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A Proposal to Evaluate and Implement a Comprehensive Program of


									A Proposal to Evaluate Management and
 ICT Best Practices and Implement a
Comprehensive Program of Improvement
   to Benefit the Shanghai Hi-tech
Business Incubator Network’s Members
         and Client Companies

                       A proposal submitted by the

        Shanghai Hi-tech Business Incubator Network (SHBIN)
                           In partnership with
The International Consulting Team of the National Business Incubation
                          Association (NBIA)

                               Prepared for
     The Information for Development Program (infoDev),
                       The World Bank Group

               Shanghai Hi-tech Business Incubator Network
            Type of organization: Non-profit public organization
Contact: Wang Rong, Director, Shanghai Technology Innovation Center (STIC)
         Alternate contact: Wang Zhen, Assistant Director (STIC)
               100, Qin Zhou Road, Shanghai, 200235, China
                          Tel:0086 21 64839007
                          Fax:0086 21 64833567
                  Organization Website:
                    Date of submission: Feb. 17, 2003
                        Total cost ($US): $830,000
                 Amount requested from infoDev: $500,000
              Amount contributed by the proponent: $250,000
               Amount contributed by third parties: $80,000
Table of Contents

Table of Contents ................................................................................................ 2
1) Contributions ................................................................................................ 3
2) Project Goals and Objectives ...................................................................... 4
3) Executive Summary ...................................................................................... 6
4) Body of the Proposal .................................................................................... 7
5) Project Administration .............................................................................. 20
6) Main Activities ........................................................................................... 20
8) Budget and Budget Provisions ..................................................................... 27
9) Evaluation Plan .............................................................................................. 27
10) Knowledge Generation and Dissemination ................................................. 29
11) Intellectual Property .................................................................................. 29
12) Appendices.................................................................................................. 31
13) Previous infoDev Grant .............................................................................. 56

1) Contributions

                    Contributions — See Appendix for letters of support
   Type of              Cash     To be      In-kind      To be       Total     Percent
 Organization          ($US)    available    ($US)      available              of total
                                 (date                   (date)                 costs
Shanghai Hi-          $250,00      In                               $250,000     30%
tech Business            0      quarterly
Incubator                       tranches
Wang Rong,
director, STIC
Wang Zhen,
director, STIC
 (See cover for


                                            $40,000      Project    $40,000      5%
                                            (evaluati     first
Consulting Team:
Dinah Adkins                                 on tool)    quarter
President & CEO
James Robbins,
Chuck Wolfe,
Carol Lauffer,
NBIA, 20 E.
Circle Dr., #190,
Athens, OH
45701 USA

Chuck Erickson,

Contact: 2 N.
First St., San
Jose, CA 95113,

Withub                          $20,000   As needed   $20,000   2%
Qian Zhen Ying,
CEO of Shanghai
Science Park Co.,
                                $20,000   As needed   $20,000   2%

Caohejing Hi-
Tech Park
Han Baofu,
Director & Senior
Caohejing Hi-tech
Park Innovation

2) Project Goals and Objectives

The goal of this project is to conduct a thorough evaluation of ICT
and business incubator management practices of the Shanghai Hi -tech
Business Incubator Network (SHBIN) and its members and to
implement a program of activities that will lead to insti tutional
transformation of both. This effort will aim to inculcate business
incubation and ICT best practices throughout the network, benefiting
member incubators, their client companies and the Shanghai economy.
A further goal of this project is to dev elop a methodology for
assessing ICT and business incubation best practices. Accompanying

training, templates and tools would help implement improvements that
address the identif ied needs and could serve as models for replication
in many developing countr ies.

Objectives include:

  a) A thorough evaluation of Shanghai Incubator Hi -tech Business
     Network (SHBIN) memb er incubators’ ICT capacity and
     utilization, including infrastructure (hardware, software,
     connectivity, etc.) and their use of ICT throughout th eir own
     operations and client assistance programs (for example, in
     training, consulting, networking, managing client progress and
     benchmarks, accessing financing, working with business service
     providers, consulting, etc.)

  b) Evaluation of the use, or lack th ereof, of ICT infrastructure,
     ICT capacity of incubator clients at entry and exit, and
     integration of ICT throughout incubator client business cycles,
     including the capacity to initiate e -business strategies, market
     products and services, network effective ly, export, manage
     business decisions and operations and improve their chances of

  c) A thorough evaluation of SHBIN member incubators’
     incorporation of incubator best practices related to planning,
     mission and goals, staffing, governance, financial sustainab ility,
     maintaining stakeholders, client selection, retention and
     graduation, provision of business assistance services,
     operations, and program evaluation.

  d) Facilitation of network member incubators’ ability to procure
     services required to extend the capabilities and to enhance the
     performance of the incubator — in terms of ICT, general
     incubator management and client assistance services.

  e) Creation of a flexib le evaluation framework for the above that
     meets the needs of small and large incubator netw orks in a
     variety of dev eloping countries.

  f) Dev elopment and implementation of new services, organizational
     transformation and training enabling e - business that can elevate

       human and institutional capacity at a local, regional and national

   g) Improv ement of the business management and operational skills
      of SHBIN member incubators and their client companies,
      especially their capacity to integrate ICT throughout the whole
      incubation and client business cycles in order to foster
      entrepreneurship, b usiness innovation and private sector

   h) Assessment of the impact of training and ICT enabling on
      SHBIN incubators and their incubator clients’ performance and
      likelihood of success.

   i) Economic benefit to the Shanghai region, and to China, via
      enhancing the effectiveness of SHBIN and, indirectly, incubator
      clients’ success, including their ability to grow, compete
      effectively, create jobs, open up new economic opportunities for
      low -income communities, and commercialize technologies.

   j) Dev elopment of a mo del system and tools for assessing ICT and
      incubator management best practices, as well as a program of
      improvement, widely applicable in developing countries.

   k) Promotion of equality and diversity in business development by
      activ ely engaging disadvantaged groups, including women.

3) Executive Summary

The Shanghai Business Incubator Network (SHBIN) proposes to partner with the
National Business Incubation Association (NBIA) International Consulting Team to
conduct a thorough evaluation of ICT and business incubator management practices
of its member incubators, and to implement a program of activities that will lead to
institutional transformation of both the network and members. SHBIN requests a
grant of $500,000 from infoDev to conduct a two-year program of activities valued
at (U.S.) $830,000. Through the use of a network of incubators, the impact of the
World Bank funding can be leveraged dramatically.

This highly innovative project aims to build SHBIN’s and its members’ capacity to
face the challenges and grasp the opportunities of the emerging global information
economy. The project also intends to share and disseminate ICT and business

incubation management best practices and tools, and to foster cooperation among
national, regional and global entities and activities. It will reach these objectives

      Utilizing an existing Chinese incubator network as the vehicle to enhance
       the professionalism and inculcate best practices in a group of 24 business
       incubators serving one of the earth’s most populous regions.
      Ensuring incorporation of ICT technologies and strategies throughout the
       network, its members and the clients they serve.
      Institutionalizing business incubator management and client assistance
       principles and best practices, while adapting these global industry
       standards to meet developing country cultural, economic and societal
       needs and political realities.
      Providing a model of effective and mutually beneficial collaboration
       amongst a large number of networked incubators, infoDev and NBIA, the
       world’s largest and most respected non-profit membership association of
       incubator professionals.
      Developing a prototype for inculcating ICT and business incubation best
       practices applicable to large groups of incubators located throughout the
       globe’s developing nations and regions.
      Creating maximum impact through minimal investment by accelerating the
       maturity and sophistication of a large number of incubation programs, and
       thereby increasing their ability to effectively serve hundreds of emerging
      Creating new jobs and wealth in a cost-effective manner by increasing
       the return on existing and future investments in regional business incubation
       and entrepreneurship support, as well as supporting the successful formation
       of new companies in the information and technology sector that will create
       better job opportunities for low-income communities and disadvantaged

The proponent envisions that this undertaking will operate via a process that spins
out information and new learning about building effective communities of practice
and incubator networks. Thus, this project would contribute greatly to the global
economic development community’s understanding of how to accelerate business
incubation and ICT as effective and sustainable tools of economic development in a
wide variety of settings.

4) Body of the Proposal

a) Overview of the Shanghai Incubator Network and the Lead
Incubator Managing this Contract: Located on the eastern coast of

China, Shanghai has a population of 1 6 million and is a prosperous
financial and economic center as well as the center of Chinese
education, science and technology. Shanghai currently counts more
than 20,000 private technology companies and technology exports of
U.S. $1.45 billion. It contributes near ly 22 pe rcent of revenues from
new and high-technology firms to the local GDP . Yet, the opportunities
for further economic development are significant.

China’s first incubator opened its doors in 1987, followed by the
Shanghai Technology Innovation Center (STIC) in 1988. In recent
years, under national strategic guidelines calling for reliance on
science and education to develop the Chinese national economy,
business incubators in Shanghai have grown at a rapid rate. This led
to the birth of Shanghai High -tech Business Incubator Network
(SHBIN) in 1999 . T he first city -wide network of incubators in China,
SHBIN now serves 24 incubators in Shanghai , including five
incubators named national level high technology innovation service
center s.

