Promoting techno-entrepreneurship through incubation: An overview at BADIR program for technology incubators

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1 Innovation Management, Policy & Practice ISSN: (Print) (Online) Journal homepage: Promoting techno-entrepreneurship through incubation: An overview at BADIR program for technology incubators Mohammad S Khorsheed, Mohammad A Al-Fawzan & Abdulaziz Al-Hargan To cite this article: Mohammad S Khorsheed, Mohammad A Al-Fawzan & Abdulaziz Al-Hargan (2014) Promoting techno-entrepreneurship through incubation: An overview at BADIR program for technology incubators, Innovation, 16:2, , DOI: / To link to this article: The Author(s). Published by Taylor & Francis. Published online: 29 Jan Submit your article to this journal Article views: 1034 View related articles View Crossmark data Citing articles: 2 View citing articles Full Terms & Conditions of access and use can be found at

2 Copyright econtent Management Pty Ltd. Innovation: Management, policy & practice (2014) 16(2): Promoting techno-entrepreneurship through incubation: An overview at BADIR program for technology incubators Mohammad S Khorsheed, Mohammad A Al-Fawzan and Abdulaziz Al-Hargan King Abdulaziz City for Science & Technology, Riyadh, Saudi Arabia Abstract: Saudi Arabia embarks the transition from conventional economy into a knowledge-based economy. This implies improving the national innovation capacity and developing an ecosystem for techno-entrepreneurs. In this regard, King Abdulaziz City for Science and Technology has established a national technology business incubation program; BADIR Program for Technology Incubators. BADIR aims to encourage non-oil based industry economic growth and foster knowledge growth and innovation-based startups. BADIR helps cultivate innovative ideas contributed by Saudi technoentrepreneurs as incubator members and enables them to scale their technology for industrialization and commercialization, and to benefit from the economic growth. This program to date has successfully assisted many technological incubators in a structured way. Keywords: economic growth, policy-oriented studies, entrepreneurial efficacy, incubation, SMEs, techno entrepreneurs Knowledge-based technology innovation is essential for encouraging economic development in a population. Most universities and research centers foster the growth of new technology-based companies by establishing business incubators (BIs). These incubators include resources to augment skills and to support the innovation-to-commercialization process (Soetanto, 2006). Saudi Arabia has implemented the use of BI processes as a national policy, which has led to government-supported programs. The BADIR for Technology Incubation Program (BADIR) spearheads this program from within the Technology Development Center (TDC). This article introduces BADIR s role in the BI process, which has been established nationally through governmental policy and programs in Saudi Arabia to stimulate technological innovation; presents the BADIR framework and methodology; and discusses BADIR s achievements and performance measures. Business incubation Business incubation is defined as a business support process that accelerates the successful development of start-up and fledgling companies by providing entrepreneurs with an array of targeted resources and services (Kathleen, 2006). BIs are also focused on improving the business environment for small and medium-sized enterprises (Colombo & Delmastro, 2002). To understand the scope of support needed for a full BI program, incubators are broadly categorized into three main types, depending on the tenant firms objectives and characteristics: Mixed-use incubators, economic development incubators and technology incubators. Mixed-use incubators promote continuous regional industrial and economic growth through general business development. Economic development incubators narrow down the regional development gaps by creating jobs and industrial restructuring (Aernoudt, 2004). Technology incubators help transform research and technology-based ideas into commercial products and services by fostering the creation and growth of start-up companies. The main goal for BIs is to produce successful firms that are economically viable and selfsustaining within a reasonable time. This process creates jobs, commercializes new technologies, and strengthens the overall economy (Yee, 2009). The impact of incubators on technological firms and economy is documented in the United States (VanSant et al., 2010), Europe (Adebanjo, 2010), Asia (Jusoh, 2006), the Middle East (Saidam, 2007), and Australia (Martinez-Fernandez, Soosay, Bjorkli, & Tremayne, 2004). Some of those incubators operate in multiple countries (Collinson & Gregson, 2003; Hallam & DeVora, 2009; Winden & Woets, 2003). 238 INNOVATION: MANAGEMENT, POLICY & PRACTICE Volume 16, Issue 2, August The Author(s). Published by Taylor & Francis. This is an Open Access article distributed under the terms of the Creative Commons Attribution License ( licenses/by/4.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

