2009 UNESCO-WTA International Training Workshop

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REPORT

Green Growth based on the Science Park Initiatives

11 - 14 November 2009 Conference Hall, Daedeok Innopolis, Daejeon, KOREA

December 2009

Daedeok Innopolis, Daejeon,Korea(November 11-14, 2009)

2009 UNESCO-WTA International Training Workshop

Green Growth based on the Science Park Initiatives r

▪ Date. November 11-14, 2009 ▪ Venue. Conference Hall, Daedeok Innopolis, Daejeon, Korea

UNESCO-WTA Cooperative Project Steering Committee

2009 UNESCO-WTA International Training Workshop

Published November 2009 Copyright WTA

Daedeok Innopolis, Daejeon,Korea(November 11-14, 2009)

Table of Contents

Keynote Speech 7 Toward a Sustainable Technopolis

· Prof. Fred Young Philips (Alliant International University, USA)

SESSION 1. Technopolis development and Green Growth

▪ Lecture 1-1 29 Science Park in context of the Sustainable Development towards Green Growth · Prof. DeogSeong Oh (Chungnam National University, Rep.of Korea/ WTA Secretary General)

▪ Lecture 1-2. 55 Technopois as Innovation SEZ for Green Growth · Prof. Byung-Ho Oh (Hanyang University, Korea)

▪ Lecture 1-3. 69 Green Development Strategies at Southern Taiwan Science Park

· Prof. Shiann-far Kung (National Chengkung University, Taiwan)

2009 UNESCO-WTA International Training Workshop

SESSION 2. Strategic industry & Green Growth in the Region

▪ Lecture 2-1 85 Sustainable entrepreneurship and cleantech - A Swedish perspective

· Prof. Erik Lindhult (Mälardalen University, Sweden)

▪ Lecture 2-2. 101 Strategic Hi-Tech Industry and Regional Green Growth · Prof. Eberhard Becker (Dortmund University of Technology, Germany)

▪ Lecture 2-3. 111 “Green to Gold” strategy: Collaboration among government, companies and consumers in Japan · Prof. Michi Fukushima (Tohoku University, Japan)

SESSION 3. Support mechanism in Technopolis towards Green Growth

▪ Lecture 3-1 127 Support mechanism in Technopolis towards Green Growth · Dr. Herbert Chen (Tsinghua Science Park, China)

▪ Lecture 3-2. 141 A role for Science and Technology Parks in supporting green growth · Dr. Malcolm Parry OBE (Director of the Surrey Research Park, UK)

▪ Lecture 3-3. 159 Eco-Industrial Park (EIP) Initiatives towards Green Growth: Lessons from Korean Experience · Prof. Suk-Chan Ko (Dankook University, Korea)

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SESSION 4. Country Presentation 173

Appendix. UNESCO-WTA Initiatives (2006-2010) Science Park & Technology Incubator 187

Dr.Yoslan Nur Division for Science Policy and Sustainable Development, Natural Science Sector, UNESCO

2009 UNESCO-WTA International Training Workshop

2009 UNESCO-WTA Project Steering Committee

Chairman Rector Eberhard Becker, President of WTA University President Forum

Coordinator Dr. Yoslan Nur, Science Policy & Sustainable Development Division, UNESCO Dr. Deog-Seong Oh, Secretary General of World Technopolis Association (WTA)

Members Mr. Mustafa El Tayeb, Director, Division for Science Policy and Sustainable Devloment Natural Science Sector, UNESCO Dr. Byung-Joo Kang, Director, UNESCO-WTA Technopolios Development Center Dr. Taek-ku Lee, Director General, Economy and Science Bereau, Daejeon, Dr. Malcolm Parry, General Manager, Surrey Research Park, Guilford, UK Dr. Miyakawa Yasuo, Professor Emeritus, Kyushu University, Japan Dr. Jong-Deuk Kim, Professor, KAIST, Korea Mr. Yeon-Gon Choo, Advisory Ambassador on International relations Daejeon Metropolitan City, Republic of Korea Dr. Jong-Hyun Lee, President, Asian Science Park Association (ASPA)

Daedeok Innopolis, Daejeon,Korea(November 11-14, 2009)

KKEEYYNNOOTTEE SSPPEEEECCHH

Toward a Sustainable Technopolis

· Prof. Fred Young Philips (Alliant International University, USA)

2009 UNESCO-WTA International Training Workshop

Daedeok Innopolis, Daejeon,Korea(November 11-14, 2009)

Toward a Sustainable Technopolis

Fred Phillips

IC2 Institute, University of Texas at Austin Senior Editor, Technological Forecasting & Social Change

ABSTRACT: The paper offers observations on what makes a technopolis sustainable, and how a technopolis contributes to the sustainability of society outside the technopolis’ boundaries. Each technopolis project must attend to sustainability in the scientific/ engineering arena, in the social arena, and in the arena of environment and the triple bottom line. The paper offers criticism of common concepts of sustainability, suggesting that technopolis designers and scientists are well positioned to sharpen our views and practices regarding sustainability.

KEYWORDS: Technopolis; Technopark; Science Park; High-Tech Economic Development; Sustainability; Green Development

Outline 1. Introduction: Sustainability and Technopolis 2. Scientific and engineering sustainability 2.1. Plan for massive tech shift: Fujitsu and the 2025 quantum limit 2.2. Plan for ending of government funding 3. Social sustainability 3.1. Godfathers 3.2. Social capital 3.2.1. History and social culture 3.2.2. Social capital 3.2.3. External networking 3.3. Grassroots vs. government-directed technopolis alliances 3.4. Sustainable technopolis initiatives 4. Environmental sustainability and the triple bottom line 5. Cases 5.1. Hsinchu 5.2. Bangalore 6. Synthesis for the future

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1. Introduction: Sustainability and Technopolis It has been my privilege, over the course of a long consulting career, to visit many of the world’s technopolis projects, including, here in East Asia, Hsin-Chu, Daeduk, Kansai Science City, Tsukuba, and Oita Prefecture. In 2006, I wrote down much of what I learned in these travels, in a book called Social Culture and High-Tech Economic Development: The Technopolis Columns (Phillips 2006), a book which emphasized the vital role of social capital in technopolis development. Today I would like to share, in keeping with the theme of this workshop, observations on what makes a technopolis sustainable. I take a broad view of sustainability, as indeed each technopolis project will have to attend to sustainability in the scientific/engineering arena, in the social arena, and in the arena of environment and the triple bottom line. I will go further, criticizing the foundations of our concepts of sustainability. I feel confident that this audience includes the thinkers who can fill the gaps in the sustainability concept, and I present these gaps to you as a challenge. Table 1 lists the success factors shared by thriving technopoleis. We will touch on many of these this morning.

Table 1. Technopolis success factors

Embracing change. Social capital, especially with cross-sectoral links. Cluster strategies that target specific company groups for collocation. Visionary and persistent leadership. The will to action. Action. Constant selling. Self-investment in infrastructure. Outreach and networking.

Source: Phillips (2006)

It was also my privilege to attend and to publish (Phillips and Eto 1998) the 1997 Tsukuba Advance Research Alliance (TARA) Symposium on returning university research results to society. Japan’s Technopolis Act was to be terminated in 1998 (Suzuki 2004), and Japan prepared to look to universities for a sustainable stream of commercializeable research. This is today’s first lesson in sustainable technopolis: Government technopolis initiatives may not last; universities endure. Private companies may not survive; but universities endure. Technopoleis hoping for a long run must leverage the presence of universities, and partner with them.

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2. Scientific and engineering sustainability 2.1. Plan for massive tech shift: Fujitsu and the 2025 quantum limit The TARA symposium’s highlights were the remarks of Mr. Takuma Yamamoto, who was soon to retire as Chairman of Fujitsu Ltd. Mr. Yamamoto repeatedly referred to the year 2025 as a kind of watershed. In 2025, he implied, everything would change for Fujitsu. Curious, I talked my way past Mr. Yamamoto’s bodyguards and asked the chairman, “What is going to happen in 2025?” Mr. Yamamoto replied that he expected chip design to hit the quantum limit to Moore’s Law in 2025. Every Fujitsu factory involved in circuits, he said, would have to be redesigned, and that would be in the best possible scenario! Progress has been faster than even Fujitsu expected, and current forecasts of the quantum limit range from 2014 to 2020. The limit seems less like a wall and more like a permeable membrane: In certain niches, slight progress has been made in overcoming the barriers to Moore’s Law. These include neural chips and quantum computing. Nonetheless, new technopolis projects would be foolish to build expensive facilities that may be obsolete in four years. Instead, find science and engineering niches that will allow a long payback period on your infrastructure investment.

2.2. Plan for cessation of government funding An island in the Mediterranean procured a European Union grant for its technopolis project. An architectural competition was announced, and I was asked to be a judge. The island’s ancient and wealthy aristocracy was bitterly opposed to the development. Thus, there were no funds for continuing the project after the EU grant was gone. Moreover, Europe’s most prominent architects, who did not get paid, developed a bad attitude about the island and its prospects. We all know that culture change takes a very long time. The EU did not take this knowledge into account when creating its technopolis grant program. The island’s government did not take it into account when launching their project – or if it did, it used the knowledge for short-term political advantage rather than for a sustainable technopolis. In Japan (Suzuki 2004), the national Technopolis Act terminated in 1998, and the government moved to a policy focused on promoting venture business and links between industry and universities. At the prefectural level in Oita, however, local funds and initiatives continued to build tech and non-tech clusters, Governor Hiramatsu’s ties with MITI continuing to serve the region well. A member of the Oregon Council for Knowledge and Economic Development complained that the financially strapped State slashed funds for nurturing the knowledge economy, but at the same time increased funds for roads and bridges. This complaint is naïve, both from a political perspective and a business perspective. Legislators don’t know what “knowledge economy” means. Marketing such an abstract concept to the government, demands cleverness and perseverance. Roads and bridges get built and maintained in all parts of the state, creating blue-collar jobs everywhere. What could be more appealing to a state legislator? In contrast, technology

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and knowledge jobs cluster in the districts of the state that are already more privileged. These are few, compared to the number of rural and old-economy districts. History shows the necessity of keeping the roads and bridges open. After the crashes of 2001 and 2008, however, legislators suspect that the knowledge economy is a flash in the pan or another fraud perpetrated by dotcommers and Wallstreeters. Smart and sustained effort must be aimed at selling the knowledge economy to political leaders. With luck, you can find high tech companies whose interests are aligned with the technopolis’, and recruit their seasoned lobbyists to sell the technopolis project to the government. Even then, do not count on the government being your friend.

3. Social sustainability 3.1. Godfathers The government is not your friend, but individuals within the government may be your best friends. It is beneficial for the technopolis if these friends are re-elected reliably. Then too, an influential individual who is not in government may be a technopolis’ most effective advocate and energy source. The next table lists the “godfathers” of the world’s best-known technopolis regions. The asterisks show those who served from government positions. In this sample, the ratio of government godfathers is just more than half. The godfathers are super-networkers, connecting entrepreneurs, financiers, researchers, legislators and other technopoleis, harnessing them to the cause of the local technopolis. The godfathers exert a social force, causing others to want to be close to them, and to show a public spirit, in support of the technopolis, perhaps in excess of that to which they would be naturally inclined.

Table 2. Godfathers of established techno-regions

Austin, Texas George Kozmetsky Curitiba, Brazil Jaime Lerner* Hyderabad, India Chandrababu Naidu* Oita Prefecture, Japan Morihiko Hiramatsu* Silicon Valley, California Frederick Terman Singapore Lee Kwan Yew* Sophia Antipolis, France Pierre Lafitte* Taiwan Morris Chang *holders of political office

Unless your region has an extraordinary amount of research/technology push (like Boston, for example), an extraordinary amount of entrepreneurial pull (like Israel), or both (like

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Cambridge), or an extraordinary amount of money (like Washington, DC), you should hope that a godfather emerges and jumps to the front of the parade in your locale.

3.2. Social capital History matters. Your region may leverage a history of science and entrepreneurship. Or, your region may have to overcome a history of insufficient education and hostility toward private business. There is a patent for cloud seeding (rainmaking), filed in the name of the king of Thailand. The Korean alphabet is attributed to a king of Korea. Though we might view these as instances of politically adept inventors allowing their kings to claim credit, there is more to the story. The king’s name, associated with a technological advance that benefits the entire population, does much to influence a culture of innovation for social betterment. In contrast to Thailand and Korea, all technological advance in dynastic China was solely for the amusement of the emperor. It will be difficult for China to overcome this and to establish a view, within the government and among the people, that technology can benefit everyone. Social culture, says Harvard Professor Howard Stevenson, determines: • A region’s propensity to reinvest the rewards of business success in still more local businesses – rather than in real estate or offshore bank accounts – and in the social welfare of locals. • A region’s attitudes toward the success of others. Does the society ostracize entrepreneurs, or celebrate their successes? • A region’s willingness to embrace change. The sociologist James Coleman (1988) defined social capital as “the ability of people to work together for common purposes in groups and organizations.” Where there is social capital, Frances Fukuyama (1995) claims, there is wealth. Voluntary civil and civic organizations, each of a scope that is wider than family-level yet not organized by state or national governments, show a technopolis region’s confidence that it can shape its own future. External as well as internal networking is an important aspect of social capital. Visits to other technopoleis can build valuable, lasting networks. When they are just a way to find out what other people are doing, the trips are of limited value. A region with historical disadvantages will have to do something original and different from what has gone before. The will to action – and actually taking action – are the final aspects of social capital that I will emphasize today. As Peter Drucker said in the context of the 1980s manufacturing crisis, “What we have to learn from the Japanese is not what to do, but to do it.” All the knowledge, money and infrastructure in the world, Drucker implied, cannot substitute for will, attitude and follow-through.

3.3. Grassroots vs. government-directed technopolis alliances Japanese research shows that designated technopoleis in that country grow faster than other regions, despite having no financial assistance from the central government. One must beware of circular reasoning here; The technopolis regions were identified by the government because

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of their superior potential. Yet the conclusion that it is the characteristics of the region, rather than government help that makes success, is strong (Kyaw 2001). In his research into obstacles to new technology parks and clusters in Japan, published in Technological Forecasting & Social Change, Hajime Eto (2005) concluded that “Cultural factors such as value gaps between the two worlds (government bureaucracy and engineering culture) are… responsible for the unsuccessful outcome of S&T policies.” Peter Hall (1998) analyzed historic creative cities, showing their heydays lasted, on average, a few dozens of years. D.C. North (1990) gives wealth-creating economies a few centuries. It is reasonable to think that today’s pace of technological change will narrow these windows. Each region must choose a technological pony to ride toward economic development. Today those ponies get winded sooner. The region’s external network is also the means for finding a fresh pony. Every region that builds wealth on an industry cluster must, in a few years, stake its next wealth-building strategy on a new or redefined industry. Should an aspiring technopolis region depend on government support, or drive progress locally? In this section I have emphasized that local characteristics – including the propensity to network and drive progress locally – are key success factors; that the gap between government and technical cultures is a wide one; and that continual self-renewal is the name of the game, which implies a flexibility that government may not be able to deliver. In an earlier section, I stressed the political risk in extending government assistance to projects that might be seen as helping the few rather than helping the many. Furthermore, regions may feel a responsibility to absorb available government funds, rather than to produce projects of real merit. All these things speak to the desirability of local, grassroots technopolis initiatives rather than dependence on government initiatives. It cannot be denied, though, that government measures have had terrifically beneficial results. Accomplishments like Hsinchu and Oita are absolutely spectacular and much to be praised (notwithstanding that the Hsinchu park is just now experiencing a turbulent time due to reallocation of central government funding 1 ). I conclude that even with central government support, vigorous local and private initiatives are necessary. The efforts of Stan Shih and Alvin Tong at Hsinchu are good evidence for this conclusion. Austin’s success was very much grass-roots. There was never a massive government allocation for an “Austin Technopolis,” though there were smaller grants for individual projects supporting the technopolis. We always asked local governments for small amounts of money, just to make them feel part of the effort. When a major initiative or success was rolled out, we f

1 TIME magazine March 23, 2009: "At Taiwan's Hsinchu Science Based Industrial Park, home to many of the island's flagship tech firms, most workers are taking unpaid leave at least one day a week. Ryan Wu, chief operating officer of the job-search website 1111 Job Bank, say conditions at Hsinchu have never been so dire. 'There's extreme panic right now,' Wu says."

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invited government officials to the press conference. If an impression was created that the credit for the success should go to these officials, so much the better.

3.4. Sustainable technopolis initiatives In all but the most blessed regions, sustained intiatives are a necessary condition for ultimate regional success. By the late 1990s, several local initiatives had shown excellent results in Austin, Texas. Start-up and established companies in software, equipment for oil exploration and semiconductor manufacturing, and computers were flourishing. A number of these initiatives’ movers and shakers had done well financially; they were tempted to say, “I’ve got mine, buddy, good luck with yours.” There was, in fact, less public sentiment in favor of continued civic initiatives for entrepreneurship. Good had proven to be the enemy of better; people were content. The present author was not inclined to fight an uphill battle to continue the initiatives. Another civic leader, however, argued against resting on our laurels, insisting the public-private cooperative initiatives were needed “now more than ever.” Of course, the Internet bubble burst shortly after that, proving him right. Another impressive Austin leader now says, “Every morning I ask myself, what I can do today to make Austin the best place in the world to live.”2 Through the efforts of these gentlemen and others, Austin launched new initiatives for clean energy and for the computer gaming industry. The gaming initiative is flourishing today, and several energy companies have been launched. There are no overnight successes. The technological renaissance of Austin, Texas, took 25 years – and by some yardsticks, much longer. The transformation of a region by means of technology entrepreneurship is a long-term process, and it is not unusual for a crisis to catalyze a region’s entrepreneurial economy. Thus a long-lived regional initiative may be necessary, if only to ensure that the initiative organization is there to catch the crisis (whenever it may happen) and bend it to constructive ends. Mukherjee (Mukherjee 2005) shows how the same pattern of government investment, slow infrastructure and entrepreneurial development, followed by a crisis-generated opportunity (the Y2K problem) spurred Bangalore’s growth in the 21st century. Mukherjee adds, “The ‘sudden’ buzz in Bangalore is actually just a new chapter in a 100-year-old saga. No amount of planning could have telescoped the process into 10 years.” A crisis in food production, accompanied by sharp increase in population, caused the launch of Greece’s trade with Sicily, and thence the “rocketing” Greek economy of the sixth through fourth century (Hall 1998, p.49). Crises are not part of conventional cluster theory, which instead emphasizes a critical mass of suppliers and competitors. Critical mass was important for Austin and Bangalore, but it was not the whole story. f

2 These two leaders were, respectively, Pike Powers and Jim Ronay.

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Three anecdotes, of course, do not prove that crisis is a needed ingredient. However, Portland, Oregon and Palma de Mallorca are instances of ‘no crisis, no entrepreneurial transformation.’ Even Washington, D.C., with its amazing collection of technology companies already attracted to the US federal money faucet, experienced a new burst of activity in security- related technologies subsequent to the 9/11 tragedy. We can be comfortable agreeing with Mitroff and Linstone (1995), who declare, “Crisis may be the best, if not the only, teacher of how to create an economy that is better matched to the needs of today’s world.” These concepts allow us to pinpoint the serious risks in using cluster theory or cluster consultants to kick-start a new technopolis:

1. Cluster theory is mechanical (“put this firm here and that company there…”) and ahistoric. The mechanical metaphor of cluster theory imposes a mechanical “solution” that ignores the constraints and opportunities implied by the region’s history. 2. The question of how the community responds to crisis is not dealt with. 3. A short-term cluster consultant is not an ongoing network facilitator/partner for the client region, and cannot help with the long-term culture change issues that the region almost certainly must face.

Better to call your technopolis initiative a “regional initiative for technology and entrepreneurship” or RITE, than a cluster initiative (CI). Many of Sölvell et al.’s (2003) reasons why CIs fail, however, also apply to RITEs.

Table 3. Top reasons for failure of cluster initiatives

• Absence of an explicitly formulated vision for the CI and quantified targets • Initiative framework not adapted to the cluster's own strengths • No office or an insufficient budget for significant projects • Limiting the membership scope • Isolated firms and lack of competition • Lack of advanced suppliers • Basic human capital • Lack of trust and networks • Few supporting institutions • Weak frameworks • Facilitator not having a strong network • No involvement of influential local decision makers • Lack of consensus or difficulties in achieving consensus • No brand-building objective

Source: Sölvell et al. (2003)

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4. Environmental sustainability and the triple bottom line Sustainability. I’ve never seen a precise definition of it. I probably wouldn’t recognize it if I saw it. It sounds like a good thing, though. The eminent dean of a leading school of environmental science snorted when he was asked about sustainability. The whole notion, he replied, seems to run counter to the second law of thermodynamics. At another extreme are advocates of minimizing the impact of people on the planet. Their subtext implies minimizing the number of people on the planet. At still another extreme are economists like Robert Solow (1991), who believes everything is sustainable because the price mechanism moderates input substitutions. We can suspect the dean of taking too literal a view, and suspect the earth advocate of hating people. The economic theorists continue to ignore the externalities that create the environmental problems in the first place. The City Club of Portland (2000) cited one source that advised, “Decouple economic development and population growth from environmental impacts.” This is a physical impossibility. Is there a constructive middle ground that is scientifically feasible? Nothing we do will be sustainable for the very long run. We depend on solar energy (as the dean was no doubt thinking), and the sun will eventually die. Meanwhile, every social process degrades energy, in the aggregate.

