TRC NewsletterThe Research Council

Introducing Oman Science & Technology Park

Science Parks: The Necessary Ingredients

Innovation & Start-ups

Focus on Research

Meet the Entrepreneurs

Young Researchers’ Corner

The Newsletter of The Research CouncilIssue 4 October 2012For private circulation only

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ContentsOctober 2012

4 Editorial 5 Introducing the Oman Science & Technology Park Dr AbdulBaqi Al Khabouri Director, Oman Science & Technology Park

7 Science Parks: An International Perspective Jane Davies OBE President, IASP Advisory Council

10 Science Parks: The Necessary Ingredients

14 Focus on: Oman Science & Technology Park

16 Innovation & Start-ups Mohammed Al Rasbi Founder & CEO, R&D

18 Focus on Research Dr. Baba El-Yakubu Jibril Sultan Qaboos University

20 Meet the Entrepreneurs Salma & Aisha Al Hajri Salma’s Chocolates

22 Young Researchers’ Corner

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What is a science park?

The International Association of Science Parks defines a science park as:

“An initiative for the establishment and growth of technology-based enterprise formally and operationally linked to at least one centre of technical expertise an organization which provides management support for its tenant companies.”

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The Research Council

Contact Us

The Research CouncilPO Box 1422Muscat 130Sultanate of Oman

Tel: +968 24 50 98 00Fax: +968 24 50 98 20

info@trc.gov.om

www.trc.gov.om

EditorialWelcome to this edition of TRC Newsletter.

This fourth edition of our newsletter has Oman’s new Science and Technology Park (STP) as its main focus. This exciting new project is already well underway and is sure to make an improtant contribution not just to science, research, technology and innovation in Oman but also to entrepreneurship and job creation - especially for our youth.

The STP Director, Dr AbdulBaqi Al Khabouri, opens this edition with an introduction to the Park, looking at its role, the challenges it faces and the benefits it will bring. We are privileged to have Jane Davies OBE, President of the International Association of Science Parks Advisory Council guide us through the part that science parks have to play in the international arena; she examines, in particular, Manchester Science Park and its achievements.

Is there a formula for a succesful science park? In our article ‘Science Parks: The Necessary Ingredients’ we try and find the right recipe. We also feature a guide to the STP which includes information about the Park’s Master Plan and the stages in its development.

In other features, Mohammed Al Rasbi, founder and CEO of R&D shares his thoughts on Innovation & Start-ups and Sultan Qaboos University’s Dr. Baba El-Yakubu Jibril talks about his research. Entrepreneur team Salma and Aisha Al Hajri, of Salma’s Chocolates, give us an overview of their start-up journey and our Young Researchers’ Corner has plenty of tips for aspiring young inventors.

The images on our front and back covers give you an idea of how the Oman STP will look.

As ever, we hope you enjoy TRC Newsletter and welcome your feedback on: info@trc.gov.om

What do you see as the major challenges of setting up a new Muscat-based science park? And what are the benefits?

Across the globe science parks are thriving and making a major contribution to the areas in which the operate - not just in terms of science and research but in terms of job creation and economic development - they’re central to the knowledge economy - creating jobs; attracting investment; developing a culture of innovation and entrepreneurship.

There is no reason why Oman should be an exception. We do, however, have to realise that as this is the first project of its kind in Oman there will certainly be challenges that we need to address very carefully - that goes without saying. Obviously there’s a lot of excitement about the Park and its potential and I think the first thing we’ll have to do is manage expectations as science parks do take time to develop and deliver on their promise; these things don’t and can’t happen overnight - we need to take a long term view.

Attracting international tenants to come to Oman and specifically to the Oman Science and Technology Park (STP) is, in itself, a challenge - and we have to make sure we attract the right sort of quality tenant. In addition, building the network between different stakeholders within the park is certainly something that we need to focus on to guarantee the success of the Oman STP.

If we manage to attract the international community that is working in the same specializations as the park to come and work with our local start-ups and SMEs, I am sure that will develop our local talent. It will also make an enormous contribution to the development of the eco-system that not only supports the diversification of our economy but generates well-paid jobs for young Omanis.

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Introducing the Oman Science & Technology Park

Dr AbdulBaqi Al KhabouriDirector, Oman Science and Technology Park

What’s the main role of the Oman STP and how do you see the Park developing?

We can get a general picture of how the Oman STP will develop form the general experience of international science parks. Specifically, we will adopt the Triple Helix Model where the three main components (Academia, Business and Government) will play a major role in the operation of the Oman STP. In this Model we are linking academia with business. Hence any research activity taking place in the academic world could be developed and commercialized within the Oman STP.

From a broader perspective, government, academia and business would see science parks as having four key roles:

• creating employment;• establishing new firms;• facilitating the link between universities and these firms;

and • encouraging technology.

Moreover, we will also look at the contribution that the Park can deliver to society in general. We need to make an impact on the local community so they start thinking about innovation. The Oman STP should be able to change the current culture into one that’s more creative and innovative. In particular we need to inspire our young people to become involved in science, to study science, pursue careers in science and to embrace entrepreneurship.

What will the Oman STP’s role be in the creation and nurturing of new hi-tech Omani starts-ups?

The Park will focus on four specializations as specified by the National Research Strategy. These are: Energy; Water and Environment; Food and Bio technology; and Health. Start-ups

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working in these specializations will be incubated in the Oman STP. We will support them not only in the establishment of their companies but also in the development of their business plans, marketing, communication and accessing finance. The consultants within the park will support the start-ups and link them to the international community and markets.

What strategies will you develop to ensure the Oman STP’s success?

Science parks often create an influx of people, institutions and businesses but, in fact, the local community strongly influences the Park’s trajectory. The challenge lies in making a positive change while retaining local core values and competences.

We are developing attractive incentives for both domestic and international tenants. These are built and based on international best practices. Different incentive schemes will be given to different groups of tenants, by that I mean start-ups, SMEs and multi-nationals. The mix of different people, experiences and values within the Park community will be central to creating its strength not only in terms of attracting investors and researchers but also as regards giving people here in Oman the opportunity to collaborate with the Oman STP’s highly skilled and professional community.