The incubator designat ed by SHBIN to manage this contract is the
Shanghai Technology Innovation Center (STIC), which was established
in April 1988, as the first incubator in Shanghai. It is the only one in
Shanghai approved by the municipal government and it is a non-profit
institution under the direct leadership of the S&T Commission of
Shanghai Municipality . With the aim of promoting the
commercialization and industrialization of technology achievements,
STIC has been not only the model incubation base for incubating
small-and-medium technology enterprises and cultivating hi-tech
projects in Shanghai but also the head unit of Shanghai International
Business Incubator (SIBI) and Shanghai Hi -tech Business Incubator
Network (SHBIN) . STIC also sponsored the East China Incubator
Network, which was set up with over 150 member incubators
representing six provinces and one municipality.

While Shanghai does not represent the most needy of Chinese
populations, the SH BIN does offer opportunities for new business
formation and new jobs for low -income workers. In addition, the
existing highly -efficient Shanghai incubator network offers the best
opportunity to develop a replicable model for improving business
incubator and ICT best practices across a large number of incubators
simultaneously — a model that could be useful throughout China and
worldwide. SHBIN will make the findings and models developed in this

proposal available to the East China Incubator Network that it helps
sponsor, as well as to other incubator networks worldwide. The value
of this model would be its utility in maximizing benefits to large
numbers of incubators — and thus to geographic regions and nations.
The NBIA consulting team working in partnership with SHBIN plans to
study the SHBIN network model, as well as ass ist in achieving the
other goals and objectives of this project. The resulting greater
understanding of highly -efficient incub ator networks will contribute
to replication effor ts, even in regions and nations with relatively
weaker incubators and networks. This is of crucial importance to
long-term return on investments in incubators by info Dev and others.
Investments in a single incubator can be lost through changes in policy
and management; inculcation of best practices in large numbers of
incubation pr ograms leads to more effective programs and sustainable
achievements affecting large geographic regions.

Further, the more effectiv e creation of successful new technology
companies is a sine qua non for creating new jobs and elevating low -
income manual workers to knowledge economy workers. Shanghai is a
crucible for such activity in China; as such, it remains the site of
much experimentation and learning that can inform other Chinese, and
developing country, practice

b) Incubator Network Facilities: The SHBIN network now includes 24
incubators; it would be difficult to describe each here. Generally,
however, these incubators have been established by high -tech parks,
colleges and universities, district gover nment s, or listed compan ies .
They have various f eatures and range in effectiveness. For instance,
Shanghai Caohejing Hi-tech Park Innovation Center mainly cultivates
the micro-electronics industry ; Yang Pu Innovation Center
commercializes technology from Fu Dan University and Tong Ji
University; Jia Ding High-tech Par k Innovation Center assists
returned scholars in starting their own businesses; Zhang Jiang
Technology Innovation Service Center cultivates bio medical
enterprises; East China University Hi-tech Par k focuses on textile-
based technologies; Shanghai IC Design Innovation Center focuses on
IC design; Pudong National Torch Internet Incubator on the Internet;
and Ke Hui Technology Innovation Center on nano meter -technology . A
professional incubator specialized in industrial design is also under

Despite various specialties, however, virtually all Shanghai incubators
house ICT companies and, of course, companies whose business models
could be improv ed by effective incorporation of ICT . For example,
the largest Shanghai incubator, Wi thub, associated with Shanghai
Jiaotong Univ ersity and its Science Park, houses 200 clients most of
which are ICT focused. Incubators in the Shanghai network house, on
average, 50 to 100 companies and have staffing of 10 to 20
professionals and subordinat e staff .

Aggregate statistics for the SHIBN network are as follows:

            Building Space (m 2 ) :     444,437
            Tenant Enterprises:         825
            (165 established by returned scholars or joint ventures )
            Employment:                 20,756
            Sales Volume (RMB):         3.576 billion
            Profit and tax (RMB):       0.289 billion
            Total Graduated Companies: 169

Due to the varied ages of the incubators in the SHBIN network, the
number of graduates per incubator varies widely. For example,
Withub— although one of the largest incubator s— has been in operation
for only three years and has no graduates. Caohejing has incubated
300 companies in total and reports a 95 percent success rate. This
incubator currently houses 89 client companies.

Shanghai incubators provide a wide variety of se rvices, with
incubators sharing resources throughout the network. For example,
the management team of Withub include s MBAs and individuals with
law, engineering, computer services and accounting degrees; the
majority of employees have undergraduate and gr aduate degrees.
Many incubators, including Withub, Caohejing and Yang Pu Technology
Innovation Center , have access to intellectual property and accounting
expertise on their incubator staff teams. Other services provided by
Shanghai incubators include ma naged work space, logistics, assistance
in complying with business regulations and licensing procedures, equity
financing, financial management, information services, mar keting, and
tailor-made services designed for the various tenant enterprises.
Incubator clients also access preferential policies through special
regulations of the Chinese central and regional governments.
Information and expertise in all these domains are shared throughout
the network.

Despite these resources, Shanghai incubators face challenges that
are cultural, political and economic. Due to culture, Chinese
entrepreneurs are reluctant to share financial information; the
incubators also find it difficult to access consulting expertise from
experienced business service providers (whi ch are only now beginning
to emerge as China embraces a market economy). At present, local
incubators also face problems such as nonstandard management and
services and a lack of professional talent . In order to solve these
problems, enhance the ov erall management level and improve the
service function, it is necessary for SHBIN memb ers to unite ,
strengthen linkages, improve ICT strategies and shar e resources .

c) Management Team and Staffing: At present, most of the
incubators in Shanghai ha ve a management committee or board of
directors that makes governance decisions. The incubator director
takes charge of daily operation s. As noted, each incubator has a staff
averaging 10-20 individuals who are responsible for providing various
services to tenant com panies. For the 24 incubators in Shanghai,
there are 289 management staff (42 with doctor al or master ’s
degrees and 117 with bachelor ’s degrees). In addition to post -
graduate degrees, many incubator managers have rich management

The Shanghai High-tech Business Incub ator Network consists of four
levels as follows:

     The Network guiding committee is led by a vice mayor and
     consists of leaders from relevant bureaus of municipal
     government, governor s of district government , and a university
     president. The annual work of the committee begins early each
     year with hearing reports about the current situation of
     incubators and future development plans, in advising the
     network, in solving operational conflicts, and formulating and
     confirming related ru les and regulations.

     The Network management committee is headed by STIC and
     comprises directors of all member incubators. Quarterly
     meetings are held to provide an arena in which members can
     present reports, exchange experiences, hold discussions and
     submit suggestions.

      There is an administrative office under the management
      committee, set up i n the STIC and in charge of routine work,
      editing network reports and facilitating mutual exchange
      between members.

      Network members . All the organization s engaged in technology
      incubation in Shanghai and the surrounding area that accept the
      "Shanghai Hi-tech Business Incubator Network Regulation" apply
      to the network administrative office and are eligible, after
      approval, as members of the network.

The SHBIN has a greed that the management and fiduciary agent for
this project should be the Shanghai Technology Innovation Center
(STIC). This incubator has 25 management staff ; two hold doctor ates ,
two have master ’s degrees , and five (some with over 10 years
experience in managing enterprises) have been assigned by STIC to be
the director s of other incubators .

Mr. Wang Rong , director of STIC and SHBIN, a senior economist, has
a master ’s degree i n International Economics . He is the CEO of
Shanghai Technology Investment C o. Ltd., which has over 400 million
RMB investment , and he is general manager of Shanghai Scientific
Equipment Corp. He is a founder of SHBIN and also one of the
founders of AABI (Asian Association for Business Incubation). Under
his leadership, ov er 10 in cubators were set up with investment s from

Mr. Wu Shou Ren , assistant director of STIC, a doctor of economic
management, also holds a lawyer ’s license. He has been a civil servant
in the Shanghai S&T Commission and has already published many
articles on technology incubation.

Mr. Wang Zhen , assistant director of STIC and director of the
SHBIN administrative office, holds a master ’s degree in computer
technology. He has been engaged in the organization of an
international training workshop on business incubation for five years;
this is an International Training Program of the Ministry of S&T. He
has been the resource person of ESCAP (Economic and Social
Commission for Asia and the Pacific, United Nation s) and lectured on
incubation in Laos PDR. (See the Appendix for resumes of STIC

Insofar as the proposed subcontractor, the International Consulting
Team of the National Business Incubation Association (NBIA), is
concerned, individual members have managed budgets up to $6 million
and undertak en research, feasibility studies, incubator evaluation,
implementation and technical assistance projects ranging from
$300,000 and under to $6 million . See Appendix for capability
statements and resumes.

The NBIA team has the following unique experience and resources to perform the
activities described above.