• Sustainable cannot simply mean “static”; that would mean the end of innovation and the start of excessive regimentation in all spheres of life. Climate change (that portion that is not anthropogenic) would proceed in any case, and society and the ecology would have to change and adapt. • Can “sustainable” mean “capable of evolving in a steady, manageable way?” No. There are always Black Swans. Global warming is only one example, and it is one that is more predictable than most. • People, profit, and the planet? We can all get along sweetly and live lightly on the planet, and still get hammered by a rogue asteroid. Only through technology can we hope to reduce the probability or consequences of an asteroid collision, and better technology will do it better. A static society, creating no new technology, is no answer. • Notwithstanding that many subsistence economies have lasted for hundreds of years, and have been portrayed by historical writers as noble and fulfilling, we cannot equate sustainability with subsistence regimes. Without surpluses and redundancy, such economies are vulnerable to environmental change. On what time scale is it realistic to speak of sustainability? How wide are the limits of change, within which we’re still willing to say a system has been “sustained”? An impressive number of sources agree the time span is a few generations. The City Club of Portland, the

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President's Council on Sustainable Development, Sustainable Seattle and others say “for generations to come”; "present and future generations”; “our children and grandchildren.” This view sensibly leaves scope for changing the plan when conditions and technologies change.3 Thinkers and activists urge companies to attend not only to profits but also to their impacts on the environment and on society. People, profit, and the planet (P3) – can this view be sustainable? Whether the dialog is cast in terms of P3 or E3 (Environment, Economy, and Equity), technopolis thinkers can help advance it by attending to life-cycle perspectives on products and technologies, and to bio-mimetic technologies and market mechanisms for recycling/reselling “waste.” P3 also implies taking care of (providing new habitat for) the poor who will be left homeless by rising sea levels. Is renewed mining in warming north polar regions immoral? Of course not. If done carefully, it’s part of P3. Naturally, forensic investigations will reveal who some of the culprits are in anthropogenic climate change. But the excoriated NASA official who said the climate will change with us or without us, and our major challenge is adaptation, was correct. Let’s do less arguing about whose fault it is, and learn to do better as we invent preventive and adaptive strategies. While the British Stern Review (Norris 2007) concludes, “It would be considerably cheaper to stop current climate trends than to try to adapt to a changed world,” Norris goes on to note, “It is really hard to get [heat-trapping] gases out of the atmosphere once we put them there.” It is a challenge to those in this audience, and to the scientists who work for you, to determine the facts and the best balance of prevention and adaptation. I don’t think adaptive strategies can rely totally on measuring and pricing externalities. (The carbon rights exchanges have been distressingly scandal-prone, according to The Economist magazine.) Does the idea of privatization of your city water supply scare you? If so, consider this more extreme example: You exhale CO2 when you breathe…Will bourses for carbon rights lead to “pay for breath”? We will have to be very clever to design sustainable regimes that are not totally price-based. But we will have to design them. All in all, sustainability is most workable as a concept when it is defined loosely. In any case, we will not be able to forecast with certainty the impact of a managerial act on people or on the planet any more than we can foresee the impact of a corporate activity on the financial bottom line. (Think about making a sales call on a new prospect, who may or may not purchase your product.) Why not? First, we don’t know enough of the applicable science. Second, the complexity of environmental, medical, and psychological phenomena makes prediction error- prone. Third, the impacts on people, on profits, and on the planet will interact with one another! There are many definitions of sustainability. Perhaps the most familiar is the Brundtland report’s: "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs" (World Commission 1987). f

3 Section 4 up to this footnote marker is verbatim from Phillips (2008).

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An admirable sentiment, but a suspicious one. Suppose I borrow money to buy a house that I will bequeath to my children. I may die tomorrow, and the market may go down, leaving the kids unable to sell the house for the amount of the debt. I have compromised their ability to meet their own needs. Suppose I borrow money to build a green business. Green firms face the same business risks as other companies; my children might inherit a profitable business, or they might inherit nothing, my assets wiped out by the bankruptcy of my enterprise. With no funds to complete their education, they’ll have to take out loans, and… well, you get the idea. Should I then avoid all borrowing? I cannot guarantee that I won’t compromise the future. Should that be an excuse for doing nothing – taking no risk – now? Obviously, no. A green future depends on innovation. Innovation needs to be financed via debt or equity. And that implies risk. In fact, abjuring risk compromises the future. We dither about the “value” of space exploration, for instance, when resources plentiful unto the nth generation are no farther away than the asteroid belt. The US now has a nine trillion dollar debt. If that doesn’t compromise future generations, I can’t guess what does. Even fiscal conservatives admit that the large part of the nine trillion spent on bank bailouts was necessary, to keep the economy from death-spiraling. Yet we continue to talk about sustainability. So I think we don’t really believe a definition that emphasizes not compromising future generations. We do care about future generations, but we also have confidence that they’ll be smart and compassionate enough to do what we do: Try to fix the broken things we’ve inherited; innovate boldly; and do what we can to create a better future. Past generations have done this for us, thus proving that there is such a thing as a free lunch. Using a telephone is free, for example. (If you deal with certain mobile providers, you’ll argue with that, but bear with me.) Your 16th-century ancestors had no phones. You did not personally have to invent the telephone. Yet you get to use a phone – solely by virtue of your luck in being born in the 20th century.4 Phone calls substitute for polluting transportation, so they're green. Free, green lunch. We want to give our descendants more free green lunches. But that part about not compromising their ability to meet their needs – where did it come from? It echoes injunctions of the Abrahamic religions:

• “Do not charge your brother interest, whether on money or food or anything else that may earn interest.” (Deuteronomy 23:19) • Jesus driving moneylenders from the temple (Matthew 21:12) • The Koranic prohibition on the charging of interest, which it characterizes as oppressive and exploitative (Qur’an 2:279) (Institute of Islamic Banking and Insurance 2009) f

4 Apologies to any 8-year-olds who may read this paper.

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One wonders whether the Brundtland report’s slant on sustainability was underpinned, perhaps unconsciously, by the religious feelings of its writers. And, with our current economic mess having been driven by mortgage loans, one cannot call such an underpinning totally wrong-headed. (Incidentally, the three Abrahamic traditions do not prohibit equity investment – equity is in fact the central principle of modern Islamic banking – notwithstanding that ownership can be exploitative as well.) Compared to the world of the Prophets, though, ours is more crowded, interdependent, and specialized. The few weeks we spent this year with no credit market to speak of were not the kind of weeks we would wish on our descendants. It is necessary and unavoidable that we lend and borrow when it seems wise to risk the consequences. The consequences may compromise future generations’ assets. I offer, with apologies to Dr. Brundtland, a modification of her principle: Let us always do our best for the next few generations, while not compromising (too much) our enjoyment of the present, nor our capacity for taking bold risk.

5. Cases Additional data about Bangalore and Hsinchu round out the information given above.

5.1. Bangalore

Table 4. Bangalore timeline

1911 India's British rulers invited Nobel-laureate chemist William Ramsay to help select a site for a science school. Ramsay chose Bangalore. 1950s and 1960s Independent India's first Prime Minister Jawaharlal Nehru set up state-owned engineering companies near Bangalore to fulfill his vision of rapid industrialization. He selected Bangalore because of the talent available at the Indian Institute of Science, the school set up by Ramsay. Non-state companies like Motor Industries Co., a subsidiary of Germany's Robert Bosch Gmbh, moved to Bangalore to supply parts. 1977 A socialist Indian government asked International Business Machines Corp. to leave the country after it refused to dilute its stake to 40 percent. IBM's departure became an opportunity for entrepreneurs like Azim Premji, who was then running a Bangalore-based vegetable-oil business started by his father. Premji hired engineers and built his first minicomputer. 1981 N.R. Narayana Murthy, an engineer who wanted to become a communist politician, changed his mind and set up Infosys Technologies Ltd. with $250 in Pune in western India. He moved the company to his hometown Bangalore in 1983 after Motor Industries gave him his first order.

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1996 Global companies panicked that the year 2000 date change would crash computers. Premji's Wipro Ltd. and Murthy's Infosys rewrote millions of lines of code for customers worldwide. Bangalore's software industry, which employed only 947 people in 1991, expanded rapidly. 2005 Companies like IBM and Accenture Ltd. are hiring in Bangalore to cut costs. Meanwhile, Bangalore's homegrown software makers are competing for consulting contracts outside India that were once the domain of US and European technology companies.

Source: Mukherjee (2005), used with permission

5.2. Hsinchu The Hsinchu Science-Based Industrial Park, opened in 1980, is administered under the National Science Council of the Executive Yuan. The park has 300 employees and is one of twelve science parks in Taiwan. HSBIP now hosts 432 companies, and 17 more are approved for tenancy. Of these companies, 376 are domestic and 54 are foreign. Collectively they employ 130,000 people (average age 30), generate 1.2 trillion New Taiwan Dollars in revenue, and have given rise to 4400 patents. HSBIP maintains relations with 24 "sister science parks" in twelve countries. Only 1.3% of HSBIP tenant company employees have Ph.D.s. This surprising fact brings us back to the park's name (science-based industrial park): Though it is commonly called a science park, it is really about manufacturing. HSBIP officials attribute the park's success to the interaction of these factors:

• Environment and services • Incentives and availability of venture capital • Quality of human resources • Industry clusters and industry-academic links for R&D.

The environment includes high quality of life at affordable cost, and business services including 24-hour automated customs for tenant companies' exports. Tax incentives/exemptions, government investment, low-interest loans, and "R&D encouragement grants" round out the picture of incentives. However, the success of HSBIP has led the Taiwan government to plan to discontinue tax incentives for high-tech, and transfer them to solar and green industries. Tsinghua University (science) and Chiao-Tung National University (engineering) are located on the periphery of the park, enhancing industry-university cooperation. ITRI (the Industrial Technology Research Institute) also has two campuses adjoining the HSBIP, and runs incubators for new firms there.

6. Synthesis for the future Table 5 brings together the major themes of this address.

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Table 5. Key factors for a sustainable technopolis

Social capital is an absolutely critical success factor. Leverage the presence of universities. Balance government support with local initiative. Diversify funding sources. History matters. So do crises. Do not be fooled by cluster theory. Cultivate godfathers. Develop political savvy. Emphasize benefits to the many, not to the few. Try things that have never been tried before, but that leverage your region’s strengths. Act. Never give up. Re-examine the logical and scientific foundations of “sustainability.”

Table 6 summarizes additional views of a sustainable technopolis based on today’s state of the art. It is a completely new way of doing business. New technopoleis cannot hope for sustainability if they follow the practices of the Table’s left-hand column.

Table 6. Shared prosperity initiatives compared with conventional aid efforts

Old Political Economy Approaches Newer Shared Prosperity Approaches Paternalistic; one-way initiatives and flows Multilateral initiatives Strategies imposed from top down Multiple networked initiatives Driven by a single issue or problem Multidimensional, attacking related problems Rigid Flexible Expensive Inexpensive Large-firm orientation Entrepreneurial orientation, with the participation of large firms Single industry/agency Multiple sectors, diversified funding Initiating entity and receiving entity seen as separate Presumes present or near-future interdependence of and independent participating regions “Developed and undeveloped economies” view. Acknowledges tech leader and tech follower regions, but Strict accord with international product life cycle understands that useful innovation can come from theory anywhere. Program-based Relationship-based; better able to respect and leverage cultural differences Large-agency programs are prone to bureaucratic Network initiatives attract innovators and influencers in inertia and resistance to change. each region. Fixed or inappropriate metrics for success; often “Fuzzy goals”; interdisciplinary, multiple-perspective, or discipline-bound. transdisciplinary. Money-focused. Financially responsible, but recognizes that knowledge and sense of empowerment are as important as money to emerging regions.

Source: Phillips (2005); Phillips (2006)

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Bibliography

City Club of Portland: Building a Sustainable Future for Portland. City Club of Portland Information Report, November, 2000. J.S. Coleman (1988) “Social Capital in the Creation of Human Capital.” American Journal of Sociology Supplement 94, S95-S120. Hajime Eto, Obstacles to emergence of high/new technology parks, ventures and clusters in Japan. Technological Forecasting and Social Change, Volume 72, Issue 3, March 2005, Pages 359-373 Frances Fukuyama (1995) Trust: The Social Virtues & the Creation of Prosperity. New York: The Free Press. David V. Gibson, George Kozmetsky, Raymond W. Smilor, The Technopolis phenomenon: smart cities, fast systems, global networks. Rowman & Littlefield 1992. David V. Gibson; George Kozmetsky, “Networking the technopolis: Cross-institutional alliances to facilitate regionally-based economic development.” Journal of Urban Technology, 1466-1853, Volume 1, Issue 2, 1993, Pages 21 – 39 Peter Hall, Cities in Civilization: Culture, Technology, and Urban Order, London, Weidenfeld & Nicolson, 1998; New York, Pantheon Books, 1998 Institute of Islamic Banking and Insurance, www.islamic-banking.com/prohibition_of_interest.aspx, posted September 2009, accessed September 2009. Paul Krugman, (August 27, 2009) “Till Debt Does Its Part.” New York Times. http://www.nytimes.com/2009/08/28/opinion/28krugman.html Aung Kyaw, “Technopolis and regional development in Japan: A Statistical Analysis.” Geogr Rep Tokyo Metrop University. No.36; 59-68(2001). Harold Linstone and Ian Mitroff, The Challenge of the 21st Century: Managing Technology and Ourselves in a Shrinking World SUNY Press (1994). Andy Mukherjee, (2005) “Can Singapore Become a Fun City?” Bloomberg News Service, April 21. http://www.bloomberg.com/apps/news?pid=10000039&sid=aBfOvonc_Yr4&refer=columnist_ mukherjee R. Norris, Global Instability: Climate change is about to come home to roost. San Diego Union- Tribune, B1, December 6 2007. D. C. North (1990) Institutions, Institutional Change and Economic Performance. Cambridge: Cambridge University Press. Fred Phillips, "Technology Incubation, Japanese Style." IC2 Technology Knowledge Access, January 1993. Fred Phillips and Manabu Eto, eds., Special Section “Revitalizing University Research and Its Contribution to Society.” Technological Forecasting & Social Change 57, 3, March 1998, 205- 265. Fred Phillips, “New Directions for Technology-Based Economic Development: Evidence from Austin, Portland, and Beyond.” in E. Kaynak and T. Harcar (eds.) Advances in Global Management Development (Proceedings of the 2004 Congress of the International Management Development Association), Maastricht, 2004, pp. 677-684.

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Fred Phillips, “Toward an Intellectual and Theoretical Foundation for ‘Shared Prosperity.’” Systemic Practice and Action Research, 18:6, December, 2005, pp. 547-568. Fred Phillips, Social Culture and High Tech Economic Development: The Technopolis Columns. Palgrave Macmillan, London, 2006. Fred Phillips, “Economic Development Alliances.” Encyclopedia of Networked and Virtual Organizations. IDEA Group / Information Resources Management Association, Hershey, PA, 2007. Fred Phillips, “Change in socio-technical systems: Researching the Multis, the Biggers, and the More Connecteds.” Technological Forecasting & Social Change, 75(5), June 2008, 721-734. Fred Phillips, “The Godfathers: Characteristics and Roles of Central Individuals in the Transformation of Techno-Regions.” Journal of Centrum Cathedra, 1(2): 12-27, 2008a. Fred Phillips, “Strategies for Government Laboratory Revenue Generation Through Technology Commercialization.” Report to Korea Research Council for Industrial Science and Technology. General Informatics LLC, March, 2008b. Fred Phillips, “Assessing and enhancing the impact of innovation and entrepreneurship.” Chapter 15 in F. Phillips (ed.), Managing Innovation, Technology, and Entrepreneurship. Meyer & Meyer Media, Aachen, 2009. Fred Phillips, “Sostenibilidad.” Commencement address at CENTRUM, the business school of Pontificia Universidad Católica de Lima, Peru, July 2009a. Fred Phillips, “Visit to Hsinchu Science-Based Industrial Park.” Blog entry, Technopolis Times, March 20, 2009b. http://technopolistimes.blogspot.com/2009/03/visit-to-hsinchu-science-based.html Norman R. Scott, Utilizing University Research for Social Contribution. Technological Forecasting and Social Change, Volume 57, Issue 3, March 1998, Pages 221-223. Robert Solow, Sustainability: An Economist's Perspective. Eighteenth J. Seward Johnson Lecture, Woods Hole Oceanographic Institution, June 14, 1991. Ö. Sölvell, G. Lindqvist and C. Ketels (2003) The Cluster Initiative Greenbook. Gothenburg, Sweden: Ivory Tower. Shigeru Suzuki “Technopolis: science parks in Japan.” International Journal of Technology Management 2004 - Vol. 28, No.3/4/5/6 pp. 582 - 601 Sheridan Tatsuno, The Technopolis Strategy: Japan, High Technology, and the Control of the Twenty- First Century. Prentice Hall (1986) Sharon Traweek, “Keizu to Nendaiki: Making History in Tsukuba Science City.” in Jesus Valero de Matas (ed.), Social Study of Science: An Interdisciplinary Context. Cambridge University Press, 2004. World Commission on Environment and Development. Our Common Future. (Oxford, Great Britain: Oxford University Press, 1987, Page 8). (Known as the Brundtland report, after Gro Harlem Brundtland, Chair of the Commission)

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SPEAKER BIOGRAPHY Fred Phillips is a Senior Fellow of the IC2 Institute of the University of Texas at Austin, and Senior Editor of Elsevier’s international journal Technological Forecasting & Social Change. He is on the editorial boards of Int’l Jour. of Global Environmental Issues and Jour. of Sustainable Technologies for Growing Economies. Dr. Phillips’ books include Managing Innovation, Technology, and Entrepreneurship (2009), Social Culture and High-Tech Economic Development: The Technopolis Columns (2006), and The Conscious Manager: Zen for Decision Makers (2003). Originally trained in operations research (Ph.D. 1978, University of Texas at Austin), his own scientific contributions include "Phillips' Law" of longitudinal sampling; the first parallel computing experiments with Data Envelopment Analysis; and “Relative Variety Analysis,” a tool for measuring organizational flexibility. He has won several awards for outstanding research. He holds professorships at Alliant International University in the USA, at Maastricht School of Management in the Netherlands, and at Pontificia Universidad Católica de Lima in Peru, and is Managing Partner of the consulting firm General Informatics LLC. He has consulted worldwide on technology-based regional development. His avocational passions are aikido, Argentine tango, travel and writing.

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SSEESSSSIIOONN 11

Technopolis development and Green Growth

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LLeeccttuurree 11--11

Science Park in context of the Sustainable Development towards Green Growth

· Prof. DeogSeong Oh (Chungnam National University, Korea)

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LLeeccttuurree 11--22

Technopois as Innovation SEZ for Green Growth

· Prof. Byung-Ho Oh (Hanyang University, Korea)

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LLeeccttuurree 11--33

Green Development Strategies at Southern Taiwan Science Park

· Prof. Shiann-far Kung (National Chengkung University, Taiwan)

2009 UNESCO-WTA International Training Workshop

Daedeok Innopolis, Daejeon,Korea(November 11-14, 2009)

Green Development Strategies at Southern Taiwan Science Park

Shiann-Far Kung Associate Professor, Department of Urban Planning, National Cheng Kung University, Tainan, TAIWAN [email protected]

1. Introduction

Tainan Science Park is established in 1996 as the second science park in Taiwan, originally titled as “Tainan Science-Based Industrial Park” (TSIP). The designated site was a flat and low land of 638 hectares (2,565 acres) in the middle of Taiwan’s agricultural heartland, located across the border of three rural townships- Hsinshih, Shanhua, Anding of Tainan County, these three nearby major settlements altogether housed around 100,000 residents in the mid-1990s. At a walking distance, there is a renowned international research institution – Asian Vegetable Research and Development Center. However, it takes some 12 kilometers from Tainan, the nearest major city and National Cheng Kung University (NCKU), the key higher education institution in Southern Taiwan. In the very beginning, there have been doubts of its possibility to succeed. And indeed, it even survived the 1997 Asian Financial Crisis and gained substantial growth amidst the economically pessimistic period of the late 1990s. Because of the fast industrial growth and the leasing system, by the early 1999, only 70 hectares of planned industrial area is left. In December 1999, Ministry of the Interior approved the “Plan of the TSIP Special Zone” which embraces the idea of building a science city of 3,299 ha (8,152 acres) around the original TSIP with another 400 ha (988 acres) adjacent land for future industrial expansion of TSIP. In June 2001, another expansion site of 570 hectares (1,409 acres) for TSIP was approved at Lujhu, Kaohsiung County. In January 2003, the Southern Taiwan Science Park Administration (STSPA) was officially formed, under the National Science Council, to manage the operation of Tainan Science Park (TSP, the expanded TSIP) and Lujhu Science Park (LSP) and provide services to their tenants. Lujhu site was renamed as Kaohsiung Science Park (KSP) in 2004. Because of the expansion and frequent change of titles, in addition, there is a Tainan Technology Park established and managed by the Industrial Development Bureau (IDB) at nearby Tainan City, the science parks in the southern region very often confused people. In this article, the focus is on the Tainan Science Park and its surrounding area TSP Special Zone. Tainan Science Park covers an area of 1038 hectares since 1999. According to STSPA statistics, at the end of 2008 there are altogether 241 tenant companies in TSP and KSP (250

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tenants in August 2009), they employed some 48,000 persons with a total revenue approximately NTD 548 billions (ca. U$ 17 billions). Within these, Tainan Science Park tenants employed 46,000 persons with a total revenue around NTD536 billions (ca. U$ 17 billions). Comparing with its predecessor Hsinchu Science Park (HSP), the statistics show that HSP houses 430 companies with 130,577 employees and total revenue of NTD 1080 billions (USD 34 billions) in 2008; and at its twelfth years after establishment in 1980, HSP registered 148 tenants, 25,148 employees, and total revenue amounted NTD 87billions (USD 2.8 billions). Although the industrial categories are not exactly the same as it was planned in the beginning, nevertheless, the burgeoning TSP tenants are often grouped into four major industrial clusters: opto-electronics, integrated circuits, precision machinery, and bio-technology. The optoelectronics industry has become the dominant sector in the HSP since 2001, total number of employees reached 28,241 in August 2009, accounted for 61 percent of the total employment in the TSP. It has the most complete production chain among Taiwan’s three TFT- LCD industrial clusters, led by the Chimei Optoelectronics, the second largest producer of TFT- LCD panels in Taiwan and the fourth in the world (Kung and Chen, 2008). Because of the increasing importance of photovoltaic technologies in future energy production, this sector is now regarded as having high potential for greener development which will be further discussed in this article. In general, TSP is now about half the scale of HSP, yet it has been growing at a faster speed than that of HSP. However, the more important feature of TSP is that it is leading in the realization of green development which encompassing spatial, industrial and cultural perspectives.

