Current Status of Technology Incubators and Parks in Pakistan

A. Current state of affairs in Pakistan

The major aim of the technology business incubators is to help the entrepreneurs
get off the ground through mentoring, funding and facilities. One of the objectives of
such incubators is the commercialization of research and development output by linking
the academia with industry. To this end, science and technology innovation is an
important component. Governments, industries, universities, and other research and
development organizations play crucial roles in the innovative approach and acting as
agents of the change. In Pakistan, the informal rural technology incubators are functional
since centuries as “mailas”, horse and cattle shows, livestock markets i.e., “maila mandi
mawaishian”, “mall mandi”, animal sports, industrial expos, fairs and exhibitions, etc.
The idea of formal technology incubators/parks was, however, conceived and realized
at government level after the establishment of Higher Education Commission in year 2002.
Therefore, efforts were made to develop academia-industry linkages at the HEC and at some
universities. A campaign was launched among the academia and industry for loud thinking in
this area. Numerous intellectual exercises with the academia and industry led to the consensus
for increased funding in the science and technology and higher education sectors in Pakistan.
A multi-prong approach was followed by the MoST and HEC to develop a competitive
human resource and infrastructure to meet the challenges of knowledge based economy.
At present, the following organizations/institutes are involved in technology
incubation by one or the other way:
1. Small and medium enterprise authority (SMEDA)
SMEDA has played an important role in technology incubation through
motivation and start up financial help in power loom up-gradation, auto part vendors,
carpet weaving program, agri-mall, agriculture credit services, ginning sector, ceramic
and pottery sectors, etc.
2. Technology Incubation Centre (TIC)
The first Technology Incubation Center (TIC) in Pakistan was established by the
National University of Science and Technology. The TIC is divided into three sectors:
Engineering, ICT, and virtual sectors. It is now planning to develop other techparks and

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tech museum by starting to develop plans and studies and it has started to approach by
exploring funding opportunities, establish linkages, and by seeking technical support.
3. Software Technology Park, Islamabad
The Software Technology Park of Islamabad is now well established. A covered
area of about 40,000 sq ft, with all infrastructural requirements is available on nominal
rent. The Software Technology Parks provide conducive conditions for software shops. It
provides a large band width communication with reliable power supplies, high flexibility
buildings, minimized regulatory overheads and maximum flexibility in the choice and use
of space. The Park management is developing similar Parks at Lahore and Karachi.
4. High-technology township (techtown)
High-tech township was approved by the government at a total cost of Pakistan
Rupees (PRs) 1,396 million (US$ 24 million). The implementation of this scheme had
been delayed due to financial constraints.
5. Electronics industries promotion centre
The National Institute of Electronics (NIE) situated in Islamabad is involved in
research and development of electronics systems and components. It has established an
incubation centre for the development of its own lab prototypes into pilot production
lines.
6. Indus information technology park
The Government of Sindh is working on the establishment of an Information
Technology Park at Karachi, the largest industrial city of the Country. The development
work for the park is in progress, the park envisages the establishment of software houses,
Incubation Centers, hardware manufacturing and setting up of other related facilities. The
park would be declared an export free zone to encourage foreign investments and export
of software. This would be the first complete IT Park in Pakistan providing all necessary
facilities to the start up companies and entrepreneurs of IT business.
7. Scientific and Technological Development Centre (STEDEC)
STEDEC has been established to facilitate R&D Organization in
commercialization of the R&D results. The STEDEC provides finances for Strategic
Partnership in Promoting Incubation System for SMEs matured projects by the R&D
organizations for commercialization of their outcomes as soft loans with a comfortably