      Experience in performing similar studies. The NBIA team has performed
       over 30 research, benchmarking, and analysis projects over 17 years. NBIA
       as an organization has the greatest amount of experience, largest amount of
       current information, and the greatest expertise on incubators of any
       organization in the field.
      Highly accomplished team members. The NBIA team includes authors of
       incubation best practice publications, developers and managers of successful
       technology incubators, technical specialists and individuals with experience
       working in China.
      A proven track record. NBIA successfully served as a project manager and
       contractor for very large research and support services contracts.
      Technical expertise in business incubators. The NBIA team has unparalleled
       depth and scope in understanding business incubators, including
       sophisticated ICT experience at NBIA and in the incubators managed by
       NBIA team members. The team includes the manager of the 2000 NBIA
       Randall M. Whaley Incubator of the Year: The Software Business Cluster in
       San Jose, CA, which has a track record of best practices, innovative
       programs and sophisticated IT practices.
      Commitment of significant resources. The NBIA team will commit
       significant resources beyond the monies provided by the contract. NBIA
       will provide its incubator self-evaluation tool as an in-kind contribution
       valued at $40,000. While the NBIA-copyrighted tool will remain the
       property of the association, a new tool based on it will become the property
       of infoDev and will be widely applicable in developing nations.

d) Incubator Network Operational Model:     SHBIN is sponsored by the
government. Authorized by the Shanghai Municipal S&T Commission,
STIC has responsib ility for the operation and management of SHBIN
and makes investment s in setting up and improving incubators, while
some other network activities are sponsored by other member
incubators. Each incubator has its own incubation base whose

operation is indepe ndent and self -sustainable. The revenue of
incubators is mainly from rental of space, investment return s, tax
rewards and some governmental subsidy. (Due to its prominence and
high-quality serv ices, STIC has built a good environment for
technology entrepr e neurs. In addition to providing general services,
STIC and other Shanghai incubators provide value-added services
such as professional training and consulting, marketing, strateg i c
planning , etc. These services are offered by their own management
teams or via outsourcing.

The history of Shanghai’s incubator development has been presented
in brief. With the principle of ―Pooling advantages, strengthening
exchanges, integrating resour ces, coordinating development,‖ SHBIN
focuses on promoting the overall development of incubators in

Activities include:
       Planning: The Shanghai Municipal Government annually
         appropriates special funds for the construction and
         development of incubators. Cooperating with relevant local
         authorities and universitie s, STIC takes responsibility for
         selectively establishing these technology business
         incubators, makes the initial investment, assigns experienced
         manager s and directs their operation. In 2001, the SHBIN
         spent 10 months studying incubator development in Sh anghai
         and wrote a research report with 50,000 character s that will
         be used to steer the future development of incubators.

         Guiding routine operations: Through the quarter ly meetings
          of its management committee and annual conferences of its
          guiding committ ee, the network summar izes and extends
          successful experiences, organizes study and discussion on
          common problems and provides guidance to the daily
          operation of all its individual incubators . In order to
          normalize incubat ion management, the network has de veloped
          client acceptance and graduation procedures that are
          followed by all member incubators.

         Promoting resources sharing : As the bridge between the
          government and incubators, and through its planning
          activities, SHBIN avoids internal competition among
          incubators that would waste resources. In addition , the

   jointly established incubation information network, brain
   tank (or expertise committee) as well as preferential policies
   and governmental support are shared by memb er s of the

For example, the incubators organize experts to "diagnose "
enterprises with poor performance. They offer suggestions to
achieve sound dev elopment. This consulting service covers
company organizational structure, marketing, technology
manufacturing, company management an d competitiveness issues.
Through conducting research on a pilot venture in Yang Pu
Incubation Base, exchanging ideas face to face and organizing a
staff-training program, problems were uncovered related to the
client’s business strategy, organizational s tructure, human
resources, company culture and compensation systems. A useful
report from this ef fort of over 60,000 characters is proving
helpful to other enterprises in avoiding enterprise development
mistakes and becoming more efficient.

SHBIN has also held meetings on governmental preferential polices and a
lecture series on "Sustainable Development," "Internationalization of SMEs,"
"The Risk of the Foreign Exchange Rate in International Business,‖
"Intellectual Property," "The Future of Enterprises," etc. Withub
Innovation Center, backed by Jiao Tong University, provides training on
innovation to other network members. Also, the MBA core course for New &
Hi-tech Business Managers was jointly held by the incubator and Jiao Tong
University’s Management Institute, with the goal of reducing entrepreneurs’
early-stage costs and helping clients grow into sustainable companies as
quickly as possible.

Managers with rich experiences from STIC have been appointed as top
leaders in Yang Pu Innovation Center, Withub Innovation Center, Ke Hui
Innovation Center and so forth, where they play important roles in the
development of these nascent incubators. When one of the member
incubators holds a workshop, exhibition or business trip, staff from all the
incubators of the network jointly participate in these activities.

   Facilitating financing: There are several means of obtaining capital for
    client firms: various seed capital funds sponsored by government,
    investments made by venture investment companies, and loans provided
    by commercial banks. With the main purpose of supporting the
    commercialization of technology achievements, the Special Incubation
    Fund for S&T Industrialization was set up in Shanghai in 1996 and is
    operated by STIC. Subsequently other innovation centers have
    established their own incubation funds. By the end of 2001, the total
    amount available in this fashion was 96 million RMB. Recently STIC
    deposited 10 million RMB and signed a cooperative agreement with
    Shanghai Bank to provide loans for all the incubatees in Shanghai. The
    loan guarantees offered by STIC can be up to 70 million RMB.

    In 2000, the municipal government set up the Shanghai Science and
    Technology Innovation Fund. The Network Administrative Office
    accepts applications from tenant companies in each incubator. After
    preliminary review by experts, the applications are recommended to the
    Shanghai High-tech Innovation Fund Capital Management Center. This
    provides a channel for application for both Shanghai Innovation Capital
    and the State Innovation Fund for Small Technology-based Firms.

   Attracting positive public attention: The SHBIN network works to
    present a united front for Shanghai’s incubators, helping them break
    through obstacles created by their different affiliations, maturity and
    geographical boundaries and enhancing their credibility and reputation.
    The network has scheduled meetings that improve the incubators’ public
    image, for instance organizing the Shanghai International Industry
    Exhibition, sending delegations to attend NBIA's international
    conferences, and participating in the founding of the Asian Association
    of Business Incubators (AABI) and the East China Incubator Network.

The establishment of the incubator network has pushed
incubation work in Shanghai to a new level by:

       Strengthening the exchange of information and experience
        between and among network member s through an

            information network and a rotating system of meetings
            and training programs
           Guiding and coordinating the incubation work in Shangha i.
           Normalizing the management of incubators, studying
            policies and regulations, and coordinating the
            implementation of preferential policies offered by the
            municipal government
           Exploring new ways of financing and investment to support
            small technology enterprises through joint efforts
           Estab lishing linkages with foreign well-known counterparts
            to explore channels for the internationalization of
            technology companies and their products

e) ICT Strategy:    Among 24 incubators in Shanghai, most can access
the Internet and half of the incubators already have wideband
connections and their own Web sites. SHBIN news is provided via the
Internet, and training material s for incubator managers and clients
are offered on-line. A new Web site for the incubator network is
under construction , but could be improved considerably under the
proposal for this project . Since there are 24 incubators and over
1,000 tenant companies, it is difficult to provide services to all
clients without ICT . With the assistance of the World Bank project,
SHBIN plans to set up an information platform that includes data
bases of client companies, intermediate service agenc ies and investors.
The goals are that incubators should be able to easily access the
Internet with wideband connections , and that online training and
consulting (including the training, networking and consulting to be
implemented as part of this project) for both incubator management
and clients be realized through better access to ICT .

f)Overall Business Strategy: The info Dev grant will be used to
evaluate incubator management and ICT best practices and client
access to and utilization of ICT and e - business strategies. The
infoDev funds will serve as seed monies for this effort and for
procuring resources and developing tra ining programs to address
findings of the initial evaluation. Processes, materials and ongoing
evaluation tools will permit SHBIN to institutionalize impr ovements in
both ICT and utilization of best practices. SHBIN’s already existing
collaborative netwo rk, further financial contributions from SHBIN
and in-kind contributions from member incubators will make this
possible. Further, Chinese government s, intermediate service
agencies and investors are committed to business incubation . It

should, theref ore, be easy to attract additional investment to improve
incubator management and implement best practices that can
accelerate the growth of entrepreneur s and make contribution s to the
local economy.

g)Training: Both online and face -to-face training addressin g two
markets will be designed . One will be aimed at incubator managers and
will assist in upgrading skills and knowledge regarding business
incubator management, incubation services, technology trends , ICT
strategies, etc. The other will be aimed at techn ology entr epreneur s
and also focus on company management issues, patents, relevant
policies , specialized technology, import and export issues, ICT
readiness and strategies, etc. Online video training program s can be
prepared utilizing wideband connection s. Our vision is that all
incubator staff and all entrepreneur s could access training program s
provided by SHBIN. In addition, selected incubator managers will
receive training in the United States and in China by NBIA, its
incubator network and NBIA’s in ternational consultants.

h)Networking and Marketing Services: As already noted, SHBIN’s
guiding committee meets annually and its management committee
meets quarterly. SHBIN’s guiding committee consists of senior
government official s in each relevant dep artment and top leaders in
renowned universities and research institutes. They effectively
coordinat e and support the development of business incubation.
Meanwhile, SHBIN’s management committee consists of directors of
incubators in Shanghai and it promotes collaboration and avoid s
competition among these incubators.

