EU funds - a chance for establishing and developing science & technology parks
Science & technology parks have been known worldwide for approximately 30 years. In developed countries they have proved to be an effective tool for supporting emerging companies, usually operating in the high-tech sector, and regenerating less developed areas. The parks also support the transfer of technologies from the drawing board to the factory floor.
The first science & technology park was established in Silicon Valley, and is now known as one of the worlds biggest clusters of high-tech companies. It was more than 40 years ago when the president of Stanford University leased some plots owned by the university to enterprises focussed on R&D. In time, when they were looking for opportunities to increase revenues, the university authorities set up intensive cooperation with companies that leased plots from the university. This cooperation led to a rapid growth in university revenues. Since then, Stanford University has been able to attract award winning specialists from different areas of science. Academic achievements attracted more investors and this contributed to the fast growth of Stanford Science Park. Employees of the companies operating within the area of the science park were encouraged by the success of their employers to set up their own businesses. This is how the spin-off effect led to the rise of Silicon Valley.
In the European Union, science & technology parks have been springing up since the beginning of the 80's. Thanks to the support provided since 1987, under the innovation policy advocated by the European Union, more than 200 were operational ten years later. Now this figure has doubled.
Science & technology parks in Poland
Despite their long history in developed countries, science & technology parks have not yet earned a place in Polish business nomenclature. This is because a lot of institutions supporting small and medium enterprises (SMEs) and technology transfer have been created over the last 10 years in Poland. These include: Local Guarantee and Loan Funds, Science &Technology Parks, Centres of Technology Transfer and Technology Incubators1.
To clarify the concept of what science & technology parks are, it pays to quote the most common definition - that of the United Kingdom Science Park Association (UKSPA). According to the UKSPA, a science & technology park is a facility that:
• Is formally linked to a university, higher education institution, department or other research institute;
• Assists in establishing high-tech companies and other institutions operating on its premises; and
• Is run by a management board committed to the stimulation of technology transfer and the development of business and management skills.
The establishment of science & technology parks in Poland has been considered as one of the factors enhancing the competitiveness of the Polish economy. This trend is reflected in the financial support for science parks, both from EU structural funds and Polish public funding. The European Regional Development Fund supports the creation of advantageous conditions for the development of business. This is how the establishment and development of industrial, science & technology parks - as well as technology incubators - are financed.
The support extends to:
• Establishment and development of industrial park infrastructure;
• Establishment and development of infrastructure for science & technology parks;
• Establishment of technology incubators or repair of facilities and furnishing equipment for technology incubators; and
• Subsidies for consulting projects to support feasibility studies, business plans and environmental impact assessment.
Within the framework of infrastructure development for science & technology parks, the support will first and foremost cover:
• Preparing technical documentation;
• Land preparation for new investment projects;
• Construction or reconstruction of technical facilities;
• Equipment of facilities and rooms.
The maximum assistance for the establishment and development of science & technology park infrastructure is 75 percent of the total cost, whereas consulting projects may be entirely financed by public funding. The applicants must in the first place be entities established to manage such parks. They should comprise higher education institutions, local governments and businesses.
According to estimates published in the Supplement to SPO WKP (Sectoral Operational Programme - Enhanced Competitiveness of Businesses), seven new science & technology parks should be established in Poland between 2004-2006. Additionally, the Supplement forecasts the emergence of 37 consulting projects for the operation of industrial, science & technology parks as well as technology incubators. The amounts allocated to the respective sub-activities are presented in the table below.
Additionally, activities associated with the establishment of advantageous conditions for the development of business may, potentially, receive co-funding from the European Regional Development Fund. The activities that could be co-funded include:
• Reinforcement for institutions supporting businesses; and
• Enhancement of cooperation between the research and development sector and the economy.
Institutions that support businesses may obtain funding for things such as: investment projects introducing new service packages for businesses; conferences and seminars; and the preparation of promotional material or other publications.
The enhancement of cooperation between research & development and the economy may take place in the form of:
• Support for investment projects in terms of construction and provision of equipment for specialised laboratories and centres for advanced technologies; and
• Support for research and development projects as well as pre-competition studies carried out by businesses or groups of businesses in conjunction with research and development institutions.
The above activities will be available for the entities managing science & technology parks or businesses operating on the park premises.
Moreover, regional structural assistance is offered to the regions that committed to the establishment of science & technology parks in their Regional Innovation Strategies. Funding is available for up to 75 percent of qualifying investments made by public bodies - such as local government units, government agencies and higher education institutions - and 35 percent for projects funded by businesses. Where a science & technology park is established in derelict areas, assistance may be obtained from regeneration programmes for urban and post-industrial areas.
A provision on science & technology parks can also be found in the law on financial support to investments, which governs the conditions for business-directed budgetary subsidies for new investments. To receive statutory investment support, the investment must be located in the area of a science & technology park. If this criterion is met, not only is the investor qualified for support, but also his chances for receiving additional support from the Ministry of the Economy, Labour and Social Policy are increased. Businesses may apply for the financing of 25 percent of the qualifying cost of investment, e4000 (zł.18.3m) for each new employee and a subsidy for training.
So far, only six science & technology parks have been founded in Poland. However, there are plans for many other science & technology parks. If the structural funds and budgetary subsidies for new investment in science & technology parks are wisely used, this should lead to greater business innovation, together with the streamlined transfer of technology developed by universities and research institutes. This should contribute to the creation of new jobs in this vital sector of the economy.