2. Development of Green Urban Planning

The earliest noticeable green development concept at TSP is like most of the other science park projects, the notion of combining the “science” or “technology” with the “park” or “garden”. Indeed, the HSP had already boasted its much greener environment in comparison with other industrial parks or cities in Taiwan. Following HSP spatial planning experience, the park-like environmental image can be gained through the gateways and the major boulevards, as shown in Map 1, there are eight parks in the 1995 TSIP proposal plan. But the distribution of these green spaces along the major north-south transport corridor and especially at its junctions with the east-west major road, the northern gate and the southern gate, clearly indicates that the formation of visual corridor was the major consideration. Thus, green spaces at this planning stage were basically used as a tool to gain good images for visitors. Except for a larger percentage of parks and other green spaces in the TSP than its predecessor, the more significant difference between TSP and HSP evolved through the very necessity of flood prevention. Unlike the HSP which is developed from tea farms on tender hillside topography, the TSP is located on a very flat and low land in the middle stretches of Yenshui River. Moreover, the site is sloping from northeast to southwest, and this area is also

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part of the watershed of Tachou Drainage, Anshunliao Drainage and upper reaches of Yenshui River’s tributary. The area had been prone to flood hazards even when it was still cultivated as sugarcane farms before the construction of the TSP. Therefore, when China Engineering Consultants was called to make the first official urban plan for the park, flood risks were taken into account. The proposed solution was to create four detention ponds, mainly located along the western side of the park. While the proposal was to be reviewed by the concerned authorities, however, because the “detention pond” was a new land use category to Taiwan’s mandatory urban planning system, the detention pond sites were marked separately from parks and other green spaces, even when some of them are located side by side (Map 2). During the process of environmental impacts assessment, considerations of newly found archaeological traces and habitat of endangered birds Glareola Maldivarum led to the designation of a conservation zone of 30 hectares at central west end where the site was originally proposed for the waste treatment facilities. Because the estimated average space per Glareola Maldivarum would exceed at least 1 hectare, pro-development commentators even criticized that the ecological conservation zone devalued human beings to the extent that even the smaller birds can enjoy much larger space. Regardless of the arguments, the designation of the ecological conservation zone in such a national priority industrial project is also one of the first landmarks in Taiwan’s environmental protection history, and it clearly demonstrated that ecological value should be respected in the industrial development process. With these adjustments, in the Detailed Plan approved in May 1997, a central green belt consist of detention ponds, parks and conservation zone appeared along the east-west major road, there is also a cluster of ponds and parks in the northwest corner (Map 3). This kind of layout is unlikely to be proposed by the traditional urban and industrial planners alone without the consultation from other disciplines that have a deeper respect and understanding of ecological values and natural processes.

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Map 1 TSP Plan (approved proposal, May Map 2 TSP Plan (draft, before August 1996) 1995) Source: China Engineering Consultants, Source: NSC, 1995. 1997

While the detention pond idea was taking shape on the TSP Detailed Plan, monsoon shower rains in May 1997 were causing floods in southern Taiwan, in particular, the industrial parks in Kaohsiung suffered heavily. The TSP was then in the early stage of construction, however, floods alerted local communities again, they worried about the consequence of land use change. Officials also noticed the potential threat from natural forces to this flagship project in the South, and that existing drainage system could not effectively solve the problem. Another heavy rain hit TSP again in July 1, pouring a historical high record of 420 mm rainfall in one single day which caused 2000 ha of flood area and two-third of the TSP was included. President T. H. Lee and Premier C. Lien immediately called for the joint effort from Ministry of Economic Affairs (MOEA), NSC and Tainan County Government to prevent TSP from flood threat in July. In May 1998, NSC and Water Resource Agency, MOEA jointly announced a two-year regional drainage improvement project, with a total budget of NT dollar 1.8 billion. Yet, before any concrete work is done, the next monsoon in 8 June 1998 seriously flooded the park and, in particular, caused great damages to one of the major local investment projects – Chi Mei TFT-LCD factory, which was under construction. Owing to the industrial importance of the

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enterprise and the strong political connections of the entrepreneur, Premier Lien visited the TSP again and demanded the acceleration of drainage system improvement project.

Map 3 TSP Development Restrictions Map 4 TSP Detail Plan (1999) Source: NSC, 1997

By September 1998, six emergency systems of drainage and flood preventions were completed, including: the Tachou drainage passage, the basic work of detention pond D, temporary drainage network, increasing the height of ChiMei waterproof dyke, completion of drainage and flood control measures before the beginning of construction, and establishment of the united typhoon defence organization in the park. In September, NSC submitted The Revision of TSP Detail Plan (Extension of Detention Ponds) report to MOI, and it was approved in June 1999. It is recognized that the original detention pond system has underestimated the drainage need in the southern part and the existing Tachou drainage capacity will not match future catchment area flood volume. Although Tachou drainage flows almost along the eastern and southern borders of the park, hence almost half of its catchment area is outside of the park, NSC decided the project would include the whole catchment area. Except for the rearrangement of drainage passages in the park, a significant change in land use planning is the enlargement of detention pond in the south-end, increasing its area from the original 2.5 ha to 20 ha (Map 4), together with the changed drainage course and other open spaces, forming a southern blue-green

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corridor. In March 1999, the Tachou drainage remediation engineering was completed. There has been no flood hazard in and around the TSP since 1999.

Map 5 Tainan Science-Based Industrial Park Special District Plan – Green and Blue Corridors

Based on the development experience of the HSP and its mother city Hsinchu, local communities have been expecting that industrial growth in the TSP would eventually attract migrant population, new business and benefit the surrounding property market. Local pressure

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for new urban planning in the surrounding areas has been high since the beginning of the TSP. Tainan County Government started such effort – Plan of Tainan Science-Based Industrial Park Special District which covers a quite large area and surround the whole area of TSP – in the late 1997. Because of the flood awareness, the project consultant company seriously conducted flood potential simulations and took TSP Plan as key reference. This is the first urban planning project known to have seriously combined hydraulic analyses in the spatial planning process. The Plan of the special district (covering 3,299 ha of land) was approved by the Regional Planning Committee in August 1999. Except for the land for building purposes, the Plan reserved a very high proportion of land for parks and productive green spaces, and the blue and green corridors are well connected with the previously planned TSP corridors (Map 5). As a retrospect, the urban planning efforts between 1996 and 1999, more or less following the principles of landscape ecology, have laid the backbones for the green infrastructure of the TSP and its surrounding special district. They also stand as key landmarks in the evolution of “green” urban planning in Taiwan.

3. Development of Green Industries

The concept of “green industry” did not exist in the original TSP industrial planning. There are three target industries in the original TSIP proposal: microelectronics and precision machinery, semiconductor, and agricultural biotechnology industries. They were expected to be geographically co-located in three specialized zones (National Science Council, 1996). A review of the sub-industries within the target industrial clusters will find that the central idea was to develop a semiconductor industrial cluster and its supportive precision machinery industries, and to utilize the agricultural base of the southern region to develop related biotechnology industries (Table 1 & 2).

Table 1 Industrial Clusters Featured in TSIP 1996 Plan Target industrial cluster Target sub-industry Microelectronics and wireless communication precision machinery zone precision machinery medical instrument and materials semiconductor equipment computers and peripherals micro-electro-mechanical systems (MEMS) industries Semiconductor zone microwave communication semiconductor power electronics special-purpose integrated circuit industries Agricultural biotechnology flowers and ornamental plants zone biopesticide livestock vaccine aquaculture industries Source: National Science Council, 1996

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Table 2 Industrial Development Target of Tainan Science-Based Industrial Park Target year Production value Number of employees & value (USD million) (person) Target industry 2005 2010 2005 2010 Microelectronics and 2,600 4,600 5,000 7,000 precision machinery Semiconductor 13,000 27,700 15,000 30,000 Agricultural biotechnology 370 685 380-860 Total 15,970 32,985 ca. 20,000 ca. 37,000 Source: adapted from National Science Council, 1996: 35, 47, 53.

Without the policy guidance, the development of “green industries” in the TSP may be regarded as a process and the result that started from the entrepreneurial insight of private investors. This entrepreneurship first came from those who saw the new industrial advantages, not necessarily thought as “green”, from the existing industrial clusters, including optoelectronics, integrated circuits and precision machinery. Motech was established at TSP in 1999 to catch the newly rising solar energy industrial opportunities in the global market, and became the first silicon solar cell producer in Taiwan in the next year. While most of the other TSP opto-electronic tenants were competing in the TFT-LCD display related R&D and production investment, it gradually expanded into a vertically integrated firm. It produced 272 MV of crystalline silicon solar cells in 2008, ranked as the eighth solar cell maker in the world. Other major players in the industry include Delta Electronics which expanded into the field of power management solutions from its already wide-ranging electronics product line and invested a new branch in the TSP. From the industrial policy aspect, the term “green industry” was formally used in the 2007 MOEA policy program “2015 Economic Development Prospect”. Three industries were: renewable energy, energy saving, and cleaner production. The MOEA 2009 “The Green Energy Industries Development Program” put new emphasis on “green energy”, and identified two major industrial sectors: solar voltaic, LED lighting. According to this latest policy category, the solar voltaic sector has stronger presence in the TSP. There are 13 tenants approved until 2008, six of them are in production, one is under construction; Table 3 shows that Motech alone stands for the first wave of investment in the sector at the TSP, then the second wave of investment rushed in after 2007. Total capital investment reached NTD 17.7 billions (USD 0.55 billions) in 2008 and the total revenue of these firms reached NTD 22.8 billions (USD 0.71 billions); according to STSPA, new investment in the first half of 2009 totalled NTD 7.6 billions. The solar voltaic production chain may be divided into four steps, the TSP tenants in the sector are grouped as follows: 1) silicon wafer: Motech, Gloria and MPI; 2) solar cell: Motech, Auria, Kenmos Photovoltaic, Chimei Energy, CAxun Tek, Solar Energy; 3) solar voltaic module: Gloria, Lightwave Solar Power; 4) solar voltaic system: Motech, Delta Electronics, King Enertech System, Everphoton. In addition to these, equipment producers include: Ulvac, AMC and Mirle. There are five companies working on LED lighting industry,

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including the EPISTAR. Boyam Power System, a subsidiary of Canada-based Palcon, is dedicated to fuel cell production. Although this is still a relatively small and evolving cluster, member firms already cover quite a variety of component and product, forming an industrial chain that include from up stream to downstream producers. It is expected that the green energy industrial cluster may contribute both to a low carbon emission world as well as a very competitive new sector to the TSP.

Table 3 Green Energy Firms in Tainan Science Park Category Firm Production Date Crystalline silicon Motech 2000 Kenmos 2008Q3 Solar Cells Thin-film Photovoltaic Auria Solar 2009Q1 Chimei Energy 2009Q2 CIGS Axun Tek 2009 Solar module Gloria 2007 System King EnerTech End of 2009 Source: STSPA, 2009.

4. Development of Green Buildings

To the end of “create a green environmental-friendly subtropical Taiwan”, the Architecture and Building Research Institute (ABRI), Ministry of Interior collaborated with Ministry of Economic Affairs in the promotion of green buildings since 1999. Through the establishment of the Taiwan Architecture and Building Center (TABC) in the same year, a green building evaluation system was introduced to the public. The original evaluation system covers seven indicators in 1999 and two other were added in 2002, the building which successfully passed the evaluation would receive a “green building badge”, meaning that the building is sound in “ecology, energy saving, waste reduction and health’ (EEWH) respects. According to ABRI, this is the fourth green building evaluation system operating in the world, after United Kingdom, United States and Canada, and the only such system applied to tropical and sub-tropical environment. The Executive Yuan announced the “Green Building Promotion Program” in March 2001 marks the beginning of official action. The action started mainly from public buildings, and all the major new government building projects are required to be evaluated. Private building projects which applied green building badge have been primarily the luxurious commercial, office or residential projects; industrial buildings have been very “quiet” in this arena. However, industrial property comprised a significant proportion in Taiwan’s built-up landscape, if the industrial buildings are still not involved in the movement, the purpose of promoting green building would be greatly handicapped. The major types of industrial property

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include: science park, industrial park, and industrial estate. While the subject of this article – science park – is under the administration of National Science Council, industrial parks have been promoted vigorously and directly by the Industrial Development Bureau (IDB), MOEA since 1960, individual industrial estates are basically owned and managed by the private investors. From this respect, the public owned or managed science parks and industrial parks have the potential to contribute in “green development”. Kung et al (2002) proposed that industrial parks should try to find opportunities of using existing industrial clusters as foundation for the construction of ecological industrial park in Taiwan, and within this, green building badge should be also promoted to the industrial buildings within the industrial parks managed by the IDB. Yet, this suggestion did not get immediate response from government sector. This has to wait for the initiation from private investors. On 4 October 2006, Delta Electronics held a ceremony not only to the opening of its new office/factory building at the TSP, but also to celebrate that the building successfully being awarded the green building badge (STSPA, 2006). Founded in 1971, now a world-class supplier of power management system, started its new investment at the TSP in 2004. Owing to the social responsibilities concept and the goal of enhancing its place in energy saving industries, the company decided to take the green building badge. Dr. H. T. Lin, professor of architecture at National Cheng Kung University, who has collaborated with ABRI in the study of green building subject for many years, became the chief consultant of this new project. Although it is the 100th green building in Taiwan, nevertheless, it is the first industrial architecture that passed all the nine green building indicators and certified as the gold-rated EEWH. The Delta example of realizing enterprise’s social responsibility and its success in obtaining green building badge has encouraged other tenants and even the STSPA, for example, the IC industrial giant Taiwan Semiconductor Manufacturing Company (TSMC). Indeed, the TSMC 14Fab P3 is certified by LEED as the gold-rated factory and by EEWH as a diamond-rated factory not long after. In the public sector, energy saving photovoltaic devices have been installed, for examples, at Park 17, STSP Commercial center and the Administration Building which is itself a certified EEWH building. According to STSPA statistics, there are 26 private EEWH green buildings and 25 public EEWH buildings in the park in 2009. Perhaps, TSP has the highest green building density in Taiwan.

5. A Green Science Park Policy

In sum, the green development of the Tainan Science Park until now is not the result of a far- sighted comprehensive planning. As previously described, it is the archaeological remains, the Glareola Maldivarum birds and the unexpected strong floods that alerted people of the different risks from industrial development. However, the changing of governments attitude towards these anti-development factors from negative to positive is important. These early interactions, mainly happened before this millennium, have paved the green infrastructure and spatial layout of the TSP. Private sector has also played important role in two aspects, firstly in the investment

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and formation of the energy saving industrial clusters, secondly in the introduction of green buildings. Yet, the STSPA may have also contributed behind the evaluation of investment proposals and assisted in building evaluation processes. However, it is more apparent now that the STSPA is going to play a major role in the future green development. Based on existing blue and green corridors, green buildings, archaeological sites and exhibition center, and other interesting resources, the STSPA has planned bicycle routes of 58 kilometers to promote LOHAS and environmental education to local communities and TSP employees. It is also planning to improve the quality of detention ponds and parks with the introduction of TSP Green Map. Perhaps the most important initiative is the establishment of an internal steering team for the promotion of “sustainable environment and Green Park” in early 2009. With green development as the clear goal, the organization is headed by the TSP Director-General, there are four mission teams, covering green industry, environment protection, ecology and landscape, and green building. It is hoped that through this organization the individual green actions within the park will be orchestrated into an integrated green development plan.

Reference 1. China engineering consultants, INC. (1997),” Detail plan of Tainan Science Park.”, Science Park Administration. (in Chinese) 2. China engineering consultants, INC. (1999),” Installation of flood warning system in Tainan Science Park.”, Tainan Science Park provisional office. (in Chinese) 3. China engineering consultants, INC. (1999),” Maintenance and management plan of Drainage system and flood control facilities in Tainan Science Park”, Tainan Science Park provisional office. (in Chinese) 4. China engineering consultants, INC. (2002),”Detail plan on the second phase of Tainan Science Park development”, Tainan Science Park provisional office. (in Chinese) 5. Kung, S. F. et al，2002，Sustainable Management Indicators of Industrial Parks in Taiwan， 2002 International Conference on Sustainable Mechanisms for Industrial Park (September 20), Tainan: National Cheng Kung University. (in Chinese) 6. Kung, S. F. and C. W. Chen, 2008, “Role of Science Parks in the Formation of High Technology Industrial Clusters – the Case of Southern Taiwan Science Park”, XXV IASP World Conference on Science & Technology Parks (14-17 September, Johannesburg). 7. Kuo, Chunlin (2001),” Science park and regional development: The regional changes in Tainan before the mass production began in Tainan science park”, Department of Geography, NTU, Master Thesis. (in Chinese) 8. NCKU Research and development foundation(2004),” The planning review on the drainage management and restoration in the extent of Yansui creek basin and Tainan Science park- including Flood flow analysis, flood simulation and flood prone area analysis”，Water Resources Agency. (in Chinese)

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9. National Science Council (1995), ” The Southern Tainan Science Park Preparation plan”， National Science Council . (in Chinese) 10. National Science Council (1996), ”Environmental impact assessment of Tainan science park development project (Final edition)”，National Science Council. (in Chinese) 11. STSPA, 2006, Southern Taiwan Science Park Newsletter, no. 94. 12. Tainan Science Park Provisional Office (2001),”Development history of the Tainan Science Park.”，Tainan Science Park Provisional Office. (in Chinese) 13. http://abri.gov.tw/ 14. http://www.stsipa.gov.tw/

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SSEESSSSIIOONN 22

Strategic industry & Green Growth in the Region

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LLeeccttuurree 22--11

Sustainable entrepreneurship and cleantech - A Swedish perspective

· Prof. Erik Lindhult (Mälardalen University, Sweden)

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Sustainable entrepreneurship and cleantech – A Swedish perspective

Prof. Erik Lindhult Senior Lecturer, School of Innovation, Design and Engineering, Mälardalen University (email. [email protected] )

In order to reorient development towards green growth there is a need for forceful sustainable innovation and entrepreneurship. The purpose of the paper is to comment on the rapidly growing field of cleantech and link it to sustainable entrepreneurship. This is made based on Swedish experience in field. Also issues of incubating cleantech will be touched upon. Cleantech has in the last 5 years been propagated as the next big thing to invest in after Infotech and Biotech (where the latter, and also the former, may be important elements of Cleantech). It is environmental technology at last having not only sustainability potentials but also market potentials. Despite the fact that investment rate has decreased during the last six months, money continue to pour into cleantech. Some observers have called the strong interest in renewable energy and environmental technology a “green bubble”. It is definitely probable that some individual companies will not perform as well as expected, and temporary trends may create situations where entire sectors are overpriced, bit commentators in the field believes that the underlying reasons for investing in cleantech are strong and valid, and many sectors will continue to grow until environmental problems are solved or at least mitigated. Some analysts estimats the cleantech market will crack the $2 trillion threshold by 2030 (Cleantech group).

A glimpse of Swedish Cleantech How developed is the Swedish Cleantech area? Is Sweden a Cleantech nation? From an investigation of Swedish information sources (e.g. Swentec) the picture is clear that the Swedes consider themselves a leading country in this area, having high ambitions to improve its position and also taking on globally driving role. Here it may be possible to make a comparison with South Corea and its Global Green Growth initiative. But these days there are many countries that are heading for this position, so part of what is propagated is a piece of national marketing for potential investors and customers around the world. Which countries are the leaders in cleantech? In a recent evalution (October, 2009 by Cleantech group) of leading cleantech countries Sweden was ranked among the top three together with Denmark and Germany. In their judgment, the country “is fully embracing green technologies, with 43.3 percent of total energy consumption coming from renewable sources. The city of Malmo is a true example of cleantech living—with 39.9 percent of its energy consumption

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covered by renewable energy. Sweden boasts two internationally renowned sustainable city projects, City of Tomorrow in Malmo and Hammarby Waterfront in Stockholm. Between 1990 and 2007 Sweden's GDP grew by 48 percent while greenhouse gas emissions decreased by 9 percent. Strong legislation has pushed the cleantech industry, fueled by some of the strongest environmental organizations in the world. The Society of Nature Conservation, WWF and Greenpeace have some 500,000 supporters/members in a country with a total population of 8.5 million. Add the backing of financial of such institutions as AP7 Pension Fund, Northzone Ventures, Sustainable Technologies Funds, and SEB Venture Capital, and one can easily see why Sweden is a true cleantech force on the world stage”.

In national terms Sweden has a high adoption of environmental technologies. The Swedish approach covers not only technology and technical systems per se, but also involves taking a holistic and systemic approach to the whole supply chain for integrated system solutions which also cover recycling or management of waste products, in effect the whole life cycle. This is an important contributory factor as to why Sweden has succeeded in decoupling the connection between economic growth and the production of greenhouse gases. During the period 1999– 2006 Swedish emissions remained under the 1990 level by on average 4.5 percent. At the same time its GDP has grown by an average of 3 percent a year. Sweden’s emissions of greenhouse gases are amongst the lowest in the OECD countries on a per capita basis. This shows that it is possible to combine economic growth with an improved environment.

Figure 1. GDP, greenhouse gas emissions and bioenergy use in Sweden

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Thus more bioenergy gave lower gas emissions. The bioenergy tradition is several hundred years old in Sweden. Since the 1980’s however, development has increased rapidly from 60 to 115 TWh / year. This increase is linked to increased district heating, industrial investments and electricity production. Today bioenergy represents 28.6% of all energy used in Sweden (420 TWh / year) and the increase continues. Bioenergy is currently the main option for heating and is growing rapidly for electricity production. The basis for this is a holistic approach with economy, environment, climate change and employment as driving forces.

Sweden is today world-leading in many parts of the bio-energy field and Swedish companies and municipalities are currently operating worldwide. The process has been driven by unified political, environmental and economic forces with a long-term perspective at the basis. Fossil- free energy has no or low taxes, while fossil fuels have high and rising energy and carbon dioxide taxes. The reform of the tax system began in the early 1990’s.