SHBIN also conducts other activities , some irregularly, including
training programs , workshops or seminar s, business meeting s, and
trade exhibitions . For instance, SHBIN hosts the international
training workshop on business incubation on an annual basis, as
mentioned earlier (this program has been ongoing for five years) . In
order to promote international cooperation and explore overseas
markets, SHBIN held a Sino-French seminar on technology innovation
and, in 2002, it organized a business meeting between a Korean
delegation and local technology entrepreneur s. Nearly 900 tenant
enterprises have attracted a network of lawyers, accountants, patent
agencies , venture investors and so on. T he net work of tenant
enterprises itself also represents a potential market for client
companies .

In addition, as the largest incubator network in the world, NBIA will
make its network, b est practices, publications and other resources
available to the SHBIN comm unity.

i)Portfolio and networking: As already noted, SHBIN incub ators
currently house 825 companies and have graduated 169 firms.
Graduates include some very successful technology companies . Some,
such as Newave Technology (Shanghai) Co., Ltd. , China Display Digital
Imaging Technology Co. Ltd., and Shanghai All Optical Network
Technology Co. Ltd. , etc., are rapidly accelerating their growth .
Shanghai Fudan-Zhangjiang Bio-pharmaceutical Co. Ltd. has
successfully gone public in Hong Kong. These companies and others
demonstrate that the incubators in Shanghai have made considerable
contributions to Shanghai’s technology achievements and its economic
and social development.

As already noted, SHBIN’s involvement in planning the establishment
of new incubat ors and in sharing resources among existing programs
minimizes competition among its members and assists in improving
overall incubator management . Despite the large number of incubator
client companies, most tenant compan ies are doing well because they
enjoy a favorable innovation environment , access to markets and
useful services provided by their incubator s.

j)Financial operations: SHBIN was set up in 1999. In the last three
years, SHBIN received over 10 million RMB in subsidies from
government that it used to support the establishment and
development of incubators in Shanghai. Other income of SHBIN comes
from space rental, tax rewards and investment return s of about 10
million RMB per year . The operati ng budget of SHBIN is nearly 8.5
million RMB. Rev enues not used in oper ations represent the income
used to invest in developing Shanghai incubators . As a non -profit
public organization, SHBIN is focused on social benefits. It could be
self-sustainable; however due to its investments, it has only a small
net income every year.

Financial data for the last three years as follow:
Year    Income     Operation Investment Net income ( 1 0 0 0 R M B )
2000 19,500       8,000      11,000        500
2001   22,500     8,000      13,000        500
2002 24,500       8,500      16,000       1000

For the next 2 year s, SHBIN will continue to receive subsidies from
government and will be engaged in supporting the development of
incubators in Shanghai. It will mainly support IT , multimedia and
other technology incubators . With more and more investment s in
regional incubators, however, SHBIN is expected to ob tain investment
profits that will increase its net revenues in the next two years.

5) Project Administration

This project will be managed by Shanghai Technology Innovation Center for the
Shanghai Hi-Technology Business Incubator Network (SHBIN) . STIC has its own
accounting department that will be responsible for the financial management of this
contract, under guidelines set forth by infoDev. An STIC professional team will
jointly engage in this project with the NBIA international consulting team. All
member incubators will also actively participate into this activity. To ensure the
high-quality administration, a special Management Information System (MIS) will
be developed to monitor and manage the contract. Further, based on the seed
grant from infoDev, SHBIN and STIC will be able to approach various business and
governmental agencies for support and additional resources, as needed..

6) Main Activities

The Shanghai Hi -tech Business Incubator Network (SHBIN) proposes
to work in partnership with the National Business Incubation
Association (NBIA) and its international consulting team to conduct a
thorough evaluation of the ICT and incubator mana gement practices
of SHBIN member incubators and to implement a program of
activities that will lead to institutional transformation of the network
and its memb ers.

This proposal envisions identifying current best practices and areas in
need of improv ement; implementing training, procuring technical
experts and service providers to address the identified needs; and
institutionalizing a framework for ongoing assessment of SHBIN
incubators. Further, the proposal includes an evaluation of the ICT
readiness and capacity of SHBIN member incubators’ clients and
implementation of training and activities to accelerate their success,
marketability and sustainability.

The proponents believe this effort will generate positive economic
results for the incubators and their clients and for the Shanghai
region as a whole. In essence, the incubators will further
professionalize their business service activities and improve program
effectiveness, thus generating jobs and wealth for the Shanghai
region and for China. The proponents also envision sharing the lessons
learned from this project with other incubators and their regional and
national networks.

This highly innovative project aims to build SHBIN’s and its members’ capacity to
face the challenges and grasp the opportunities of the emerging global information
economy, to share and disseminate ICT and business incubation management best
practices and tool, and to foster cooperation among national, regional and global
entities and activities. It will reach these objectives by:

      Utilizing an existing Chinese incubator network as the vehicle to enhance
       the professionalism and inculcate best practices in a group of 24 business
       incubators serving one of the earth’s most populous regions.
      Ensuring incorporation of ICT technologies and strategies throughout the
       network, its members and the clients they serve.
      Institutionalizing business incubator management and client assistance
       principles and best practices, while adapting these global industry
       standards to meet developing country cultural, economic and societal
       needs and political realities.
      Providing a model of effective and mutually beneficial collaboration
       amongst a large number of networked incubators, infoDev and NBIA, the
       world’s largest and most respected non-profit membership association of
       incubator professionals.
      Developing a prototype for inculcating ICT and business incubation best
       practices applicable to large groups of incubators located throughout the
       globe’s developing nations and regions.
      Creating maximum impact through minimal investment by accelerating the
       maturity and sophistication of a large number of incubation programs, and
       thereby increasing their ability to effectively serve hundreds of emerging
      Creating new jobs and wealth in a cost-effective manner by increasing
       the return on existing and future investments in regional business incubation
       and entrepreneurship support, as well as supporting the successful formation
       of new companies in the information and technology sector that will create
       better job opportunities for low income communities. The project will also
       reach out to underserved and disadvantaged parts of the region. SHBIN will
       make the findings and models developed in this proposal available to the east

      China Incubator Network, which it helps sponsor, as well as to other global

      The proponent envisions that this undertaking will operate via a process that
      spins out information and new learning about building effective communities
      of practice and incubator networks and that enlarges our understanding of
      how to accelerate business incubation and ICT as effective and sustainable
      tools of economic development in a wide variety of settings.

Component activities of this project include:

1.Utilizing existing NBIA incuba tor self-evaluation tools, the SHBIN
network will work collaboratively with its NBIA consultant team to
review the NBIA tools and expand and revise them to suit the
situation (for example, gov ernance and financial sustainability issues
are different in Ch ina than in the West and the United States, in
particular). Current NBIA tools focus on incubator planning, mission
and goals, staffing, recruitment, retention and graduation of clients,
networking, stakeholder management, provision of business services t o
clients and program evaluation.

While existing tools would be adapted and otherwise revised as
necessary, the network and consulting team would collab oratively build
a new evaluation module to assess each incubator’s incorpor ation of
ICT throughout its own operations and its assistance programs for
clientele. Areas to assess for each incubator would include access to
and utilization of ICT infrastructure (hardware, connectivity, etc.)
and use of ICT in developing and implementing programs and services
including training and managing clients, managing its network of
business service providers, and communicating with suppor t
organizations, etc.

2. SHBIN will also work collaboratively with the NBIA team to
evaluate ICT capacity of both incubators and clie nts at entry and
exit. This will include consideration of their effective use of the
Web , incorporation of e -business strategies, ability to identify
appropriate providers, and use of ICT strategies.

3. Individualized report cards will be provided to eac h incubator
manager AND a summary report will be provided to the SHBIN
network, with recommendations for priority activities to b e

4. Since the evaluation would be broad -based, it will be necessary to
identify priority issues, both in the ICT arenas and in the general
business incubator management and service provision arenas. SHBIN
members would collaborate with NBIA consulting team members to set
priorities and to develop and implement training programs to address
those priorities.

5. The project would be highly collabor ative. While it would be
managed by the Shanghai Technology Innovation Center (STIC) , under
aegis of SHBIN, the Shanghai network itself would assist in reviewing
and adapting evaluation factors, and in devising and impl ementing
appropriate training and sharing of resources.

6. Depending on the results of the evaluation of incubator and client
needs, a training schedule would be developed that draws on local
resources (universities, science parks, incubator personnel, Ve nture
Capital, intellectual property, ICT and other experts), as well as work
in China by the NBIA consulting team and its network.

7. Training of SHBIN and incubator management staff will be a
primary focus of the project. While a considerable amount of training
would be directed to top incubator management, which must oversee
carrying out the improvements and capacity building, it may be
necessary to work with management to ensure effective training of
other staff as well. Since the NBIA team would be wo rking with 24
incubators (or a lesser number determined by the network) rather
than one incubator, significant grant funding would be spent on
building the network’s community of knowledge and practice,
consulting, training, development of materials, pract ice documents and
templates, etc. Face -to-face training could be centrally located or
rotate among network members, as is already practiced.

8. The NBIA consultant team would NOT be on hand for every training
program scheduled by the network — for both incubator managers and
clients— but would work onsite and be involved in assisting SHBIN in
developing training programs, making suggestions for implementation,
identifying subject matter experts, etc.

9. An important component will be institutionalizing peri odic
evaluations, protocols, training, benchmarking, etc., so that the entire
SHBIN network can continue to monitor its progress and adapt the

tools, templates, pr otocols, etc., of this effort as the state of
business incubation and ICT advances and as the Shanghai network
grows and evolves.

