Key findings from Korean STP training (Daejeon, Innopolis, May 2012) presented to NU management by Diaz Baiseitov

1. Korean STP training presentation
Daejeon, May 2012

2. Training overview
STP 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 Foundation
Span: 7-18 May, 2012
Location: Daejeon (incl. trips to surrounding TPs), S.Korea
Costs: 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

3. Tasks accomplished
1) 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) received
6) Business contacts with similar international and Korean agencies established
7) As part of the culture lessons , basics of Korean language learnt
8) An official certificate of training completion awarded

4. Korean R&D overview

5. 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

6. Innopolis history and mission
Vision
2015

7. Innopolis governance structure

8. 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

9. 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
Daedeok Innopolis
1971: KAIST established
1974: Daedeok Science Park
construction starts
1976: ETRI established
1992: Daedeok Science Park
is fully built
2000: IT ventures bloom,
the ‘Daedeok Valley’ miracle
2005: Science park renamed
to DAEDEOK INNOPOLIS
MIT Route 128
1957: 99 companies with
17,000 workers
1958: the Route widened
from six to eight lanes
1965: 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

10. Innovative clusters worldwide presently
follow the TRIPLE HELIX MODEL of University-
Industry-Government relation which stimulate
innovation through the synergetic effect.
Key findings from the training
Innovation
Implementation in Korea

11. 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

12. 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

13. 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
Korea
Research
Councils
Implementation in Korea

14. KAZAKHSTAN has potential to develop
INNOVATIVE INTELLECTUAL CLUSTER around
NU, if supported by Government & Industry.
Key findings from the training
Key areas of R&D focus (competitive advantages) identified:
BioMedicine
Integrated into the NU
structure, National
Medical Holding can
act as an anchor for
the 1st stage of the
Cluster development.
Space Industry
Physical proximity of
the Satellite Assembly
Plant and the
“Bayterek” space
rocket complex can be
the 2nd stage anchor.
Renewable Energy
Kazakhstan’s location
and grid infrastructure
allow using renewable
sources of energy, at
least to substitute
current power import.
Deep Oil Processing
Abundant 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

15. Thank you for attention