The Innovation Café Series

The Botswana Innovation Hub (BIH) in conjunction with The Southern African Innovation Support programme (SAiS) has launched a series of Innovation Café Talks. The inaugural Innovation Café was held at the University of Botswana 0n Thursday 31^st January, 2013.

The talks set the scene by identifying gaps between academia and the industry to ensure a solid link between the two and a well-functioning industry in Botswana.

The café style discussions are intended to stimulate conversations on topical issues that touch on the lives of communities by linking and building on each other as people move between groups, cross-pollinate ideas and discover new insights.

The BIH drive to serve as a unique platform and catalyser for technology-driven and knowledge intensive businesses to develop and to compete in the global market, prompted the launch of the Innovation Café series. 

The BIH strives to be the leading partner for innovative and technology driven businesses by promoting and facilitating research, development, education and innovation activities while SAIS aims to develop strengthened and well-functioning national systems of innovation in participating countries, and a systemic and sustainable regional innovation development platform and framework by 2015.

SAIS is a multilateral regional agreement between the Finnish Ministry of Foreign Affairs and four southern African countries; Botswana, Namibia, Mozambique and Zambia to develop regional innovation systems support. The SAIS programme is hosted by BIH and was launched in Botswana on 28^th February 2012, in line with the national science technology and innovation policy framework to support the national system of innovation through its four support structures; Networking, Capacity Building, Learning from Best - practices and Institutional Development.

Botswana Innovation Hub Delegation Visits The Research Triangle region of North Carolina in the US.

 

Botswana’s eminent innovation emissaries Dr Geofrey Selaka (L), Alan Boshwaen (C) and Budzanani Tacheba PhD (Second from R) with hosts Secretary of State Elaine Marshall (Seconf from L) and Major General Gregory Lusk (R) of the North Carolina National Guard

 

Research, science, and technology parks are seen increasingly around the world as a means to create dynamic clusters that accelerate economic growth and international competitiveness. These entities often operate on a public-private partnership (PPP) which is a contract in which government resources and private-sector resources are used to provide a public service or project. The private party in this arrangement provides the public service and/or project and assumes substantial financial, technical and operational risk in the project.

The establishment of the Botswana Innovation Hub (BIH) as a "special purpose vehicle" (SPV) to develop and operate a science and technology park is in line with this arrangement. BIH is a national project and BIH Company manages the assets for the contracted partners rendering it a typical “Triple-Helix” organisation in which the public sector, private sector and academic institutions are involved. Simply put, BIH is a state owned company with private sector partners and investors as well as a buy-in and involvement of academic institutions such as the University of Botswana which brings in the element of Research and Development. The benefit of this kind of set up is that the three different sectors can nurture each other to meet the needs and challenges of society.    

In driving the innovation, science and technology agenda, BIH is committed to technology transfer partnerships and research activities that can impact on sectors important to the national economy. BIH is a platform for innovation, research and international collaborations. Collaboration is a key tenet of Knowledge Management which in itself is an effective method of transferring ‘know how’ and creating and sustaining competitive advantage. CEO Alan Boshwaen emphasises this point by stating that, BIH is not just about the Icon Building and the people who work here, “It is about the networks and partnerships, and the synergies that derive from these collaborations.”  He goes on to state that as Botswana has embraced science, technology and innovation as economic drivers it is important to note that Botswana is part of the global village and that innovation is porous across national boundaries. He states further that, “International collaboration is a critical component for growing a country’s innovation capital.”

It was on the basis of the intrinsic cross pollination imperative of the research, science and technology park DNA that Boshwaen lead a three man team that comprised Director, Cluster Development Budzanani Tacheba PhD and Marketing, Registration and ICT Dr Geoffrey Seleka to The Research Triangle Park (RTP) in the Research Triange region of North Carolina in the United States. Established in 1959 by the US Government, RTP is one of the most prominent high-tech research and development centers in the US, boasting some of the most brilliant minds and some of the most cutting-edge businesses in the world today. The purpose of the voyage was part of the BIH’s on-going networking initiative to understand the unique factors that make up the mature and reputable innovation systems of science and technology parks across the world in order to foster innovation, increase technology transfer and improve the country’s innovation ecosystem. 