10. This project would also include an incubator pilot project to show
the utility of such an approach and how it can impact a single
incubator and create positive benefits for a large group of incubators
and, thus, impact the economic vitality of an entire region. The fact
that a smoothly functioning network is already in place in Shanghai
would permit the project to build on existing capacities and alliances
and to effectiv ely test the proposed evaluation and impleme ntation of
best practices. This project (including the pilot best -practices
incubator) would confirm this kind of approach, increase the
efficiency of the existing network and prove the approach’s utility in
developing countries, and likely advanced natio ns as well.

11. Deliverables will also include policy recommendations, b oth those
that might be identified through early evaluation and through on -
going evaluations as different phases of the project are put into
effect, and at project completion. Such re commendations could
include use of external services required to improve the networking,
marketing, e-business, export, community outreach, service to the low
income and disadvantaged sectors and overall operational capabilities
of incubators and tenant co mpanies.

12. The project will require regular visits by the NBIA International
Consulting team. Onsite visits of two to three consultants would be
required to initiate the project and adapt and build the
evaluation/survey criteria, as well as to develop protocols to ensure
the validity of the findings. The second visit would occur following
data collection and analysis, generation of a summary repor t and
confidential, individualized reports. As already noted, the summary
report would provide recommendat ions to the network, and the
individual reports would provide recommendations to each incubator.
At the second meeting, the consultants would present the summary
report and findings and provide feedback on queries by the network
and individual memb ers. W ritten reports would be sent in advance of
this meeting so that network members could study them and, through
a facilitated meeting process, begin to work on confirming the
findings (or not) , prioritizing training activities, and further,
identifying readi ly- available or still -needed resources.

Training/consulting expertise would be brought in to address priority
issues and needs.

13. The project would encompass 24 months, with considerable
training and expertise lev eraged from the incubator network,
collaborative agencies and other local resources. It is likely that six
to eight visits would occur during the two years, the majority
involving a consultant team of two consultants.

14. Assistance would be provided to SHBIN and the incubator
companies on graduation policies and b etter practices to assist the
incubator companies once they become ready for graduation.

15. A project Website would be set up at the project manager
incubator but linked to each SHBIN incubator and to NBIA, so that
all involv ed could contribute. Virtually all materials would be provided
electronically: training materials, templates, surveys, reports, etc.

16. The project will formally assess the impact of ICT and other
training and assistance.

17. The proponents also envision bri nging a group of eligible incubator
managers to an NBIA training program, for example, the 18 t h
International Conference on Business Incubation in Atlanta, GA, USA,
in 2004. This training would focus on assisting SHBIN to affiliate
with incubation colleagu es worldwide, as well as to observe ICT
practices at a select group of U.S. best practices incubators.

7) Deliverables

The set of deliverables is listed below. Action items begin and end in the quarter
designated, unless stated otherwise. All activities are joint SHBIN/NBIA
activities, and the lead for each activity is listed.

   First quarter: Task 1 - Meet with network, agree on project goals, revise and
    adapt evaluation material. Action: Revise and adapt NBIA evaluation material
    to assess SHBIN incubator management and business assistance best practices
    and to assess incubator and client company ICT readiness, capacity and
    utilization. Cost: US $70,000. Lead: NBIA.

   Second quarter: Task 2 - Implement surveys, analyze results and generate
    reports (the individualized report cards would be automated). Action: NBIA to

    assist SHBIN to survey incubators and incubator companies and to evaluate
    findings and prepare individual incubator benchmarking reports. Cost: US
    $65,000. Lead: SHBIN.

   Third quarter: Task 3 - Meet with network, present findings, prioritize training
    and other activities to be undertaken and begin identifying resources available
    in the consulting team, among the network, and other regional, local or
    international resources. Action: Present findings, prioritize initial training and
    consulting needs, identify readily available resources and those still needed;
    schedule initial training courses (this effort will be ongoing throughout the 4th
    and 5th quarters.) Cost: US $48,000. Lead: SHBIN.

   Fourth quarter: Task 4 - Begin training and ensure sharing of resources to
    address most highly prioritized needs and develop new/additional evaluation
    criteria to determine effectiveness of the project prior to project end. Task 5
    - Complete project Website. Action: Schedule and commence training
    programs (this will become ongoing through quarters 4 to 8); develop draft
    evaluation criteria to determine the effectiveness of the project at its
    completion; complete project Website. Cost: US $127,000 for training (total
    cost); US $101,000 for Website design, development and completion. Lead:
    SHBIN for training; NBIA for Website.

   Fifth quarter: Task 6 – Carry out U.S.-based training at NBIA Conference and
    selected incubators. Action: Complete U.S. incubator manager training; ongoing
    training in Shanghai. Cost: US $33,000. Lead: NBIA.

   Sixth quarter: Task 7 - Complete ICT installation and programs at pilot
    incubator site. Action: Schedule training programs in Shanghai; install ICT
    systems/programs at pilot project incubator. Cost: US $168,000. Lead:

   Seventh through eighth quarters: Task 8 - Continue training/consultation.
    Action: Ongoing training programs. Cost: US $27,000. Lead: SHBIN.

   Eighth quarter: Task 9 - Provide final evaluation, recommendations and report
    to infoDEV and the SHBIN network at project end. Presentation of this report
    and feedback would occur in Shanghai. Task 10 – Audit. Action: Complete
    training; complete evaluation of the project with policy and other
    recommendations. Audit the project. Cost: Evaluation - US $101,000. Audit –
    US $10,000. Lead: Shared.

This schedule is based on five quarters of training (although the initial collaborative
discussions, etc., will be of great value to the incubators and the SHBIN network
as well.)

8) Budget and Budget Provisions

Budget                                                 NBIA and U.S. SHBIN and Materials Travel   Total          Timetable
                                                       Partners       China                                      for
                                                                      partners                                   Completion
Task 1: Modify existing NBIA evaluation tools                 $32,500     $25,000  $5,000 $7,500         $70,000 Quarter 1
Task 2: Evaluate ICT capacity                                 $23,120     $32,000 $10,000                $65,120 Quarter 2
Task 3: Present results and Identify priority issues          $13,780     $20,000  $5,000 $9,000         $47,780 Quarter 3
Task 4: Onsite training Commences                             $39,650     $75,000  $5,000 $7,500        $127,150 Quarter 4
Task 5: Project Website complete                              $20,800     $80,000                       $100,800 Quarter 4
Task 6: U.S. based training complete                           $3,250     $10,000         $20,000        $33,250 Quarter 5
Task 7: Pilot incubator project complete                      $29,250 $130,000             $9,000       $168,250 Quarter 6
Task 8: Training and consulting complete                       $5,850      $8,000  $5,000 $8,000         $26,850 Quarter 8
Task 9: Project Evaluation complete                           $33,800     $50,000 $10,000 $7,000        $100,800 Quarter 8
Audit                                                              $0     $10,000                        $10,000
Total $                                                      $202,000 $440,000 $40,000 $68,000 $ 750,000.00

Note: Concerning Task 6: The budget for travel ($20,000) is for the Chinese
incubator managers.

9) Evaluation Plan

The project will require significant efforts in collaborative planning and information
sharing among partners. To support this activity, the NBIA/SHBIN partners will
provide a monitoring and evaluation system through a secured Web page that can be
accessed by infoDev and others involved in the project. Through this vehicle
participants will be more fully engaged in the ongoing performance monitoring of
the project in an efficient and cost-effective manner and will be in a position to
provide feedback to refine the process over time.

As soon as the work plan is finalized, NBIA’s monitoring and evaluation specialist
will work with SHBIN and infoDev to meet the specific and unique needs of this
project. Components of the system will include work-plan management, impact and
performance monitoring, and budget management.

Work Plan Management

Once the work plan is finalized, it will be entered into the monitoring system, with
individual tasks or activities grouped into components that define the structure of
the project. Associated with work plan tasks are myriad items including, but not
limited to:

   Technical assistance scopes of work and consulting trips
   Tools to evaluate incubator incorporation of ICT in operations and business
    assistance services
   Tools to evaluate client company use of ICT and its impact on company
   Tools to evaluate incubator best management practices.
   Conferences, seminars or training courses
   Website development
   Lessons learned
   Toolkit preparation
   Comments and follow-up actions
   Analysis of outcomes and impacts

Work plan management using a Web-based monitoring system will allow the NBIA
team and partners to organize this information logically and track the status of
individual tasks and the pieces that contribute to the successful completion of
those tasks. For example, the work plan could be viewed, and reports generated, by
component and subcomponent, by due dates, by the main person on the team
responsible for the task, or by output completion.

Impact and performance monitoring will occur on several levels:
    A higher strategic level in which individual tasks contribute toward
      fulfillment of Info Dev initiative goals and objectives
    A contract level in which individual tasks contribute toward fulfillment of
      contract deliverables and milestones
    The work plan task level, in which the outputs of individual tasks are
      monitored noting progress toward completion of the work plan

As the work plan is developed, each task will be carefully related to these levels of
performance. First, each task will be related to the bigger picture, infoDev’s overall
strategy and objectives for its incubator initiative, to ensure that all activities
contribute to its goal. Indicators and targets will be defined for this higher level
performance monitoring to fully define impact. Work plan tasks will be entered into
the monitoring system and linked with these higher level results with their specific
indicators and targets.