On top of this, our success will be rooted in our planning - from the selection of our location - near Sultan Qaboos University, KOM and Rusayl Industrial Estate to the relationships we are already developing with these organisations and the support infrastructure we have in place for our tenants.

How do you think the performance of firms on science parks compares to those that operate off them?

Swedish research suggests that firms on science parks grow faster in terms of employment and sales while firms off-park grow more rapidly in terms of profitability. However, British research indicates that there is no difference in survival rates, R&D performance or employment growth between firms on and off parks, or in much else. Clearly we have to look closely at individual cases.

Oman with its young population has a fantastic opportunity to develop entrepreneurship, SMEs and so on - they contribute up to 80% of business in some countries so that’s something really important for us. We should look at how we can make the most of these opportunitities. Although we are new to knowledge based investments, we are planning to develop from 10- 15 new companies per year on the Park. These companies will be knowledge based and highly specialized. The Oman STP plans to generate about 3,000 jobs within the next 10 years for highly qualified Omanis.

Dr. AbdulBaqi Al KhabouriDirector

Oman Science & Technology Park

The first challenge we’ll face is managing expectations. Science parks do take time to develop and deliver on their promise; these things don’t and can’t happen overnight - we need to take a long term view.

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Science Parks: An International Perspective

Jane Davies OBEPresident, IASP Advisory Council

On the challenges and rewards of setting up a new science park

The world’s enthusiasm for science parks rests on their reputation of delivering the current aim of many national economic development strategies – a vibrant knowledge economy. When they are successful, the rewards range from the tangible such as new high-tech companies, job creation, inward investment, talent attraction and retention, to the ‘softer’ but no less essential changes such as the development of an entrepreneurial culture with stories and heroes to inspire young people, and a fully functioning innovation eco-system which encourages and supports new firm development.

And therein lies the main challenge; new science parks take time to reach maturity and deliver their promise, meanwhile the shiny new offices and laboratories that can be built in two or three years are standing empty and their owners, unless they take a long-term view, are tempted to accept any tenant willing to pay the rent and cut the very management services that are essential to attract and support start-ups.

On the definition of a science park

Manchester Science Park (msp) fully meets the formal IASP definition of a science park but, as an American professor once famously said “when you’ve seen one science park – you’ve seen one science park”. Each one is different because they are place-based initiatives and have to adapt the general model to the requirements and conditions of their locality.

msp was founded to deliver jobs in a city that was going through an identity crisis in the 1980s as thousands of manufacturing jobs were lost and whole communities became unemployed. It delivered on a small scale initially but it was only in the mid-nineties that it began to take off as a location for high-tech businesses when significant investment in the physical and social regeneration of the local area created an

attractive inner city suburb adjacent to the city’s academic campus. This century, reinventing itself as a post-industrial city, Manchester’s civic leadership has focused resources on building a strong knowledge economy, working in partnership with the science park, universities and research hospitals to scale-up the economic contribution to the city region of science based innovation.

The Park plays a key role in this strategy, not just delivering the appropriate physical infrastructure for high-tech start-ups in the right location but, more importantly, driving the local innovation eco-system in the same way that TRC was encouraged to do by HH Sayyid Taimur bin Assad in the first edition of this newsletter.

On the the key roles of science parks

In my view, the role of a 21st century science park is to build a fully functional innovation eco-system with free flows of knowledge, people, money and services to support the complicated process of innovation. To achieve this, it will need to create partnerships with the key players in the system, academics and city planners and leaders, entrepreneurs and sources of risk capital.

The park may have to deliver some of the services itself – networking events to build supply chains, support for early stage start-ups, specialised facilities for some sectors such as data centres and laboratories – but should always recognize the organic nature of the innovation eco-system. Networks will form, become popular and then disappear, business will supply some of the services if they can do so commercially, sector organisations will already exist in some sectors and take over supply chain development - the science parks role is to spot the gaps and make sure they are filled so that all the necessary links and the people are available and easy to access.

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On science parks and hi-tech start-ups

I think the world-wide enthusiasm for science parks is based on a consensus that they make a positive contribution to this sector of the economy. However, at a more local level, we decided to ask our customers whether our activities had helped their businesses. In respect of 2011, 44% said that msp had introduced them to a new business contact and 11% said they had secured additional sales or new business as a result of an msp event or introduction.

Given the reluctance of most entrepreneurs to credit anybody else with contributing to their success, I suspect this underestimates the contribution we make. Nevertheless, in the end, STPs can only contribute – it’s the entrepreneur who has to make his company succeed. I think that the role of STP managers is to create an environment within which entrepreneurs can flourish. In my view this means creating a community of companies so they can learn from each other and find customers, suppliers and partners for collaboration; providing access through events and personal introductions to the local innovation eco-system; supporting, animating and expanding that eco-system, recognising that it’s organic and will always be evolving; understanding the particular requirements of high-tech businesses for specialized services and facilities and ensuring they’re available and, not least, providing a portfolio of efficiently and cost-effectively managed offices and laboratories on flexible terms to enable companies to expand and contract as they mature.

On lessons from msp’s success

STPs are place based initiatives and looking back over msp’s development it’s clear that its growth trajectory was closely aligned with that of the city region as a whole. We were fortunate in that the founders selected an ideal physical location for the park; adjacent to two major universities and a research hospital, close to an international airport and motorway network and less than 2 miles from the city centre. However, it was only when significant funds were invested in the physical and social regeneration of the local area in the mid-1990s that msp underwent its first period of physical expansion. Fifteen years later, investment in new facilities for the adjacent hospital and universities and a recognition that a vibrant knowledge economy is Manchester’s future has led to a second spurt of development even though the state of the UK economy is not favourable.

Any new STP development has to be seen in the wider context of the city – and country’s –strategy for the future. Only if all facets of the innovation eco-system are present in the local community can an STP play its role successfully.