General policy instruments provide the economic conditions for energy market players who choose profitable investments according to their own skills and predispositions.

• General instruments such as CO2 taxation and NOx-fees lead to effective development towards the desired goal if they are sufficiently forceful. • Investment subsidies are used to demonstrate and test new technologies that currently show uncertain or inadequate profitability. • Research, development, demonstration, purchase • Specific contributions to individual sectors are used only in exceptional cases as they threaten to distort competition. Investments that are unable to compete on the market when aid is withdrawn. • Instruments of control offer financial incentives and favor the development of environmentally friendly and more efficient technologies. Instruments can also be used as educational information, for lobbying, and counseling

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Figure 2. Sweden's energy use and bioenergy share in 2007

A historical perspective on energy use in housing, services and industry shows that • Dependency on oil has significantly decreased. • The increase of electricity use also includes an increased share of biofuels. • The increase of district heating also includes an increased share of biofuels. Figure 3 also indicates that the development has been successively made over a longer period of time. The increase in the use of bioenergy and reduction of climate emission is based on the combined and multiple effort of a broad range of driving agencies in society. Sustainable entrepreneurship requires that we broaden the view on the concept in line with recent developments in entrepreneurship research. It may be seen as cleantech achievement, but this accomplishment depends on a range of other factors outside the technological field.

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Figure 3. Fuel developments in Swedish district heating plants

The evaluation also point to Hammarby Sefront (Hammarby Sjöstad) as a leading example. The new district of Hammarby Sjöstad in Stockholm has shown how an area can be built with a significantly lower environmental impact than is usually the case for new construction. The way in which this district was planned is unique, and this was the key to its success. When the district was being built, Stockholm city council encouraged the building contractors to find their own solutions within common frameworks, where recycling principles, low energy consumption and production of their own energy were all elements. The result was an area with many parks and green areas. These aimed at creating fast and attractive public transport, car pools and attractive cycle tracks. Renewable fuel was used wherever possible. In order to reduce heating costs, investments were made in increasing energy efficiency and the reuse of heat from waste water. New technology was used to save water and treat waste and provide effective waste recycling systems in order to recycle as much material and energy as possible.

• The environmental burden is 30–40 percent lower than a typical urban district from the 90s. • The use of cars is 14 percent less than in comparable districts in Stockholm. • The use of water amounts to 150 l per person per day, compared with a figure of 200 l in other parts of Stockholm. • When Hammarby Sjöstad is complete, it will produce half its own energy.

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Hammarby Sjöstad has aroused a great deal of international attention and is visited annually by more than 12,000 industry representatives and decision-makers from the whole world. Sjöstaden has also functioned as a “shop window” and demonstration facility for Swedish environmental technology, and has been important in supporting the environmental sales of a number of companies. The apparent impressiveness of Hammarby Sjöstad for some foreign delegations also depends on a multitude of initiatives, innovative and collaborative (and also of course competitive) efforts over a very long time period. It is not primerly a matter of new national strategy, but a long-term commitment to sustainability issue that is successively bearing fruit.

Cleantech and environmental technology – in search of a clearer conceptualizaton

What is cleantech and how is it related the field of environmental technology that has been around for a long time? An indication of its cultural basis in the venture capitalist world is the characterization of Patel (2006): “Cleantech is a venture capital buzzword, making eyes sparkle the way ‘biotech’ and ‘infotech’ once did”

Burtis et al. (2004) also chose to use the term “cleantech” the way private equity investors do - products and services that use technology to compete favourably on price and performance while reducing pollution, waste, and use of natural resources. It spans a number of industries.

Other commentators emphasize that clean is more than green. Clean technology, or "cleantech," should not be confused with the terms environmental technology or "green tech" popularized in the 1970s and 80s. Cleantech is new technology and related business models that offer competitive returns for investors and customers while providing solutions to global challenges. While greentech, or envirotech, has represented "end-of-pipe" technology of the past (for instance, smokestack scrubbers) with limited opportunity for attractive returns, cleantech addresses the roots of ecological problems with new science, emphasizing natural approaches such as biomimicry and biology. Greentech has traditionally only represented small, regulatory- driven markets. Cleantech is driven by productivity-based purchasing, and therefore enjoys broader market economics, with greater financial upside and sustainability. Cleantech represents a diverse range of products, services, and processes, all intended to: • Provide superior performance at lower costs, while • Greatly reducing or eliminating negative ecological impact, at the same time as • Improving the productive and responsible use of natural resources

At Swedish National Cleantech incubators (/SCTI), it is emphasized that to be relevant, the term Cleantech must embody solutions that will bring us all the way to a sustainable society. The definition of Cleantech is based on scientific principles. Cleantech is the technology which,

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according to the four scientific sustainability principles, is

• proactive • sustainable in the long term • and addresses the problem areas that distinguish our present society from a sustainable society

Figure 4 and 5 below summarized main features of cleantech in comparison with environmental technology.

Market potential

Clean‐ tech

Environ‐ Sustainability

mental potential technology

Political and normative driven Figure 4. The relation between cleantech and environmental technology

Environmental technology Cleantech Focus of problem solving Reduces environmental problems, Preventive, avoids environmental “end of pipe” solutions to existing problem problems Driving forces Driven by environmental regulation Driven by market and and green activism sustainability potentials Industry linkage Environmental fix for established Solution to sustainability industry, or environmental industry problems irrespective of industry Point of departure Amelioration of existing condition Infrastructure for a needed sustainable society Change ambitions Reduction of environmental effects of Market and institutional driving human activity towards a sustainable society

Figure 5. Distinctinction between environmental technology and cleantech

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This is a very black and white way of formulating a distinction between environmental technology and cleantech. In practice a common way of language development is that those that have been working for a long time on environmental technology just rename what they are doing as “cleantech”. But every new concept need to legitimize its value of novelty by trying to make existing concept look bad, or at least insufficient, in comparison. It is not an “objective” characterization, but rather expresses and clarifies the ambitions and hopes connected to cleantech – its radical ideology of eco-modernization. At the same time, the for every year, one might even say day, heightened urgency and necessity for the transformation to a sustainable society also develops it into a immense market potential. It is not an industry, but rather defined by the character of being a significant solution to main sustainability problems, like global warming.

Sustainable entrepreneurship and clean tech

Sustainable development involves very complex change processes in order to approach the vision of a sustainable society and a sustainable world. A variety of driving agency creating business and creatively organizing activity in different forms in order to create different dimension of sustainability values is required in these complex and challenging task that confronts every nations. Figure 6 below is an effort to characterize different types of entrepreneurship and their role in relation to sustainable development and cleantech. The types are not mutually exclusive, and may also be complemented by other types. The types depicted are actual conceptualization that can be found in the entrepreneurship research literature. It may seem like a very long list of driving agency, but it is in our judgment very fruitful to recognize different forces in society for sustainable development and cleantech. Dean &McMullen (2007) recognizes different forms of sustainable entrepreneurship as responses to different types of market failures. Market development is important, but sustainable development requires interplay between market and institutional developments. It is well-known in the area of history of technology that new innovation can have significant effects on social institutions, and often require the formation or modification of institutions suitable for its adoption.

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Type of Character Example of Cleantech role entrepreneurship

Commercial Development and Commercialization of cleantech entrepreneurship commercialization of business solutions ideas Ecopreneurship Development of green-green Value/vision driven actors creating business – new business that is new green business with industry green from the start transformation potentials/ambitions Financial Venture capital development and Creation of green funding, risk entrepreneurship use management Social entrepreneurship Non-commercial value creating Creating and implementing business activity cleantech solutions that is not (yet?) commercially viable or legally required Activist entrepreneurship Value driven activity to influence Furthering norms and political structures and opinion agendas favouring cleantech solutions Networked Creating connections and Improving the innovation system for entrepreneurship synergies in innovation systems cleantech Business dynamic Agency for transforming industry E.g. incubating new cleantech firms entrepreneurship and improving market conditions and solutions, reducing monopoly power Informational/enlighten- Creative informational, educational Spreading knowledge on cleantech ment entrepreneurship and lobbying activity to further solutions and its potentials to progress through knowledge significant actors Academic Commercialization/exploitation of Agency for development of science entrepreneurship scientific research results based clean tech Collective Development partnerships and Private-public or multi-stakeholder entrepreneurship other collaborative constellations partnerships for developing cleantech platforms (e.g. in recycling systems) Institutional Modification and creation of E.g. further norm/legal system for entrepreneurship institutions to further creation of preservation of nature and use of sustainability value cleantech Community/Societal /civic Innovative, societally useful Mobilizing communities for entrepreneurship initiative, agency for creation and innovative, cleantech system recreation of community solutions, e.g. a city Political entrepreneurship Creating vision, coalitions and Forcefully driving the sustainability taking initiatives that drives change agenda and the transformation to a sustainable society Everyday Everyday challenges requiring Development of green consumption entrepreneurship active, creative response and life style

Figure 6. The topology of sustainable entrepreneurship and its relation to cleantech

To make a judgment to what extent Sweden or any other country is a cleantech nation would thus require a broader look at the whole spectrum of driving agency and its qualities in furthering sustainable development and cleantech. There is a lot of informational and national marketing activity focused on supporting and increasing the commercialization and export of cleantech business in Sweden. There are high ambitions politically and on the level of industrial policy that Sweden should be a globally leading cleantech nation. But as the international

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judgment earlier referred to, it may quite as significant information that The Society of Nature Conservation, WWF and Greenpeace have some 500,000 supporters/members in a country with a total population of 8.5 million.

Cleantech incubation

There are a hugh number of supportive measures of Cleantech in Sweden, and more is continuously developed in different governmental programs and collaborative arrangements. A representative of a leading actor in the Cleantech support “industry” somewhat ironically said “we are supporting to death”. Maybe it is a bit like curling parenting, probably also evident in many other countries.

Today there are a number of government and other players providing different types of support to companies in the environmental technology sector. The measures focus on different parts of the product value chains. Many of the state actors in the first instance focus on providing support in the early stages of product value chains, while support in the commercialisation phase is not provided as frequently. Relatively large investments are being made by a number of players providing support for research and development, and to some extent for innovation as well as product and business development. Whilst investments in demonstration facilities and market introduction are significantly less with fewer players involved. Investments to increase demand in environmentally driven markets are not particularly frequent in Sweden. State support for purchase of new environmental cars as well as experiences from other countries show, however, that such types of measures can have a major impact.

Here I will limit myself to some comment on the incubator area. A majority of Swedish incubators are linked to universities and university colleges. Innovationsbron is a very important player in the incubator area in Sweden, and supports/runs 19 incubators in the national incubator program. So far most incubators have not had a specific focus on environmental technology, but more recently, specific profiles in environmental technology are becoming increasingly common. There are slightly more than 40 incubators in Sweden, of which 13 stated that they are focusing on the environment and environmental issues, one example being Swedish Cleantech Incubators.

Although environmental technology has since long an important place in incubation in Sweden, incubation specialized in cleantech is a recent development.

Sweden Cleantech Incubators is Sweden’s only incubator for environmental technology exclusively. The members are newly formed companies whose business concepts contribute to a sustainable society. The mission is to accelerate their growth – to help advance the success of

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innovators and entrepreneurs. SCTI is a virtual incubator that supplements regular incubator programmes by adding a cleantech focus to business development. The incubator also provide support with marketing, competence development and finding financing. Basic principles are

• Double screening process – business and sustainability • Proactive solution in the fronline of cleantech. The companies should have good potentials to become winners in a sustainable society • Social ecological principles • Fokus on results A basic point of departure is the sustainability principles developed by the “The Natural Step”. When the cycles are not in balance, sustainable development is threatened. Environmental problems are problems caused by society. Mankind ownes the problem, so the good news is that we can do something about it. There are 4 root causes to environmental problems. They can be put as 4 principles for the sustainable society: The first Principle:"In a sustainable society, nature is not subject to systematically increasing concentrations of substances extracted from the Earth´s Crust" Metals and fossile materials are extracted from the crust. A well-known effect is climate change, which is a consequence of adding fossile carbon to the atmosphere. Burning fossile fuels is not sustainable. Nuclear power brings large risks related to waste management for present and future generations. A sustainable energy system requires renewable energy sources, origin from the sun, and efficient techniques. The sustainable society also implies a more gentle management of metals, used only when their special features are needed, in efficient and closed cycles. There will be high demands on recycling and logistic systems for the products used in a global market. The Second principle: "In a sustainable society, nature is not subject to systematically increasing concentrations of substances produced by society." Today, man in society produce substances that can´t be integrated in the cycle of life. Examples are persistant, unnatural chemicals such as PCB, DDT, triclosan and sucralos. As long as these chemicals are produced, they will sooner or later end up in nature where they can´t be decomposed nor part of nature´s loops. A well known environmental effect is the depletion of the ozone layer due to CFCs and similar chemicals. Also natural substances can cause problems if they are produced in large quantities compared to natural flows. Examples are nitrogen oxides, dioxin and methane, produced in processes such as combustion and food production. We need to find chemical that works with nature. Maybe also look for other methods like fire safe materials and alternative plant protection and cleaning methods. The third principle: "In a sustainable society, nature is not subject to systematically increasing degradation by physical means." Today, we degrade nature by overharvesting forests, fish and fresh water. The consequenses might be desertation, flooding or extinguished species. Nature is necessary for our lives and economies by producing raw materials, taking care of waste and through its biodiversity. Nature

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provides water cleaning, medicine and recreation - for free! A development towards a sustainable society will put high demands for sustainable methods for agriculture and forestry when the harvest should replace fossile fuels and also be the food supply for the growing population. Methods and tools to secure fresh water supply and management world wide is requried. The fourth principle:"In a sustainable socity, people are not subject to conditions that systematically undermine their capacity to meet their needs." This is the principle where the social and economical aspect of sustainability is really in focus. The longterm society needs political, economical and cultural structures to support it. With limited physical resourses, and a growing population, we need to ask ourselves how we fulfill our basic human needs by more or less necessary use of resources.

Based on the characterization earlier of sustainable entrepreneurship and its relation to cleantech, what is the special feature of Cleantech incubation?

Market development need

High

Cleantech business development

traditional business development

Low Institutional development Low High need

Figure 7. The character of cleantech business development

Traditional business development does not to a significant degree consider the need to development of market conditions, structures and interactions, or different kinds of institutional development. It is mainly seen as external factors. As the figure above indicates, Cleantech may involve more cases of business development requiring both efforts at market development and institutional development.

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This leads to the emphasis on modified and additional tasks for Cleantech incubators. Furthermore, a broader spectrum of types of entrepreneurial initiatives is required to take into consideration. It is quite clear that traditional business development is a core competence in CTI:s like in other incubator organizations. As Cleantech is not an industry but rather is defined as solutions to core sustainability problems, there is a need for broad experience of a range o industries. CT solution may be developed not only in the environmental field but in many different areas. Also a broad network is need, connected to the national and international clean tech innovation system. Particularly important is also information and lobbying in order to further the development of markets and institutions for their cleantech members. Also communication and education in sustainable strategic management to established industry in order to recognize the significance of cleantech solutions are important. Export is even more important than in traditional incubators, as cleantech solutions attack globally relevant problems.

Concluding remarks The cleantech area is developing rapidly, based on the combined sustainability and market need for it. Based on aspects of Swedish experience in the field, we have made an effort to clarify its significance and linking it to sustainable entrepreneurship. We have also indicated what is may imply for cleantech incubation.

References Burtis, P., Epstein, R. & Hwang, R. (2004) Creating the California Cleantech Cluster (San Francisco, CA:Natural Resources Defence Association). Dean, T. & McMullen, J. (2007) Toward a theory of sustainable entrepreneurship: Reducing environmental degradation through entrepreneurial action. Journal of Business Venturing, 22: 50– 76. Patel, S. (2006) Cleantech gets green, Seed Magazine, August, pp. 3–4.

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Strategic Hi-Tech Industry and Regional Green Growth

· Prof. Eberhard Becker (Dortmund University of Technology, Germany)

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Strategic Hi-Tech Industry and Regional Green Growth

Eberhard Becker TU Dortmund University, Germany

1. Going Green

To date, „green“ is a magic word. Business has been turned into “Green Business”, Technology alone isn’t good enough anymore: it has to be “Green Technology” and it is the “Green Growth” that we want. Quite recently US-President Obama told us that “…the colour of stimulus is green” a statement that recalls an old German saying: “Green is the Hope”. Something has happened in the last twenty years or even less: the greening of politics, business, industrial production and concepts dominates our thinking and activities.

Historically, it was just yesterday that environmentalists and the first green parties stood up, confronted the public with what they described as the ecological crisis of the world that could only be resolved by a complete turn around in our perception and use of the environmental resources. Instead of wasting and destroying natural resources and believing in unlimited growth of production and living standards mankind should return to a life style that is in harmony with nature, sets aside modern achievements if necessary and restructures society on a sustainable ecological basis.

The green philosophy of those days looked at business and industry with some reserve if not enmity, an attitude still seen today. Vice versa, entrepreneurs often classified the idea of environmental protection as a handicap or even a barrier to economic prosperity. “Does it pay to be green?” was a frequently asked question in any debate on business and environment. For a long while, the answer seems to be a clear “No”. Nowadays however, going green apparently seems to pay off. A multitude of products on the market seems more appealing when carrying a label “green” or “bio” or “eco” or something alike. Customers are even prepared to pay more for products provided the way of production follows a green strategy. The notion of “green buildings” is no longer associated with a non- urban living style. In fact, big enterprises have discovered the great financial advantages of greening their buildings: lower utility costs, greater employee satisfaction and productivity and, astonishingly, less absenteeism. Many companies in the industrialized nations have learned that they can avoid pollution and waste of natural resources and, at the same time, increase their profit. These are first instances of a world-wide attempt to create a sustainable global economy, in full respect of the natural resources given to us.

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Governments all over the globe are taking a leading role in transforming the current business and industrial production into what is called green business and green or clean technology, in other terms: they give preference to green growth. As samples, I would like to list some governmental programs aiming at installing green production, green business to achieve green growth and, at the same time, generating new sources for economic revenues. The South Korean Government recently launched the “Green New Deal”. Nearly 40 billion US $ will be spent within the next five years to initiate green initiatives that are hoped to generate about 1 million new eco-friendly jobs. Top priority is given to the restoration of major rivers in Korea in order prevent flooding and droughts, secure water resources, enhance water purity and expand the number of environmentally-friendly spots. Next on the list, as far as financial investment and jobs are concerned, are a “Green Transportation Network”, Energy Conservation and Forest Restoration. In 2006, China in its 11th Five-Year Plan took measures to construct a resource-saving and environment-friendly society. This includes speeding up the development of high-technology and strengthening of scientific research. Conservation and efficient use of energy as well as recycling technologies are high on the agenda. These and other directives are aiming at one great goal to reduce the high resources consumption, the waste, pollution and to improve efficiency in the production process. South Korea and the People’s Republic of China belong to the Asian and Pacific region. This region features enormous economic growth that comes along with very high pressure on the environment. The nations in this part of the world, in cooperation with The United Nations Economic and Social Commission for Asia and Pacific, are using the Asia-Pacific Region Policy Dialogue to discuss the new paradigm of “Green Growth”, they are sharing the same goal: to realize a sustainable development of economy and society. On the other side of the Pacific, earlier this year the new US government announced the investment more than 80 billion US$ for green activities including energy efficiency, electric grid modernization, renewal energy, transportation and environmental cleanup. It is also made clear that fostering Green Economy means generating the jobs of tomorrow at home and not abroad. Early and lasting investment will secure a leading role in the emerging market of the green economy. Already in 2004, the European Union started its Environmental Technological Action Plans (ETAP). This plan put forward actions to attract private and public investment for the development and demonstration of environmental technologies, to improve favourable markets conditions and to operate at the global level, in particular in developing countries. In 2007, the European Commission proposed a Strategic Energy Plan to boost research, innovation and business with regard to renewable and other low-carbon energies in Europe. In June this year, OECD published a Declaration on Green Growth stating that its members are devoted to pursuing a green growth strategy where “Green” and “growth” cam go hand-in-hand, encouraging green investment, sustainable management and green technologies and ensuring coordination of green growth measures with labour market formation policies.

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Wherever on the globe steps are taken to reform business, production, research and technology to meet the present and future ecologic challenges two issues are interwoven: a sustainable use of natural resources and a stimulus for economic growth. That both objectives do not contradict each other but, quite the contrary, each one reinforce the other is accepted by many leaders in business and politics. It was made explicitly clear by a recent study “Towards a Global Green Recovery” (www.pik-potsdam.de/globalgreenrecovery) submitted to the G20 London Summit this year. To fight the global financial crisis and do this within a clear long-term framework the study proposes to take the chance to tackle the crisis alongside with a development towards sustainable and low-carbon growth. New opportunities for employment, innovation and wealth creation would result.

The above list of activities in greening economy in harmony with natural resources is good news. However, besides comprehensive provisions in politics and legislation huge financial investments are needed to reach the desired goals. Strong economies are capable of providing the necessary funds and will certainly receive the revenues in the future. Whether the developing countries and emerging economies will be able to put themselves in a competitive position is doubtful. In many cases they need international support and assistance. In particular, coping with the impact of the climate change necessitates financial aid from the industrialized nations. The upcoming World Climate Summit in Copenhagen (Denmark) at the end of 2009 will show to which extent support flows for the benefit of developing countries.

2. Towards a Green Economy

In these years the world is facing a double crisis. There is the manifest financial and economic crisis, obvious to everyone. At present, signs of economic recovery can be observed giving reasons to believe that the measures taken show gradually the positive impact as planned. However, by only considering the economic situation one may easily overlook the far more serious threat that is posed by the climate change and the wasteful and irresponsible use of the natural resources. If these ecological challenges are not met properly then an economic recovery will be endangered in many ways. For example, if natural resources run short or energy is continued to be used inefficiently then prices will explode and subsequently economic crises are likely to occur.

