiations with strategic partner ongoing
Performance evaluation
1. For TI operation:• number of approved projects• number of created new
SMEs• amount of services provided• export volume• number of created working
places• number of stable SMEs in
the long run• volume of attracted capital
2. For new SME operation:• number of created new
SMEs• export volume• amount of taxes paid to the
government• number of created working
places• increase in the volume of
realization
Supporting measures
• Entrepreneurship motivation scheme
• Awareness creation program
• Dissemination of success stories / best practices
EMP scheme
CoachingBusiness
planCompany
30. 09.2 pages
PR campaign Applications Evaluation
andcompetition
Division ofparticipants
15.10.-31.03.
Entrepreneurshipcourse
Competition ofmarketing plans,Self-teaching,seminars,mentors
31.05.30 pages
Mentors New entrants Competition Individual
feedback Prizes as starting
capital
Contacts Business labs Consultations
Business idea
EMP scheme
New entrants
Mentors
Businessidea
competition
Marketing plancompetition
Entrepreneurshipcourse
Business plancompetition
Businessidea
D i v i s i o n o fparticipants
High qualitybusiness
plans to starta new
company
Incubators, businesslabs, greenhouses
and otherinfrastructure to start
a new company
Self-teaching &workshops