3 econtent Management Pty Ltd BADIR Program for Technology Incubators There is an increasing effort in Gulf Cooperation Council (GCC) states to support BIs to improve entrepreneurship (Al-Mubaraki & Busler, 2010). These efforts have been and are still playing an important role in enhancing GCC states competitiveness globally, e.g., five of the GCC states are among the top 20 countries around the world where entrepreneurs with innovative but risky projects find venture capital easier than elsewhere (Schwab, 2010). In Bahrain, Bahrain Business Incubator Center offers in-wall incubation services for the selected projects requiring basic infrastructure services offered by the BI (Hussein, 2007). While in Dubai, Mohammed Bin Rashid Establishment for SME Development (2011) aims to foster the development of a flourishing entrepreneurial culture and a competitive small and medium enterprises (SMEs) sector to support Dubai s economic development goals. This initiative tackles, among other challenges, the spiritual support needed by an Emirati entrepreneur especially among females (Kargwell, 2012). Besides, the impact of this initiative exceeds to expatriates (Tong, McCrohan, & Erogul, 2012). Those challenges are more or less facing entrepreneurs in Oman (Al-Shanfari, 2012). They vary between perception of the business environment, the possession of characteristics necessary to start a business, awareness of business opportunities and access to social networks and willingness to risk to starting a business. In Qatar, the overall status is a bit better, Qatar Foundation (QF) aims to prepare the people of Qatar to meet these challenges. QF offers SMEs a range of innovative venues for education, scientific and community purposes. Through its incubation arm the Qatar Science & Technology Park (QSTP), it attracts companies and entrepreneurs from around the world to develop and commercialize their technology in Qatar (Qatar Foundation, 2003). Business incubation within the Saudi national context The private sector accounts for over 85% of total employment in Saudi Arabia. SMEs represent 93% of the total enterprises in Saudi Arabia (Skoko, Al-Fawzan, Khorsheed, Wright, & Al-Sakran, 2009). They contribute 28% of the national Gross Domestic Product (GDP). SMEs employ anywhere between 10 and 100 employes each. SMEs play an important role in employment growth and private sector development. Studies reveal that Saudi SME entrepreneurs face several challenges while starting new business including a lack of experience in enterprise development and management, absence of risk capital investment, lack of integrated business development services and difficulty in access to the market. In Saudi Arabia, commercial BIs are still in their infancy (Skoko et al., 2009). There are only limited private BI service providers, based in Riyadh and Jeddah, which offer fee-based business assistance to aspiring entrepreneurs. Most private Saudi Arabia BIs do not provide all the services necessary for a BI, thereby requiring the entrepreneur to seek assistance from multiple providers. They lack clear understanding of technologybased enterprises amongst the service providers as most of them are in the conceptual phase. To tackle these obstacles, Saudi Arabia launched a novel national technology BI managed by the King Abdulaziz City for Science and Technology (KACST). The goal for this program is to encourage, facilitate, and support the establishment and development of sustainable technology incubator industries in Saudi Arabia. The following sections describe the steps Saudi Arabia has taken to create the national level policy formulating organizational bodies to implement the policies and creation of BADIR incubator programs, and assessing their achievements thus far. Setting up business incubation as an industry in Saudi Arabia In July 2002, the Council of Ministers in Saudi Arabia approved a national policy developed by KACST for science and technology, entitled The Comprehensive, Long-Term, National Science and Technology Policy. Figure 1 describes the organization structure under the policy plan. In brief, this policy plan accomplishes the following: Provides the framework for future publiclysupported BI efforts in Saudi Arabia Offers parameters and guidance that define the intended nature and objectives of prospective government-supported incubation activities Volume 16, Issue 2, August 2014 INNOVATION: MANAGEMENT, POLICY & PRACTICE 239

4 Mohammad S Khorsheed et al. econtent Management Pty Ltd Figure 1: Organizational structure under the national science and technology policy Endeavors to ensure that the incubation efforts sponsored by the Kingdom s government are focused, effective, comprehensive, and relevant to the country s needs Establishes the future direction for science, technology, and innovation (STI) in Saudi Arabia and defines the role of KACST, universities, government, industry, and society at large. This policy led to the National Plan for Science, Technology, and Innovation (NPSTI). A key element of the NPSTI is establishing programs to enhance the position of Saudi Arabia in the strategic technologies that are most important to the country. The policy also encompasses STI regulations, developing and diversifying financial support, human resources, strategic technologies, transfer and localization, R&D capabilities, and the administrative structures of STI institutions, and STI and society. King Abdulaziz City for Science and Technology is also responsible for building the infrastructure needed for supporting scientific research on a national level, including