The United Nations Environmental Programme (UNEP) has recently called for a “Global Green New Deal”. This call found an affirmative response by many political leaders. In particular, OECD asked for intensified green investment in order to simultaneously contribute to economic recovery in the short-term and to build the environmentally friendly infrastructure for sustainable growth in the long-term.

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It is necessary to outline the main features of the present ecological situation and its impact on the development of economy and society. Knowing the risks and opportunities will pave the way to more ecologically oriented business and technology.

The climate change of rising global temperatures will cause enormous costs. Therefore it is imperative to reduce and control the emission of green house gas. At present, our life style and the technological production largely depends on fossil fuels. This dependency cannot be changed over night, but is has to be removed in the long run. Renewable sources will then provide the energy needed. This is the way to go and it amounts to huge future progress in research and technological development. Innovative enterprises will find a multitude of opportunities for economic activities. They will find it in the future but they can find it already right now. Efficient use of energy is a top priority to date. Efficiency has to be sought everywhere: e.g. in the manufacturing process, in the construction and maintenance of buildings, modern standards for all type of appliances, the modernization of the electricity grids, power plants and the whole system of transportation and mobility.

That new jobs and business opportunities, previously unknown, arise can be observed already today. As samples, I would like to mention Germany and Denmark. Already for some years, Germany is holding a top position in the market for renewable energy. In 2007, about 250 000 people were working for Germany’s renewable energy industry, nearly doubling the number of workers in 2004. In the larger context of all sorts of green business about 2 million workers are counted. As of 2007, renewable energies had a share of about 14 % in the consumption of electricity in Germany that is planned to rise up to 45 % by 2020. German companies, SME’s as well as big companies, have found their way to do green business successfully. The Siemens AG, for example, is heading for sales of green products and green services in 2011 worth of 25 billion €. Denmark, a much smaller country than Germany, features remarkable achievements in the wind energy industry. About 30 000 people working there and generate about 6 billion € annually. Large Danish corporations are investing around the world using their advance based on technological knowledge and a body of skilled workers and engineers.

Increasing the share of renewable energies in the so called energy mix and forcing up the efficient use of energy are very important steps towards a green economy. However, there are further ecological challenges that need to be met differently by innovative models of business and technology.

A fast growing demand for clean and potable water has brought water availability to a critical limit. This is due to explosive population growth in some parts of the world, an unstoppable trend of urbanization, rapid economic development and extreme weather patterns. According to OECD figures, presently more than 1 billion people have no access to potable water; more than 2 billion people are suffering from insufficient sanitation, with fatal impact on health and

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prosperity of individuals and societies. New technological solutions for cleaning water and services for water management are urgently needed. Currently the global water market is worth of 250 billion €, a figure to be expected to be doubled within the next decade. It is a market where developing and developed countries work together, where SME’s as well as huge corporation find their place.

What has said about water applies to other natural resources. Forests, soils, water and fisheries are severely used up, in some cases exhausted by human population growth and fast growing industrial evolution. Additionally, we are witnessing a global decline in biodiversity with a large number of endangered species. Re-forestation, preservation of soil and limitations for fisheries ask for national and international political decision in the first instance that has to be followed by developing suitable green technologies and advisory services, i.e. examples of green business.

Urbanization will pose specific challenges. Today one out of three people live in a city, to be expected to rise to two out three by 2025. The number of cities with more than one million inhabitants will soon exceed 500. It is quite obvious that enormous infrastructural and environmental problems arise. Urban planning, the system of public and private transportation, the creation of urban recreational areas and many more tasks asks for a policy and technology guided by a green philosophy. Countries, cities and enterprises that are able to offer solutions will quickly conquer the market.

Urbanization but also the whole industrial production process requires a new perception of waste management. Instead of simply throwing away used material an infrastructure and re- manufacturing process has to be installed in order to save resources and reduce negative environmental impact. This again has led and will lead to new forms of green business that are urgently needed.

In his remarkable essay “Beyond Greening: Strategies for a sustainable World” (1997) Stuart L. Hart has identified three major steps companies have to make in their evolution of a Green Business. Stage one: Pollution Prevention. Pollution prevention, much more than pollution control, aims at minimizing or eliminating waste before created. It depends on continuous improvement efforts to reduce waste and energy use. Stage two: Product stewardship. Going beyond pollution prevention in the manufacturing process the focus is now on all environmental impacts associated with the full life cycle of a product. For example, collecting and recycling used cellular phones could (and should) be an issue to consider in this respect. Companies may offer a leasing system to their customer given them state-of-the-art functionality with minimal environmental impact. Stage three: Clean Technology. Knowing that existing technology very often is not environmentally clean future-oriented companies invest in tomorrow’s technology. For example, nowadays chemical industry is investing in the so called white biotechnology in order to replace

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the fossil material and conventional production process by biomass and biological processes both renewably provided by nature.

To be successful a company needs a vision of sustainability to be guided through these three stages. It must show the way products and services have to evolve and which new competences are needed.

3. Remarks on the Role of Government and Regional Green Growth

Building up the Green Economy requires the cooperation of various partners in a variety of activities. First of all, governments have to lay down the ground rules for making the green economy feasible. These rules have to include legislation, taxation and other regulations that encourage green innovation. Incentives are to foster the future-oriented companies to begin green business. Since intensified R&D activities in green (or clean) technologies are of utmost importance programmes have to be launched to stimulate scientific investigation; other programmes should address companies, in particular SME’s, that are willing and capable to enter green business.

There is also the marketing issue of advertising the new paradigm of ecological business and production. The public opinion has to be convinced of the necessity and advantage of the new model of the economy. Ecology has to be incorporated into people’s lifestyle.

Internationally, the national governments have to stress the joint commitment of the family of nations for ecological growth; no longer can individual states cope alone with the severe ecological impacts of today.

It is the private sector that finally provides the technical innovation and the new business models for clean production, ecological efficiency and economic growth. So far, the number of companies including sustainable development as part of their corporate strategy is growing but still limited. Incentives, a change in customers demand towards green products and a general debate on green economy will help improving the situation.

At present, it is not easy to judge the role of regional development for greening the economy. Clearly, any region will benefit from the outcomes. However, there are many decisive influences and decisions of national or even international origin. The framework for changing the economy seems too broad for a regional scope. Nevertheless, regions are very often the final driver of economic growth. Necessary for a region to be a strong player in forming the green economy is a coherent perception shared by all relevant regional actors. These are the local governments, the various companies and their representing bodies (chamber of commerce) and the institutions of higher educations to mane the most prominent ones. They all have to act in

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concert. As far as the traditional economy is concerned, in many regions this has worked marvellously. Enormous regional growth was the result where technology parks (or science parks) played their important roles as well as the universities in that region. But in the case of the new paradigm of an ecological oriented economy it seems that still much work has to done to reach a common view. The general national debate and a discussion of ecological issues by the higher institutions of education in this region will certainly stimulate the transition to green economy.

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“Green to Gold” strategy : Collaboration among government, companies and consumers in Japan

Prof. Michi Fukushima (Tohoku University, Japan)

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“Green to Gold” strategy : Collaboration among government, companies and consumers in Japan

Prof. Michi Fukushima Graduate School of Economics and Management, Tohoku University

Introduction

These days, Japanese new Prime Minister, Yukio Hatoyama, announced that he intended to set a difficult target for cutting carbon dioxide and other greenhouse-gas emission 25% from 1990 level to by 2020. The number was more ambitious than that former PM, Taro Aso provided (8%) and what other Japanese expected. PM Hatoyama’s ambitious remarks had impact on other countries and his remarks were almost welcome in the world. In Japan, there are still some critics of the new PM’announcement, insisting that it would weaken the international competitive power of Japanese industries imposing heavy burden and slowing down nation’s economic growth. However, this remark cut off Japanese retreat on environmental problem.

Fig1. CO emission in Japan per man 2 million ton 10.4 1350 10.2 1300 10 9.8 1250 9.6 1200 9.4 9.2 1150 9 1100 8.8 8.6 1050

Japanese corporations' policies for the environment have changed from a passive stance to a positive one in order to strengthen competitiveness in the market. Along with this trend, every stakeholder in the market demands that corporations tackle global environmental problems, disclose environment related information, and show corporate social responsibility.

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Under the circumstance, green growth is indispensable for Japanese companies. Some of them see it as business chance and try to take advantage them. These changes in corporate activities have produced several new types of environmental businesses. However, in order to increase successful environmental business, it is difficult for a company to make a green market by itself. It is needed cooperation among corporation, governments, and consumers. In this paper, we will show how the collaboration among different sectors nurtures green market in Japan and converts “green to gold”.

2. Strategy for “Green to Gold”

Daniel Esty and Andrew Winston wrote the book, “Green to gold” in 2006. In the book, they say that no companies can’t avoid “green wave” and green wave will limit companies’ activities ever than before. Although green wave gives threat to companies, it also gives new opportunities. Some companies, such as Toyota realized the opportunities and took advantage of them; Toyota started development of “Prius” in 1993. Prius not only created new type of market, but also changed the existent car market radically.

+ Plus

Benefit Intangible

・Green marketing Assets ・Environmental ・Reputation conscious design ・Trust ・Creating new market ・Brand image

Short / certainty Long/ uncertainty

Cost Risk

・Improvement of ・Environment Risk Efficiency ・Environmental Cost ・Improvement of value chain

- Minus

Fig.2. Strategy for Green to Gold

Esty et al(2009) shows that there are 4 behaviors when the companies should take “Green to Gold” strategy (Esty and Winston, 2009, Fig2). The first one is “Cost management”; which is the efforts to reduce the energy consumption and energy cost. The second is “Risk

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management”; which deals with risk that could happen in advance. The third is “Making profit”; which means providign and selling eco-friendly products and services (The case of Prius is typical one). The forth is to raise the products’ added-value through engaging in green activities and win good reputation, trust and brand image.

The first and the second actions are easy to move into action. Actually most of companies have already started. On the other hand, the third and the forth actions are difficult for companies to realize by themselves, especially Small Medium sized Enterprises, due to the technological problems and meager resource. Especially green products and services tend to have disadvantage compared to not-green products due to their higher prices. How do companies put added value to the products and services? How do companies let consumers realize added value of the green products? How do companies induce consumers to buy them? In order to help companies, Japanese government has taken some measures. Firstly, Japanese government has given some incentives to consumers or companies to choose and buy eco- friendly products. And it has also given subsidies to companies for developing new and value- added green products. Through these help, Japanese government tries to cultivate and expand green market, hoping it could be incentive for companies to enter into the market.

Fig 3.Triangle of green strategy in Japan

Government

Visualization Market cultivation Subsidies Evaluation

Companies Consumers

Providing new products and services

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3. The measures taken by the government that induce consumers’ buying motivation

In order to achieve the ambitious target that the PM announced, there are some problems. If the companies could develop green products, are there broader use of eco-friendly products to the point the companies can earn profits? Based on the fear, the Japanese government has taken measures for consumers to buy green products. In the concrete, the government provides incentives to encourage consumers to buy green products.

(1) Eco-point system METI started Eco-point system on May 15, 2009. Under the system, the government revealed a list of products and services that can be exchanged for Eco-points, a type of currency to stimulate consumption and promote use of energy-efficient goods. Eco-points are earned by buying three kinds of government-designated energy-efficient products: air conditioners, refrigerators and TVs. The points, worth ¥1 each, can be exchanged for three types of goods: coupons and prepaid cards, energy-efficient products, or products that promote regional economies. The introduction of the Eco-point program helped significantly in revitalizing the consumer electronics industry. The program will last till March in 2010.

(2) Public assistance system for consumers to buy green products As a measure to revitalize stagnant industries, the government gives some incentives consumers, such as tax exemption and subsidies. For example, for the automotive industry affected by the downturn in economy, the Japanese government came up with tonnage and acquisition tax cuts for eco-friendly vehicles (passenger cars, heavy-duty trucks and buses) and exemptions for next-generation vehicles. According to the measure, the buyers of next generation and highly eco-friendly vehicles such as electric vehicles, plug-in hybrids, clean diesel vehicles, will enjoy an exemption from tonnage tax and acquisition tax for the three year period. Other types of eco- friendly vehicles will have their tonnage and acquisition taxes reduced by 50% or 75%, depending on the specific emissions and fuel efficiency requirements they meet. The second set of measures as part of the Japanese government’s economic stimulus program to help boost the Japanese automotive industry is the purchasing subsidies for ‘green’ vehicles. In this scheme, the Japanese government provides a subsidy of 250,000 yen for the purchase of a new, eco-friendly passenger car (standard or small sized) replacing an old model. For a mini- vehicle, the purchaser enjoys a subsidy of 125,000 yen. Subsidies are also provided for non- replacement purchases of new eco-friendly vehicles. For passenger cars and mini-vehicles, the subsidy amounts to 100,000 yen and 50,000 yen respectively. The subsidy also extends to purchases of new heavy-duty trucks and buses meeting the stipulated fuel efficiency and emissions criteria.

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This support system began in April in 2009 and will last for a year. These measures also offer incentives to owners of vehicles that are 13 years or older to scrap their aging vehicles and replace them with new eco-friendly ones. In solar power industry, the government will provide some subsidies to the consumers to buy solar panels. In solar power industry, Japan was once the world's leader in installed solar power. One of the reasons is because government had made effort to stimulate market, giving incentive to consumers. In fiscal 1994, the government introduced subsidies for individuals purchasing solar power units. This helped Japan become and stay the leading solar power country. But in fiscal 2005, the subsidies ended. Since then, Japan has slipped second behind Germany, which now has about double Japan's capacity. After reflecting on this, politicians have been vowing to recharge clean-energy initiatives since even before the July G8 summit in Toyako, Hokkaido. In 2008, the government reintroduced subsidies to encourage households to adopt solar power generation. In 2009, Solar cell equipment for newly built homes with a power generation capacity of around 3.5 kilowatts costs about ¥2 million on average, but the price tag could be slashed by a third with government subsidies. Due to these subsidies, the market is now growing.

Logo of carbon foot print

Fig4. Carbon foot print

(3) Carbon foot print system ~ Visualization of CO2 emission

Carbon foot print is the number that shows amount of CO2 emitted in producing and distributing a product or service. In order to raise consumers’ awareness of environmental problems, the government requests producers to visualize all the CO2 emitted in getting the raw material, transporting them to factories, modifying them into products, transporting the bagged product and even in disposing the bag. And the government encourages the producers to put the number on the surface of their products. By showing numeric value, consumers are able to aware of how much carbon their daily habits are directly and indirectly responsible for everyday. The Ministry of Economy, Trade and Industry aims to introduce a carbon footprint system to broad fields such as home appliances and services. By far, A Sapporo Breweries Ltd. announced

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in March 2009 that they put carbon footprint seals on 350ml bottle of its black label beer, one of the brewer’s major products. Ion, retailer, also started putting on carbon footprints on three private brands products on trial from October in 2009. Other companies are expected to follow them.

3. Do these measures pay off ? ~Consumers’ attitudes for the companies engage in environmental problems

Generally speaking, Japanese consumers are eco-minded and tend to choose the products manufactured by eco-friendly companies. As the survey shows (the number is limited though), over 95% of respondents answer that they have the good impression to the companies that are seen to address environmental problems actively.

less impressive no impressive 2.00% 0.20%

impressive very impressive 44.00% 53.80%

source:webmarketingguide n=500

Fig5. Comsumers’ attitude towards eco-friendly companies (2007)

According to the research conducted by MM soken in 2008, it turns out that Japanese consumers tend to choose green products, even if they are more expensive than non-green products. To the question; “If you can choose one product from two products, eco-friendly one and not-eco friendly one, at the same price, will you pick up eco-friendly product?”, 89.5% of all respondents said “Yes”. Furthermore, even if the price of green products is more expensive than that of non-green products, 46% of respondents still prefer eco-friendly products to not-eco friendly one. In addition, 32.2% of respondents answered that they choose the products that are manufactured by eco-friendly companies. These data shows that some consumers can afford green products, even if they are more expensive than non-green products. That gives advantage of the companies that are good at showing themselves eco-friendly.

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Fig6. How much do consumers to show willingness to paying green products, If their prices are same ?

rather disagree absolutely 1.70% disagree 0.40% neigher 8.40%

absolutely rather agree agree 42.40% 47.10%

Fig7. How much do consumers to show willingness to paying green products, if their prices are higher ?

absolutely disagree absolutely 4% agree rather disagree 6% 16%

rather agree neigher 40% 34%

According to MM So-ken’s research conducted in 2008, the more the companies focusing on eco-friendly activities, the higher their corporate image are. Toyota is ranked the first that win the best image in the companies researched, because Toyota has engaged in developing green products, such as hybrid car “Prius” from early times. Panasonic also won good reputation because they have provided eco-friendly products and they have made a good pitch effectively. Ion, retailer, is ranked the third. Ion won good reputation through planting trees and reducing plastics in the shops.

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Table1. Corporate Image Ranking (2008)

Ranking Name of company Main Business area Number of respondents (total =1052) 1 TOYOTA Automobile 345 2 Panasonic Appliance 112 3 Ion Retailer 100 4 Sharp Appliance 80 5 Suntory Beer 62 6 Honda Automobile 55 7 Tokyo Electron Electric 36 8 Kirin Beer Beer 30 9 Hitachi Appliance 27 10 Asahi Beer 25 Source) Nikkei-Ryutsu-Shinbun(2008) December 17

Nikkei has graded Japanese companies each year on eco-friendliness since 1991. According to the ranking, it turns out that Toyota has been respected in terms of ecological management for years.

Table2. The ranking of Environmental Management 2008

ranking the name of companies score（perfect point is 500）

1 Toyota 490 2 Toshiba 481 3 Hitachi 477 4 Panasonic 464 5 NEC 461 6 Fuji Film 457 7 Sony 457 8 Denso 457 9 Kyosera 456 10 Bridgestone 455 Source)Nikkei Net

Many companies see this “eco-trend” is business chance for making profits. They provide “Eco- friendly goods or services” in order to improve their image. Providing and selling eco-friendly products/services contribute to raising their rank of CSR (Cooperate Social Responsibility).

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In the stock market, eco-friendly companies are getting attention. In June of 2009, S&P (Standard and Poor’s) launched 'Japan Eco Index' for Investors. Focusing on environment- related companies, the index includes 25 major companies operating in industries such as clean energy, water treatment and infrastructure, timber, environmental services and waste management. All electric utility companies, including Tokyo Electric Power Company, the environmental equipment manufacturer Ebara Corporation, and others are currently included in the index. Since its start, the index was lower than global eco-index. However, after Lehman shock, the index showed more stable, compared to global eco-index. It is said that Japanese eco-related companies are robust to economic fluctuation due to high trust from consumers.

Fig 8. Fluctuation of S&P Japan Eco Index and S&P Global Eco Index Source) S&P Japan Eco Index fact sheet

Generally speaking, Japanese consumers are paying attention to companies’ eco-friendly attitudes. Through buying eco-products, consumers can confirm and enjoy that they can contribute to solving the environment problems.

4. The successful case: Development of Sanyo “Eneloop”

Based on the well cultivated market, some companies succeeded in green strategy. In this section, we will introduce the case of Eneloop. Eneloop is best known for its rechargeable batteries that power small electrical devices. Eneloop batteries can be charged up to 1,000 times in wall sockets.

Fig 9. Picture of “Eneloop”

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Development of Eneloop was launched back in 2005 by electronics manufacturer, Sanyo. In 2004, Sanyo faced serious financial problem. In order to overcome the situation and change the image, Sanyo converted its business areas from “general home electronics appliance manufacturer” into “eco-mind company.” Sanyo provided new concept, “Think GAIA” as a new vision that the company should seek. Under the concept, Sanyo aimed to focus on the products that solve the environmental problems. The business that Sanyo saw as the mainstay item was the storage cell. That was also thought to fit in with the new vision. Although Sanyo had the about 60% market share in nickel-hydrogen storage cell and they had won the good reputation, it failed to make a good pitch and establish brand. So consumers had not known that Sanyo had lion share of nickel hydrogen storage cell.

Providing new solutions Challenge for global environmental problems

Creating clean Think GAIA energy society

Proposing life style for symbiotic

Fig 10. Sanyo’s new Vision: Think GAIA

Eneloop was one of the first products that convert the concept into tangible form. In the process of development, the walls between departments were thrown away. All the functions, from R&D , products, sales, public relations, marketing, to sales were working together in order to make a new brand. Eneloop was aimed to be “convenience”. That is, consumers can buy Eneloop everywhere and use them just after purchasing them. So the package of Eneloop was designed with blue and white in order to attract consumers’ attentions, and they were sold at convenience stores. Since the first appearance of November in 2005, Eneloop exploited new market and won huge supports from consumers. In 2006, Eneloop was sold 91.4 billion sets in Japan and 200 billion sets in all over the world. In addition, Eneloop help Sanyo have a reputation as eco-minded and establish new corporate image. Eneloop has contributed not only to the company’s profit, but also to making its mark as an environment-friendly brand for Sanyo. Sanyo is now pushing a brand into the group; called “Eneloop universe”, adding other products and making a group of energy-efficient products. These have included portable solar panels, neck warmers, air

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fresheners and even a bicycle. The latest addition to the growing product line is the Eneloop Lamp. In 2009, it was announced that Sanyo was acquired by Panasonic. By bringing Sanyo under its control, Panasonic will charge up its battery business into world main player, holding overwhelming share of the global market for batteries.

5. Concluding remark

Japanese companies has realized that “green can become gold” from early days. And they have invested, developed and accumulated new technology for solving environment problems. In the 21 century, the time has come when their technology and resource accumulated should be taken advantage of they started providing attractive green goods to consumers. However, they faced the difficulties on how to sell the green products and to whom, despite their cost disadvantage. In order to expand new markets, Japanese companies have to communicate with consumers on the green products more and raise their awareness of environmental problems. For Japanese companies, making green markets and establishing clean brand could be hurdles to be overcome. With the help of the government, green markets are now setting up in Japan. Companies need to think how they tap them effectively.