As a private company with shareholders, msp was set up from the beginning to be a profit-making organization. No dividend has been distributed to shareholders although they have seen the value of their investments increase and, both local government and academic shareholders recognize the extent to which msp’s activities contribute to their own objectives over and above any financial return. However, msp has never generated sufficient profit to fund speculative new buildings without public sector support and earlier this year a new commercial shareholder acquired a majority stake in the company, at the same time committing to double the physical size of the park over the next ten years in line with the shareholders’ strategic objectives.

In terms of positioning, we took the simple approach of building msp’s reputation on that of our tenant companies. This has the advantage of reflecting the commercial reality; if our tenants don’t grow the Park cannot expand. We provide PR support free of charge particularly to the smaller companies on site and every positive story about their successes mentions the fact that they are located on msp. Once established as the location of successful companies msp began to attract inward investment and is now known as the location of choice for technology based firms in the Manchester city region.

We also chose to develop an international reputation for knowledge leadership in the field of STP management and were supported in this objective by our university shareholders. msp is now known across the world as one of the leading examples within the sector and we receive regular requests to receive study visits. It’s never easy to make a direct link between marketing activities and new tenants but we believe that our international brand helps to keep our ‘soft landing’ centre full of small businesses from overseas, many of which stay and expand on the Park.

On the performance of companies on science parks

Measurement of the success of science parks in absolute terms poses a problem because, by definition, it’s impossible to say how a firm that has grown on a science park would have prospered if it had not been on a science park. The research results you mention are based on comparing the success of similar firms on and off parks, which in my view will always generate uncertainties around the conclusions.

We have developed a different way of looking at the success of a park which uses a range of measures, both metrics and perceptions gathered from customer surveys. These are derived from the strategic objectives of the primary stakeholders in the park and are continually refined as the strategy for the park

Any new STP development has to be seen in the wider context of the city - and country’s - strategy for the future. Only if all facets of the innovation eco-system are present in the local community can an STP play its role successfully.

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changes during its development. Examples include the number of companies that have operational links with the knowledge base, the number of companies that have grown each year, the number of direct investments we’ve attracted, the number of new products and services introduced by our companies, the amount of investment they’ve attracted and what contribution have msp’s activities made to their businesses.

As long as we add value to our tenants’ businesses, achieve our ‘soft’ performance targets and make an annual profit then it’s reasonable to conclude that we and our tenant companies are together delivering more value to our shareholders and the local economy than the companies would on their own.

On setting up a science park

msp was founded as an economic development initiative and local government, represented by Manchester City Council, were shareholders from the very beginning. They still own a significant share in the company and were joined more recently as shareholders by the adjacent Salford City Council. This has meant that local government has encouraged and supported the development of msp throughout and now sees its expansion as a key factor in the future success of Manchester’s knowledge economy. As evidence of the importance they place on its success, local government is represented on the board of msp by the Chief Executive of Manchester City Council and the elected Mayor of Salford.

My advice to those involved in the new STP in Oman is to make sure that all three key players in the knowledge economy – business, government and academia – are represented at senior level on the governing body of the STP and that they fully embrace the strategic objectives of the park. Ideally, all organisations represented in this way should also have a financial stake in the success of the project to ensure their continuing commitment to its success.

On the key tasks of science parks

The role of STPs continues to evolve; our latest thinking in IASP is that successful parks should be at the heart of the emerging ‘cities of innovation’ or ‘creative cities’ that are the focus of the global knowledge economy. Science park managers are experienced professionals who know how to deal with entrepreneurs and the nuts and bolts of innovation, and how to create an environment in their city that provides the optimum conditions for innovation to flourish. Together with academic, business and civic leadership they can make a real difference.

Jane Davies, OBEPresident

IASP Advisory Council

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Over the past 25 years, Science Parks have constituted a major mechanism to facilitate technology transfer and economic growth. The International Association of Science Parks (IASP) currently records no less than 128,000 companies in 388 member parks in 69 countries. Science Parks are a focal point for entrepreneurs; a link between commercial and research activity; an appropriate, flexible environment; and networks with a range of business support services to support the growth of knowledge-based companies.

There is no question of a rigid definition or of a single transferable model being appropriate throughout the world. The characteristics of each Science Park should be determined by its objectives, location, prevailing economic climate and local expertise and resources available. However, the following definition summarizes the main characteristics of a Science Park.

So… What’s a Science Park?An organization managed by specialized professionals, whose main aim is to increase the wealth of its community by promoting the culture of innovation and the competitiveness of its associated businesses and knowledge-based institutions.

To reach these goals, a Science Park stimulates and manages the flow of knowledge and technology amongst universities, R&D institutions, companies and markets; facilitates the creation and growth of innovation-based companies through incubation and spin-off processes; and provides other added-value services as well as high quality space and facilities.

The Top 10 Science Park Ingredients

1. Stages of DevelopmentA typical Science Park takes around a decade to reach maturity and, in doing so, passes through a series of recognizable phases. The initial phase, which may take a few years, encompasses the planning and agreement from the park’s stakeholders, and the acquisition of funds sufficient for the commencement of operations. At this stage, everything is new and exciting, but the park’s management soon realizes that a big effort will be needed to fill up the buildings and for the park to reach financial self-sustainability.

Science Parks:The Necessary Ingredients

The second phase is one of steady growth - involving the acquisition of further premises for multi-occupancy. This phase can be of varying length, depending on factors such as the location, quality of management and the overall economic climate. During this phase, the management and operational activities of the park develop progressively and become more efficient. Some parks remain in this phase, with steady growth and stable management. However, there is for more progressive parks a third ‘mature’ stage, when the management recognizes that the park is capable of playing some wider and desirable role in the economic or technological development of the country or region. This stimulates a change, sometimes quite profound, towards a more individual style of Science Park which differentiates it from others. The change may be to move to multi-site operation; or to become increasingly involved in providing management services to assist tenant company growth; or to link closer to its associated tertiary partners. Or it may be quite another special set of characteristics.

2. National & International ContextA successful Science Park is not and cannot be a ‘stand alone’ venture. It is intimately connected to and involved in the implementation of national and international innovation policies.