management of research grants, setup of communication networks and science and technology databases, and conducting applied research. The TDC within KACST was established to strengthen and promote technology development and commercialization activities within Saudi Arabia. TDC is a key part of KACST s responsibilities assigned under the NPSTI to promote the national scientific and technological base, thereby helping to realize the objectives of economic diversification, enhancement of growth, and promotion of human development. The TDC mission is to be a significant resource of KACST that supports the development of Saudi Arabia s National Innovation Ecosystem and catalyzes Saudi Arabia transition into a knowledge-based society. TDC s charter and strategic objectives point to three priority program areas for TDC: The BADIR Program for Technology Incubators, the Intellectual 240 INNOVATION: MANAGEMENT, POLICY & PRACTICE Volume 16, Issue 2, August 2014

5 econtent Management Pty Ltd BADIR Program for Technology Incubators Property Management (IPM) program, and the Technology Innovation Centers (TIC) program. The IPM program target is to increase the number of KACST invention disclosures and patent applications. The TIC program aims to create a series of university-based centers to promote university industry collaboration in research and education. The BADIR program aims to encourage, facilitate, and support the establishment and development of a sustainable technology incubator industry in Saudi Arabia. It is registered as a non-profit organization that focuses on serving its client companies and stimulating economic development through technology development and commercialization. BADIR is considered an independent unit with its own governance and management system. This arrangement has a few advantages, including flexibility in obtaining funding, managerial decision-making independence, ease of contractual processes, and less political interference. The TDC must carefully manage resource allocation between the programs. One way such management is accomplished is to adjust the resource roles within each of the programs over time. Although IPM and TIC are important programs, BADIR is where BI is facilitated nationally in Saudi Arabia. BADIR began as a concept in 2006, demonstrating measurable success in just a few years. The primary role for TDC varies across these program areas and over time in each area as well. Organizational structure of the incubation program Identifying the consequences of inadequacies in participating BI companies was the first step in helping to develop viable entrepreneurial efforts. KACST decided to overcome these obstacles by developing and supporting national polices. These policies ensure, through national programs, that entrepreneurs that become BADIR tenants (participating companies) receive the resources that they need to succeed. BADIR is registered as a non-profit organization that serves its tenant companies and stimulates economic development through technology development and commercialization. The organization is purposefully established to provide an environment with necessary skills and funding so that the tenants can transform their ideas into profitable businesses. Before discussing how the BADIR program functions, it is of great importance to acknowledge the role of the designated champion, the Vice President for the Research Institutes of KACST, who is also the Chairman of the Supervisory Committee for NSTIP. The importance of this champion for ensuring development and promotion of the BADIR s mission and responsibilities cannot be understated. The champion s roles include: Reaching out to decision makers and authorities, recruiting initial members of the supervisory board, negotiating special provisions for BADIR, working with the supervisory board to articulate the mission and goals and, last but not least, representing BADIR at high-level forums, nationally and internationally. To carry out the mission, BADIR is considered an independent unit within TDC that has its own governance and management system. This organizational detail allows flexibility in obtaining funding, independence in managerial decision-making, ease in contractual processes, and a minimum of political interference. Furthermore, BADIR is divided into two branches, Management (non-profit) and Venture Fund (for-profit), to ensure expert guidance and funding agency to work together. The Management branch is focused on providing strategic direction and advice from a pool of seasoned private and public sector leaders, who are critical for the success of any hightechnology BI. A supervisory board governs the incubation management process under the Chair of the KACST, the Vice President for Research Institutes, with representatives from the private sector, technology industries, financial institutions, and the government. These board members are recruited based on their expertise and ability to support the BADIR program. Their roles are to provide strategic direction, monitor performance of the program, approve major investments and initiatives, and provide access to networks and expertise. Volume 16, Issue 2, August 2014 INNOVATION: MANAGEMENT, POLICY & PRACTICE 241