Reference

Director Daniel C. Esty and ,Andrew S. Winston (2006) Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value, and Build Competitive Advantage, Yale University Press Nikkei-Ryutsu-Shinbun(2008) December 17 S&P Japan Eco Index fact sheet, October 28 (http://www2.standardandpoors.com/spf/pdf/index/SP_Japan_Eco_Index_Factsheet.pdf) Takeda, H. Declaration of environmental management (Kankyo-keiei sengen: in Japanese) (2008) FB Publisher.

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SSEESSSSIIOONN 33

Support mechanism in Technopolis towards Green Growth

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Support mechanism in Technopolis towards Green Growth

· Dr. Herbert Chen (Tsinghua Science Park, China)

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Support mechanism in Technopolis towards Green Growth

Dr. Herbert Chen (Vice President, Tsinghua Science Park, China) email. [email protected]

Introduction

I. The Concept and Significance of Green Growth

1. The basic concept of green economy “Green Economy” was first mentioned in Green Economy Blue Book by the British economist Pierre published in 1989. Green Economy promotes economic growth, instead of blocking it in the name of protecting the environment; it advocates to change the extensive economic growth with the features of “big investment, huge consumption, and serious pollution” into intensive economic growth with the features of “high efficiency, less resource-consuming, and less waste- discharging”; it calls for harmony between the economic and social growth and the proper load the nature can bear. As a new economic mode aiming at harmonious development of economy and environment, Green Economy can fully satisfy the requirements of the scientific outlook on development of harmony and people first with energy-saving and environmental protection as its goal.

2. The practical significance of Green Growth

2.1. Green Growth is a crucial for the world to take to get out of the economic crisis The international crisis this time is actually an economic crisis. It is the result of violation of sustainable development laws and violation of economic and social development laws, warning us that the traditional economic development mode is in doubt. It is the requirement of sustainable development to persist in Green Growth, which brings to the world harmonious development of among economy, society, population, resources, and environmental protection, co-progress of virtual and real economy, coordination macro- control of the government and market allocation of resources, and thus helps the world to form new industries, new resources, new products, new demands, and new employment, promote domestic demand, break out of the haze of global financial crisis, and step into an overall economic revival.

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2.2. Green Growth is the correct path to be taken for the future global economic growth The development of global economy, especially the development of modern and current industrial economy, has passed through a zigzag history of huge energy-consumption, material-consumption, waste-discharging, pollution in return of not always good profitability, and sometimes, even negative benefit. Countries, regions, units, and enterprises worldwide shall consider Green Growth as their common goal and pursuit, drawing up the roadmap for global green development and development plan tailor-made for each region, unit and enterprise, coordinating various policies and activities, and fulfilling their due responsibilities.

2.3. Green Growth shall be the orientation for the governments to draw up economic policies Governments from all over the world, especially from developed and developing countries shall speed up technological innovation and application, promote the development of green industries, and advocate the construction of green cities via various control policies. Systems including GDP KPI, Green Growth appraisal system, green product appraisal system for the manufacturing industry, as well as the standards and certification system for green food and medicines will be completed in the future to push Green Growth into a scientific, regulated, and standardized track.

2.4. Green Growth is the path of hope leading us to sustainable development To create the miracle of Green Growth, there should be a role model as Green Growth region and city to propagate and promote the idea and methodology of Green Growth, advocate the green method of production, initiate the green lifestyle, and so as to finally realize sustainable development for the region and city.

II. The Definition and Basic Function of Technopolis

1. The definition of Technopolis Technopolis is an important media to promote the progress of industrial technologies and the development of regional economy, as well as a place packed with various resources including government, enterprises, strong learning facilities, and research, financial and intermediary institutions. In the Technopolis, we can witness integration and emergency of innovation factors, new industries, and high-tech industries, accelerated upgrading of traditional industries, and speedy development of eco-industries. Technopolis has become a major contributor to the development of the city, and the mainstay for the industrial restructuring and upgrading of the region.

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2. Basic functions of Technopolis

9 Create friendly working and living environment to attract high-tech enterprises and capable talents; 9 Support the growth of pioneering enterprises, foster entrepreneurs, and incubate innovative companies; 9 Attract large-size enterprises to provide them with value-added services and to create positions based on knowledge; 9 Build up effective platform for the corporation among politics, industry, academic achievements, research, finance, and so on, to facilitate the transfer of scientific and technological results.

III. Several Ways for the Technopolis to Support Green Growth The definition and basic functions of Technopolis tell that it supports and influence Green Growth from the following aspects:

1. The development of the Technopolis shall satisfy the requirements of Green Growth The construction and development of Technopolis is posing a growing impact on the region, with some of them become a major part of regional, or even national economic growth. Take high-tech zone in China for an example: in 2006, there are 11 high-tech zones are with a gross output value contributing 20% to that of the city’s, 33 high-tech zones are with an industrial added value contributing 20% to that of the city’s, with 22 of them over 30%. Therefore, whether the development of the Technopolis supports concept of Green Growth is deciding the possibility of Green Growth in its city or region.

Case: Foxconn Science and Technology Park in Yingkou, Liaoning, China Located in the coastal industrial site of Yingkou, Foxconn Science and Technology Park emphasizes “green, science and technology, and culture”, bearing in mind the concept of sustainable development, aiming at establishing a park with completed functions, flexible development, and intelligent and green environment. Its features include:

1.1. Create an attractive environment for talents Provide ecological and landscape environment, meaning to create green landscape system among functional zones and buildings, dotted with running water, so as to realize the ideal harmony between the architecture and the environment with the park boasting the features of a real park, with tranquil greens, fragrant followers, singing flowers and fresh air.

1.2. Plan for the big picture with by-phase implementation

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Overall planning shall be given to the road and piping in the functional area. The park can be constructed by phase according to the priority of the production of the factories so as to minimize the impact on the environment.

1.3. Take full advantage of environmental-protection technology Reduce the room temperature in the summer with the design of ventilation laneways so as to save air-con cost. Besides, a recycling system of rain is available in the park, collecting the rain from the house and the ground in the reservoir for the use of water scenery, greens, and car washing, so as to reduce water consumption.

1.4. Take advantage of energy-saving technology To present the harmony between science and technology and nature in the park, the renewable resources including solar energy and wind are fully utilized. Advanced solar photovoltaic panels are applied on both the inside and the outside of the workshops to achieve passive solar energy heating and solar energy in-door hot-water system. Wind power generators are installed on both sides of the main roads to supply electricity for the factories.

1.5. Emphasize on both science and technology and leisure The fencing system outside the architecture includes Winping energy-saving glass and double-layer glass wall, which not only represents a sense of modern architecture, but also brings with it good performances in ventilation, heat insulation, sound insulation, frost-proof, and so on. Besides, the park has adopted the ground-energy-powered air-con system, generating a warm environment in winter and a cool environment in summer, as well as providing hot water with the groundwater and soil.

2. The park shall train experts for Green Growth Cristina Fernández, the person in charge of employment in Southeast Asia and Technology and Energy Strategic Plan of the Organization for Economic Co-operation and Development, pointed out on Sustainable Development and New Industrialization, sub-forum of Caifeidian Forum, the two most important factors for Green Growth: one is employment, the other is green skills. To better adapt to the low carbon economy, the labor market is in need of an intensified education and training system, so as to achieve new green skills, which shall be far more advanced than before, so as to better satisfy the needs of future industry. In 2020, jobs requiring medium- and high-skills will take up over 80% of the job market, the trend start to show its potential from 2008. Meanwhile, the chances for low-end skill bearers will be limited, enjoying only less than 20% of the job market when it comes to 2014. As the bridge between academic institutions and the commercial environment, Technopolis carries out a close cooperation with research institutes, boasting abundant resources of experts and scholars. On the other hand, the Technopolis has attracted a great number of young high- tech talents. The Technopolis can invite experts and scholars to give technical and skill trainings

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on Green Growth to its technicians, and teach them the concept of Green Growth and practical skills.

Case: Green Growth overseas training organized by Beijing Zhongguancun To achieve the goal proposed in the 11th Five-year Plan is to “establish a energy-saving and environmental-friendly society”, which requires exchanges between government officials and the overseas energy-saving and waste reduction experts so as to carry out the energy-saving and waste reduction project with scientific and technological input, and implement the measures advocated by the state. Therefore, in 2009, Beijing Zhongguancun organized a training in America on “energy- saving, waste reduction, and Green Growth” for institutions including governments of all levels, science and technology parks, high-tech zones, economic development zones, industrial parks, and college science and technology parks.

¾ The main contents of the training include: (1) Introduction of status and related policies of energy-saving and waste reduction in America; (2) Research and application of renewable energy technologies and energy-saving technologies regarding “energy-saving and waste reduction”: i. Biomass biogas technology ii. Biomass gasification and pyrolysis technology iii. Biomass liquid fuel technology iv. Wind energy technology v. Solar energy technology vi. Car exhaust control technology (including hydrogen cell technology) ¾ Institutions involved in the training in American include: California Energy Commission California Energy Commission established in 1979, CEC is a key energy administration in California. California Air Resources Board CARB, short for California Air Resources Board, belongs to California Environmental Protection Agency. University of California—Davis University of California–Berkeley CEC, CARB, and EPA California Biomass Association California Wind Energy Association Auckland Household Garbage Treatment Center

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3. The park shall promote the development and utilization of Green Growth technologies Green Growth poses high requirements on technology level, and the application of modern science and technology is a crucial pre-condition for Green Growth. Modern science and technologies include new energy and renewable energy, low-carbon energy (solar energy, wind energy, geothermal energy, and so on), waste water treatment, application of LED, green transportation system (expand low-carbon railway network, increase light rail cars and trains, and reduce usage of cars), use substitution for water, and so on. The Technopolis is full of high-tech enterprises, which makes it the place with most integrated high technologies in the region. Therefore, Technopolis shall take advantage of its technologies and promote the development and utilization of Green Growth technologies and related products in forms of industry association, industry alliance, research alliance, and so on.

Case: Beijing Zhongguancun Science and Technology Park To promote the development of Green Growth technologies, Zhongguancun Science and Technology Park adopts a brand-new system highlighting the establishment of environmental-friendly and ecological industry alliances. Until 2007, Zhongguancun Science and Technology Park has established 4 environmental-friendly and ecological industry alliances, including Energy-saving and Management Service Industry Alliance, Zhongguancun Urban Refuse Decontaminated Industry Alliance, Fresh-air Industry Alliance, and New Energy (heat pump) Application Alliance. Promote energy-saving and waste reduction via industry alliances so as to integrate the resources of the government, enterprises and research institutes to realized 1+1>3. Take the New Energy (heat pump) Application Alliance for an example. At the present, this alliance is carrying out two projects: one is the Recycled Water Heat Pump Cooling and Heating Project in the Olympic Park which can realize the heating and cooling of a building area of 413,000sqm. This project generates from recycled water an equal amount of energy as 4,900ton of standard coal or 3,350,000 cubic meters of natural gas with a goal of reducing the discharge of carbon dioxide by 4,300ton, sulfur dioxide and nitrogen oxides of 213ton, dust of 49ton. The other project is “Recycled Water Heat Pump Model Project in Qinghebaoshengli Resident Compound.” With this project, Qinghebaoshengli Resident Compound will become the first resident compound in Beijing, or even in China, with a cooling and heating system powered by waste water. The industry alliances in Zhongguancun Science and Technology Park are just one of the models of energy-saving and waste reduction industry parks in China. It has become a new mode in the industry parks to promote regional Green Growth via energy-saving and waste reduction supported by system innovation.

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4. Technopolis Shall Support Green Enterprises’ Growth At early stage when the Technopolis is established, a huge number of high-tech enterprises are expected to move in, among which those featuring technologies or products that are green- growth-oriented shall be given priority to be accepted so that the atmosphere of encouraging green growth among enterprises will be formed at the very beginning. After the enterprises move in, the Technopolis shall make more efforts to utilize the innovation service system to help such enterprises, including knowing their difficulties with regard to capital, technology, human resources, patent protection, providing relative solutions, enlarging enterprise scale, improving their technologies and products, promoting sales and so on, so that green growth will be ultimately realized in concerned fields and regions.

Case Study: Beijing Yizhuang Technopolis Supports Green-growth-oriented Enterprises In the first half of 2008, Yizhuang Economic and Technology Development Zone achieved 34% growth of total industrial value and 60% taxation, while the newly-added consumption of land only increased by less than 10%, water 11.9% and power 25%. The anticipated full- year industrial value is up to 200 billion RMB and the taxation has reached 12 billion RMB. The rapid economic growth supported by low energy consumption could never have been realized without the system of "selective merchant recruitment" and the systematic measures for water-saving. It's have been a major task for Yizhuang Development Zone over recent years to set up a scientific standard of "selective merchant recruitment" for attracting high- tech industries that are technology-intensive with low energy consumption and pollutant discharge. For that purpose, the Development Zone has rejected investment valuing over 6 billion RMB over the last two years. Besides, the systematic water-saving measures have also been an innovative action taken by Yizhuang Development Zone to drive the mission of energy saving and emission reduction. By the end of May in last year, 140 institutions in Yizhuang had received water balance test and the authority has formulated the Comprehensive Water Resource Plan, which aims to realize integrated utilization of "five types of water", i. e. rain water, polluted water, tap water, surface water and recycled water, so that the water resource can be intensively utilized in a recyclable way.

5. The Science and Technology Park shall Try to Gain Policy Support from Local Government for Green Growth Development of Technopolis can never proceed without the support of government policies. Vice versa, to formulate policies and implement them, the government also needs to refer to the experience and ideas of Technopolis. Development of the science and technology park is one of the driving forces for government to make relavant policies. The Technopolis represents the most advanced productive force in the region. It is said that "The economic base determines the superstructure.", therefore, to continuously develop the productive force, it's imperative for the government to

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renew old policies and develop new ones to adapt to new situation and needs. The Technopolis has a great group of enterprises and talents, with whom the government shall consult about the new policies; besides, new policies shall also be implemented in the Technopolis for trial for a certain period prior to the official implementation of the modified version. The Technopolis shall give full play to its significant role in influencing government to make, trial and providing feedback towards policies and completely report about the needed support on the government’s part for improving the idea of green growth and the realistic approaches during implementation. In that way, the Technopolis will be able to promote green growth in the region hand in hand with the government.

Case: Enterprises in High-tech Industrial Park of Tianjin Take Measures to Reduce Emission To encourage and promote green growth, the High-tech Industrial Park of Tianjin gave full play to its role of influencing the government in policy-making and finally, through discussing and negotiating with the concerned governmental section time and again, Measures to Encourage High-tech Industrial Park of Tianjin to Reduce Emission was formulated, mainly including: Set up “Special Fund for Emission Reduction” to support actions for emission reduction in the park. Principally, the annual budget shall be 10 million RMB. Following projects shall be particularly stressed in the park: enterprises shall build their own system of polluted water processing and recycling; environment-friendly and energy- saving equipments shall be installed; clean or renewable energy shall be used for power generation, lighting, cooling or heating. Comprehensive utilization of resources such as solid wastes (including domestic wastes, electronic wastes, etc) should also be promoted. Meanwhile, the Municipal Government of Tianjin also offers an annual fund of 200 million RMB for supporting the utilization of clean and renewable energy in the purpose of ensuring the good effect of promoting green growth in Tianjin.

6. The Science and Technology Park Shall Create a Favorable Environment for Green Growth Development and construction of the science and technology park shall coordinate well with its surrounding environment. It is particularly the case for newly-built Technopolis near an existed city that its development shall be properly integrated with the existed city. Construction of new Technopolis is always accompanied by huge amount of investment, moving-in of large number of enterprises and talents and attraction of various service institutions and innovative organs, which all have impacts on the development trend of the existed city to a great extent. Establishers of Technopolis should make full use of the opportunity to greatly promote and support the idea of green growth and the proposing and implementing of various measures. Through the construction of new Technopolis, original industries in old cities will be upgraded while the technologies can be improved, which in return will further facilitate green growth.

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Case Study: Songhu Lake Technopolis in Dongguan, Guangdong Province In the purpose of providing support for the overall transformation and innovation of old Dongguan city through the construction of Songshan Lake Technopolis, the original plan placed the focus on developing the new Technopolis. Songshan Lake Science and Technology Park invited the China Academy of Urban Planning to compile the Overall Planning for Songshan Lake Science and Technology Park of Dongguan. According to the functional shortage of old Dongguan city, it is clearly proposed that: Songshan Lake area must aim to develop itself into a new Technopolis and follow the idea of promoting co- existence of human and nature as well as coordinated development of industry and nature. Approaches such as “center around ecological balance” “develop with resource reservation and cultivation” and “harmonious co-existence of technology and nature” have also been proposed. The Technopolis is also expected to develop simultaneously with the old city while making up for each other in terms of space expansion and functional improvement; in that way, the Technopolis will become an important part of the old Dongguan city and strengthen the overall function of the major urban area of Dongguan. Driven by Songshan Lake Science and Technology Park, seven functional sections have been constructed in five years that respectively feature in: administration, commerce and residence, research and development, education, culture, industry and tourism. High-end supporting facilities for education, culture, medical care, commerce and residence have been built to meet the professional and life needs of management and staff in the region. Major public supporting facilities include: Dongguan Science and Technology College, Guangdong Medical College, Songshan Lake School, Northern Industrial City Primary School, kindergarten, Affiliated Hospital of Guangzhou Medical College, Songshan Lake Library, Songshan Lake Academic Exchange Center, Administrative Office of Management Commission, Hyatt Hotel, Songshan Lake Villa No.1, Northern Industrial City Mansion, Bachelor Apartment, staff dormitory and large shopping center. The goal of upgrading old city through Technopolis has been reached, which in return formed a sustainable environment for the development of the Technopolis.

7. Technopolis shall Encourage Internal Enterprises to Strengthen International Exchanges With advantageous resources, it’s relatively easy and convenient for the Technopolis to communicate with oversea industrial fields related to green growth. The Technopolis shall make full use of the advantage to seek for cooperation and exchange with enterprises related with green growth in foreign countries.

Case Study: Nanjing University---Drum Tower State University Technopolis In May, 2009, the first enterprise-based international technology transfer center, i.e. China (Nanjing)—Finland Energy-saving and Emission Reduction Technology Transfer Center was established in Nanjing Shengnuo Heat Pipe Co., Ltd. The center was co-founded by Finland-

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China Cooperation Center and Nanjing Shengnuo Heat Pipe Co. Ltd, aiming to promote science and technology exchanges and cooperation between Chinese (Nanjing) and Finnish enterprises and institutions. The emphasis will be placed on new environment protection fields that can facilitate green growth, where the two parties will conduct staff exchange, technical discussion, collaborative research, etc. This will be a platform to organize international cooperation between academy, industry and research institutions, promote transfer of new technology, commercialization of research findings and industrialization of high technologies. Over half of a year since the center was set up, there have been continuous communications between the two parties, while a workshop has been organized to discuss the feasibility of applying the Finnish technology of geothermal energy and energy-saving technology in civil architectures to the heat pipe on Nanjing’s part. For next step, the two parties will expand their cooperation field, elevate cooperation level and seek for realistic action. Nanjing Shennuo Heat Pipe Co., Ltd is planning to cooperate with related Finnish universities or institutions and set up in Finland an oversea R&D institution, which will help to promote the utilization of the heat pipe technology to civil needs in Finland according the local cultural environment and realistic needs. Through this platform, the mature technology and equipments of Nanjing can also be exported, promoting the technology transfer and commercialization of research findings between the two countries.

8. Achievements Scored in China by Supporting Green Growth Remarkable progresses have been made in energy saving and emission reduction. Energy consumption per GDP unit has been decreasing by season (year): decreased by 1.79% in 2006, 4.04% in 2007, 4.59% in 2008, adding to an aggregate lowering of 10.1% over three years; the energy amount saved is about 270 million ton coal equivalent. Nationally, discharge of sulfur dioxide and COD have kept decreasing, with each respectively reduced by 4.66% and 3.14% in 2007, 5.95% and 4.42% in 2008, while the accumulative lowering rate were 8.95% and 6.61% over the first three years of the “11th five-year plan”.

IV. Existing Problems As a unified valuation system for green growth is lacked, it’s hard to quantify the contribution made by the Park to promote green growth. In terms of state policies, current support towards technologies and products that are green- growth-oriented is still inadequate while the stimulation system is incomplete, either. The monitoring system is yet to be completed for it can not detect and solve problems emerging in promoting green growth in time. Besides, there exist great conflicts between meeting basic living standard and promoting green growth in some regions, which makes it hard for government to make a choice.

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V. Solutions and Approaches

1. Technopolis shall make its own contribution to setting up a global valuation system for green growth. Currently, the UN hasn’t developed a satisfactory standard to evaluate the performance of governments across the world according to the needs of sustainable development. We hope that the UN and relative institutions will offer such a standard, while governments shall also have their own standard to evaluate sustainable development. By this standard, behavior of government, enterprises and people will be guided, and it will also serve to give the programming of economic and social development proper guidance. In key fields or implementing key projects, the fundamental requirement of sustainable development should be taken into consideration.

2. Based on a valuation system, the Technopolis shall organize researches to study the approaches and measures taken by various countries and regions to valuate actions taken for energy saving and emission reduction, their execution and relative stimulation and punishment.

3. The Technopolis shall make full use of its intensive resources and collaborates with other Technopolis to accelerate the development and promotion of green growth across the world. Centering around fields such as energy, resource and environment, the Technopolis shall set up and complete a series of international cooperation centers, try to make breakthrough on issues such as high-efficient power generation, clean production in heavy-pollutant industries, energy-saving in architectures, etc, and conquer a number of critical and generic technologies.

4. Technopolises and Science and Technology Parks in different countries shall strengthen cooperation and exchanges, seek for stronger supervision on energy saving and emission reduction while improve the approach towards international supervision. Technopolis shall also promote a system for calculating, monitoring and evaluating energy saving and emission reduction. Monitoring and supervision on energy saving and emission reduction in different regions shall be strengthened, while effective measures can be taken to punish heavy waste of energy and resource, severe damage on environment, etc.