The expedition which formed part of the North Carolina’s State Partnership Programme sought to foster a greater relationship between the two countries and build bridges towards growth and cultural understanding for the future as well as allow BIH to create a platform for establishment of partnerships, building of powerful networks, exchange of know-how ,development of innovative approaches and an appreciation of a mature innovation system which brings in the components of the triple-helix to function as one.

On this expedition, the BIH Team met all three components of the RTP triple-helix setting which comprised the public, industry and academic set-up. The delegation met the North Carolina Secretary of State, the Research Triangle Park (RTP) and the North Carolina State University where they talked about expanding Botswana’s economy through science and technology research and international corporations.  “By leveraging and synchronizing all these entities together, Botswana could become a global hub for creation of new technologies and industry improvement in the region. We want to play a key role in developing R&D in Southern Africa and we have the ability to affect nearly 270 million people with the creation of a free trade area initiative in this region,” said Boshwaen. 

Some of the lessons shared by the host institutions included a brief on the RTP’s robust metrics that communicate the societal narrative and the benefits of science, technology and innovation to ensure there is national buy-in and political leadership in driving the innovation, science and technology agenda. The Team was also shown how the North Carolina State devised elaborate strategies towards attracting companies, talent and retaining them in North Carolina. In addition to these, the Team got to appreciate the use of monetary incentive schemes such as the Small Business Innovation Research Awards (SBIR) and the Small Business Technology Transfer Awards (STTR) which engendered competition and maintained enthusiasm at the business entry point.

With regard to marketing, the Team was given a comprehensive and detailed presentation of the process by which the States informs investors of their resources, and how the RTP marketed its value proposition to prospective clients. Specific to the presentation was how RTP managed to convince airlines like British-Airways and American Airlines to introduce the London-Raleigh flight with support from a key industry player, GlaxoSmithKline, a pharmaceutical company borne out of the UK now operating from the Research Triangle Park. The host further shared how their strategic appointment of CEO’s of large multinational to the RTP Foundation Board benefits the region.

When it came to R&D, the delegation was informed that the research centre in the region was developed nearly 60 years ago and had developed into one of the nation’s leading technology hubs. “Companies here invest money in the three local universities in order to attract new graduates and develop on-going relationships with the institutions for research,” said Mason Alistock, Vice President of Business Development at the Research Triangle Foundation of North Carolina. He went on to emphasise the need for a comprehensive land use plan before embarking on the development as well as careful and well planned sales of land. His presentation emphasised the need to create a work and live environment with appropriate recreational amenities. 

 

 

 

 

His Excellency the President of the Republic of Botswana Lt. Gen. Seretse Khama Ian Khama

“Sustainable development is not only measured in the delivery of physical infrastructure. More fundamentally, it is about ensuring that our human resources, that is our people, have the skills and opportunities to achieve a dignified life.” State of the Nation Address (November 2012)

 

FIRST STEPS VENTURE CENTRE
 

The current global economic meltdown has exacerbated the economic recession inherent in the business cycles of the free market enterprise.  These recurring and fluctuating levels of economic activity that an economy experiences often last three to five years from peak to peak. The Journal of Political Economy lists the five stages of the business cycle as growth (expansion), peak, recession (contraction), trough and recovery. At one time, business cycles were thought to be extremely regular, with predictable durations, but today they are widely believed to be irregular, varying in frequency, magnitude and duration. According to statistics published by the Oxford Bulletin of Economics and Statistics, seven out of ten new employer establishments survive at least two years and 51 percent survive at least five years. While this is a far cry from the previous long-held belief that 50 percent of businesses fail in the first year and 95 percent fail within five years, it is worth noting that these statistics are derived from the developed world and it is safe to conclude that the scenario in Africa is much worse. 