In the 21st century, Science Parks have become an essential part of a more innovative way of life. They have achieved this by professional management, increasing their networking, achieving a greater mass and by helping to attract investment into their SMEs. They are a significant part of the innovation ‘ecosystem’ and a key to its success.

Successful Science Parks have positioned themselves as leaders in the development of the Knowledge Economy. This has helped to reduce the danger that nations in the developed world would lose out to those of the Far East and other rapidly developing nations. They have helped, for example, Europe to compete by designing workplaces and environments that optimize the innovation process – to make change easy. Such places facilitate spontaneous and dynamic working and encourage random interactions and synergy.

A major turning point occurred when the more progressive parks determined to break out of a domestic mindset and

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began to think and act globally. They recognized that their principal competitors were not the neighbouring Science Parks, but those on other continents. They therefore created effective international networks and grew to a scale enabling them to compete, attract and retain companies at an international level. The great cities of the world have also been influenced by the new generation of Science Parks and in some cases they have been influential in changing their city’s brand and image as a focus of the knowledge economy. They have set the standard for high quality services to knowledge-hungry enterprises; exploited the interdependence of sectors; and are global players with capacity to accommodate international business investment.

3. Strategic Policy & ManagementStrategic and day-to-day management of the highest quality play a key role in any Science Park. This enables a clear long-term strategy to be defined, which can be implemented under a sustainable business model. This is no small undertaking: successful Science Parks are involved with places, processes, relationships and outcomes, and they are good at managing them all.

Indeed, the leadership of a Science Park requires far more than property expertise, although this is absolutely necessary. They enjoy high level board and network representation, principally from their main stakeholders, but also from large firms and financial institutions, often from outside the country or region. This has afforded them the range of perspectives, contacts and expertise needed to compete in a global marketplace.

4. A Gateway Not a DestinationIt is important to note that a Science Park is a gateway and not a destination. Thus, pre-occupation with location, property and place has been replaced with a focus on process: an enabling process in the journey of each tenant’s development. Part of the challenge of this change in paradigm has been to develop

efficient and effective pathways from the gate, since they could not have been left to chance.

5. FinanceA Science Park must aim to be a sustainable business. The proportion of private sector investment has increased greatly and investors now appreciate the significant opportunities of investing in appropriate Science Parks. However, public sector support has remained important to allow some parks to establish operations in more difficult locations, where longer time-horizons to achieve viability are required.

Indeed, Science Parks were never meant to be ‘short-term fixes’, either in terms of their support for economic development or as property investments. Investors in Science Park property now take a long-term view of financial viability and, as the parks have matured and maintained high occupancy levels, have received a good return on their investment.

6. Leadership & SerendipitySuccessful parks employ top-quality management, with demonstrable leadership qualities, a broad set of skills and the capability of relating positively to all the disparate sectors which regularly interact with the park. The underlying and fundamental objective in managing a mature Science Park is to optimize serendipity.

It is apparent that the best Science Parks are those with first-class senior managers. It is the skill and personality of their management team which have given them their distinctive characters. The task of senior management has been to ensure that the whole of the park’s operations, the physical location, the overall ambience and culture, the services provided and the networking opportunities work together to enhance ‘happy accidents’ to optimize serendipity. An innovative and entrepreneurial approach to management of the park seems

In the 21st century Science Parks have become an essential part of a more innovative way of life. They have achieved this by professional management, increasing their networking, achieving a greater mass and by helping to attract investment into their SMEs. They are a significant part of the innovation ‘ecosystem’ and a key to its success.

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to be the key. Such serendipity takes many forms. For instance: one tenant helping to solve another’s problem; or two tenants, maybe on the same park or, just as readily, on parks in different countries, agreeing some kind of commercial relationship; or the chance finding at a networking meeting of a business angel with the money and interest to support the growth of a tenant; or perhaps the recognition that an apparently unrelated technology developed by an Oman-based university could be of immense value to a particular tenant. For those Science Park’s that are ‘company-driven’, the characteristics and role of the ‘anchor company’ have been especially important. They have enhanced the overall image of the park, given it stability, demonstrated the effectiveness of an ‘open innovation’ strategy and have illustrated the function of the park as a gateway rather than a destination.

Although successful Science Parks produce good commercial returns on their property, they use a planned proportion of the surplus to support some of their services to tenants. Some provide networking services between tenants and between tenants and tertiary partners or sources of business advice. Others offer a range of subsidized business services. Several take a ‘portfolio’ approach and support the operation of their incubator (both property and incubation services) from surpluses generated from rental income.

7. Physical & Environment Science Parks were originally considered to be essentially locations. Then, at the turn of the century, location was considered by many to be quite unimportant and the focus turned to ‘brains, not bricks’. The 21st century Science Park once again regards the built environment as vital, not as an end in itself but as an aid to the process of creativity, interaction and innovation.

Physical development based on a thoughtful, in many cases inspirational master-plan has proved to be a significant success factor. Such master-plans have provided an overall context, with integration of neighbouring residential accommodation, learning, commercial activities and research; they have reflected purpose, values and principles which in turn has led to a clearer image and branding of the park; they have helped to make the place a desirable work-life environment; and they have incorporated connectivity as a major theme.

Science Parks illustrate how important the built environment is to a growing company. Despite the increasing level of virtual, global and mobile working, people still need a workplace that is multi-functional and stimulating. This does not necessarily mean expensive: even modest buildings can provide the environment and interaction space which drives business functionality. The features which exemplify these objectives are different in each park. However, in general they include:

• Keeping buildings close enough for people in each to interact;

• Sufficient green space, in a pedestrian-friendly campus;• Components which contribute to branding, image and

identity;• Good use of natural light;• Flexibility in size and use of units;• Sufficient informal ‘interaction space’, where people can

engage in impromptu conversations;• Services to support the lifestyle of people working on

the park, such as shops, cafes, restaurants, medical and exercise facilities and crèche; and

• The environment in general.