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long period of recovery. Another such scheme has been launched by the Ministry Science
and Technology (MoST) under the name “Contractual Research”. Under this scheme,
MoST funds private entrepreneurs for practicable ideas or initiate, schemes involving
high priority commercial projects. The concept is to involve R&D infrastructure in the
development of such commercially valued products which have definite sponsors.
Projects on roses and citrus nursery being executed by the University of Agriculture,
Faisalabad are some of the pioneer and good examples in the direction of
commercialization of technologies and products.
8. Metrology, Standard, Testing and Quality Assurance System (MSTQ)
Under the science and technology policy, Pakistan has initiated a comprehensive
program for strengthening of MSTQ infrastructure. The following measures are taken to
make manufacturers more quality conscious and to build infrastructure for an effective
quality assurance system:
9. Pakistan Council for Scientific and Industrial Research
PCSIR is planning to setting up a variant version of Technology Business Incubators
(TBIs). Through these TBIs, PCSIR is aiming at popularization of its technologies in an
innovative approach. These TBIs will function as pilot plants for the demonstration of
technological processes developed by its scientists. These are anticipated to attract venture
capital from SMEs in a science and technology cooperative mode. The approach is being
designed to attract such SMEs who are either shy of investing in technologies or do not have
sufficient venture capital resources of their own.
The other developments in this direction include (i) an agreement between Pakistan
and China for active collaboration for setting up Science and technology parks and technology
incubators at various sites in Pakistan, (ii) entrusting responsibility of strengthening the
initiatives for incubation of IT/ITES (IT enabled services) companies in Pakistan, and (iii)
development of a mindset for developing technology incubators in the future vision of
organizations like PCSIR, UAF, NUST, HEC, etc.
10. Technology Incubation and Product Commercialization Programs at the University
of Agriculture, Faisalabad
University of Agriculture, Faisalabad (UAF), a historical custodian of national agricultural
heritage and development, has always played a lead role in accepting the change viz-a-viz

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national and international requirements. Since 1961, UAF has been practically engaged in
technology transfer, offering consultations and facilitating the commercial processes in the
field of agriculture and allied disciplines. Old examples in this regard are the establishment of
Kissan Hall, 03 museums and crop demonstration plots in the university aimed at technology
transfer and incubation, product/technology display, etc. UAF has promptly responded to the
concepts of technology incubators and parks. UAF has already allocated a piece of land for
this purpose with the possibility of increasing capacity with time. Some of the in hand projects
include product/display centre, agricultural heritage museum, patent and product
commercialization through demonstration of crop varieties and techniques/processes,
agricultural implements, controlled atmosphere storage technology, seed technology, tunnel
farming, animal feeds, etc. Initial investments in these projects have been made either through
competitive grants and/or own resources of the university. UAF also responded to GOP’s
STED (science and technology for economic development) initiatives. Two proposals funded
by MOST are part of our upcoming technology parks. These are our “Commercialization of
Roses” and “Model Citrus Nursery Development”.
B. Bottlenecks
Weak political will, leading to inconsistent and feeble sate-run policies
Lack of technology up gradation
High cost of financing
High cost of utilities
Little international exposure of Pakistani vendors
C. Relevant international indicators
In 2009, despite a down economy, President Obama has pledged $250 million a
year in federal funds to seed a regional network of such organizations--an effort
aimed at growing jobs and innovation. “This is the first time in the U.S. that a
new administration has made this kind of commitment to innovation,
entrepreneurs and technology,” says Dinah Adkins, president and CEO of
the National Business Incubation Association. “This is the first time we’ve had a
presidential administration that wants to invest in this.”
There are 7,000 incubators around the globe, and they create jobs, grow
companies and help technology evolve. Some of the examples include:

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 International Association of Science Parks (Western Australia), AgriTech Park
(Canada), Hong Kong Industrial Technology Centre Corporation (China),
Okamoto & Company (Japan), Advanced Technology Development Center
(Georgia, USA), Arizona Technology Incubator (Arizona, USA), Colorado
Bio/Medical Venture Center (Colorado, USA), International Business Incubator
(California, USA), etc.
Business incubator models are among the priorities of United Nations to address
poverty issues particularly in Asia.
International donors/investors are supportive to technology incubators
D. How to address the bottlenecks
Effective legal framework to ensure the continuity of policies
Heavy public sector investments in the form of endowments in the research and
development
Technology financing at low costs
Low cost of utilities
Increased academia-industry interaction at national and international level
E. What are the appropriate and effective policies ?
Constitution by act of a National Innovation and Technology Consortium
Establishment of a National Innovation and Technology Incubation Centre (NITIC)
Setting up the technology incubators in all the main cities near renowned universities
Establish the incubators in line with the development strategy of the regional economy
Set up various specialized incubators in different technology fields
Merger of public sector R & D organizations with the universities both at Federal and
Provincial levels
Affiliation of vocational training institutes with the universities
Who is responsible for the change or needs to be brought on board for the change to
happen ? Is their any major concern or obstacle to implementing this solution ?
The proposed National Innovation and Technology Consortium should be responsible
to bring the change. The only concern is the inconsistency in the political will required
for the change.