INCUBATOR INITIATIVE
Supporting a New Generation of ICT-enabled SMEs

Rafael Hernandez
infoDev/Global ICT Department/WBG

New Ways to Empower Indonesia with Internet and ICT
Videoconference with Jakarta
Washington, August 27th, 2003

 
 
Contents
•
 ICT & Development
•
 WBG: ICT Strategy and Approach
•
 infoDev
•
 Incubator Initiative
 
ICT: Vital for Development and Poverty Alleviation
Addressing Needs
Creating Opportunities
•
 Enabling Delivery of Social Services: Health,
•
 Realizing the Potential of Human Capital
Education, Environment
•
 Connectivity to Local and Global Markets
•
 Improved Governance
•
 Moving up the Value Chain
•
 Awareness, Rights, Voice
•
 Empowerment, Equality, Democracy
 
ICT Foundations
Knowledge Economy, Information Society unlikely to happen without a competitive information infrastructure.
The I (of information infrastructure) comes before the E (of e-government, e-commerce, e-ducation, e-services)
Information Infrastructure:
Telecommunications, Internet, broadcasting and related network infrastructure, including postal services, through which information is transmitted, stored and delivered
 
Big Gaps in Access
 
World Bank’s Vision
“Don't let people talk to you about Internet being a luxury. While it is not an alternative to bread, it gives the opportunity to bring knowledge and opportunities to people at all levels throughout the world. It is time for all of us … to make sure that this new age, not the agricultural revolution, not the industrial revolution, but the digital revolution, gives equity to poor people throughout the world.” James D. Wolfensohn President,
World Bank Group July 5, 2000
 
WBG’s ICT Strategic Directions ¹
•
 Broadening and deepening sector and institutional reform to cover the entire ICT sector
•
 Increasing access to ICT infrastructure:
  Reaching the poorest and facilitating the appropriation of ICT as a dynamic platform to break the poverty trap
•
 Supporting human resource development
•
 Supporting applications
¹ ICT-SSP, August 2001
 
Strategy’s Pillars
»
 Connectivity is a requirement
»
 Competition is the vehicle
»
 Infrastructure is critical
»
 Education is the enabler
 
Integral Approach to Deliver a Wide Range of Services

Offering a seamless array of advisory and financial products to public and private sector clients
 
CIT Approvals –FY’92-FY’03
 
• 105 WB Loans
• 126 IFC Investments
• 420 infoDev Grants
 
infoDev
www.infoDev.org
 
The Concept
 
New Strategy
»
 Greater focus on research and dissemination of knowledge about ICT for Development practices
»
 Seed funding to projects in areas of strategic importance to beneficiaries and donors (Flagships)
»
 Convergence towards mainstreaming ICT into the Millennium Development Goals
»
 Global and regional events
»
 Expanded partnerships and networking with donors, peers, stakeholders and clients
 
Flagship Initiatives
»
 Business Incubators
»
 E-Readiness: Country Assessments, Toolkit
»
 World Dialogue for the Networked Economies
»
 African Connectivity
»
 E-Government: Toolkit
»
 Trade
 
Incubator Initiative
•
 Support from the Government of Japan
•
 Goal: Foster ICT-enabled innovation and development of a new generation of small enterprises as engines
for socioeconomic development in developing countries
•
 Objectives:
–
 Mobilize and leverage capital and know-how to business incubators and tenants in developing countries
–
 Strengthen capacity, promote innovation and enhance performance of business incubation and
  enterprise development cycles
–
 Expand their market opportunities
–
 Establish a critical mass of e-capabilities among the local business community
–
 Accelerate the local appropriation of ICT by entrepreneurs
–
 Catalyze knowledge generation and dissemination: practices, toolkits
–
 Foster national and international partnerships
–
 Promote domestic and regional networks among technology-enabled incubators
 
A Phased Approach
•
 Phase 1
Establishment of the infoDev Incubator Support Center (iDISC)
•
 Phase 2
Support to existing incubators in developing countries
•
 Phase 3
Technical assistance and support for new and start-up incubators in developing countries
 
Instruments
•
 Grants (CFPs)
•
 Technical assistance (iDISC)
•
 Business intelligence: Surveys, data, reports
•
 Networking (meetings, workshops, e-forums): Governments, financial institutions, investors, universities,
NGOs, research centers, media, experts, entrepreneurs, communities
•
 Documentation: toolkits, assessments, case studies, business models, online databases, selected publications
•
 Scholarships
 
Incubator Support Center (iDISC)
Contract awarded to ANPROTEC/IBI ($500K)
Goal: Deliver prompt and cost-effective support services in response to specific needs shared by most incubators in the developing world
Objective: Establish the first common repository of knowledge, best practices, experience and services – specifically matching the demand of technology-enabled business incubators in developing countries
Activities:
–
 Content creation: analytical work, collections of best practices, reports, toolkits, methodologies,
databases, FAQs
–
 Assessing/benchmarking the use of ICT in business incubation
–
 Knowledge dissemination: web delivery, seminars, e-mail
–
 Service delivery: training, online advisory services, virtual help desk
www.iDisc.netwww.iDisc.net
 
Phase II: Support to Existing Incubators
  Goal: To help improve their own performance, and bridge the gap between their current progress and their development potential.
  CFPs: Incubators invited to apply for grants aimed at improving their performance, sustainability and growth, in accordance with the strategy and objectives indicated.
  Eligibility: Domestic business incubators, non-for profit business development service centers, science parks, consortiums involving the above mentioned types of organizations, or networks of incubators.
  Grants: Up to $500K per country
 
Phase II: Support to Existing Incubators
  Africa and Middle East
    Jordan, South Africa
  Asia:
    China, India, Indonesia, Malaysia, Philippines, Sri Lanka
  Eastern Europe and Central Asia:
    Kazakhstan, Romania, Ukraine
  Latin America and Caribbean:
    Chile, Colombia, Dominican Republic, Panama, Peru, Uruguay
 
Phase III: Support to Emerging Incubators
  Goal: Provide support to incubators in low-income countries and communities that cannot draw on adequate private sector development environments.
  Objectives:
 
–
 Help them assess the specific gaps hampering ICT private sector development
–
 Provide specific technical assistance as identified and requested
–
 Help set up strategies, assess the developmental impact and success criteria, and draw feasibility studies
–
 Support planning and setting-up of new Incubators in particularly challenging environments. 
 
For more information...
  incubators@worldbank.org
rhernandez@worldbank.org

www.infoDev.org
www.worldbank.org/ict