Today’s Science Parks are organizations with a sense of responsibility and have shown concern not just for the environment within their boundaries, but for the global environment. Science Parks have become exemplars of sustainable developments in sensitive locations. They have invested in sustainable building designs and have become parts of whole sustainable communities.

8. Tertiary RelationshipsAn active, effective, diverse and two-way tertiary relationship is perhaps the principal defining characteristic of a successful Science Park. The emphasis on exploitation of technology has given universities a new relevance to the global economy and Science Parks act as a bridge between research and the marketplace.

Twenty years ago, the role that universities could play in the exploitation of new knowledge was only beginning to be appreciated and Science Park managers had to jostle their way into university departments to encourage academics to take some part in the innovation process. How times have changed. Today, successful Science Parks work closely with their associated universities to spin out new technology into the marketplace. Universities employ specialist exploitation professionals, who are sometimes part of the Science Park management itself and always network closely with it. University staff see the Science Park as part of their own institution, or at least as part of the family of operations which a modern university needs. Furthermore, Science Parks are regarded as shapers of the university curriculum and faculty culture, by encouraging exploitation and helping to deliver education in entrepreneurship and also in other areas which are vital to future business, such as language training.

Thus, the Science Park impacts back on the university’s core business at a number of levels: curriculum; recruitment; graduate destinations; and the research agenda.

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9. Network ValueConnectivity and networking at all levels is essential to today’s Science Park and its tenants. So vital is it, that a number of parks record a network value in their annual reports and accounts.

Young, growing companies benefit from access to a multiplicity of networks and contacts and it is one of the major tasks of a mature Science Park to maintain these and also to regularly assess their value and effectiveness. The networks start within the park itself, expand to the associated tertiary links and the domestic business community and include consultants, advisors and large commercial and financial institutions. But networks do not stop near to home. The most successful parks have created effective international networks and alliances, enabling them to perform comparative benchmarking, compare best practices and support the rapid commercialization of complex, high added-value products and services into the international market.

10. Growing Tenant CompaniesIn a Science Park, the term ‘tenant’ denotes a relationship which goes far beyond the legal: the park’s team adds value by interpreting the opportunities and consequences of each tenant’s business activities, assisting both the growth of the tenant and its attractiveness to potential investors. An intimate understanding and response to different tenants’ evolving needs during their tenancy is essential. A mature Science Park strives to establish a climate of trust with its tenants.

A pro-active Science Park management has a considerable understanding of what its tenants are about and directs appropriate skills, advice and networking opportunities (including access to investment) to the tenant. The park also recognizes that the needs and level of advice needed will change as the company matures. The successful parks have recognized that the principal deficiency and hence need of a technology-based business is not technology but commercial skills and understanding. To meet this need, they provide access to a range of advice and support. As just one example, a number offer courses in selling (as opposed to marketing), which is so important but often ignored by the more technologically-minded entrepreneurs. The support given in enhancing tenants’ commercial skills has not gone unnoticed by investors. There is an increasing willingness by investors in small companies, such as business angels, to network with the more successful Science Parks to identify suitable firms in which to invest. Venture capitalists are also prepared to purchase equity in such companies, recognizing that the experience of the park management can assist them to identify those companies that are truly investment-ready.

Science Parks: The Essentials

• Formal operational links to world class research

• Communal areas• Access to networks• Focal point or physical

presence• Mission statement/strategy/

objectives• On-site management and

daily contact with tenants• Access to finance and

mentors• Company selection policy• Guidance/assistance

available• Flexibility of space and terms• Reflects domestic ICT base

specialty/interest• Access to specialist facilities• Singular or complementary

sector focus

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Where is the Oman STP?This is a major TRC project, with a total area of 280,000 m2, the Park will be located in Al Khod, just 10 minutes drive from Muscat International Airport and neighbouring Sultan Qaboos University, Rusayl Industrial Estate, Knowledge Oasis Muscat and Oman Botanic Gardens. The Park will provide a vibrant research and innovation environment fostering business growth in the context of Oman’s innovation ecosystem.

What’s the Park’s mission?The Park’s mission is to enhance the sultanate’s economic, entrepreneurial and technological wealth by supporting the growth of Oman-based innovative and research-driven companies in fields such as biotechnology, renewable energy and industrial technologies.

Which government organisations are collaborating on the project? •MinistryofHigherEducation;•MinistryofCommerce&Industry;•MinistryofOil&Gas;•MinistryofAgriculture&Fisheries;•MinistryofRegionalMunicipalities&WaterResources;•MinistryofEnvironment&ClimateAffairs;•ChamberofCommerce&Industry.

What will the Oman STP offer tenants?The Park will offer a range of state-of-the-art hi-tech business accommodation and laboratory space, underpinned by a robust digital infrastructure and IT support services.

Tenants will have access to academic resources, seminars and a regular program of networking events. As a national focal point for collaboration between researchers, academia, industry and commerce, The Park will also provide introductions to funding, programs and people in order to help tenants grow and develop. Moreover, the Park will actively promote and communicate its offer and image to ensure the success of its mission.

Focus on:The Oman Science & Technology Park

What is the Oman STP’s Master Plan?The master plan for the Park was drawn up by Sultan Qaboos University (SQU) specialists and developed in four stages starting with defining the Park’s operational parameters; the development of strategic alternatives; the formulation of draft master plan and a final master plan report.

The process of preparing the master plan involved systematic consultation, report preparation and presentation, as well as an examination of several documents and reports prepared for TRC. Final design selection was made taking into consideration facility type and specialization.

The facility to be developed and areas of specialization were identified as:

•Energy•Health•Food&Biotechnology•Water&Environment

As part of the master plan study, a phasing approach for the implementation of the project has been recommended. The phasing stages have been organized to enable the gradual implementation of the Park taking into consideration the following:

•Ensurefacilitiesareprovidedaccordingtoprojecteddemand.•Minimizelogisticdifficultiesintheoperationofphasesbyensuring each phase can function as an integrated entity.•Reflectthelikelyavailabilityofdevelopmentfunding.

What are the Oman STP’s development phases?The four phases in the development of the Park are:

Phase 1Construction of site infrastructure, the Innovation Centre Building and three large tenant lot developments.