5. Technopolis and Science and Technology Park shall be built in larger scale for only green growth of economy can ultimately eliminate poverty and ensure people the basic living standard. We shall clearly realize that, all the problems shall be solved on the premise of development rather than to solve problems prior to development. Some policies and investment may not show its effect immediately; for proposing such policies and making such investment, we need convinced perseverance, a forward-thinking vision and precise judgment.

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VI. Conclusion

Technopolis plays an important role for promoting green growth across today’s world. In order to become an important power in enhancing green growth, the construction and development of Technopolis must follow the principle of green growth. Technopolis shall promote green growth based according to the its own characteristics by training talents, supporting relevant technologies and enterprises, accelerating the formulation and execution of government policies, creating certain social environment which is helpful for green growth and strengthening international communications and cooperation. There are still plenty of difficulties waiting on the way ahead to promote green growth. However, we believe that they will be solved during the process of sustainable development as the idea of green growth wins more and more people’s recognition.

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LLeeccttuurree 33--22

A role for Science and Technology Parks in supporting green growth

· Dr. Malcolm Parry OBE (Director of the Surrey Research Park, University of Surrey and Chairman of the UK Science Park Association, UK)

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A role for Science and Technology Parks in supporting green growth.

Dr Malcolm Parry OBE, Director Surrey Research Park, University of Surrey and Chairman of the UK Science Park Association.

Abstract

The acceleration of the use of finite resources to satisfy the basic needs of humanity and to support economic development is unsustainable. There are a number of t transnational, national, regional and local initiatives that are being put in place to address this critical issue. Centred on both a range of policy and funding incentives and disincentives a wide range of environmental initiatives are coming forward that present business opportunities. This paper explores a range of European Programmes which include references to Environmental Technology Plans, Eco-innovation, the work of the Carbon Trust and Envirobusiness projects that have been put into play to support business development that is aimed achieving more sustainable development. The traditional role of science and technology parks sitting between knowledge generators and businesses has been to support innovation, technology transfer and business development puts these sites in a good position in relation to supporting the tactical deployment of government policy into the private sector to help develop an environmental revolution that supports economic development and green growth.

The paper explores some of the issue and initiative s that flow from the role of science and technology parks in the context of supporting future sustainability strategies: • Acting as regional leaders in supporting national strategies which are aimed at supporting environmental technology plans and econ innovation. • Helping to deploy government policy into commercial success in the context of reducing the utilisation of resources • Understanding and supporting business in understanding and gaining access to national funding programmes that support the development of environmental technologies. • Assist environmental technology companies to develop their business model, secure funding and develop as commercial enterprises. • Provide support to environmental technology based networks operating in their region to support commercial development of environmental technology. • Working with private equity to support their interest in investment in environmental technology or clean technologies.

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Introduction In 1998 a paper5 was presented to the WTA International Symposium on high technologies and sustainable development. This reviewed the emerging views about the concept of sustainable development and argued that Science and Technology Parks (STPs) could contribute to this process by supporting innovation and creating employment in less resource intensive activities in the knowledge economy than work in the traditional industrial sectors. The paper, which was based around the process characterised in figure1, suggested the greatest impact would be through the microeconomic and technological lobe. However, during the last ten years increasing concerns about acceleration in the use of natural resources and the pressure this is putting on the environment has led to greater investment to support eco-innovation and environmental technologies and an increasing interest in how the influence of this investment can be brought to bear on environmental factors and those related to social and macroeconomic factors. The work of STPs has been to support the process of commercialising technology through both business incubation and supporting the growth of technology companies. The technologies that STP tenants have commercialised range across all disciplines but the increasing interest in developing environmental technology plans and the additional funding for this sector has started to present a real opportunity for STPs to increase their contribution to green growth.

Figure 1 Ref6 f

5 Parry, M. 1998 Development strategies for high technology and sustainable development. Proceedings of the International Symposium on the Development on the Development of Technopolis in the Information Society. World Technopolis Association, Taejon. 6 UCN. 2006. The Future of Sustainability: Re-thinking Environment and Development in the Twenty-first Century.

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There is now a pressing need to significantly reduce the carbon footprint of human activity. In this context research by the Carbon Trust and Imperial College, University of London has demonstrated that by introducing a mixture of energy efficiency strategies, using renewable sources of electricity, replacing coal and oil with lower carbon fuels such as gas and the use of hydrogen as a fuel the UK, for example, can achieve a reduction of carbon emissions by 60% over the current baseline by 20507. Although the view of the UK’s Carbon Trust is that this change is not dependant on spectacular scientific breakthroughs, because many of the technologies already exist, it does recognise the need for significant eco-innovation as there are still considerable barriers to overcome and the hard reality is that whilst a low carbon economy is technologically feasible it will require a step change in collective behaviour to make this work and that is likely to involve to further developing the knowledge economy which includes developing technologies that help to manage change. These changes are complex matters and they cannot be achieved without the intervention of technology as both a tool to establish a more efficient use of carbon as well as technology to encourage social engagement in the process. It is also unlikely that these two trends can be developed without significant input from government which involves among other things relevant policies, incentives, international co-operation, investment in appropriate research and development, risk assessment of new technologies and a new way or dealing with the economics of the environment. This need to change creates a significant opportunity for knowledge generators. Their input can help to understand change, measure this change and through innovation develop ways of using technology to reduce carbon use and influence behaviour. These knowledge generators need to develop ideas that translate into an environmental revolution and into social change. There is a role to be played eco-entrepreneurs who recognise the economic opportunity presented by sustainable development.

The Environmental Revolution There is no doubt that an environmental revolution will require a number of fundamental changes to modern economic life. The traditional industrial model has been based on the cycle of creation, use and disposal; however, the imperative of constraining the use of resources has as most people understand,

Kor

Report of the IUCN Renowned Thinkers Meeting, 29-31 January, 2006 http://cmsdata.iucn.org/downloads/iucn_future_of_sustanability.pdf 7 Accessed from http://www.carbontrust.co.uk/climatechange/policy/lce.htm T Delay 2009.

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required a more sustainable model of development which is based on a combination of a reduction in consumption, and either or both the re-use or recycling of materials. The shift to a low carbon economy can still deliver long term GDP growth because it presents a significant opportunity to develop and deliver low carbon products and services. The international agreements that are now coming forward as countries recognise the need to contribute to this revolution gives some certainty to the size and potential of the markets this presents. In time it is likely that this strategy will be seen as lower risk than when growth was predicated on consumption of energy because the rate of consumption of finite resources will be slower if not in decline. To begin the revolution most countries are now promulgating legislation to control the use of resources, implementing economic policies which influence the consumption and re-use of resources, set targets by which to measure performance and introducing financial incentives to encourage innovation that improves performance in relation to energy consumption. The need to achieve a reduction in the rate of consumption of resources is affecting all industries but for the sake of explanation significant examples include the aerospace and automotive industries, construction and the use of buildings, and food production, storage and distribution. The breadth of the problem presents a significant opportunity for business as responses to these issues are delivered. So what is the role for science and technology parks in this process?

Science parks and the environmental revolution There are now over 2,300 organisations listed in the WAINOVA Atlas published in 2009 that are engaged in technology transfer. This reflects an international interest in these sites as centres which sit at the interface between knowledge generation and its utilisation in the economy. This international interest has been matched with public funding that has supported these projects and helped them become an important part of regional infrastructure concerned with supporting innovation, and pre and full incubation of young companies. The environmental revolution has put science and technology parks in a good position to contribute towards supporting the environmental revolution. As centres many science parks are already taking an active role in working with governments to help implement regional innovation plans which means they are already connecting knowledge production with entrepreneurs, they are assisting companies build the competence to absorb new ideas which can be used in the commercial domain, they are part of networks which elements in supply chains within the commercial sector and they have the benefit in many instances of being vehicles for delivering services and funding to early stage companies that are still supported by early stage funding. Examples of the opportunities this affords include:

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• Acting as regional leaders in supporting national strategies which are aimed at supporting environmental technology plans and econ innovation. • Helping to deploy government policy into commercial success in the context of reducing the utilisation of resources • Understanding and supporting business in understanding and gaining access to national funding programmes that support the development of environmental technologies. • Assist environmental technology companies to develop their business model, secure funding and develop as commercial enterprises. • Provide support to environmental technology based networks operating in their region to support commercial development of environmental technology. • Work with private equity to support their interest in investment in environmental technology or clean technologies. Government support for creating market in environmental technologies has encouraged the development of specialist equity finance to enter the market. An example is the Environmental Technologies Fund that was established in 2006. The scale of interest in this area for investment is demonstrated by the presence of European Investment Fund, SwissRe, and several pension funds and fund-of-funds in this fund. The scale of their investments is at the late stage and range up from a £2-3m minimum initial investment size. At present this fund does not have specific measures of environmental impact prior to investment; however, they are currently working with partners to develop a “proper” quantitative methodology that could then be used universally for all venture deals/new product introductions. It is likely that such a methodology would be a first8. The opportunity to exercise this leadership role are heavily influenced by international cooperation, national policy frameworks and initiatives and the way these larger scale matters are deployed at a local or regional level. The success of environmental action plans is influenced by how effectively eco-innovation and environmental technologies are taken from their research base to the market, the quality of market conditions that include the rate of take up of these technologies, the nature and value of incentives to take up technologies that include regulation, voluntary schemes, access to funding to support commercialisation of these technologies and whether or not the supply chain supports green procurement9.

8 Pers. Comm 2009 Environmental Technology Fund LLP Manager. 9 Accessed from http://ec.europa.eu/environment/etap/policy/actionplan_en.html

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Transnational initiatives International co-operation is critically important if effective strategies for reducing carbon emissions are to be achieved. At the heart of this process is the need to have a better understanding and agreement on the economics of carbon emission, pollution and other environmental effects of human activity. Economics at a macro and micro level are critically linked to sustainable practices (figure1). Co-operation on environmental action plans has long been recognised as critical but not all countries have agreed to co-operate to achieve common targets; however, with wider recognition of the need to act more effectively, particularly over climate change, there is increasing agreement on the need for more binding co-operation. There are many examples of how national bodies have cooperated to create transnational agreements on policies and action plans that drive sustainable development. Examples of this include the Non Legally Binding Instrument on All Kinds of Forest signed by 14 national bodies and organised through the United Nations in 2007. However, there is still significant room for improvement and this issue will be debated at the forth coming Copenhagen Climate Change Conference in December 2009. Despite the need to seal a tougher global pact to replace the Kyoto Protocol there is still a wide range of important transnational environmental related initiatives which present new economic opportunities. At a macro level for example the European Commission has established an Environmental Technology Action Plan (ETAP)10. Particular initiatives for this plan include actions to limit emissions of greenhouse gases, which include developing a number innovative such as an Emissions Trading Scheme, combating the loss of biodiversity as the implications for ecosystems and citizens are far-reaching, fostering eco-innovation which are aimed at working on environmental challenges such as pollution of our air and water, waste generation and unsustainable use of resources. However, the Commissioner recognises that real progress will only be feasible if new environmental technologies are developed and promoted throughout the EU and that these ideas have to be adopted on a nation by nation basis. Eco-innovation means all forms of innovation activities resulting in or aimed at significantly improving environmental protection. Eco-innovation includes new production processes, new products or services, and new management and business methods, the use or implementation of which is likely to prevent or substantially reduce the risks to the environment, pollution and any other negative impact of the use of resources throughout the lifecycle of related activities. f

10 Accessed from http://ec.europa.eu/environment/etap/index_en.htm

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The world market of environmental products and services is growing. According to an OECD study, in the EU-25 alone, goods and services provided by eco-industries is estimated to represent around 2.2% of the EU-25 GDP. Clearly, eco-innovation represents a key opportunity to establish Europe's leading role to overcoming the world's sustainability challenges, and a sizeable business opportunity that can make Europe's economy even stronger and more competitive in the future11. This programme is supported by policy areas in cleaner air, biotechnology, chemicals, civil protection, climate change, environmental technologies, health, international issues nature and biodiversity, noise, soil, sustainable development, urban environment, waste and natural resources, and water. Of particular interest to those involved in the science park movement are initiatives that support environmental technologies or eco-innovation. In the ETAP it is acknowledge that the increasing pace of worldwide economic growth is increasing pressure on the global environment. It is recognised that in the face of this so growth there needs to be improved eco-innovation. One of the added benefits of that process is that eco-technologies can significantly contribute towards improving competitiveness and create employment. Currently the ETAP is looking to fund work related to the following technologies each of which represents a business opportunity for science and technology park tenant companies:

Materials recycling – • Improved sorting processes for waste materials such as construction, industrial, household, electrical and electronic waste; • Eco-friendly design and production of high quality consumer goods, innovative recycling processes; • Business innovations that strengthen the competitiveness of the recycling industries. In the food & drink sector: • Innovative products including packaging methods and material that reduce environmental impact and maximise the use of raw materials in the food sector; • Cleaner and more efficient processing of food and drink products so as to reduce waste and increase material recycling and recovery; • Improved efficiency water management processes that reduce the use of water across the food & drink supply chain; • Innovative products, processes and services reducing environmental impacts of consumption including packaging, distribution and purchasing decisions f

11Accessed from http://ec.europa.eu/environment/eco-innovation/what_en.htm

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In the building & construction sector: • Innovative building products that reduce environmental impact and/or support a rational use of natural resources; • Innovative sorting, reuse and recycling of construction and demolition waste; • Innovative water systems including water saving, re-use of natural waters, rainwater collection and re-use, green roofs. In the area of greening business & 'smart' purchasing: • Products and services that follow the principles of Integrated Product Policy and the life-cycle approach and in line with the various policies documented in the Action Plan on Sustainable Consumption and Production and Sustainable Industrial Policy; • Implementation and promotion of environmental criteria for purchasing decisions of enterprises; • Innovative approaches to EMAS (Eco-Management and Audit Scheme) including increased resource and energy efficiency and biodiversity aspects or simplifications (Cluster approach is mandatory)12. To support the take up of eco-technologies the process of acceleration of the research to market pathway needs to be improved. Initiatives that have been introduced to help this process are focussed on getting from research to markets, improving market conditions and promoting responsible investments in environmental technologies in developing countries. To accelerate deploying eco-technologies the Commission’s ETAP plan includes: plans for proposals for a European environmental technology verification scheme; the launch of "ad hoc" financial schemes designed to support SMEs in bridging the gap between the R&D and commercialisation phase of environmental technologies; Pilot and Market replication calls aimed at supporting first applications and market uptake of innovative technologies and practices. The last two of these initiatives are funded within the framework of the Competitiveness and Innovation Program 2007-2013 established in 200613. ETAP actions are also closely linked and integrated into other relevant policies recently developed by the Commission such as the Lead Market Initiative (2007)14, the Strategic Energy Technology Plan (2007) and the recent Sustainable Consumption and Production Plan (2008). The Lead Market Plan is a framework that has created: policy tools on standardisation, labelling and certification; legislation to support this; public procurement initiatives that include taking best practice across the EU in for example building regulations and putting these forward as best practice; and putting place complementary actions to monitor and develop six lead markets. f

12 Accessed from http://ec.europa.eu/commission_barroso/dimas/policies/tech/index_en.htm 13 Accessed from http://ec.europa.eu/commission_barroso/dimas/policies/tech/index_en.htm 14 Accessed from http://ec.europa.eu/enterprise/policies/innovation/policy/lead-market-initiative/index_en.htm

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All of these six markets have implications in terms of meeting sustainable development some are focussed more strongly on this area of endeavour. These more focussed areas include sustainable construction, bio-based products, recycling and renewable energies15. Within these technologies there are targets, requirements for plans to meet these targets, and monitoring plans that relate to performance. It is clear that within each of these areas there are significant business opportunities and offer opportunities for science park tenants. National initiatives

Many countries have set targets for CO2 emissions and other performance indicators in relation to achieving higher levels of sustainable development. In the case of the UK its government has identified four priority areas for immediate action; these are: • Sustainable Consumption and Production. • Climate Change and Energy. • Natural Resource Protection and Environmental Enhancement. • Sustainable Communities16. The translation of transnational and international targets into environmental action plans has created a significant market opportunity for innovation and entrepreneurship. In the UK the British Government has put in place a number of strategies to support green growth. In the context of the role of STPs the opportunities include creating the UK Carbon Trust. The mission of this organisation is to accelerate the move to a low carbon economy and to develop low carbon technologies for the future. Strategies to support this include access to innovation awards, which are grants currently between £250 to £500K which support the development and commercialisation of technologies which have the potential to reduce UK carbon emissions through large-scale deployment. Other specific areas identified for intervention through funding, coordination and expertise that are intended to accelerate the development of low carbon technologies that are being targeted by the Carbon Trust include the following: • European Marine Energy Centre (EMEC) • Micro-CHP “Accelerator” • Advanced Metering • Low-Carbon Building Accelerator (LCBA) • Biomass Heat Accelerator f

15 Accessed from http://ec.europa.eu/enterprise/policies/innovation/policy/lead-market-initiative/index_en.htm#h2- why-are-the-6-lead-markets-chosen 16 Accessed from http://www.defra.gov.uk/sustainable/government/what/index.htm

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• Marine Energy Accelerator • Offshore Wind Accelerator • Small-scale Wind Energy • Industrial Energy Efficiency Accelerator Opportunities provided through these technology areas include access to funding to support environmental technologies that can help deliver improved performance. To assist in this process The Carbon Trust has also created a range of incubators to support promising early stage companies to raise the investment needed to grow their business. First established in April 2004, the incubator programme has so far worked with over 70 companies across a wide range of technologies and markets. Almost half of the companies have succeeded in raising private finance totalling £70m, a number having succeeded in more than one round; many more have raised public investment and grants17. The method adopted has been to work with three private sector Incubator Partners to provide these services. All of these incubator partners are associated or located on science and technology parks and there are a number of companies which they have supported that are also located on these sites. Typical support package for a start-up or a spin-out (either from academia or a large company) includes help with business and financial plan development, market investigations, mentoring the management team, product development advice, IP guidance, preparation of investor rounds or licence negotiations and raising investment capital. Operationally up to £70K of advisory support is provided per accepted start-up/spin-out company and the funds are paid directly to the incubator partners for services provided to the company being incubated. All the incubators operate on a virtual basis; however, experience shows that some of the incubatees are located on STPs. To secure funds the process is competitive and rigorous, with both entrance and exit criteria and success is determined by meeting designated milestones over time. All companies are expected to make continual progress whilst in the incubator, and to work with the incubator partner. Companies typically spend 12-18 months in the incubator 18. The Carbon Trust is also supporting a Directed Research Accelerator initiative which is focussed on overcoming the specific technical barriers that are holding back the next generation of low carbon technologies. This programme links the best UK industrial and academic research talent in order to identify and deliver projects that will realise the next big breakthroughs low carbon technologies. This programme involves investments of up to £10 f

17 Accessed from http://www.carbontrust.co.uk/technology/incubator/ 18 Accessed from http://www.carbontrust.co.uk/technology/incubator/

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million for 3-5 year project each of which is focused on specific challenges in relation to low- carbon technologies. STPs can provide useful platforms for supporting these projects. One of the critical support roles played by science and technology parks for their tenant companies is to help them find funding. This is a difficult task for main stream technologies let alone for emerging environmental technologies. One route to funding is through the Carbon Trust which has established an investment fund which is leveraged with private funds to support clean technologies. Typically this fund has invests between £250k and £3m in any given business, with an average transaction size between £500k and £10m. In addition to providing funding the Trust also supports the companies in which it invests with technical experience with respect to climate change, mitigation policies, carbon abatement and technologies that address these challenges. The attraction of the environmental technology market has attracted other equity finance funds to address this market. Data from Cleantech (table 1) shows the level of funds being invested.

Historical Clean Technology VC Investment By Year North America, Europe & Israel, China, India 2001 $506,780,774 2002 $883,269,409 2003 $1,258,565,762 2004 $1,398,256,823 2005 $2,077,524,074 2006 $4,520,208,949 2007 $6,087,179,844 2008 (preliminary) $8,414,259,610 Source: Cleantech Group (cleantech19)

In addition to the funding and technology plans being developed by the Carbon Trust the UK’s Technology Strategy Board (TSB) funds are also available which for feasibility studies right through to demonstrator projects in two application areas of environmental sustainability and energy generation and supply. The Technology Strategy Board is an executive non-departmental public body (NDPB), established by the Government in 2007 and sponsored by the Department for Business, Innovation and Skills (BIS) and supported by them and other government department. Wit has f

19 http://cleantech.com/about/pressreleases/010609.cfm

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a remit to drive innovation by stimulating technology-enabled innovation the Strategy Board supports and invests in technology research, development and commercialisation. A number of STPs are incubating companies with grants from the TSB.

Regional initiatives The importance of delivering national targets and improving national environmental performance has stimulated the creation of a number of regional organisations that are focussed on environmental technology and services to secure a greater share of the growing global market for solutions to environmental change. The Surrey Research Park has developed a strong relationship with the SEEDA (South East England Development Agency) funded group known as Envirobusiness. By working across a wide range of technologies, engaging with buyers and investors and those influencing the development of markets through legislation, Envirobusiness is helping to identify new business potential and match businesses according to their needs and ambitions. Although the majority of the funding for Envirobusiness is provided through subsidy; however, the work it undertakes has attracted over 800 members which have linked into the opportunities offered by the company. Initiatives include: • A major challenge facing small businesses is to develop global reach. One of the important roles of organizations such as Envirobusiness is to support small companies with eco-innovations or environmental technologies achieve growth. To do this the company has at its disposal funds to undertake global analysis of attractive markets and support gaining access to these. • Supporting pull through of technology from knowledge generators to the market place. • Sector co-ordination. • Assisting in developing environmental supply chain management. This involves working on three dimensions to environmental supply chain. This includes the supply chain where they help to network through upstream and downstream linkages, supporting environmental measurement such as materials, energy inputs and outputs and their related environmental impact and the conducting or supervising of the business to maximise environmental benefits. An example of the work of Envirobusiness is where it has connected a company that grows algae for bio-oils with an optic fibre company that uses its optic fibre technology and parabolic mirrors for light collection and dispersal, to illuminate the algae in large growth tanks. One of the roles that science and technology parks play very effectively is to research funding streams for particular technologies. The increasing number of funding opportunities in eco- innovation provides the opportunity for STPs to provided value added services to tenant companies.