6 Mohammad S Khorsheed et al. econtent Management Pty Ltd In the beginning, the program management leaders needed to overcome the gap in local incubator management experience within Saudi Arabia. Therefore, the supervisory board decided to outsource the management to a professionally managed company with incubator management skills experience. The goal is to establish a process for professional incubator management, knowledge transfer, and training using hands-on management activities along with the company providing management support. BADIR leadership also realized that a management team alone would not have the expertise or time to address the wide spectrum of member company needs. Therefore, BADIR formed an advisory board comprised of additional, part-time experts willing to offer voluntary coaching and mentoring to aspiring entrepreneurs. The advisory board represents specific areas of support required by tenant companies. These experts were drawn from technology specialists, mature entrepreneurs, service providers, investment professionals, and academics. The advisory board differs from the supervisory board in many ways, but both are focused on the success of the tenant company, see Table 1. In addition, BADIR restricts advisory board members from taking a direct financial or managerial position in the start-up companies that they advise. If such a relationship evolves and is attractive to and healthy for the start-up company, the advisor will resign from the advisory board to avoid any conflict of interest. An important component in the organizational structure of BADIR is the for-profit Venture Fund branch that focuses on incubator tenant companies. The Venture Capital Fund branch is purposefully operated independently from the Management branch incubator process and has its own governance and management structure. The fund manager reports to a board of directors separately from, but at the same level as, the supervisory board. This allows the investors to have a greater degree of interaction with the BI process than an investment outside of BADIR. BADIR business development In order to ensure success, BADIR has become part of a larger innovation process connected with written agreements. It is important to realize that BADIR does not exist, nor could it succeed, without a number of key inputs into the incubation environment. BADIR s success relies on: Sources of research-based ideas with the potential for application, researchers with interest in commercializing ideas and technology, laboratories with cultures supportive of commercializing lab results and processes for screening inventions and, possibly obtaining intellectual property protection. The BADIR environment including clients, staff, and funding supplies the support network connected to the program by various means such as: Sources of venture financing beyond the early stage financing intended to bring, start-ups to the point of commercial viability, predictable regional or larger markets, experienced entrepreneurs able and willing to advise or manage start-up companies and robust economy. The BADIR environment provides services, resources, and expertise that fledgling companies need to mature toward commercial viability either Table 1: Difference between the BADIR management supervisory and advisory boards BADIR management supervisory and advisory board differences Supervisory board Advisory board Sets BI policies or strategies Yes No Status Paid employes Voluntary but works with the incubator management on specific tasks through committees Relationship with start-up Directional Mentor companies Source Mostly outside the community In the community Experience Competent professionals Competent professionals and community leaders 242 INNOVATION: MANAGEMENT, POLICY & PRACTICE Volume 16, Issue 2, August 2014

7 econtent Management Pty Ltd BADIR Program for Technology Incubators as residents in BADIR, thus obtaining resources directly from BADIR, or via the BADIR s linkages to expertise and resources in the external community, as shown in Figure 2. BADIR uses a three-tiered service model to manage ongoing demand and to maximize reach, flexibility, and impact. Figure 3 illustrates this model which provides an opportunity for many applicants to pursue the resources available within the BADIR program. Meanwhile, BADIR can provide its resources to most viable applicants and tenants. The three tiers include: technology and opportunity entrepreneurship awareness; preincubation; and incubation. In tier 1, potential entrepreneurs attend workshops and seminar programs to develop their ideas. They also enhance their commitment and motivation to their business ventures. BADIR involves other third-party organizations to deliver these workshops and seminars instead of using BADIR resources. The BADIR resources are used for the incubation process in the next two tiers. In tier 2, more workshops and one-to-one guidance are provided to ensure that new ideas have potential business opportunities with commercial prospects. Possible entrepreneurs that are successful in tier 1 will receive help in evaluating their ideas, conducting initial market research, and preliminary business planning. The pre-incubation stage targets students (postgraduate and undergraduate) from universities, researchers, inventors, and people working in government or corporate institutions for training. This is also an opportunity for possible entrepreneurs with modest deficiencies (in number and seriousness) to improve their original application before reapplying. In tier 2, as with tier 1, BADIR uses other organizations to conduct pre-incubation workshops so internal resources can be focused on oneto-one assistance and BI. BADIR leadership helps select the applicants that advance to tier 3 on a one-to-one basis. Tier 3 aims to establish the start-up company business. It comprises two stages: stage 1 assists tenants and affiliates develop their business models or business plans. Intensive assistance in groups or individual sessions prepares them for finance access. Stage 2 comprises intensive individual assistance. They provide access to other resources and network assets to participants. Such Figure 2: BADIR ecosystem Volume 16, Issue 2, August 2014 INNOVATION: MANAGEMENT, POLICY & PRACTICE 243

