erenet                                  

WORKSHOP ON “Business Incubators in Selected Central-Eastern European and Commonwealth of Independent States Countries”

23 JUNE 2006, BUDAPEST

WORKSHOP SUMMARY REPORT

 

AIM OF THE WORKSHOP

The ERENET - Entrepreneurship Research and Education Network of Central European Universities together with the SINTEF - The Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology through ENTRANSE implement project aiming at supporting the design and establishing business support institutions in transition and emerging market by analyzing the best practices in business incubation process in selected Central-Eastern European countries (CEE) and Commonwealth of Independent States (CIS). 13 countries participated in the project by preparing national studies on business incubation in their countries. The Workshop on “Benchmarking Business Incubators in Selected CEE and CIS Countries” held on 23 June 2006 at the Corvinus University of Budapest (H-1093. Budapest, Fővám tér 8. ROOM 3005, Hungary).

The Workshop was organized by the financial assistance of the SINTEF including travel and accommodation of the national experts, organizational costs and logistics. The Canadian Business Incubator Association provided assistance in financing the participation of the national expert from Moldova, while the OSEC office at Yerevan financed the participation of their experts.

The Workshop was aimed at:

(i)         Sharing experiences in best practicing in business incubation in CEE (Croatia, Hungary, Poland, Romania, Serbia, Slovakia and Slovenia); and

(ii)        Discussing the modalities on how to design, establish and manage business incubator in the new EU countries in emerging and transition economies, which could operate in sustainable manner in such a way, that those to contribute to the creation of a sound SME-sector.

Participating countries making presentations and moderating the Workshop

27 participants from 11 countries attended the workshop, academicians preparing the national business incubation studies, government authorities, business incubator associations and international organizations from Armenia, Canada, Croatia, Hungary, Norway, Poland, Republic of Moldova, Republic of Serbia, Romania, Slovakia and Slovenia. The List of the Participants see in Annex 1.

TOPICS COVERED

PROGRAMME

OPENING

·       Welcoming address by Antal Nikodémus, Deputy Director of the Innovation Department, Ministry of Economy and Transport (Hungary);

·       The aim of the Workshop by Due-Gundersen Gunnar, Chief of Operation ENTRANSE, SINTEF - The Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology - International Operations (Norway)

·       Methodology of preparation of the Workshop by Antal Szabó, Scientific Director of the ERENET (Hungary)

SURVEY PAPERS

·        The experiences of the Canadian Business Incubators based on the Model of Incubation Success by Laurence Hewick, President, Canadian Business Incubators, a Division of Hewick Research Inc. (Canada) Presentation

·        Benchmarking of Business Incubators based on the National Presentations by Zoltán Sipos, Doctorandus, Corvinus University of Budapest (Hungary) Presentation

·       Introduction of Zoltan Hantos, Director of The Central Hungarian Innovation Centre (called CHIC) Text

 

NATIONAL PRESENTATION

 

·         Presentation on Croatia by Sanja Pfeifer, Associate Professor, Strossmayer University of Osijek (Croatia) Presentation

·         Presentation on Hungary, Dr. Peter Szirmai Associate Professor, SBDC of CUB (Hungary), co-president of Hungarian Association of Employers and Entrepreneurs Presentation

·         Presentation on Poland, Krzysztof Zasiadly, Former President of Polish Business and Innovation Centers Association. He is currently Vice-president of PBICA (Poland) Presentation

·         Presentation on Romania, Zsuzsanna Katalin Szabó,  Dean, and Daniela Stefanescu, Head of the Management and Economics Department of the Petru Maior University in Tg. Mures (Romania) Presentation

·         Presentation on Serbia, Eric Dejan, Professor, University of Belgrade (Republic of Serbia) Presentation

·        Presentation on Slovakia, Renáta Vokorokosová, Associate Professor, and Vincent Soltés, Vicedean, Professor in Finance, Faculty of Economics, Technical University of Kosice (Slovakia) Presentation

·        Presentation on Slovenia, Miroslav Gras, Full Professor, Full Professor for Economics and Entrepreneurship and Head of Center University of Ljubljana, Center for Entrepreneurship Development (Slovenia) Presentation

 

DISCUSSION ON HOW TO ESTABLISH BUSINESS INCUBATORS AND MAKE THOSE SUSTAINABLE

 

            Moderator: Krzysztof Zasiadly Presentation

            Assistant moderators: Due-Gundersen Gunnar and Antal Szabó

            Rapporteur: Zoltán Sipos  Results

Call for Assistance and Cooperation in Establishment of Business Incubators in Armenia

Presentation by Tigran Sukiasyan, Senior Economic Assistant, OSCE Office in Yerevan Presentation

CLOSING REMARKS

Due-Gundersen Gunnar, Chief of Operation ENTRANSE, SINTEF and

Antal Szabó, Scientific Director of the ERENET

Highlights of the discussions

Opening Statement by the Representative of the Hungarian Government

Antal Nikodémus, Deputy Director of the Innovation Department, Ministry of Economy and Transport (Hungary), highlighted the importance of the business incubator benchmarking project for further SME infrastructure development. This issue is quite comprehensive. When considering the absorbing capacity in the economic competitiveness programme - which is one of the priority of the EU – there are many crowding effects and suggestions. The Hungarian Government intends to continue its business incubator, technopark and industrial park programme. Lessons to be learned from this workshop will help the Government in decision/making for further action.