Despite the intervention of agencies such as the Citizen Entrepreneurial Development Agency (CEDA) and the Local Enterprise Authority (LEA) the success rate of business start-ups in Botswana is very low. In the current context of considerable uncertainty in the world economy and invariably in the local economy, Government has responded to the urgent need to create a conducive policy environment for an improved business climate that sets the pace for future competitiveness and economic growth.  The reality on the ground is that many entrepreneurs don't have the space or desire to start a business out of their home, yet find that renting space and setting up essential support functions is financially overwhelming and energy draining just at a time when their financial resources and energy are most needed for development of the business itself.

The concept of business incubation was formally introduced in the United States of America in 1959 to support the successful development of entrepreneurial companies through an array of business support resources and services, developed and orchestrated by incubator management and offered both in the incubator and through its network of contacts. Successful completion of a business incubation programme increases the likelihood that a start-up company will stay in business for the long term: older studies found 87% of incubator graduates stayed in business, in contrast to 44% of all firms.

In addressing the country’s socio-economic challenges, Botswana Innovation Hub (BIH) was established to create a conducive national innovation ecosystem that contributes to national competitiveness, economic growth and job creation. The company serves as a unique platform and catalyser for technology-driven and knowledge intensive businesses to develop and to compete in the global market. To create such an environment, BIH has developed a technology entrepreneurship development programme, First Step Venture Centre (FSVC) to support an entrepreneurial and innovation culture through technology transfer and "one-stop shop" for entrepreneurial support. FSVC identifies, develops and nurtures viable technology oriented start-up businesses with a potential to grow into international markets. A detailed business plan for the FSVC has been developed and a Program Manager has been appointed. Plans are at an advanced stage for the technology entrepreneurship programme to commence incubation services in May 2013.

The services offered by FSVC are targeted to individuals or start-up companies with workable business ideas that have the potential to create jobs, revitalize their communities, commercialize new technologies, and strengthen/diversify the local and national economy. FSVC will help incubatees successfully navigate the common challenges that every entrepreneur must face: scarce capital, elusive markets, intense competition and limited resources. Provision of such support is essential as it has been proven that the average success rate of new start-ups going through business incubation is better than those that are not. The programme will also provide “Soft Landing” - services for foreign companies to step into the regional market.

 

Objectives  

The main objectives of FSVC therefore are aligned to the four priority sectors of the BIH with a special focus on technology oriented start-up companies. Key to these shall be:

1. To promote the development of technology & innovation at micro level.
2. To promote technology entrepreneurship
3. To provide a platform for commercialization of technology
4. To close the innovation gap
5. To expose local technology businesses to international markets and network
6. Target technology transfer companies which can provide services commonly referred to as low hanging fruits to targeted programmes such as EDD and Poverty Alleviation

The FSVC Value Proposition  

The FSVC’s value propositions to the incubatee companies comprise the following:

-          Ready to use offices (plug and play) e.g. readily available internet/telephone services

-          Subsidized rental – low costs due to shared services

-          Intellectual Property and legal support

-          Media and Brand support

-          Access to local and international industry networks

-          Dedicated Technology advisory services

-          Dedicated business advisory- helping combine business plan and strategy

-          Entrepreneurship development training

-          Access to international markets

-          Access to Innovation Fund subject to meeting qualification criteria

  FSVC Programme Manager Tshepo Tsheko

 

Incubator Parnerships

 Other initiatives include registration with regional and international incubation organizations for networking and internationalization purposes. These would also facilitate the development, growth and success of the incubatees in the programme.

 

The Southern Africa Innovation Support (SAiS) programme sponsored by Government of Finland, operating from BIH, shall be a pillar of support for FSVC, especially with regard to capacity building through regional networks, training and access to incubation experience.

BIH Incubation Process

The incubation process comprises three stages, namely pre- incubation, incubation and post incubation.