8 Mohammad S Khorsheed et al. econtent Management Pty Ltd Figure 3: BADIR three-tier service model access helps tenants and affiliates to commence and expand their businesses. BADIR leadership and affiliates assist entrepreneurs in executing their business growth strategy by working with them in developing a market focus, developing channels to the market, refining the business plan, forming a strong management team, raising capital if necessary, and protecting the start-ups intellectual property. BADIR incubation process and graduation BADIR helps businesses become established and profitable. The process begins with a simple but rigorous screening system based upon international best practice to focus appropriate resources on the ideas and applicants most likely to succeed. The initial screening process separates inappropriate prospects from those with real commercial potential. Subsequently, a more detailed business plan must be written, submitted by the tenants, and reviewed by BADIR management. Finally, BADIR and the tenant company prepare a management plan for each accepted case. The business plan documents where the business needs to focus actionable improvements and milestones with instructions, deadlines, and a formal meeting schedule. BADIR manages cases using regular expert reviews. This approach encourages a continuous planning and improvement environment for healthy business growth. Performance as measured against the agreed-on business plan is reviewed by BADIR staff and amended at formal review meetings, typically quarterly. In this way, business plans remain accurate and useful as they are adjusted in light of external circumstances and actual performance. Typically, incubation time is 3 4 years, but the time depends on each individual case. In the final year, BADIR prepares the incubated company for graduation. Accordingly, a client s business is eligible for graduation from BADIR s incubation program and facilities when the business has achieved the following milestones: Sustainable profitability, Entry into a market place, Establishment of an initial customer base, Effective management team in place, Effective management system in place, Adequate investment for subsequent growth secured, BADIR support no longer needed and An IP protection system in place (for technology commercialization companies). BADIR network The BADIR program was launched as a national campaign to raise awareness about technology and BIs. The campaign targeted several cities in Saudi Arabia, including Riyadh, Jeddah, Dammam, Ahsa, Buraidah, and Abha. Currently, BADIR operates three national technology incubators in three fields: Information technology and communications, bio technology and advanced manufacturing (AM). Two additional incubators that are still in the concept stage are energy and nanotechnology. BADIR has created satellite incubators to meet the growing demand from research and academic communities outside of BADIR. The bundle of services is extended to a national network of affiliate satellite incubators. The satellite incubators play a significant role to encourage entrepreneurship within the higher education communities in Saudi universities. Technology incubators established with or under the help 244 INNOVATION: MANAGEMENT, POLICY & PRACTICE Volume 16, Issue 2, August 2014

9 econtent Management Pty Ltd BADIR Program for Technology Incubators of BADIR at King Saud University, King Abdulaziz University, King Fahd University of Petroleum & Minerals, Princess Nora bint Abdul Rahman University, Taibah University, Al-Baha University, Al-Qassim University and Al-Dammam University are targeting the faculty members and students at those institutes. Some success stories start to appear in some universities however on a limited scale. This approach is a new trend in BI. The idea is to develop a network of multiple incubators in a hub-and-spoke fashion. BADIR satellite incubators are mostly operating at universities throughout Saudi Arabia that fall under the framework of the NSTIP. BADIR provides network support to the technology incubator by incubator staff training, marketing, shared management services support and incubator establishment and development assistance. BADIR also oversees the satellite program with help from stakeholders nationally and internationally to ensure consistency across all national technology incubators. For example, an independent incubator monitoring and evaluation process ensures that international best practice standards are maintained in all incubator operations including satellite