Marek Loose, Consultant, EU Advisory Services at Ernst & Young
The first science & technology park was established in Silicon Valley, and is now known as one of the worlds biggest clusters of high-tech companies. It was more than 40 years ago when the president of Stanford University leased some plots owned by the university to enterprises focussed on R&D. In time, when they were looking for opportunities to increase revenues, the university authorities set up intensive cooperation with companies that leased plots from the university. This cooperation led to a rapid growth in university revenues. Since then, Stanford University has been able to attract award winning specialists from different areas of science. Academic achievements attracted more investors and this contributed to the fast growth of Stanford Science Park. Employees of the companies operating within the area of the science park were encouraged by the success of their employers to set up their own businesses. This is how the spin-off effect led to the rise of Silicon Valley.
In the European Union, science & technology parks have been springing up since the beginning of the 80's. Thanks to the support provided since 1987, under the innovation policy advocated by the European Union, more than 200 were operational ten years later. Now this figure has doubled.
Science & technology parks in Poland
Despite their long history in developed countries, science & technology parks have not yet earned a place in Polish business nomenclature. This is because a lot of institutions supporting small and medium enterprises (SMEs) and technology transfer have been created over the last 10 years in Poland. These include: Local Guarantee and Loan Funds, Science &Technology Parks, Centres of Technology Transfer and Technology Incubators1.
To clarify the concept of what science & technology parks are, it pays to quote the most common definition - that of the United Kingdom Science Park Association (UKSPA). According to the UKSPA, a science & technology park is a facility that:
• Is formally linked to a university, higher education institution, department or other research institute;
• Assists in establishing high-tech companies and other institutions operating on its premises; and
• Is run by a management board committed to the stimulation of technology transfer and the development of business and management skills.
The establishment of science & technology parks in Poland has been considered as one of the factors enhancing the competitiveness of the Polish economy. This trend is reflected in the financial support for science parks, both from EU structural funds and Polish public funding. The European Regional Development Fund supports the creation of advantageous conditions for the development of business. This is how the establishment and development of industrial, science & technology parks - as well as technology incubators - are financed.
The support extends to:
• Establishment and development of industrial park infrastructure;
• Establishment and development of infrastructure for science & technology parks;
• Establishment of technology incubators or repair of facilities and furnishing equipment for technology incubators; and
• Subsidies for consulting projects to support feasibility studies, business plans and environmental impact assessment.
Within the framework of infrastructure development for science & technology parks, the support will first and foremost cover:
• Preparing technical documentation;
• Land preparation for new investment projects;
• Construction or reconstruction of technical facilities;
• Equipment of facilities and rooms.
The maximum assistance for the establishment and development of science & technology park infrastructure is 75 percent of the total cost, whereas consulting projects may be entirely financed by public funding. The applicants must in the first place be entities established to manage such parks. They should comprise higher education institutions, local governments and businesses.
According to estimates published in the Supplement to SPO WKP (Sectoral Operational Programme - Enhanced Competitiveness of Businesses), seven new science & technology parks should be established in Poland between 2004-2006. Additionally, the Supplement forecasts the emergence of 37 consulting projects for the operation of industrial, science & technology parks as well as technology incubators. The amounts allocated to the respective sub-activities are presented in the table below.
Additionally, activities associated with the establishment of advantageous conditions for the development of business may, potentially, receive co-funding from the European Regional Development Fund. The activities that could be co-funded include:
• Reinforcement for institutions supporting businesses; and
• Enhancement of cooperation between the research and development sector and the economy.
Institutions that support businesses may obtain funding for things such as: investment projects introducing new service packages for businesses; conferences and seminars; and the preparation of promotional material or other publications.
The enhancement of cooperation between research & development and the economy may take place in the form of:
• Support for investment projects in terms of construction and provision of equipment for specialised laboratories and centres for advanced technologies; and
• Support for research and development projects as well as pre-competition studies carried out by businesses or groups of businesses in conjunction with research and development institutions.
The above activities will be available for the entities managing science & technology parks or businesses operating on the park premises.
Moreover, regional structural assistance is offered to the regions that committed to the establishment of science & technology parks in their Regional Innovation Strategies. Funding is available for up to 75 percent of qualifying investments made by public bodies - such as local government units, government agencies and higher education institutions - and 35 percent for projects funded by businesses. Where a science & technology park is established in derelict areas, assistance may be obtained from regeneration programmes for urban and post-industrial areas.
A provision on science & technology parks can also be found in the law on financial support to investments, which governs the conditions for business-directed budgetary subsidies for new investments. To receive statutory investment support, the investment must be located in the area of a science & technology park. If this criterion is met, not only is the investor qualified for support, but also his chances for receiving additional support from the Ministry of the Economy, Labour and Social Policy are increased. Businesses may apply for the financing of 25 percent of the qualifying cost of investment, e4000 (zł.18.3m) for each new employee and a subsidy for training.
So far, only six science & technology parks have been founded in Poland. However, there are plans for many other science & technology parks. If the structural funds and budgetary subsidies for new investment in science & technology parks are wisely used, this should lead to greater business innovation, together with the streamlined transfer of technology developed by universities and research institutes. This should contribute to the creation of new jobs in this vital sector of the economy.
Marek Loose, Consultant, EU Advisory Services at Ernst & Young