Phase 2Construction of Energy & Health Research Institutes, mosque, hotel and one large tenant lot development.

Phase 3Construction of Water and Environment and Biotechnology Research

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institutes, the Park’s Administration and Client Services Building, recreation centre, school and two large tenant lots development.

Phase 4Development of four large tenant lots.

What stage of development has the Oman STP reached?To date the following have been completed:

•Feasibilitystudy;•Comprehensivemasterplanstudyincollaborationwith SQU;•Allocationofopenspacelandwithatotalareaof 280,000 m2

close to SQU;•CompletionofthelevellingcontractawardedtoAlAwazi International LLC;•InfrastructurecontractawardedtoAlAdrakTradingLCC;

•TenderdocumentfortheconstructionofPhase1(main building, social centre and workshops/labs) with detailed engineering drawings sent to tender board for announcement;•DesignandsupervisioncontractawardedtoNational Engineering Office;•MarketingstrategycompletedbyEuroconsultants;•TRCappointedDirectorofScience&TechnologyPark Department.

The Park’s business plan will be developed addressing:

•Operatingmodel•Projectrequirementsandbenchmarks•Marketingcampaign•Branding

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Innovation & Start-ups

Mohammed Al RasbiFounder & CEOR&D

Mohammed Al Rasbi is 34 and the Founder and CEO of R&D. In 2004, he was the first tenant to take up residency at the Knowledge Mine, Oman’s first government-run business incubator based at Knowledge Oasis Muscat.

Entrepreneur and innovator – what’s the difference?

This is a good question. We do tend to hear ‘entrepreneur’ and ‘innovator’ used in the same sentence. And you often read about entrepreneurs being innovators – I’m not convinced this is right. What I do know is that if you stopped 10 people on Knowledge Oasis Muscat and asked them what the difference is between an ‘entrepreneur’ and an ‘innovator’ you’d probably get 10 different answers. According to the US National Commission on Entrepreneurship, entrepreneurs are ‘men and women who lead small companies that are based on an innovation and are designed to grow quickly - at an annual rate of 15 to 20 per cent.’

Two things that pop out from this definition are: ‘fast growth’ and ‘innovation.’ For me, innovation is all about an idea or invention and the commercialization of that idea or invention. I guess another way of looking at this is that entrepreneurship is a sub-set of innovation. Every start-up is an example of innovation, but not every innovation leads to entrepreneurship.

Taking a practical example, is someone who opens a fast food restaurant or a coffee shop in Muscat an entrepreneur? Well, he’s an entrepreneur if he launches his business based on either a new product concept and or new business model. If the business is basically the same as the one round the corner then no, he’s not - he’s not dealing with any innovation at all and he’s a restaurant owner.

True, there’s an element of risk starting up whether you’re breaking new ground or going the tried and trusted route but the entrepreneur deals with a greater degree of uncertainty.

And uncertainty is a classic ingredient of the innovation process. Most innovations have some level of technical, market, resource and organizational (TMRO) uncertainty associated with the process. If you compare the degree of TMRO uncertainty between the entrepreneur and restaurant owner, you’ll find that TMRO uncertainty is far higher for the entrepreneur.

What and who is innovative?

Definitions again - an innovation can and often is created by a large organization to disrupt an existing market space or create an entirely new market. Recent examples of this would be the iPhone, the iPod and the Flip Video recorder.

Innovation can happen in any organization, of any size. Innovation also takes place in government and that’s something that often surprises people. I’d say that The Knowledge Mine incubator, The Research Council, The Public Authority for Investment and Export Development and The Origin Oman campaign are four good examples of government innovation. We typically don’t think of government as entrepreneurial or innovative, yet it can be highly innovative especially when you think that innovation isn’t just about products, it can be about services, business models and customer experiences.

What’s your take on start-up success?

Globally, it’s estimated that nine out of 10 businesses fail in the first five years. But when you pick up a newspaper or a magazine you read: “Entrepreneurship is the greatest thing since sliced bread. Join the train and hop on board.” We’ve got to be careful with these types of messages. Success is never guaranteed.

Everyone still sees going into business in the same way they did 20 years ago, but the landscape has changed, and changed radically. It’s extremely competitive out there. With today’s mass communications, markets are 24/7 and everything is

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Mohammed Al RasbiFounder & CEO

R&D

instant. The world has quite literally shrunk! There’s so much more involved in being a start-up in terms of marketing, social media, networking and staffing. I’m not saying there aren’t opportunities - there certainly are - but they’re fewer and more difficult to execute than ever before.

If we’re going to build a stronger, more vibrant and commercially responsive SME sector we have to do something to increase the number of start-up successes, reduce the failures and help people get to the next level. In my view, this is what the Knowledge Mine incubator experience gave me. I had a prestigious address that meant something to people. I was in a creative, pro-active, positive working environment that promoted ‘out of the box thinking’. I was surrounded by hi-tech blue chips, SMEs and other start-ups. There was a real sense of purpose. Plus I had access to the incubator’s mentor support program and KOM’s networking events. It’s these ingredients that have helped my firm survive and prosper.

Look, we all have different definitions of success, don’t we? But to help start-ups climb the ladder I’d like to see us have a stronger nationwide small business infrastructure in place – maybe a set of offices staffed by well-informed SME advisors - ideally people who’ve been through the start-up experience themselves - that were there to help anybody, whether they were starting a business or in a business that was stuck in the mud. Helping people figure out how to move forward, what the realities are and how to stack the odds in their favour.

Where does money come into the start-up debate?

You read all the time about starting businesses on a shoe-string, that you can start-up with nothing. I’m not at all sure that’s correct or that it’s the right message to be sending out. In fact, I think the focus should really be on how much does it take to operate the business for the first two to three years. Because it takes most businesses that long to get up and running, build a reputation and get their foot in the door. If you don’t have your finances in order, you put yourself at a disadvantage. You don’t start making money straightaway, if at all in many cases, and you really need to think about how much you’re going to need to support yourself and the business for at least two years and what you’re going to do if things don’t work out quite as you’d planned.