incubators. Fostering innovation within the ecosystem BADIR developed a plan for launching support programs to increase effectiveness including: Technical entrepreneurship program, technical investment supporting program, programs for supporting innovation and creativity in scientific and technical research and support program for women s technical institutions. To foster e-business in Saudi Arabia, the BADIR program launched an E-Business Leadership Program in cooperation with the Department of Information Technology, College of Computer and Information Sciences, King Saud University. The program aims to develop students business skills in the Department of Information Technology by providing them with basic entrepreneurship concepts that focus on investment opportunities and leading projects in e-commerce. This event was held twice a year 2010, involving teams that represented 214 participating students not registered in the BADIR program. Each session, consisting of specialized workshops and consulting assistance, lasted for 3 months. At the end of the session, each team s work plan was reviewed and evaluated by a joint review team of BADIR program faculty members. The team chosen as the winner is now pursuing the opportunity to take advantage of the emerging BI program in BADIR. Another accomplishment in 2010 is signified by the participation of representatives from BADIR in development and entrepreneurship for the young businesswomen forum. BADIR s goal was to spread the knowledge to women about entrepreneurship and the culture of self- employment. Participants were presented with the role of BIs as a growth accelerator for emerging projects, as well as some success stories of the program. One of the objectives of establishing incubation programs is to provide an infrastructure of technical, logistic, and administrative support to encourage small high tech-firms in their startup stage to BADIR tenant companies. However, the benefits and costs associated with such programs are subject to debate in theory and practice. Various approaches have been studied to assessing incubation programs (Chan & Lau, 2005). BADIR achievements are measured by the amount of information shared in workshops and seminars (number of possible entrepreneurs that received the information), programs, client feedback, partnerships established, and number of tenant companies in the system. The following section illustrates what BADIR has achieved since the concept stage in BADIR is using a range of qualitative and quantitative methods in order to evaluate its performance. These methods are related to both internal processes and outcomes. Client feedback is obtained with respect to the perceived value of services and recommendations on how BADIR process may be improved. Tenants are encouraged to provide feedback and suggestions to add value. The evaluation system is based on the assessment of performance against Key Performance Indicators (KPIs), on a quarterly and annual basis. These organizational indicators are used as a basis Volume 16, Issue 2, August 2014 INNOVATION: MANAGEMENT, POLICY & PRACTICE 245

10 Mohammad S Khorsheed et al. econtent Management Pty Ltd for the development of KPIs for all staff. KPIs are used in the following four key performance areas: Customers, finances, human resources, and innovation. As mentioned earlier, BADIR program include three national incubators specialized in ICT, Biotech and AM. All three of BADIR incubators show success in the application selection process and resources provided to the entrepreneurs. By the end of November 2010, the number of projects in the technology incubators in the program had reached 42 technical projects, with 28 projects in the ICT incubator, 8 projects in the Biotech incubator, and 6 projects in the AM incubator. Table 2 shows some performance indicators of the BADIR program, including the number and duration of sessions that the program conducted to develop the incubated projects further. As a result of the process described in the foregoing sections, submitted applications will Table 2: BADIR incubation progress measures Notes Incubated technical projects Development sessions Development session hours Jobs created by incubated projects Total monthly income resulting from jobs created by incubated projects KPI 42 Projects 973 Sessions 1974 hours 240 Jobs SAR 5.5M/ US$1.47M Figure 4: BADIR ICT incubator workflow be treated in one of four ways: Accepted in the incubator, require further research and development, referred to other incubators appropriate for the specialization, or rejected. The ICT incubator aims to support the establishment and growth of emerging companies in information technology and communications by providing a number of services to develop those emerging companies. Figure 4 shows that in 2010, 246 applications were submitted to the BADIR ICT incubator. The threshold for selection into the BADIR incubator is high as the selection rate is currently 30%. The BADIR ICT incubator selection rate is stringent and encourages high success rate business models. It is important to note that the BADIR ICT incubator rejection rate is near 70%, indicating the high quality standards an applicant must reach for selection into the BADIR incubator. The BADIR ICT incubator staff has put a lot of effort into developing entrepreneurship and business skills for both