The pre-incubation stage forms a basis for generation of deal flow into the BIH’s FStVC and as such has to be supported. This initiative includes the support of national and regional innovation competitions with special emphasis on the BIH key sector areas. Examples include the Botswana Health information innovations competition. A partnership that is being proposed to BIH by the University of Pennsylvania and UN partners would identify the talent and skills base that would be encouraged to apply to the FSVC for example. FSVC shall also have to form agreements with national and international programmes that nurture start-ups with potential for growing globally. Examples include the Apps4Africa initiative and Microsoft Challenge Cup through the MIC. 

 

Therefore there is need for First Steps Venture Centre to be marketed well into the stakeholders for their appreciation of the value chain of the facility. Although FSCV shall not enroll pre-incubation companies, it does offer support to assist entrepreneurs to prepare their businesses for full time incubation. Additionally virtual incubation services will be availed for entrepreneurs who are unable to relocate their businesses to FSVC due to unavailability of space.

 

Candidates enrolled in the incubation phase continue to develop their businesses by building the team, closing deals with financiers, completing product development and bringing their products to help clients to grow, FSVC will provide business consulting services outsourced for a period of two years while the Incubator is being developed.

The incubation period shall be 3 years at the end of which the incubatee company is to graduate into the BIH Science and Technology Park.

 

Adminsion Criteria

FSVC has a pool of potential incubates and will look for start-ups and spin-offs through numerous avenues including the public and private learning institutions including universities recruiting existing young Small Medium Enterprises (SME’s) and access to local and international companies from other incubation programmes. FSVC will consider ventures with proven viable businesses and traceable financial records for the purpose of establishing ability for paying subsidised rent and services. All applications shall be evaluated using a standard     procedure to determine the most appropriate proposals. The facility reserves the right, in its sole discretion to accept or to reject participants into the programme.

The selection criteria shall be based on the following:

1.      A Project proposals aligned to the BIH focus areas,

2.      Funding availability,

3.      Registered business under the Companies Act or licensed to carry out specialized procedures.

4.      Business scalability.

5.      High growth potential in Global markets.

6.      Carrying local cultural values and look

 

Special focus on entrepreneurial and business skills, looking specifically at Entrepreneurial initiative, Role model potential, values and ethics, business innovation, development impact and fitting the sectors. The Companies shall generally have among its members sound Curriculum Vitae with a broad expertise to ensure complementarity in the business development, e.g. the right mix of technical and managerial skills.

FSVC’s first intake of full and ready incubatee companies will be limited to between five and eight companies, each with between 1 and 5 employees and increased from there onwards. The initial intake shall be based in rented space on a temporary basis hence the limitation. The initial address for the facility shall be sought based on affordability and flexible contractual obligations. Future intakes will be based in the BIH buildings to be constructed near the airport.

Botswana Innovation Hub Chief Executive Officer Alan Boshwaen

Alan Boshwaen is the Chief Executive Officer of the Botswana Innovation Hub (BIH). BIH is a company duly registered under laws of Botswana with a mandate to develop and operate a science and technology park in which it will promote and facilitate research, development, education and innovation activities and support start-ups and existing companies to grow. BIH attracts companies, universities, research institutes and advanced training institutes to establish in the Botswana Innovation Hub.

Alan has extensive experience in the Financial Services and Banking sectors having been CEO of the Botswana International Financial Services Centre (IFSC) and held senior management positions with Standard Chartered Bank Botswana and Barclays Bank of Botswana. Alan has also previously worked for Debswana Diamond Mining Company.

He holds BA Honors in Industrial Psychology and Business Administration from the University of Kent and Canterbury and a Masters in Business Administration from the University of Cape Town. He is Board Member of the Botswana Telecommunications Corporation and Chairman of the Botswana Innovation Hub Registration Committee. He also serves on the Advisory Board of the University Of Botswana School Of Business and is patron of the National Junior Chamber International.