Hong Kong Science and Technology Parks Corporation (HKSTP)

1. Hong Kong Science and Technology Parks Corporation(HKSTP) Technology-based Incubation Programme Incu-Tech 2002 Hong Kong Science and Technology Parks Corporation

2. HKSTP:Corporate • A statutory body set up by HKSAR Government • Hong Kong Science Park – Applied R&D • Technology Centre – Business Incubation • Industrial Estates - Production / Services Facilities Hong Kong Science and Technology Parks Corporation

3. HKSTP: Vision To play a leading role for Hong Kong to become: • a major centre of innovation and technology development in the focused clusters, and • a hub for high value-adding, skill-intensive manufacturing and service industry capacities. Hong Kong Science and Technology Parks Corporation

4. HKSTP: Mission • To provide quality infrastructure and support facilities for innovation and technology development • To offer full-service incubation programmes for technology start-ups • To foster partnership between industry and universities through joint training and research programmes Hong Kong Science and Technology Parks Corporation

5. HKSTP: Focusing Towards 4 Technological Clusters • Electronics • IT & Telecommunications • Biotechnology • Precision Engineering Hong Kong Science and Technology Parks Corporation

6. HKSTP: Incubation Programmeto offer full-service for technology start-up companies in Hong Kong Hong Kong Science and Technology Parks Corporation

7. Incu-Tech : Aim To encourage and promote innovation based entrepreneurial activities in order to : • Contribute to GDP growth and increase high value-added employment; • Reinforce Hong Kong’s position as a product development centre; • Enhance Hong Kong’s position as a window to the world. Hong Kong Science and Technology Parks Corporation

8. Incu-Tech : Overview • 3-year programme • Not-for-profit incubator • Full Service Not Space Only • Business Development & Technology Support • Focus 4 technology clusters • Account servicing throughout 3-year incubation period • Milestones assessment • Operated for 9 years • Attracted 151 high tech start-ups • 77 current incubatees, 74 graduated Hong Kong Science and Technology Parks Corporation

9. Incu-Tech : Overview • Strategic Location of Incu-Tech Centre • 3 sites: Tech Centre, Science Park, PolyU • Thematic Building Complex • Tech Centre for IT and Telecom • Soon-be-set-up • Innovation Centre (for IC design and testing) • Photonics Centre for Photonics, precision engineering • Biotech Centre for Biotechnology Hong Kong Science and Technology Parks Corporation

10. Incu-Tech : Business Development & Technology Support (BDTS) • From basic business operation support to strategic business advice. • Designed for incubatees in following stages: • product concept • prototyping • market development • continuous innovation development Hong Kong Science and Technology Parks Corporation

11. Business Development & Technology Support (BDTS) • Includes the following services and supports : • Technical & Management Assistance • Promotion & Training Assistance • Networking • Business Matching Services • Communal Service • Aid Package • Technology Support (IC Design/Support Centre, Photonics Centre) Hong Kong Science and Technology Parks Corporation

12. BDTS - Technical & Management Assistance Joined forces with 5 universities (CityU, CUHK, PolyU, HKU & HKUST) enabling incubatees to access university resources, business and technical advises. Hong Kong Science and Technology Parks Corporation

13. BDTS : Technical & Management Assistance • Strategically located in 3 sites near universities with collaboration for easier access the Technical & Management Service • Tech Centre near CityU • Innovation Centre at Science Park near CU • Campus-based Centre inside PolyU Hong Kong Science and Technology Parks Corporation

14. BDTS - Technical & Management Assistance • Utilize University Resources • Hire University student • Short-term(e.g. summer) placement • 1-year work-study programme • Final year student projects • Consultancy projects(technical) from Professors • Access to library service Hong Kong Science and Technology Parks Corporation

15. BDTS - Technical & Management Assistance • Mentorship • Already lined up 10 well experienced business executives and scholars as mentors, they are from : • Industry • Graduated Incubatee • Academia Hong Kong Science and Technology Parks Corporation

16. BDTS - Promotion and Training Assistance • Training Courses/Seminars • general courses and workshops to train up incubatees & their staffs with business skill/technical knowledge • customization of technical and management training programmes to suit the needs of incubatees in different stages of development Hong Kong Science and Technology Parks Corporation