those who are in the incubator environment and outside the incubator. Inside the incubator, refers to activities within the BADIR premises where, outside the incubator, refers to activities at universities, chambers of commerce or other government agencies, refer to Figure 5. One successful case study to consider is the Mobile Social Network Service started by Abdullah Al-Zamil, who had an idea for improving social networking in As a tenant in the BADIR program, Abdullah established his company, Mobile Social Network Service (S-me), in 2007, and it has been operational since May Currently, the company has +600k users, +2M requests/day, +7M micro blog entries, 21 services, and several patents, with a number of patent-pending applications in the USA. In 2011, S-me won infodev Top 50 SMEs. This is an annual competition organized by infodev, a global partnership program within the World Bank Group. infodev received over 750 applications from 65 countries, from more than 330 BIs, mobile applications labs, and climate innovation centers. SMEs from 34 countries made it into the Top 246 INNOVATION: MANAGEMENT, POLICY & PRACTICE Volume 16, Issue 2, August 2014

11 econtent Management Pty Ltd BADIR Program for Technology Incubators Figure 5: BADIR ICT entrepreneurship development activities Figure 6: BADIR Biotech incubator workflow Figure 7: BADIR AM incubator workflow 50. The judging panel, who represented infodev, the International Finance Corporation (IFC), and external investors/venture capitalists, nominated 50 firms that offer the best chance for longterm growth and sustainability, while reflecting also the diversity among the applicants. The infodev Top 50 SMEs were funded to participate in the 4th Global Forum on Innovation & Technology Entrepreneurship, held in Helsinki, Finland, 30 May 3 June 2011, where they were introduced to mentors, angel investors, corporate partners, like-minded entrepreneurs, and other incubators. The Biotech incubator was established to promote the development of small and medium companies in the biotechnology and related fields. In 2010, 43 applications were submitted to the BADIR Biotech incubator (Figure 6). The BADIR Biotech incubator acceptance rate was nearly 49%, indicating a high standard for accepting applications to the incubator. In order to develop entrepreneurship and business skills for its customers, the BADIR Biotech incubator has conducted 344 sessions, which is equivalent to 1405 hours. The AM incubator focuses on the advanced technologies of manufacturing. This incubator encourages enthusiastic entrepreneurs to establish their own companies in the AM fields and provides appropriate guidance, training, advice, and infrastructure for success. Figure 7 illustrates that in 2010, 61 applications were submitted to the BADIR AM incubator. Figure 8 demonstrates AM knowledge exchange resource allocation to sessions inside and outside of the incubator in hours and in number of sessions. This incubator spent more time and conducted more sessions outside the incubator than inside the incubator. Volume 16, Issue 2, August 2014 INNOVATION: MANAGEMENT, POLICY & PRACTICE 247

12 Mohammad S Khorsheed et al. econtent Management Pty Ltd within BADIR premises, various universities, and chambers of commerce. These companies will enhance Saudi Arabia s economy and will contribute to technological advancement and economic growth worldwide. Acknowledgment This program was and still being fully funded by King Abdulaziz City for Science and Technology. Figure 8: BADIR AM entrepreneurship development activities Discussion and concluding remarks Public and private entities in Saudi Arabia are focusing only on loan-based funding with very minor mentorship, training or coaching. The BADIR BI Program is an innovative government program established in Saudi Arabia and championed by the Vice President for Research Institutes of KACST. Since being established, BADIR has revolutionized the incubation industry in the country. The key factors to its success include selective acceptance standards, a multi-tiered process, experienced experts as supervisors and advisors, resource accessibility to selected entrepreneurs, and collaboration with international partners. This national program is key to ensuring the consistency and fullspectrum support necessary for viable ideas in technology to grow into profitable businesses. BADIR is further facilitating entrepreneurial access to high-value funding in two ways: Loanbased funding up to SAR 3M, US$800K, with zero interest rate and venture capital funding. BADIR has established a network of angel investors on a national level and is also focusing more and more on empowering female entrepreneurs through intensive training and coaching sessions References Adebanjo, D. (2010). Challenges and approaches to customer development in colocated high-tech start-ups. Proceedings of the IEEE International Conference on Industrial Engineering and Engineering Management (IEEM), Macao, December Minneapolis, MN: IEEE. Aernoudt, R. (2004). Incubators: Tool for entrepreneurship. Small Business Economics, 23, Al-Mubaraki, H., & Busler, M. (2010). Business incubators: Findings from a worldwide survey, and guidance for the GCC states. Global Business Review, 11(1), Al-Shanfari, D. (2012, January 16 18). Entrepreneurship in Oman: A snapshot of the main challenges. Proceedings