In the second level of performance monitoring measurable outputs for each task
will be specified and noted in the monitoring system. Monitoring progress on task
outputs gives project management a good sense of progress toward completion of
the work plan. Outputs will be reported quarterly, but again, completion of outputs

during a quarter will be noted as they occur, thus allowing continual monitoring of

The third level of performance monitoring will occur on a contractual level. Tasks
that contribute to fulfillment of contract deliverables or milestones will be noted in
the monitoring system. Monitoring progress on deliverables and milestones will give
the team members information on progress toward fulfilling the legal obligation
with infoDev and the World Bank. Contract deliverables and milestones will occur
at any time during the implementation of the project, and again the monitoring
system will allow continuous monitoring of progress.

Budget monitoring will track budget commitments, obligations, disbursements,
counterpart contributions and program-related income.

10) Knowledge Generation and Dissemination

The project team will be working with a network of incubators and provide
information on their individual performance as well as opportunities for
improvements in incubator practices.

The project will include development of a project Website as a platform for sharing
information and available as mirror sites in China and in the United States. In both
cases, the Website will be under the management of the country incubation
association. The Website will maintain an accurate summary of both project
progress and lessons learned. The Website will allow association members in China
to track the progress of the project and to access information for ICT and best
practices incubator management development. In addition, it will provide a
convenient method for sharing project information with infoDev.

The Website will provide access to evaluation tools, survey results, best practice
summaries, as well as member listservs, information on publications and other
relevant resources and training schedules.

Finally, SHBIN will make the findings and models developed in this proposal
available to the East China Incubator Network, which it helps sponsor and which
has more than 150 member incubators representing six provinces and one
municipality. SHBIN is also committed to sharing information from this project
globally with infoDev and peer incubator associations.

11) Intellectual Property

Consistent with infoDev’s objectives to enhance and disseminate knowledge and
encourage easy replication of successful projects, infoDev will retain ownership of
all project deliverables (including any intellectual property in such deliverables)
funded by it, and may place such deliverables in the public domain. The proponent
recognizes and agrees with this objective of knowledge sharing and dissemination
through infoDev.

Intellectual property in the form of incubator self-evaluation tools previously
developed by NBIA will remain the property of NBIA. However, the revised tools
will become the property of infoDev. The contribution of the base intellectual
property to this effort is valued as an in-kind contribution by NBIA at $40,000.

12) Appendices

A. Letters of Support

B. SHBIN/STIC Personnel Resumes

Wang Rong
Director of Shanghai Technology Innovation Center

Education Experience:
1989-1992 Master's Degree of International Economy, Shanghai Finance &
           Economics University

Work Experience

2000 - present Director of Shanghai Technology Innovation Center
               Director of Shanghai Hi-tech Business Incubator Network Management
               Director of Shanghai International Business Incubator
               Vice Director (International Cooperation) of China Business Incubation
1996-1999      Director and General Manager of Shanghai S&T Investment Ltd.
1994 -1997     General Manager of Shanghai Scientific Equipment Company
1984 -1993     Deputy General Manager of Shanghai Fasteners (Group) Corp.
1983 -1984     Director of Shanghai Far East Fasteners Factory

Wang Zhen
Assistant Director of Shanghai Technology Innovation Center

Education Experience:
1991-1995        Bachelor's Degree in Bio-chemical Engineering, East China
             University of Science and Technology
2001-2003    Master’s Degree in Computer Technology, Shanghai JiaoTong

Work Experience

2003 - present Assistant Director of Shanghai Technology Innovation Center
2001 - present Director of Administration Office of Shanghai Hi-tech Business Incubator
               Director of Administration Office of Shanghai International Business
               Deputy Director of Administration office of Shanghai Technology
               Innovation Center
1997 - 2001    Project Manager of Shanghai Technology Innovation Center
1995 -1997      Project Supervisor of Shanghai Technology Innovation Corp.

C. About NBIA

National Business Incubation Association
The National Business Incubation Association (NBIA) is an international
membership organization for those professionally associated with business
incubation and enterprise development. While originally formed as a U.S. national
association in 1985, the organization immediately began to serve members from
throughout North America. Today, NBIA has 1,000 members, 17 percent of whom
are from outside the United States. Altogether, NBIA members represent 44
nations, including many developing countries. Among the latter are Chile, China,
Egypt, India, Thailand, Sri Lanka and Malaysia.

Though nominally a U.S. organization, NBIA is, in fact, the world’s largest
international organization devoted to business incubation. NBIA has been the key
contributor to promotion of the business incubation concept and to the
development and dissemination of best practices, offering information regarding
industry trends, conducting international and regional conferences and workshops,
publishing extensively, including monthly newsletters and dozens of manuals and
research reports (more than 20 current NBIA titles are available in the NBIA
bookstore). The Association also maintains an interactive Website of more than
5,000 pages and a list serve for members. NBIA’s list serve and its publications,
conferences and training events have permitted the Association to take a seminal
role in the spread of business incubation throughout the globe. Many consultants
working abroad have relied on the information and expertise of NBIA to develop
successful projects.

NBIA conferences and training programs are regular meeting venues for the world’s
leaders in business incubation. The 16th International Conference on Business
Incubation hosted 570 registrants in Toronto, April 28-May 1, 2002. This event
occurred after the attacks of September 11, 2001 and was somewhat smaller than
the Association’s previous annual conference in San Jose, Calif., which hosted 700
registered attendees. However, 45 percent of Toronto attendees came from
outside the United States and one-third of the 60-plus sessions featured
international speakers. Attendees represented 30 nations. The largest non-U.S.
delegations were Canada (56), United Kingdom (51), South Korea (30), Japan (22),
Brazil (20), Taiwan (19), China (8), New Zealand (6), Australia (5) and France (5).
Smaller groups and individual attendees arrived from Belgium, Bulgaria, Chile,
Cyprus, Denmark, Egypt, Finland, India, Ireland, Jamaica, Kuwait, Malaysia, Panama,
Portugal, Romania, Russia, Singapore and South Africa.

Such international attendance is the hallmark of an organization that is perceived
as the premier source of business incubation information and a centrifugal site for
international networking for both industry pioneers and those just starting out.
The Association also maintains a schedule of training programs including a fall
training institute and a pre-conference institute, providing in-depth learning
opportunities (concurrent workshops are half-day to two-and-a-half days in length,
depending on subject matter). In 2002, 15 such workshops will be offered.

For five years, NBIA has also hosted an International Summit of Business
Incubation Organizations, attended this year by delegations from Canada,
Australia, France (two organizations), Romania, Taiwan, Brazil, Korea, Russia and
Sweden. The goal of this group is to forward business incubation and
entrepreneurship support through international collaboration.

NBIA recently initiated efforts to develop Special Interest Groups (SIGs)
dedicated to targeted member segments including ICT, environmental, food
processing, biotechnology incubators, rural incubators and other industry segments.
This effort will result in specialized listservs and Web-based repositories of
information from which members of these segments could draw industry-specific
information and network with like incubator program clusters. Protocols for these
activities will be in place within six months.

NBIA publications include three newsletters, two disseminated online and the NBIA
Review, a 20 page compendium of news, events, in-depth feature stories and how-to
information, as well as online publications. NBIA books have been underwritten by
the Economic Development Administration and the Technology Administration of
the U.S. Department of Commerce, the U.S. Small Business Administration, the
Tennessee Valley Authority, the IC2 Institute at the University of Texas at Austin,
Ohio University, the Southern Technology Council and the Ewing Marion Kauffman
and Nathan Cummings foundations, among others. They include such seminal works
as A Comprehensive Guide to Business Incubation; Bricks & Mortar: Renovating or
Building a Business Incubation Facility; Forging the Incubator; Human Resources:
Finding the Right Staff for Your Incubator (2nd edition); Business Incubation
Works: The Results of the Impact of Incubator Investments Study; Incubating in
Rural Areas: Challenges and Keys to Success; The Compensation Question: NBIA’s
2000 Survey of Incubation Executives; Best Practices in Action: Guidelines for
Implementing First-Class Business Incubation Programs; The Art & Craft of
Technology Business Incubation; Technology Commercialization Through New
Company Formation: Why U.S. Universities Are Incubating Companies, and
Incubating the Arts: Establishing a Program to Help Artists and Arts Organizations
Become Viable Businesses.

The Association conducts research—including on-going industry research and
contract research for the Tennessee Valley Authority and U.S. Department of
Commerce (Economic Development Administration and Technology Administration).
Topics include rural incubation, technology incubator benchmarking, incubator
impacts on their communities, incubator manager compensation, and other subjects.
These research reports are often republished as books noted above. NBIA also
publishes regular industry studies, the most recent State of the Business
Incubation Industry 2002 will be published in late 2002.

NBIA consults to government agencies and regional and national entities both in the
United States and abroad. Recent consulting projects include work for the Public
Authority for Applied Education and Training of Kuwait; a large project focused on
a Middle Eastern nation for a major defense contractor; contracts with the Japan
External Trade Organization (JETRO) and the Japan Association of New Business
Incubation Organizations (JANBO); and the State of Maryland Technology
Development Corp.