Survey and National Presentations

Laurence Hewick, the President: Canadian Business Incubators, a division of Hewick Research Inc., in his survey focused on some thoughts on global incubator success from the Canadian perspectives. As primary global objectives for business incubators he identified the following:

  1. To facilitate job creation & thus promote economic development
  2. To reduce SB early stage failures
  3. To maintain youth within communities
  4. To facilitate tech transfer (link between research & commercialization)
  5. To rehabilitate existing sectors (agriculture & mfg.) & promote community re-development

The incubator success model represents a pyramid-like bottom-up approach based on senior management skill as the fundament, networking in the middle and financing in the top. According his view the critical success factors are:

  1. Needs Analysis: stakeholder awareness & support (CBI), regional profile, & PEST analysis.
  2.  Feasibility Study: is an incubator needed and if yes, what type & where should it be located…plus solid market & financial base.
  3.  Incubator Biz Plan: governance, operations, marketing & financial strategies.
  4.  Project Development: obtain resources, implement and establish evaluation system
  5. Management Development: ongoing management dev/certification on international best practices.

National Presentations were made based on the Questionnaire focusing on three main issues:

(i)                  The development of business incubators, science and technology parks in the country;

(ii)                Benchmarking of business incubators; and

(iii)               Presentation of one business incubators, which the national expert(s) find as best and sustainable in the country/

While preparing national studies the experts focused on the following issues:

1.         Does a business incubator need to have a business plan prior its establishment?

2.         What are the criteria of success of a business incubation process?

3.         What kind of services should a business incubator provide?

4.         How long incubation period to chose for a tenant?

5.         How many incubator place do you need and what kind of facility?

6.                   Who are the stakeholders∕local alliances of the business incubators?

7.         How to finance business incubators?

8.         How to create clusters and network of enterprises?

9.         How to select the best possible incubator manager?

10.        How to select the business incubator supervisory board?

11.        How to evaluate the activities of the business incubators, science and technoparks?

12.        What are the criteria of the sustainability of business incubators, science and technoparks?

Based on the national studies the ERENET Secretariat prepared two background papers

(i)         Business Incubation as element of business service institution and SME development infrastructure for creation of new enterprises in countries in transition by Antal Szabó, UN ret. Regional Adviser and scientific Director of ERENET Text and

 

(ii)        Benchmarking of Business Incubators in CEE and CIS transition economies by Zoltán Sipos, Doctorandus of the Corvinus University of Budapest and Antal Szabó. Text

***

All presentations made at the Workshop are available at the ERENET web-site at http://www.erenet.org


Annex 1

LIST OF PARTICIPANTS

 

Name

Country

Intstitute

1

Chilingarian, Garik

Armenia

OSCE Office in Yerevan

2

Sukiasyan, Tigrian

Armenia

OSCE Office in Yerevan

3

Hewick, Laurence, PhD.

Canada

Canadian Business Incubators.

4

Medic, Igor

Croatia

Business Incubator BIOS Osiek

5

Pfeifer, Sanja

Croatia

University of Osiek

6

Csapó Krisztián

Hungary

Corvinus University of Budapest

7

Kerékgyártó Gábor

Hungary

Corvinus University of Budapest

8

Nikodémus Antal

Hungary

Ministry of Economy and Transport

9

Petheő Attila

Hungary

Corvinus University of Budapest

10

Sipos Zoltán

Hungary

Corvinus University of Budapest

11

Szabó Antal

Hungary

Corvinus University of Budapest

12

Szirmai Péter

Hungary

Corvinus University of Budapest

13

Hantos Zoltán

Hungary

Central Hungarian Innovation Centre

14

du Pont, Mila

Norway

The Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF)

15

Due-Gundersen, Gunnar

Norway

The Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF)

16

Muus Falk, Morten

Norway

The Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF)

17

Grovlen, Mons

Norway

The Foundation for Scientific and Industrial Research at the Norwegian Institute of Technology (SINTEF)

18

Braguta, Aurelia

Republic of Moldova

State University of Moldova

19

Iabanji, Iulia

Republic of Moldova

Ministry of Economy and Trade

20

Krzysztof Zasiadly

Poland

Polish Business and Innovation Centres Association

21

Dejan, Erić

Republic of Serbia

Belgrade Banking Academy

22

Pavlovic, Petar

Republic of Serbia

Ministry of Economy

23

Stefanescu, Daniela

Romania

University of Tirgu Mures

24

Szabó Zsuzsanna Katalin

Romania

University of Tirgu Mures

25

Vincová, Kristina

Slovakia

University of Kosice

26

Vokorokosová, Renate

Slovakia

University of Kosice

27

Gras, Miroslav

Slovenia

University of Ljubljana