of the United Nations conference on trade and development: Multi-year expert meeting on enterprise development policies and capacity-building in science, technology and innovation (STI) (fourth session), Geneva, Switzerland: Geneva. Chan, K., & Lau, T. (2005). Assessing technology incubator programs in the science park: The good, the bad and the ugly. Technovation, 25, Collinson, S., & Gregson, G. (2003). Knowledge networks for new technology-based firms: An international comparison of local entrepreneurship promotion. R&D Management, 33, Colombo, M., & Delmastro, M. (2002). How effective are technology incubators? Evidence from Italy. Research Policy, 31, Hallam, C., & DeVora, N. (2009). Technology-based business incubation: A study of the differences and similarities between private, university, and government incubation. Proceedings of the International Conference on Management of Engineering and Technology, August 2 6. Portland, OR: PICMET. 248 INNOVATION: MANAGEMENT, POLICY & PRACTICE Volume 16, Issue 2, August 2014

13 econtent Management Pty Ltd BADIR Program for Technology Incubators Hussein, H. (2007). Enterprise development & investment promotion program. Seef, Bahrain: Arab Regional Center for Entrepreneurship & Investment Training (ARCEIT). Retrieved from Jusoh, S. (2006). Incubators as catalysts in developing high technology businesses. African Technology Development Forum Journal, 3, Kargwell, S. (2012). Women entrepreneurs breaking through: Push and pull within UAE cultural context. International Journal of Business and Social Science, 3(17), Kathleen, B. (2006). Developing a business incubation program: Insights and advice for communities. Athens, OH: National Business Incubation Association. Martinez-Fernandez, M., Soosay, C., Bjorkli, M., & Tremayne, K. (2004). Are knowledge-intensive service activities enablers of innovation processes? Proceedings of the 5th international CINet conference, continuous innovation: Strategic priorities for the global knowledge economy, Sydney, NSW, September. Mohammed Bin Rashid Establishment For SME Development. (2011). The role of government in supporting entrepreneurship & SME development. Proceedings of DUBAI SME 2011, Dubai, UAE. Qatar Foundation. (2003). Retrieved from qf.org.qa Saidam, S. (2007). Knowledge and e-governance building in conflict affected societies: Challenges and mechanisms. Proceedings of the 1st international conference on Theory and practice of electronic governance (ICEGOV), Macao, December. Schwab, K. (2010). The global competitiveness report Geneva, Switzerland: World Economic Forum. Skoko, H., Al-Fawzan, M., Khorsheed, M., Wright, N., & Al-Sakran, S. (2009). Entrepreneurship activities in Saudi Arabia. Global Entrepreneurship Monitor. Retrieved from wp-content/uploads/2010/02/gem-global Report.pdf Soetanto, D. (2006). Nurturing technology-based firms: The resources-based perspective in the incubation process. International Journal of Management and Enterprise Development, 3, Tong, Q., McCrohan, D., & Erogul, M. (2012). An analysis of entrepreneurship across five major nationality groups in the UAE. Journal of Developmental Entrepreneurship, 17(2), VanSant, K., Symko-Davies, M., Mitchell, R., Keyes, B., Ullal, H., Von-Roedern, B., & Stephens, S. (2010). The photovoltaic technology incubator project. Proceedings of the 35th IEEE Photovoltaic Specialists Conference (PVSC), Honolulu, HI, June Winden, W., & Woets, P. (2003). Local strategic networks and policies in European ICT clusters: The cases of Amsterdam, Bari, Dublin and Oulu. Proceedings of the 15th Annual Conference of the European Association for Evolutionary Political Economy, Maastricht, November European Institute for Comparative Urban Research, Erasmus University Rotterdam, The Netherlands. Yee, N. (2009). Technology incubator performance in New Zealand. Proceedings of the International Conference on Innovation Management (ICIM), Wuhan, China, December 8 9. Received 30 May 2012 Accepted 27 May 2013 NOW AVAILABLE Public policy and enterprise development + general section Special Issue of Small Enterprise Research Volume 17 Issue 1 ii+102 pages ISBN October 2010 Guest Editors: David Storey (University of Sussex, Brighton, UK and Francis Greene (Warwick Business School, University of Warwick, Coventry, UK) Editorial Announcement: New publishing arrangements for Small Enterprise Research Brian Gibson, Elizabeth A Walker and Kate V Lewis Guest Editorial: Enterprise policy and practice Francis Greene and David J Storey Competition law, enforcement and the Australian small business sector Michael T Schaper The competitive experience of UK SMEs: Fair and unfair David J Storey Evaluation of a New Zealand business support programme using firm performance micro-data Michele Morris and Philip Stevens The goal achievement of federal lending programs Matthias G Raith, Thorsten Staak and Christoph Starke General section Internationalisation of small and medium New Zealand wineries: An exploratory study Abel Duarte Alonso A discursive approach to entrepreneurial marketing: Integrating academic and practice theory Alex Maritz, Howard Frederick and Michael Valos Perceived usefulness of business succession planning and chartered accountants involvement in the process Deborah Sawers and Rosalind H Whiting Volume 16, Issue 2, August 2014 INNOVATION: MANAGEMENT, POLICY & PRACTICE 249