Success and Constraints in TBI Operation ASEAN TBI Models

12 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 3 VC and Investors Sup- port + Limited Only private Only private Limited 4 Community of Indi- vidual Support + None None None None 5 Institutions Support- ing TBI Technology Licensing IPR Expert Network Stock Market + + + Big and Small scale None + None None None No direct connec- tion None Only big scale None + No direct con- nection None Only big scale None + No direct con- nection None Only big scale 6 Leading Ministry in TBI Program 1.METI Min. Economy, Trade Industry 2.MEXT Min. Edu- cation, Culture, Sport, Sci- ence and Technol- ogy Brunei Economic Development Board 1.Ministry of Coop- eratives and SMEs 2.Ministry of Edu- cation 3. Telcom Public Company DOST Depart- ment of Science and Technology 1.Ho Chi Minh City Municipal Government For AMS having developing TBIs like Brunei Darussalam, Indonesia, Philippines, and Vietnam, the role of government to support the TBI development is still have to be exponentially increased so the TBI development could catch up with their developed partners such as Malaysia, Singapore, and Thailand. For AMS who just initiated the TBI development, a strong political will to put aside the government budget allocation in prioritizing the development of TBI is required.

4.3. Success and Constraints in TBI Operation

Several factors viewed by TBI managers and TBI SME clients contributed to the success of a TBI were listed in the following ranked by the most to the less frequently named by the respondents . 1. Continuous government budget support for the operation of TBI. 2. TBI management staff is to be highly professional, committed to the program, and experienced in handling business and technology issues. 3. Recruitment of SME clients who have passions in growing their business, and who listen and cooperate with the TBI management staff. 4. Funding for SME clients covering the availability of TBI facility, equipment, and infrastructure ; seed capital, technology innovation, and growing investment. 5. Support of appropriate business ecosystem and STP. 6. Broad network for technology resources, experienced mentors, and decision makers. 7. Robust incubation process. 8. Reputation of TBI host institution. ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 13 Constrains mentioned that could hindered the TBI development were the negation of the previous listed factors that were contributing to the success of a TBI, and additional matters as follows. 1. Limited interest of university graduates to open their own enterprises. 2. Limited capability of young start-ups to pay the rental fee inside the TBI properties. 3. Limited access to oversea market for export products.

4.4. ASEAN TBI Models

Taking into considerations all aspects outlined in this chapter as the outcomes of the Baseline Study, and the previous Model Study, three ASEAN TBI Models were developed, i.e., ICT Incubation Model, Processing and Manufacturing Incubation Model, and Virtual Incubation Model. The characters of all the models were described in Table 4.4. – 4.6. ICT Incubation Model Table 4.4. Characteristics of ICT Incubation Model No Criteria Description 1 Type of Incubator For Profit or Not-for-Profit 2 Funding Support Private or government supported 3 Incubator Clients Type of Clients University graduates Resident 4 Pre-incubation Program A required part of the incubation model 5 Incubation Period 6 months to 5 years 6 Delivery Program Inside incubator building 7 Space for Clients Private room, open space, or hot desking 8 Other Facilities Hi-speed internet network, office, meeting rooms, and get together spaces. 9 Funding for Clients Venture Capitals, angel investors, or government 10 Location On university campus, Techno or Science Park TSP, or private building Processing and Manufacturing Incubation Model Agribusiness and Agroindustry, Biotechnology, Manufacturing, Handicraft Table 4.5. Characteristics of Processing and Manufacturing Incubation Model No Criteria Description 1 Type of Incubator For Profit or Not-for-Profit 2 Funding Support Private or government supported 3 Incubator Clients Type of Clients University graduates or general public Resident, and non-resident or also called outreach clients 4 Pre-incubation Program Optional 5 Incubation Period 3-5 years 6 Delivery Program Inside incubator building 7 Space for Clients Mostly private room, but some open space 8 Other Facilities Internet network, office, meeting rooms, and get together spaces. Access to pilot plant, workshop, and laboratory 9 Funding for Clients Mostly government, some are angel investors. 10 Location On university campus, Techno or Science Park TSP, or private building 14 ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators Virtual Incubation Model Table 4.6. Characteristics of Virtual Incubation Model No Criteria Description 1 Type of Incubator For Profit 2 Funding Support Private 3 Incubator Clients Type of Clients General public Non resident reached by on-line services 4 Pre-incubation Program On-line, is more considered as basic module services such as getting motivation, introduction of entrepreneurship and business 5 Incubation Period By learning or incubation modules that may be set up per 2-3 months each, or a series of modules that end up for 1- 2 years 6 Delivery Program Via internet network 7 Space for Clients None 8 Other Facilities Internet network, office, and meeting rooms 9 Funding for Clients Venture Capitals, and angel investors 10 Location Private building 4.5.Expectations for ASEAN TBI Network All TBI respondents and TBI stakeholder respondents most welcomed the initiative to develop the ASEAN Business Incubation Models, and the foundation of the ASEAN TBI Network that would link the TBI inside the AMS as well as outside the AMS. The respondents also stated willingness to adopt the developed ASEAN TBI Models. All the TBI respondents wished to develop a platform of ASEAN TBI, and under the platform the following expectations were mentioned : 1. ASEAN common programs in annual TBI forum, and capacity building of both TBI management staff and the start-up companies such as training, exchange manager program, business matching, benchmarking and business competition. 2. ASEAN co-incubation program among TBI in AMS. SOP for co-incubation was expected to be developed. 3. ASEAN forum for mentors, experts in specific fields, and VC. 4. ASEAN share experiences in best practices, successful SME clients, technology transfer, and laboratory services. 5. ASEAN data base for TBI and SME clients profiles. 6. ASEAN common fund. ASEAN COOPERATION PROJECT NO. INDSME11002REG Strengthening of Business SMEs and Technology Business Incubators 15

5.1. The ABI Network and ASEAN Project Workshop