Even if you’re lucky enough to raise seed capital funding, people have to understand, one, that it’s difficult and a lot of businesses aren’t fundable by local banks, VCs or even angel investors; two, it takes a really long time and three, if you do find an investor, they won’t fund your lifestyle and they’re not in it for fun. You still need money to live on. You’ve got to crunch the numbers and understand how the business will be made sustainable.

Is the start-up world for everyone?

Being a business owner isn’t the easiest route in life. You have to be able to wear multiple hats and endure enormous emotional challenges and financial risk. It may be that you aren’t cut out to be an entrepreneur, or perhaps now just isn’t the time for you.

Focus on Research

Dr. Baba El-Yakubu JibrilSultan Qaboos University

Dr. Baba El-Yakubu Jibril obtained a PhD in Chemical Engineering from the University of Salford in the United Kingdom in 2002. Since then, he has been engaged in research and teaching in a variety of universities. His main research interests are in the areas of preparation and testing of adsorbents and catalysts. He is currently at Sultan Qaboos University and researching In-situ Catalytic Upgrading of Omani Heavy Crude Oil during Steam Injection.

What’s your average day like? Usually, I get to the office by 8:00am. In the morning, I prepare for classes or meetings – on student projects, with research assistants or committees – or do some reading or writing. Some days, I have office hours in the morning. After lunch, I work in the lab till 4:00pm. I go back to the office after Asr prayers to check mails and clear my desk for the day. I get back home by 6:00pm.

What are the rewards of being a researcher? Acquiring knowledge is very important for personal satisfaction as well as for general human development. When you hypothesize something, test it in the lab and find it to be correct, it gives you satisfaction. When the hypothesis turns out to be wrong; you feel motivated to improve it and test again. In the end, the reward comes when other researchers agree with you that the ideas you hypothesize are important and worth sharing with other researchers as a published article.

Do you sense that you’re alive at a time of important scientific change? If so, do you feel a responsibility to make sure that the change comes out well?Attempting to understand the human race and its environment is a continuous process. Recent research in subatomic particles, nanotechnology and sustainable energy will bring important changes in the world. Each one of us may contribute in some ways towards achieving the change. I feel partly responsible for motivating my students and interacting with other researchers towards making that change a reality.

How has your research benefited from your TRC funding? My main research interest is in catalysis – attempting to improve understanding of chemical reaction and to develop new materials that speed up the reactions. It is a multidisciplinary area that requires expensive equipment. The TRC grant enables us to order research equipment and chemicals and hire experienced assistants. This serves as a nucleus for establishing a Catalysis Research Laboratory at Sultan Qaboos University.

What are the potential practical applications of your research and its results? What are the benefits for Oman in particular? There are great potential benefits of integrating Chemical Engineering Sciences such as catalysis into the enhanced oil recovery (EOR) area of Petroleum Engineering. My research sponsored by TRC is in the application of catalysts in EOR. The potential benefits of this approach have been well demonstrated by others, but there are still no practical applications. We hope to bridge that gap. For Oman, due to the different nature of its heavy oil, we propose to conduct detailed characterization of the oil and design catalysts that will be useful for practical applications. For example, a recent report has shown that in a batch reactor study using Fe3(CO)12 as a catalyst and methane as a source of hydrogen, viscosity of a heavy oil was reduced from 500 to 1.3 Pa.s and sulphur was reduced by 14%. Our target is to design a catalyst (or catalysts) that will do better.

Today, everyone’s talking about climate change and global warming. Where do you see the next big scientific challenge? It is not easy to predict where the scientific community willturn in the future. This is because whatever issue is considered to be a ‘big scientific challenge’ will be determined not only by

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Dr. Baba El-Yakubu Jibril Sultan Qaboos University

Policy-makers are the main audience that scientists must convince that cutting-edge research is important.

From my experience of other countries, policy-makers decide what the priorities of a country are and whether or not scientific research is part of those priorities.

scientists, but also by politicians and policymakers. As far as I can see, the next big issues will be in food production and distribution, water resources and the control of the Internet.

Food can be produced in many places, but can it be equitably distributed to areas of high demands? There is increasing pressure on our scarce fresh water sources. How should the demand-supply disparity be addressed? The Internet has been designed to be free from political encumbrance. But as recent political upheavals show, there must be checks and balances to be able to achieve the long-term benefit of the Internet. In all these areas, a new scientific paradigm is urgently needed.

Do you see any particular challenges for research in Oman? We must build capacity to make sure we have the people we need to work in scientific research. This is the real challenge right now - we must make sure we have the right people in place at all levels from technical support staff to researchers.

How can we communicate the importance of research to the general public? In my opinion, it’s not the general public we need to focus on. The policy-makers are the main audience that scientists must convince that cutting-edge research is important. From my experience of other countries, policy-makers decide what the priorities of a country are and whether or not scientific research is part of those priorities.

Is there anything that we probably won’t understand no matter how much research we do? No. The human mind can understand anything, but it needs the necessary background and sometimes paradigm change. The challenge is that there is an infinite number of things that a human may want to understand. So, scientific research is ever-evolving - with new questions and new perspectives. For example, at one time science wondered what constituted matter. When atoms were identified as the basic building blocks of matter, one of the new questions was why different atoms behaved differently. Then subatomic particles, their interaction and role combination among atoms became a fascinating scientific issue.

Today, with the availability of new tools and the evolving field of nanosciences, scientists are trying to understand areas of biology that were hitherto unexplored. So, the human mind understands, but then asks a different set of questions.

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Meet the Entrepreneurs

Salma & Aisha Al HajriSalma’s Chocolates

Salma and Aisha Al Hajri are Muscat-based chocolatiers. The aunt and niece team specialize in premium handmade chocolates that use local ingredients – from honey and zatar to rose water and lemons – local produce drives their business.

Where did the idea for a chocolate start-up come from?We had the idea of doing something together for quite some time - we tried a couple options before but we never really managed to take them forward.