17. BDTS : Promotion & Training Assistance • Promotion Assistance • upon completion of R&D • assist in • product launch (has organised over 60 product launch in past years) • exhibition e.g. Asian IT Expo, HK Electronic Fair, ITU Telecom Asia, Comdex. Hong Kong Science and Technology Parks Corporation

18. Promotion and Training China Hi-Tech Fair Hong Kong Science and Technology Parks Corporation

19. BDTS - Promotion & Training Assistance • Networking Opportunities • orientation, luncheon, seminars, cocktails with guest speakers • held in own building enabling mingling among incubatees, industrial professional and business executives • Admission to the social clubs of selected universities Hong Kong Science and Technology Parks Corporation

20. BDTS : Business Matching Service • Financial Matching with Technology Capital • identify and approach angel, venture capitalists and corporate investors to facilitate clients’ capital fund raising • shortlisted 3 investment consultants • Polyman International Capital • QLeap Accelerators • Broad United Consultants Hong Kong Science and Technology Parks Corporation

21. BDTS : Communal Service • Legal Service • lined up 3 legal firms to provide commercial contract / patent related legal service at a preferential rate • Wilkinson & Grist • Squire, Sanders & Dempsey • WI. Cheung & Co Hong Kong Science and Technology Parks Corporation

22. BDTS: Communal Service • Office Premises • ready-to-use office space at reduced rental • basic business operation services • centralized reception area, meeting room & facilities, office equipment pool, IP address, internet access and gymnasium facilities Hong Kong Science and Technology Parks Corporation

23. Office Premises (Tech Centre) Hong Kong Science and Technology Parks Corporation

24. BDTS : Communal Service • Group Discount • Pool operational requirements of clients to achieve economy of scale • Sourced support from software vendors to offer discount on development tools • E.g. Microsoft, HK Enterprises.com, Hong Kong Trade & Development Council Hong Kong Science and Technology Parks Corporation

25. BDTS - Aid Package (Overview) Financial subsidies for service/support : • Technical & Management Assistance Fund HK$ 98K • 75% subsidy in general • Training Assistance Fund HK$ 18K • 50% subsidy • Promotion Assistance Fund HK$ 184K • Subsidies on 6 exhibitions, 3 product launches, 10 management training courses and 24 hours legal service throughout 3 years. • Operation Reimbursement Fund HK$ 45K • 50% subsidy • Total HK$ 345,000 (USD 44K) for 3 years incubation period. Hong Kong Science and Technology Parks Corporation

26. BDTS : Technology Support - Innovation Centre • Focusing towards IC design and electronic system engineering • Sharing of advanced technological infrastructure - IC Design/Development Support Centre • Providing specialized services: • Design library , Wafer shuttle , Specialized IC CAD tool • Test system platforms , Specialized labs for SEM, FIB • Wet labs for product/failure analysis • Next generation incubation location • 100,000 sq. ft. floor space of lab/office • Ready for occupancy in early 2003 Hong Kong Science and Technology Parks Corporation

27. Innovation Centre Hong Kong Science and Technology Parks Corporation

28. BDTS : Technology Support - Photonic Centre • Dedicated to Photonics and Precision Engineering • Located at the waterfront • 143,000 sq. ft. floor space of lab/office Moving forward at the speed of light Hong Kong Science and Technology Parks Corporation

29. Photonics Centre Hong Kong Science and Technology Parks Corporation

30. Overall cost of investment on each incubatee : • Aid Package and Office Premises HKD 750K + • IC Design/Support Service HKD 250K Total investment from HKSTP • HKD 1 million • Assuming each incubatee takes 800’ s.f.g. office space Hong Kong Science and Technology Parks Corporation

31. General Conditions for Incubation Services • Not entitled to Aid Package in the first 6th month • Milestones Assessment • Incubatees must be assessed by the 6th month & 18th month milestones • If meet milestones assessment, Aid Package and reduced license fee are entitled Hong Kong Science and Technology Parks Corporation