In support of its efforts, NBIA maintains a staff of 20 at its headquarters offices
in Athens, Ohio. Major staff positions include the president & CEO and directors
of Web services, education and training, membership, administration
(controller/MIS, etc.), development (fundraising and public relations) and
publications. See Appendix 4 for further information on NBIA qualifications and
resumes of staff who would participate in this effort.

NBIA is not only the central resource professionals rely on for incubation program
and entrepreneurship support, it ―walks the talk‖ as an entrepreneurial organization
itself. Never reliant on government for operating support, the Association
bootstrapped itself by providing products and services its members and customers
were willing to buy. This has imposed unparalleled efficiencies and customer-focus
on the Association staff and leadership.

D) NBIA International Consulting Team Qualifications

NBIA International Consulting Services
In an effort to contribute to sound incubation program development and
management worldwide, NBIA now offers business incubation consulting services to
international clients. The association provides these services in partnership with
Business Cluster Development and Claggett Wolfe Associates, successfully joining
the expertise of these independent consultants with NBIA’s resources and
international experience.

   Consulting Team Members
   International consulting team members have extensive experience in incubation
   feasibility studies, incubation development, venture investment and international
      Dinah Adkins, president and CEO, NBIA

      James Robbins, principal, Business Cluster Development

      Carol Kraus Lauffer, principal, Business Cluster Development

      Chuck Wolfe, principal, Claggett Wolfe Associates
Note: The team will bring outside consultants into projects on an as-needed basis,
depending on the need for special geographic or technical expertise.

Clients Served
A variety of clients will benefit from NBIA's consulting services, including:
      regional and country leadership and policy makers.

      local, regional and national economic development organizations.

      international development organizations.

      academic and NGO specialists.

      multinational corporations.

Consulting Services
   Through the combined expertise of its members, the international consulting
   team provides the following services:
      Research and Analysis

      Publishing

      Presentations and expert testimony

      Strategies for regional and national incubation programs

      Strategies for existing incubation programs

      Training for practitioners, policy makers and developers

      Small and Medium Enterprise (SME) development

      Venture capital fund development and financing for SMEs

      Linkages and partnerships

The extensive experience of NBIA’s international consulting team members enables
the association to bring a variety of quality services to clients around the world.
Below is a detailed list of these services.

Research and Analysis: The consulting team conducts primary and secondary
research and analysis on specific topics and issues related to incubation, new
business formation, capital development, technology transfer and related topics to
meet client-specific needs. Activities in this category include data collection,
analysis and report preparation on such topics as:
      cluster/sector analysis and strategies.

      incubation industry trends.

      international techniques and best practices in business incubation.

      policy development.
Publishing: The consulting team prepares documents in a variety of formats to suit
client needs. Products include:
      white papers.

      workbooks.

      reference documents.
Presentations and Expert Testimony: The consulting team develops and delivers
presentations and expert testimony on business incubation and Small and Medium
Enterprise (SME) economic development activities.

Strategies and Services for Regional and National Incubation Programs: The
consulting team develops and implements strategic plans for the creation of new
programs to foster incubation at the regional or national level. This work may
include the implementation of specific aspects of a program’s development, as well
as complete turnkey development. Activities in this category include:
      strategic planning, including the preparation of documents including
       feasibility studies, program business plans, services and network
       development plans, and program funding plans.

      program development assistance.

      program implementation assistance.

Strategies for Existing Incubator Programs: The consulting team evaluates
existing business incubation programs and creates and implements strategies for
the enhancement of existing programs. Services in this area may include:
      developing business and growth plans.

      carrying out program evaluation and benchmarking.

      developing private/public partnerships for economic development.
Incubation Training: The consulting team creates and presents training programs
for practitioners, policy makers and developers. Training for practitioners focuses
on the practical skills involved in establishing and operating a successful business
incubation program. Training for policy makers and developers focuses on the basic
concepts of incubation, the role of incubation in economic and community
development, and the contributions of incubation on technology innovation and
commercialization. Specific training courses and programs can be directed at the
following audiences:
      Incubator Developers

      New Managers

      Experienced Managers

      Advisory Boards

      Boards of Directors

      Policy Makers
Services in this area include:
      regional training for incubator managers – from classroom training to on-site
       coaching to site visits to best practices incubators.

      regional or country-specific training for incubator developers and policy
       makers involving classroom training, site visits to best practices incubators,
       and access to a peer network to discuss strategies, successes and
Small and Medium Enterprise (SME) Development: The consulting team provides
services in the area of new business formation and entrepreneurship. Specific
offerings include:
      evaluations of opportunities for and barriers to entrepreneurship.

      evaluations of opportunities for and barriers to entering incubators.

      regional enterprise development planning.

      SME policy development.

      entrepreneurship training.

      entrepreneurship support as a key to global economic competitiveness.
Venture Capital Fund Development and Financing for SMEs: The consulting team
creates strategies for the development of venture capital funds for SMEs, investor
networks, venture-backed incubation, loan and other debt financing programs, and
economic development initiatives with a venture focus.

Linkages and Partnerships: The consulting team develops and deploys partnership
strategies within and between regions and countries around the world. Services
      forming regional or countrywide incubator networks.

      creating regional partnership development strategies.

      forging strategic partnerships with private corporations.

      developing network linkages to corporations, universities, incubator and
       other organizations in global technology centers such as Silicon Valley,
       Boston, Singapore, and other regions.

E) NBIA International Consulting Team Bios

President and CEO
National Business Incubation Association
20 East Circle Drive, Suite 190
Athens, OH 45701
(740) 593-4331
FAX (740) 593-1996


       Dinah Adkins has been chief staff executive (now President and CEO) of the
National Business Incubation Association since November 1988 when the
Association moved its headquarters from Pennsylvania to Athens, Ohio. Ms. Adkins
oversees all activities of the 1,000-member organization of incubator managers and
developers and supervises a staff of 20.

       Under her direction, the Association has greatly expanded its customer
base, quadrupled membership and increased revenues seven-fold. NBIA has
developed a comprehensive array of member services including publications,
training, research and information clearinghouse activities, and it has significantly
expanded its prestige in the United States and abroad. Association members
currently represent more than 55 nations, and NBIA has managed consulting
efforts for major Japanese, Kuwaiti and American contractors, both government
and private. The Association maintains a Website with more than 5,000 pages of
information on business incubation and NBIA, and it is contacted more than any
other organization by individuals who have questions about business incubation and
entrepreneurship development.

       Prior to assuming her position with NBIA, Ms. Adkins was associated with
the Ohio University Innovation Center, a campus-based incubator, from its
inception in 1982. She managed the incubator from January 1986 until July 1989.
Ms. Adkins also worked in journalism, public relations and events management.

       An invited speaker on topics related to business incubation at conferences
throughout the world, Ms. Adkins is a member of the American Society of
Association Executives and an advisory board member of the Nidus Center for
Scientific Enterprise, a life sciences incubator created by Monsanto Corp. and
Washington University of St. Louis, Mo. Ms. Adkins also serves on the advisory
boards of the Panasonic Internet Incubator, operated by Panasonic Technologies,

Inc., in Cupertino, Calif., and the National Center for Entrepreneurship in Rural

She is the author and coauthor of numerous publications, most recently: ―A Report:
Summary of the U.S. Incubator Industry and Prospects for Incubator Model
Globalization‖ (for the Japan Association of New Business Organizations, 2001);
―Winning Strategies: Technology Commercialization and Business Incubation,‖ Part
XII, Chapter 2 in AUTM Technology Transfer Practice Manual (for The Association
of University Technology Managers, 2002); Incubating in Rural Areas—Challenges
and Keys to Success (for the Tennessee Valley Authority, 2001); Best Practices in
Action: Guidelines for Implementing First-Class Business incubation Programs (for
the Maryland Technology Development Corp., 2001); and Business Incubation Works
(for the U.S. Dept. of Commerce, 1977).


Chuck Wolfe

The Principal of Claggett Wolfe Assoc., Chuck Wolfe is an economic development
professional with extensive experience working in domestic and international rural
and urban settings. His work has ranged from strategic planning and feasibility
assessment to program design and administration. Mr. Wolfe brings a combination
of environmental, engineering, small business, and urban/rural economic
development skills to his work resulting in the development of innovative solutions
to the communities, states and countries he serves. He has conducted numerous
community forums, and worked with residents, community based organizations,
agency staff and business people to identify and develop creative strategies for
stimulating economic growth through small business formation and expansion.
Specific activities have included business incubator feasibility assessment and
business planning; CDBG economic development program creation and compliance
review; loan program development and bank consortium formation; business
assistance and entrepreneurship training development and implementation; case
study assessment and program review; business planning for new ventures; funding
identification and acquisition; and grant preparation and administration. Most
recently Mr. Wolfe completed a Best Practices Guide for Technology-Focused
Incubators and a Guide to Preparing an Incubator Feasibility Study for the New
Jersey Commission on Science and Technology. He was also the lead author on an
EDA funded study for the California Office of Strategic Technology entitled:
―Technology Innovation Centers: A Guide to Principles and Best Practices‖ and
worked as a collaborative author with NBIA on the publication Best Practices in
Action: Guidelines for Implementing First-Class Business Incubation Programs.

Mr. Wolfe has a BS in Environmental Resource Management from the Pennsylvania
State University and an MBA from the University of Texas at Austin. He currently
serves on the Board of Directors of the California Association for Local Economic
Development and the Advisory Board of the NASA Ames Technology
Commercialization Center.