This time though the timing just seemed right in terms of our lives and our careers. We looked at the market and looked at what we thought would work - and the chocolate idea seemed the perfect fit. We’ve always liked chocolate and enjoyed experimenting with it in the kitchen at home and we could see a gap in the market for the kind of thing we wanted to do. The opportunity to combine our passion for chocolate with our idea to start up a business together seemed perfect.

Do you both work full-time in Salma’s Chocolates?No we don’t. Aisha works full-time at a bank and I’ve taken a year’s leave of absence from my post at Sulatn Qaboos University to focus on the business and really get it off the ground. This is working well for us - the idea of giving up our jobs wasn’t something either of us felt was a wise thing to do.

What were your first steps to getting the business up and running?We were lucky enough to be able to travel to Europe and took courses in chocolate making - we wanted to learn the trade - to know how it works - we didn’t want someone else to do that for us. We wanted it to be our business in every sense.

We surveyed the market to see what our competition would be and how we could be diferent - what we could do to stand

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out. We also saw a trend for autheticity sweeping the world - people are looking for special expereinces in the things they buy - there seemed to be two strands to this people wanting something unique and also people really appreciating local produce - it means a lot in this world of mass manufacturing.There’s a rise in small batch manufacturing in all kinds of things from chocolate and chutney to T-shirts and jewellery - people want something unique, something different.

The ‘Just-Food’ global market review of premium chocolate says the 2011 global premium chocolate market grew from US$6.95billion in 2007 to US$12.9billion in 2011. So it looks like our instincts were in the right place.

So that’s the reason for the focus on local ingredients?Local produce is at the heart of our business - it makes us unique - it makes us stand out from the other chocolate companies. Our ingredients are locally sourced as far as we possibly can and reflect our culture and traditions. Our ingredients have real people behind them, they each have a story and they’re part of the fabric of our business. For example, our zatar is sourced from two elderly women - they climb up the mountainside for two hours to harvest it. These tracable local ingredients differentiate us in the market.

We’re passionate about all things local - not only are they wonderful but we can guarantee the quality when things are sourced from our doorstep. We can be sure of trading ethically and by buying locally we support our community and help other businesses along the way.

What’s the biggest challenge you’ve faced since you set up Salma’s Chocolates?Funnily enough it’s our success. Once we started to take off and become popular we faced our biggest challenge - that was one meeting the volume of orders we received. That’s in terms of production and sourcing ingredients. But that’s not necessarliy the worst kind of problem to have!

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We’re very aware that we need to be realistic about growth rates and how quickly it is safe to grow. We need to be realistic about growth rates. We want to focus on delivering on our promise and our brand values.

Salma & Aisha Al HajriSalma’s Chocolates

Did you have a business plan? Have you followed it? Have things turned out as you expected?Yes, we had a business plan. The demand for our product soared in a short space of time so our predictions for growth were underestimated and that brought multiple challenges from packaging and production to just finding the time to do the administration - the volume of paperwork a business generates is incredible. It’s the kind of thing you don’t really consider when you start out.

How do you see your business developing?We’ve established a brand and many people are now aware of it and we have to maintain our brand value. The most important thing for us is to deliver a premium product. So, right now, we’re entering a period of consolidation.

We’re very aware that we need to be realistic about growth rates and how quickly it is safe to grow. We’re not looking to expand much more at this point - hopefully that will come later. We want to focus on delivering on our promise and our brand values.

Have either of you got a business background?Not per se. We’ve no formal business training but we did do our research and reading - we’ve been very thorough.

Was there a particular moment you would define as a turning point for your business?I think there have been two things that you could call turning points. The first has to be the significant help and advice we’ve received from the Minsitry of Commerce and Industry. It’s made a world of difference for us.

This led to the second turning point which was Eid Al Fitr this year when we had our promotion at the Sulatn Centre in Qurum. It was a huge success. That’s definitely the point when things really started to take off. We do have to thank Omran for their supprt and assistance in the promotion. That was invaluable.

Around the same time, we put a promo film made for us by local film-makers Jamal and Anwar Al Asmi of Reality CG on YouTube. In just about a week it had over 40,000 views - that really got our name known! Social media has been a tremendous tool for us especially as we don’t really have a marketing budget.

Tel: +968 95 08 58 81www: salmaschocolates.com

Salma’s ChocolatesAl Athaiba

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Young Researchers’ Corner

Here are some great tips to get you started...

Do you want to be an inventor?

Generally speaking, inventions solve problems in everyday life. So look around you. Use your skills of observation.

Being aware is the first step on the road to discovery!

Start taking a note pad everywhere you go so you can jot down your ideas and observations on what you see.

Think about the things that annoy you, the things you’d like some help with, things that might be useful for your family or someone you know.

Make a list in your note pad.

Draw your invention. Think about how it’s going to look. Sketch the back and sides as well as the front.

How will the different parts fit together? How will all the parts work together? What about the inside? Label your drawing. Make notes about the different pieces.

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Remember you don’t have to invent something new. Can you improve on something that already exists? Can you add something to it?

Once you have a list of ideas choose one or two to focus on.

Use your note pad again - make a list of all the things you’ll need. Think about where you can get them and, if you have to buy them, how much they’ll cost.

Make a list of people you’ll need to ask for help and advice.

What tools and equipment will you need? Can you borrow them?

Think about how your idea will work. A good idea is one thing but unless you know how it’s going to work, it’s going to stay as an idea - it won’t become an invention.

Use old things for inspiration. Look at old things and think what they could become - how could they be different? How could they be better? What else could they do?

When you try to make your invention get an adult to check everything you want to use is safe before you start.

Check if you’ll need an adult to supervise while you’re making your invention.

Remember:simple ideas are often the best ideas.

Good Luck and

Happy Inventing!

To be a successful inventor a good idea alone isn’t enough - you’ll need to make a model of your invention.

www.trc.gov.om

towards an effectivenational innovation system

The Research Council

The Research CouncilPO Box 1422Muscat 130Sultanate of Oman

Tel: +968 24 50 98 00Fax: +968 24 50 98 20

info@trc.gov.om

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