32. Licence Fee Hong Kong Science and Technology Parks Corporation

33. Incu-Tech: Account Servicing • Ir. S.W. Cheung, Vice President of BDTS, to meet each incubatee every 6-month • Each incubatee is assigned an Incubation Manager who acts as a bridge between clients and internal service support personnel • Now, 4 Incubation Managers to account for business development of about 80 incubatees Hong Kong Science and Technology Parks Corporation

34. Incu-Tech: Mandatory Admission Criteria • A start up company registered in Hong Kong • At least 2 full-time staff, one of whom is a shareholder with not less than 20% share and is an engineer of the related discipline • The company should have a dedicated and technically competence management team Hong Kong Science and Technology Parks Corporation

35. Incu-Tech: Mandatory Admission Criteria (Con’t) • Develop or commercialize technology in the innovation technology industry • Conduct most of R&D activities at the Incubation Centre. • It cannot operate only a sales & marketing office or retail outlet at the Incubation Centre Hong Kong Science and Technology Parks Corporation

36. Incu-Tech: Qualitative Assessment Criteria • Quality and competence of the management team (e.g. one/more of the shareholders is a technical person of related discipline) • Business viability , Innovativeness • Technology/R&D content • Milestones set for 6th month and 18thmonth after admission Hong Kong Science and Technology Parks Corporation

37. Incu-Tech: Assessment Panel • Assessment Panel Members • Deputy CEO of HKSTP • Vice President (BDTS Division) of HKSTP • Senior Director (Marketing & Admission) of HKSTP • External Assessor (University Professor) • will be notified in about 10 weeks upon received completed application form Hong Kong Science and Technology Parks Corporation

38. You could be the next ! For further information HK Science & Technology Parks : http://www.hkstp.org Enquiry : 2784 2669 Hong Kong Science and Technology Parks Corporation

39. For Corporate: www.hkstp.orgApplication Form: www.hkincubator.org Hong Kong Science and Technology Parks Corporation

40. Incu-Tech • Examples of promising new projects involve commercialization of - • Wireless technology • Biometric applications • Application-specific IC design • System-on-chip technology • Multimedia communications • Thermal management technology for semiconductor industry Hong Kong Science and Technology Parks Corporation

41. Incu-Tech: License Fee (reduced rental for 3 years) • Tech Centre for IT incubatees • HK$0/sfg for first 6 months • HK$0 /sfg for additional 6 months if meet first 6th month milestones assessment ; • otherwise market rate or move-out • HK$8/sfg from 13th month until graduate if meet 18th month milestones assessment; • otherwise market rate or move-out • In summary, if meet the 2 milestones assessment, then HK$0,$8, $8 /sfg throughout 3 years Hong Kong Science and Technology Parks Corporation

42. Incu-Tech: License Fee (reduced rentalfor 3 years) • Science Park for non-IT incubatees • HK$0/sfg for first 6 months • HK$0 /sfg for additional 6 months if meet first 6th month milestones assessment ; • otherwise market rate or move-out • HK$6.5/sfg until graduate if meet 18th month milestones assessment; • otherwise market rate or move-out • In summary, if meet the 2 milestones assessment, then HK$0,$6.5, $6.5 /sfg throughout 3 years Hong Kong Science and Technology Parks Corporation

43. BDTS : Structure Hong Kong Science and Technology Parks Corporation

44. BDTS- Aid Package • Technical & Management Assistance Fund (HK$98K) • for U-collaboration service , consultancy, mentorship, U-library services, U-student projects • incubatee can reimburse 75% of service charge ( but only 50% for Teaching Company Scheme) • Training Assistance (HK$18K) • training courses provided by pre-approved training institutions • incubatee can reimburse 50% of service charge Hong Kong Science and Technology Parks Corporation

45. BDTS - Aid Package • Promotion Assistance Fund (HK$184K) • up to 3 product launches, 6 exhibitions, 10 training courses, 24hours legal service • incubatee can reimburse 75% of service charge • Operation Reimbursement Fund (HK$45K) • other services provided by external vendors except salary and entertainment • incubatee can reimburse 50% of service charge Hong Kong Science and Technology Parks Corporation