Korean STP training presentationDaejeon, May 2012

Training overviewSTP training in Innopolis is held on annual, competitive basis.20 participants from all over the world, 2 persons per country.

Host: Ministry of Knowledge Economy / INNOPOLIS FoundationSpan: 7-18 May, 2012Location: Daejeon (incl. trips to surrounding TPs), S.KoreaCosts: Sponsored by Innopolis (except for airfare)Geography: Kazakhstan, Indonesia, Mongolia, Pakistan, Ethiopia,

Equador, Slovaquia, Srilanka, Irak, Saudi Arabia, Oman.Curriculum: • Introduction to Science & Technology Parks (STP)

• Operation and Development Strategies• Research on Successful Cases of Korea's R&D Policies

• Structure and Functions of the Daedeok Innopolis• Business Incubation & Tech-Commercialization• STP Business Action Plan Practice & Evaluation• Technology Commercialization Practice & Evaluation• Site Visits to Research Institutes, Hi-tech Companies, TPs

Tasks accomplished1) Extensive lecture material acquired on paper/electronic media on transfer and commercialization of technologies, STP foundation and state regulation.2) Visits to GRIs (Government Research Institutions) with profiles similar to those of the NU Research Centers, such as KAIST, KIER, KRICT, ETRI.3) Visits to industrial parks (Chungnam, Daedeok) and start-up companies (Golfzone, Cotde, VTT, Tabos, etc.), setup and pilot production process studied.4) Business simulation project “Creation of an innovative cluster on the basis of the Nazarbayev University” presented, positive reviews and comments received.5) Private visit to the Korean Institute of Bioscience and Biotechnology (KRIBB): 1,500 staff, >40 labs, annual budget of >$100mln), the possibility of collaboration and training discussed. An offer for clinical trials and subsequent commercialization in Kazakhstan of the innovative cancer drug (based on differentiation of hematopoietic stem cells into NK-cells) received6) Business contacts with similar international and Korean agencies established 7) As part of the culture lessons , basics of Korean language learnt8) An official certificate of training completion awarded

Korean R&D overview

Innopolis overview#1 R&D district in Daejeon established by President Park Chunghee in 1973 with the opening of KAIST. > 20 major research institutes, > 40 corporate research centers Highest number of PhDs in Korea 18 Incubators 310 resident firms 158 start-ups Infrastructure Special law on Daedeok R&D special zone

Innopolis history and mission

Vision2015

Innopolis governance structure

Innovative cluster development is a GRADUAL process (imitation to innovation) that takes

years. A country should start by identifying &using its existing COMPETITIVE ADVANTAGES.

Key findings from the training

1

An ANCHOR should be used as a basis for INNOVATIVE CLUSTER – this could be either major University, a company, or trade route.Surrounding infrastructure is ESSENTIAL!

Key findings from the training

2

Daedeok Innopolis

1971: KAIST established1974: Daedeok Science Park construction starts1976: ETRI established1992: Daedeok Science Park is fully built2000: IT ventures bloom, the ‘Daedeok Valley’ miracle2005: Science park renamed to DAEDEOK INNOPOLIS

MIT Route 128 1957: 99 companies with 17,000 workers 1958: the Route widened from six to eight lanes1965: 574 companies 1973: 1,212 companies 1980: positive effects of this growth on the local economy was named the "Massachusetts Miracle".

Hsinchu Science and Industrial Park (Taiwan)was based on Taiwan Semiconductor Manufacturing Company (TSMC + UMC) to combat ‘brain drain’. Impact: nationals with 10-15 yrs of foreign work experience have returned. Now hosts >70% of global IT industry products ($40bn / year).

Implementation examples worldwide

Innovative clusters worldwide presentlyfollow the TRIPLE HELIX MODEL of University-Industry-Government relation which stimulate innovation through the synergetic effect.

Key findings from the training

3

Innovation

Implementation in Korea

GOVERNMENTAL SUPPORT in form of FINANCIAL DOTATION and LEGAL INCENTIVES is essential on any stage of STP development.Consistent political leadership preferred.

Key findings from the training

4

Robust IP RIGHTS ECOSYSTEM is required for development of the “Knowledge economy”,

which could provide sufficient protection, as well as facilitate trade and consumption of IP.

Key findings from the training

5

Accumulation of the existing GRIs under one entity (e.g. National Research Council) is required to COORDINATE the R&D activity, AVOID DUPLICATION and DILUTION of FUNDS.

Key findings from the training

6

Korea ResearchCouncils

Implementation in Korea

KAZAKHSTAN has potential to develop INNOVATIVE INTELLECTUAL CLUSTER around NU, if supported by Government & Industry.

Key findings from the training

7Key areas of R&D focus (competitive advantages) identified:

BioMedicineIntegrated into the NU structure, National Medical Holding can act as an anchor for the 1st stage of the Cluster development.

Space IndustryPhysical proximity of the Satellite Assembly Plant and the “Bayterek” space rocket complex can be the 2nd stage anchor.

Renewable EnergyKazakhstan’s location and grid infrastructure allow using renewable sources of energy, at least to substitute current power import.

Deep Oil ProcessingAbundant oil reserves favor petro chemistry and deep oil refinery: cracking, reforming. Coal gasification is an option to consider.

Key incentives proposed to stimulate Cluster growth:Social: Legal: Economic:* Raise the prestige of researchers * Rigid & clear IP Rights Policy * Tax & customs duty free zone* Attractive infrastructure & leisure * Special regulation of the Cluster * Discounted rent and overheads* Military service exemption * Consistent governmental policy * Commercialization & VC funding

Thank you for attention