James Robbins

Jim Robbins is a Principal in Business Cluster Development and a member of the
NBIA International Consulting Team. Jim has significant experience in the following

      Incubation strategy, development and management
      Corporate innovation and incubation
      Technology transfer and commercialization
      Entrepreneurial programs and new business formation

Jim is also Executive Director and Co-Founder of the Software Business Cluster,
the first software incubator in California. The Software Business Cluster was
named Incubator of the Year in 2000 by the National Business Incubation
Association. Over $450 Million in venture investment has been made in SBC
companies during the past 4 years, and three SBC companies went public.

Jim also serves as the Executive Director of the Panasonic Incubator and is a
Principal in Panasonic Ventures, a $100 Million dollar investment fund. The Panasonic
Incubator has offices in Cupertino and San Francisco, CA. Jim is also Director of
the Environmental Business Cluster, with offices in San Jose, CA and China. The
EBC was the first environmental incubator in the U.S. when it was formed in 1994.

Jim opened the first U.S. incubation office in China as part of the EBC effort to
introduce environmental technology and create jobs focused on improving the
environment in China. He has lectured and worked in numerous cities in China and

Recent BCD projects include a Bioscience Cluster and Innovation Center, a
technology incubator in Annapolis, MD, as well as work with a university-based
commercialization center and incubator in Montana. Other incubators that BCD has
helped to create include the Women’s Technology Cluster, the Communications
Technology Cluster and the Foundation Incubator. Jim is on the Board of Directors
of the National Business Incubation Association (NBIA) and is Vice-Chair of the
Pacific Incubation Network, a regional network of over 75 West Coast incubators.

Jim has 30 years experience in the fields of new business formation, organizational
design, technology development and management, business operations and law. In
addition to starting his own business to assist communities in the development of
sector-focused incubators, he worked for Digital Equipment Corporation and the
U.S. Supreme Court.

Jim is a frequent speaker on new business formation, early stage venture funding
and sector-focused incubation. He gave presentations on Technology Incubation
and Corporate Incubation at the NBIA 2002 Conference and was a speaker at the
2002 IBF Conference on Corporate Investment. BCD projects have been featured
in Inside Business Incubators and Corporate Ventures by Sally Richards and in a
recent Harvard Business School Case Study. Jim has been featured in the Wall
Street Journal, New York Times, Inc. Magazine, Entrepreneur Magazine, Business
Week, Red Herring Online, the San Francisco Chronicle, the Silicon Valley and San
Francisco Business Journals, and the San Jose Mercury News.

Carol Kraus Lauffer

Carol Kraus Lauffer is a Principal with Business Cluster Development (BCD) and a
member of the NBIA International Consulting Team. She has significant
experience in the following areas:

      Entrepreneurial programs and new business formation
      Incubation strategy and development
      Economic development
      Strategic partnerships with corporations
      Technology commercialization.

Carol’s current projects include the planning and development of a bioscience
incubator and innovation center in San Jose, California, and the implementation of a
technology incubator specifically focused on information technology and homeland
security in Anne Arundel County, Maryland. She recently completed a business plan
for a university-based incubator focused on technology transfer and
commercialization opportunities at a converted military base. She continues to
advise several incubators, including the Software Business Cluster and
Environmental Business Cluster, joint projects of the Redevelopment Agency and
the San Jose State University Foundation, in San Jose, CA.

Most recently, Carol served as Managing Director of the Panasonic Incubator, a
corporate venture-backed incubator in Silicon Valley and San Francisco, California,
as well as a Principal in Panasonic Ventures, the direct investment arm of
Matsushita Electric Industrial. Carol sourced and screened startups for the
incubator, as well as coached the incubator portfolio companies.

Prior to joining Panasonic Ventures, Carol was the Associate Director of the
Software Development Forum, the largest software organization in the San
Francisco Bay Area. At SDF Carol forged partnerships with leading Silicon Valley
technology companies and directed all business development activities. In addition,
she developed a full range of entrepreneurial business programs for software

Carol has also held a number of positions in economic development, focused on new
business formation. At the Ben Franklin Partnership, she managed the grant
program for organizations that provided business services to start-up technology
companies in the Philadelphia region. Carol served as a small business loan officer at
the Philadelphia Industrial Development Corporation. Her work is rounded out by
community revitalization, policy development and analysis, and non-profit

Carol is a frequent speaker on incubation, innovation and entrepreneurship. Recently
she designed and taught a training course on ―Creating the Technology Incubator‖
at the National Business Incubation Association’s Fall Training Institute in Orlando,
FL. Other speaking engagements include the 2002 National Business Incubation
Association Conference, the 2001 Licensing Executives Society Annual Meeting, and
various entrepreneur events in Silicon Valley, CA.

Carol began her career at the University City Science Center, one of the oldest
incubators in the United States. She earned a Master of City Planning from the
University of Pennsylvania and a BA from Northwestern University.

D. San Jose Software Business Cluster — Chuck Erickson Bio


20200 Glen Brae Drive                                      Home Office:    408/741-5769
Saratoga, CA 95070-4962                                   Home (Family):   408/741/5025
Email:                                       Home FAX:     408/741-5386
                                                                   Cell:   408/314-9090

Summary:     Mr. Erickson has been serving for the past two years as Managing
             Director of the Software Business Cluster in San Jose, CA. The
             Cluster has achieved extraordinary success in launching new
             companies in many areas of technology.

              Prior to the Cluster, Mr. Erickson guided Digital Pathways, Inc.
              through a major restructuring and rebirth as President and CEO.
              Digital Pathways is the premier supplier of secure remote access
              solutions, user authentication systems and resource management for
              Internet, WAN and LAN installations.

              Prior to joining Digital Pathways, Chuck Erickson was President of
              Olivetti Advanced Technology Center, the U.S. based development
              arm of Ing. C. Olivetti Sp.A., the ($7,300m) Italian electronics
              company. During 16 years with Olivetti Mr. Erickson held a variety of
              positions in the product development arena, from Manager through
              Director to President. Prior to Olivetti, Mr. Erickson held key
              development positions with Victor Comptometer, Warwick Electronics
              and 3M.

              Mr. Erickson holds a BSEE from Illinois Institute of Technology and
              is a Registered Professional Engineer.

Highlights:   BUSINESS CLUSTER, SAN JOSE                                    1999-Present

              Managing Director, responsible for guiding entrepreneurs through
              the critical startup phases of their company’s growth. To date the
              Cluster has graduated over 60 companies and has helped them raise
              over $400,000,000 in investment. The success rate of the Cluster is
              unprecedented in Northern California and is recognized as a

significant contributor to the growth of technology companies in San

CONSULTANT                                                        1996-1999

Consultant, successfully assisted a number of technology companies
in start-up, turn-around, or restructuring activities. Served as
interim CEO, COO, and CTO as needed.

DIGITAL PATHWAYS, INC.                                            1991-1996

President and CEO, responsible for all corporate activities and the
recovery of the Corporation from serious financial and product crisis.
Directed the activities of the corporation through its metamorphosis
from a virtually bankrupt, product-less and obsolete company to a
$200,000,000+ valuation in 4 years.

   Established a very carefully defined recovery plan to maintain the
    existing customer base while rapidly developing new products to
    meet market needs. This was accomplished with extremely
    restrictive budget considerations.
   Refocused the Company’s sales process from direct sales to
    indirect sales (dealers, VARs, distributors) as the nature of the
    indirect channel improved.
   Managed cash and receivables very tightly to allow growth and
    recovery in a situation where no investment opportunity or line of
    credit was possible.

OLIVETTI ADVANCED TECHNOLOGY CENTER                               1975-1990

Multiple assignments of increasing responsibility leading to the title
of President, responsible for the development and manufacture of a
broad line of personal computers.

   Formed a vital technological development group based in California
    and dedicated to ―time to market‖ computer products. The
    success of this group depended upon close coordination with the
    Marketing and Sales and Manufacturing organizations
    headquartered in Italy.
   Managed a restricted costs budget and critical schedule matrix to
    produce competitive products with a development group
    significantly smaller than the major competitors.

                Organized teams to develop multiple product disciplines within the
                 same overall organization. These teams developed products
                 competitive with IBM and Compaq frequently beating these large
                 competitors to market with leading edge products.

             PRIOR EXPERIENCE                                                  1958-1975

             I have held a number of interesting (and key) engineering positions
             involving the early development of semiconductors for tape recording
             products, television receivers, consumer audio equipment, the
             miniaturization of sophisticated radiation detection and monitoring
             equipment (for covert US Govt. activities) and, in earlier assignments,
             the development of pioneering magnetic tape based telemetry
             systems for atomic weapons testing, and the early manned and
             unmanned space capsule flights.

Education:   BSEE, ILLINOIS INSTITUTE OF TECHNOLOGY                                    1968

             Liberal Arts at Cornell College, Mt. Vernon, Iowa.
             Registered Professional Engineer

13) Previous infoDev Grant

Neither the proponent of this proposal (SHBIN) , nor the managing incubator
(STIC), nor the primary subcontractor (the National Business Incubation
Association or members of its International Consulting Team) has been awarded any
contract for work by the Information for Development (infoDev) Program.


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