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The kinds of opportunities include both grant funding such as national schemes, commercial funding through private equity finance that specialises in “clean technologies”, or from local initiatives. To support an environmental technology drive the University of Surrey has established a regional government back R&D Environment Innovation Fund. This is being used to leverage public funds to supporting the growth of the Environmental Technologies and Services (ETS) Sector with the intention of developing collaborative research with the commercial sector to try to develop innovations that reduce the ecological footprint of business and strengthening global business competitiveness of the South East region of the UK. The basis of the this Fund and associated network is to facilitate market led links between universities with expertise in environmental / engineering fields and businesses operating in or wishing to move into ETS markets with the aim of catalysing innovation. The purpose of this fund is to transfer knowledge through collaborative R&D and commercialisation projects and produce globally competitive ETS companies in the region. The • Universities are a source of much innovation but little has so far been done to identify and develop early-stage ideas with environmental applications via cross-disciplinary and cross- institutional collaborations. • SMEs struggle gaining funding, partners and credibility despite their good ideas. • Larger companies may suffer from embedded ways of thinking and find it hard to interface with innovators. However, it is clear that progress is not as rapid as it could be because there are a number of barriers that need to be overcome. These include • Weak ETS market knowledge. • Regulatory uncertainty • Lack of awareness as to ETS applications of diverse research disciplines. To overcome these problems the University has employed an Environmental Innovation Coordinator who is responsible for feeding relevant university capabilities into the EIN and linking academics to companies wishing to develop knowledge transfer or collaborative R&D projects. To create a network across the region a Research Coordinator who has a floating role similar to an Environmental Innovation Coordinator is responsible for linking the knowledge generators that are part of the regional network. This network based approach not only brings in more companies but also is used for leveraging public funds which are more supportive of networks. The Environmental Innovation Network will use the wide range of mechanisms to support university-business interactions (Knowledge Transfer Partnerships (KTPs), Research Council Industrial Case Awards, student placements, Technology Strategy Board (TSB) Collaborative R&D, Industry-Academia Partnerships and Pathways (FP7) and these will be used Target companies include:

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• SMEs operating in ETS sectors that have the potential to innovate. • Established larger organisations that have or would like to identify new Environmental Technologies and Services (ETS) markets. Known as Supply Chain Leads these companies provide a market led demand for solutions from their own supply chains. • Mainstream Companies but are dependent upon larger business customers and have a concern about diversity of revenues or growth, and the levels of demand from their current customers and the need to improve their own environmental performance. To make the network operate innovation events are used to bring potential partners together to present business problems and explore how cross-disciplinary collaborations can be formed to commercialise solutions. Based on an open Innovation model these events draw on best practice in creative approaches to catalysing innovation. In addition there a web-based platform, searchable database of expertise and needs and information on publicly funded ETS programmes, market data, technology roadmaps and an interactive forum are being developed to support the network. When collaborative projects have been defined, the EIN will provide support in the form of: • identifying partners and resources and also facilitate project design. • Market data and technology advice. • Advice on applications for funding. This process is characterised in figure 2.

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The development of environmental technology also requires information on risk. One of the reasons for inertia in the environmental technology market relates to the perception of risk by customers of making changes in their own supply chain. There is however, a need for change and there is scope for organisations in trade bodies to draw on their members to undertake collective research to assess the effects of change to new technologies. An example in the UK is the Frozen Food Manufacturers Association that is researching the effects of raising frozen food environments from -21Deg. C to 18.

Conclusion and summary The need to achieve a reduction in the use of natural resources is in part driven by deploying technology of which that would contribute to this process already exist. One of the main obstacles to more rapid change relates to behaviour of the both business and the consumer. Consumer and business education is eventually likely to lead to a huge market for environmental technology and eco-innovation. However, like conditions in many emerging markets there needs to be investment in helping to create, define and exploit these markets. This process takes national investment which is supported by policy, legislation, targets for performance and funding to achieve change. The public sector alone cannot achieve this. To bring in private sector investment there needs to be realistic market conditions that can be assessed, supported through international collaboration and consistency of policy. If these conditions prevail science parks can play an important role in helping to connect entrepreneurs with ideas and funding streams in order to create economic development that can be described as green growth.

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LLeeccttuurree 33--33

Eco-Industrial Park (EIP) Initiatives towards Green Growth: Lessons from Korean Experience

· Prof. Suk-Chan Ko (Dankook University, Korea)

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Eco-Industrial Park (EIP) Initiatives towards Green Growth: Lessons from Korean Experience

Suk-Chan Ko Ph.D. Dankook University, Urban Planning & Real Estate Studies

1. Introduction

In March 2005, the 5th Ministerial Conference on Environmental and Development in Asia and the Pacific held in Seoul, Korea. Approximately 340 delegates participated and embraced the approach of environmentally sustainable economic growth. The conference endorsed ‘Green Growth’ as a policy focus and a powerful strategy to promote ‘win-win’ approaches to reconciling the conflict between the goal of poverty reduction and the goal of environmental sustainability (ESCAP, 2005). The ‘Green Growth’ approach seeks to harmonize the two imperatives of economic growth and environmental sustainability by promoting “fundamental changes” in the way societies produce and consume. The Green Growth requires the introduction of concept and system changes. Across the world, corporations and small and medium-sized enterprises are becoming agents of change for sustainability. They acknowledge of the issues of global warming and green growth and their relevance to businesses. Eco-efficiency and eco-innovation can be good for business and it is becoming widely held view in the business community that solving environmental and social problems is essential for the future growth of firms. The current economic crisis and negotiations to tackle climate change should be seen as an opportunity to shift to a greener economy. Incremental improvement is not enough. Industry must be restructured and existing and breakthrough technologies must be more innovatively applied to realize green growth. Industries have traditionally addressed pollution concerns at the point of discharge. Since ‘this end-of-pipe’ approach is often costly and ineffective, industry has increasingly adopted cleaner production by reducing the amount of energy and material used in the production process. Many firms are now the product’s lifecycle and are integrating environmental strategies and practices into their own management systems (OECD, June 2009 Policy Brief). Some pioneers have been working to establish a closed-loop production system that eliminates final disposal by recovering wastes and turning them into new resources for production. Eco- Industrial Park (EIP) and Eco-innovation helps to make possible this kind of evolution in industry practices. There have been diverse government policy initiatives and programs that promote eco- efficient and eco-innovation. These include both supply-side and demand-side measures. As

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most countries recognize the need for a more collaborative approach to innovation, many initiatives involve creating networks, platforms or partnerships that engage different industry and non-industry stakeholders. The purpose of this lecture is to provide a more systematic understanding of supporting mechanisms for Green Growth such as Eco-Industrial Park (EIP) and Eco-Innovation. First, I would like to introduce the concepts of Eco-Industrial Park and Eco-Innovation, and then I will review the process of EIP development strategies in Korea and their policy implications. Third, I will discuss how these concepts and principles can be applied to the development and management of science park projects in many countries in the future.

2. Industrial Ecology and Eco-Industrial Parks

2.1 Industrial ecology and the role of government Industrial ecology is a strategic approach attempting to reduce environmental impacts by applying the principles of natural ecosystems to the industrial processes (Deutz & Gibbs, 2004). Although similar concepts circulated in the 1970s, the concept was systematized by research on ‘industrial metabolism’ by Ayres(1989). Industrial ecology studies construction of a ‘closed- loop production system’ analogous to natural ecosystems. The closed-loop system assumes the re-input of wastes and by-products into the production system. Existing industrial systems suppose unlimited inputs and outputs of resources by considering resource flows as linear (Korhonen et al., 2004). In industrial ecology, the resource networking between plants is called ‘industrial symbiosis’, as in symbiosis between species in the natural system. The systematic approach to industrial ecology results in the treatment of individual companies’ economic interests in decreasing input resources and wastes in addition to the social benefit of reducing the load on the environment. The approach is thought to be the realization of the concept of sustainability in terms of considering economic growth and environmental concern simultaneously. The EIP project is to actualize this principle of industrial ecology. The concept of EIPs was first made known when Indigo Development introduced it to EPA officials in 1993 (Lowe, 2001). After that, the President’s Council on Sustainable Development (1997) chose the EIP project as a model project in the Clinton Administration. The EIPs located in Fairfield, MD, Cape Charles, VA, Chattanooga, TN, and Brownsville, TX, are the outcomes of such US government initiatives. The US cases are examples of intentional policy efforts promoted by the government, while the spontaneous appearance of an EIP is found in the industrial park in Kalunborg, Denmark (Ehrenfeld & Gertler, 1997). An EIP or estate is a community of manufacturing and service businesses located together on a common property. Member businesses seek enhanced environmental, economic, and social performance through collaboration in managing environmental and resource issues. By working together, the community of businesses seeks a collective benefit that is greater than the sum of individual benefits each company would realize by only optimizing its individual performance.

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Lowe(1996) pointed out that “EIP conjoins the principles of mixed use development, recycling business and by-product exchange in coordination with green technology companies that makes eco-friendly products.” The intention behind the EIP is the formation of a corporate network where pertinent companies cooperate with each other and neighboring communities to accomplish the common goals related to economic interests, the improvement of environmental quality and the fair use of human resources (Cohen-Rosenthal, 2003). The EIP provides a participating corporation with the various advantages of curtailing costs of supplying input resources and treating wastes, and publicity of an environmentally friendly corporate image. In addition, there are great social benefits from the construction of environmentally friendly communities that namely reduced energy and resource consumption, and sustainable treatment of wastes, and the reduction of social costs created by conflicts between companies and local communities. The government also enjoys a few advantages, reducing some regulation costs thanks to corporations spontaneously joining in ‘green business’ and accomplishing social integration with small expenses (von Malmborg, 2004). As mentioned, many governments of the world have enthusiastically been promoting EIP projects for these reasons. However, there are some opposing views about the government’s involvement in promoting EIP projects. The question is whether or not the public sector should actively lead the EIP project. Some insist on a government-led approach while others advocate a market-led approach. The American and Korean cases are typical examples representing the active role of the public sector, while the case of Kalundborg, Denmark, is a representative example of a spontaneous project promoted by the private sector. Both approaches have strengths and weaknesses. The government-led approach has the advantage of being able to easily initiate the project. Meanwhile, it has the disadvantage of not being able to guarantee the persistence of the project. The market-driven approach’s strength is in the EIP’s firm persistence once the project begins, while its weakness is in the difficulty encountered for the project to begin. Therefore, it is hard to assess which acknowledge the role of public authorities in the development of EIP projects, while others such as Ehrenfeld and Gertler(1997), Baas(1998) and Wallner(1999) emphasize corporate spontaneity and the role of the market mechanism in the project.

2.2 Eco-Industrial Park Management and Support Services As a community of companies, an EIP needs a more sophisticated management and support system than a traditional industrial park and a science/technology park. Management or a third- party supports the exchange of by-products among companies and helps them adapt to changes in the mix of companies through its recruitment responsibilities. Management may maintain links into regional by-product exchanges and a site-wide telecommunications system. The park may include shared support services such as a training center, information center, offices for purchasing common supplies, transportation logistics office, and cafeteria. Companies can add to their savings by sharing the costs of these services. An EIP encompasses two distinct but overlapping business entities. It is a real estate development property that must be managed to provide a competitive return to its owners. At

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the same time, an eco-park is a community of companies that must manage itself to gain common benefits for its individual members. The full range of management functions to be performed by the combination of business community and park management systems include the followings:

- Maintain the values, culture, and identity of the eco-industrial park as a community - Resolve conflicts between companies, between park management and tenants, and between the needs for future viability and present efficiency - Facilitate the self-organizing community development process among tenants - Recruit firms to keep the park fully leased and maintain the mix of companies needed to best use by-products as companies change - Coordinate recruitment with local & state economic development agencies - Track present trends and emerging challenges and opportunities, including: patterns of inter-company collaboration, technologies and firms that support by-product exchange, changes in regulations at all levels of government - Support continuous evolution of economic and environmental performance for individual companies and the park as a whole by managing a learning center and designing new inter-firm initiative - Conduct audits of successes as well as failures in EIP performance to assure learning and improvement - Coordinate provision of shared support services - Set up a project operations room to support effective work by the park management company and the community self-management system or tenants association (Lowe, 2001)

Table 1. Environmental Management Continuum for Industrial Parks Standard Industrial Concentrated industrial and business activity within a defined planning Park boundary with organized infrastructure Eco-labeled A labeling scheme developed in France to recognize an organizational Industrial Park set of enhanced environmental practices and amenities in industrial parks and zones Environmental Clusters of manufacturers of environmental products providers of Industrial Park environmental services and developers of environmental technologies Eco-efficient Park Cluster of companies working to reduce resource intensity, control pollution and minimize collective waste outputs Environmentally Clusters of industries co-located such that the by-products of one balanced industrial become the inputs or materials for other businesses or industries to cluster minimize waste and dissipation of resources Eco-Industrial Park Clusters of companies taking into account of ecological limits, using resource-efficient infrastructure, buildings and processes, networking purchases and a balance of producers, scavengers and decomposers

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EIP requires an ecological or systematic approach and must be more comprehensive involving more aspects and both management and tenants. EIP can be a part of environmental management continuum for industrial parks as shown in Table 1.

3. Eco-Industrial Park Development in Korea

Industrial policies in Korea have been changed drastically since the Ministry of Commerce, Industry, and Energy (MOCIE: currently the Ministry of Knowledge Economy) enacted ‘the Act to Promote Environmental Friendly Industrial Structure’ in December 1995. Based on this Act, the ministry established an institutional system for cleaner production (CP) and environmental management system based on ISO 14001 as an implementing tool. The first comprehensive master plan for environment friendly industrial development was made and operated based on this Act. The plan includes: streamlining the supporting system, cleaner production transfer and dissemination, promoting environmental industry, and stimulating environmental management. The cleaner production transfer and dissemination deals with technology transfer, international collaborative projects, supply chain environmental management and eco-industrial park development (Park et al., 2008). More recently, Korea has launched an ambitious EIP initiative in 2005, under the leadership of the Korea National Cleaner Production Center (KNCPC) and the Korea Institute of Industrial Technology (KITECH). Six industrial parks or complexes out of 35 large national parks were designated as EIP projects, and some of these projects are actually clusters of several industrial parks. Eventually, this initiative would encourage all 504 industrial parks in Korea to achieve the transition to become EIPs. The six industrial complexes that are pilot projects in the EIP initiative are listed in Table 2 below.

Table 2. Six Industrial Complexes Selected as EIP Projects in Korea

Name of Land Number of Complex Area Companies Major Industries and Characteristics (hectare) Banwol & 3,180 5400 Located in the southern part of Seoul metropolitan Siwha area, Typical industries include textile, dying, pulp, chemical plants, small manufacturers, and waste incinerators Mipo & 5,557 700 Located in Ulsan city, industries are automobile Onsan manufacturing, ship building, and one of the world’s largest petrochemical complexes; Nonferrous metals, steel, and metal manufacturers are the major industries Yeousu 3,130 149 Located in the southern part of Korea and is primarily a petrochemical complex and refinery with 149 companies

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Cheongju 410 200 Major industries are textile, paper-mill, petrochemical, electronics, non-ferrous metals, metal manufacturing and assembly Machun, 581 550 Three clusters of smaller industrial parks include Chilso, Machun Industrial Complex at Jinhae, Chilso Sangpyeng Industrial Complex in Hanam, and Sangpyeing Industrial Complex at Junju. The three clusters are around 50km apart. Most of the companies in these locally managed parks are small and medium enterprises. Industries at Jinhae include non-ferrous metal, steel, and machinery and at Jinju, food, textile, pulp, and chemical. Pohang 2,010 220 Located in Pohang city, major industries include cement, steel, metal processing, fine chemical, and waste disposal

The Korean EIP initiative is notable for the potential impact on all industrial parks in Korea, because this initiative is a 20-year, 3-phase long-term project. Korea has a total of 504 industrial parks, with 35 large national parks or complexes on two-thirds of the total industrial land (about 66,635 hectare) and the government intends to transform the major industrial complexes into EIPs in the long run. The first phase (2006-2010) of the developmental plan strives to perform trial projects for two industrial parks in order to shift them to EIPs, with prior understanding of the material and energy flow analysis, input and output of raw materials, products, by-products and wasters. An energy efficient by-product exchange network would be created using the basic concepts of industrial ecology. Pollution monitoring systems are installed to envisage the existing wastewater and waste treatment systems. Additionally, an integrated environmental management system would emerge together with detailed analysis of the infrastructure. Sustainable education and awareness campaign has been conducted. The development so far has envisioned for further phases that would upgrade the existing manpower resources in conjunction with an organizing group that manages the operation on a timely basis (Park et al., 2008). The second phase (2011-2015) would provide conceptual ideas and disseminate understanding of the designed concept to twenty other industrial parks. It would also help in spreading the environmental management system and sustain a balance between the different key factors that are likely to influence economic growth. A system of common sharing and practice, common purchase and common transportation system would be organized to establish an enlarged infrastructure that is capable of handling joint ventures. The third phase (2016-2025) would overview the flaws and constraints envisioned in the earlier phases and strive to rework and reinvent the existing system of practice. The performance indicators would be analyzed and evaluated by an expert committee to redesign any missing components and infrastructure. The ultimate aim would realize and pave the way to provide zero discharge in all process industries within the EIPs.

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The Korean EIP Model is characterized as a cluster of inter-networking businesses, which perform individual and collective cleaner production program prior to by-products exchange network within an environmental management system (Chiu, 2005). Under such framework, the KNCPC and Korea Industrial Complex Corporation will be the main actors in implementing the different phases and strategically supervising the development and implementation programs. In November 2004 the KNCPC organized the 2nd International Conference on Industrial Ecology and Eco-Industrial Park in Seoul, with Indigo Development providing presentations on a system view of EIPs. Indigo also led two workshops with delegates from 5 of 6 pilot complexes. On the basis of these experiences, E. Lowe and A. Chiu(2005) developed the following critical success factors for the transition from industrial park to EIP in Korea. These critical success factors emerged from Indigo’s consulting and research in Korea but are generally applied to the EIP projects in other countries. These can be highlighted as follows: - Good cooperation among the national agencies with responsibility for EIPs. - Each pilot industrial park requires an adequate management structure for coordination and cooperation supporting the transition to an EIP. - Both public management authorities and business associations require capacity development and education so they can participate effectively in the EIP initiative. - Businesses in the park need to be involved from the beginning of the planning process. They are the ultimate actors in the system. - The high level planning process for the transition to EIPs must be supported by a strong bottom up planning process, i.e., a dialogue between top down and bottom up. - An evolving long-term vision of the whole system is required to make effective decisions about the specific strategies used in each phase of the transition. - An EIP is much more than an exchange of by-products among companies. - Strong support to the growth of the environmental technology and services cluster will provide Korean industrial parks with many of the solutions they require. - Green chemistry is an important field for petrochemical EIPs as well as customers using chemicals. - Resource-based policies. - Policy in support of the EIP initiative should take an integrated view of all aspects of cleaner production as complementary to eco-industrial strategies. - National policy should support excellent management of the eco-industrial park initiative and individual industrial parks (Indigo Development, 2005).

The Korean EIP initiative is relatively new and participants are still learning the basics of eco-industrial park development. Recently, there have been a few efforts to evaluate the outcomes of EIP demonstration projects. Several researches found that the total of 45 pilot projects were successfully implemented and resulted in $14 million of economic benefits mainly from energy exchange and recycling by-products. Most of pilot EIPs could establish resource circulation networks (Ban, 2008).

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4. The CMS EIP Development Case in Gyeongnam Province, Korea

The Gyeongnam Regional Environmental Technology Development Center suggested that building a ‘resource-symbiotic network’ unifying a few industrial complexes in the exchange of by-products is relatively easy, as local industrial parks in Gyeongnam province consist of various types of industries. The Center investigated nine industrial parks in the province from the viewpoint of material flows and proposed the construction of the Chilseo-Macheon- Sangpyung (CMS) resource symbiotic network. From the beginning however, the project has not been carried out following EIP principles. The three industrial parks are as far as 80km away from each other. This fact is contrary to the EIP principle of short commuting distance between plants (Lowi, 2001; Deutz and Gibbs, 2004). Also, the principle of an EIP is to basically build a resource-symbiotic network within an industrial park. Therefore, the network between the industrial parks has some problems in that it has weak economic feasibility and can cause secondary pollution in the transport process of wastes and by-products. The Center’s initial plan was to promote the project in Chilseo Industrial Park alone. Then, Macheon and Sangpyung asked to be involved in the project for several reasons. The MCIE accepted their requests and the project in Gyeongnam Province developed this unusual form as a result. It is clear that the unreasonable structure continues to threaten the rationality and justification for the existence of the project (Kim, 2007). Macheon Industrial Park (MIP) is a local industrial complex officially approved by the MCIE in 1993. The main type of business is small foundries. These small businesses moved to the outskirts of Jinhae, Gyeongnam, from the border of Busan City in the late 1980s due to expansion of the residential district and civil complaints. The area of MIP belongs to the Busan- Jinhae Free Economic Zone (BJFEZ), and the BJFEZ authority takes charge of the area’s environmental and industrial affairs. MIP has generated civil complaints concerning the stench created by the combustion process of molds made of sand. Ammonia and phenol gases are the main source of the stench, produced when melted iron combusts sand molds. The stench might be partially treated through pollution prevention facilities, but complete treatment is impossible because a great deal of the work is carried out in the open air. The stench and air pollution are serious in the summer season when the south-southwestern wind tends to concentrate pollutants in the basin area. Residents complained of administrative irresponsibility in placing the residential area beside the industrial complex, which generates a large quantity of pollutants and demanded strict supervision and even the removal of MIP. In addition to the unfavorable quality of life of the residents, the issue was also related to fiscal matters. Due to the stench problem, the housing development project promoted near MIP did not pass the environmental impact assessment twice, in 2002 and 2005. If the quality of a site does not sufficiently meet the standards of the environmental impact assessment, the inevitable use of the land will be as a factory site. The residents are discontented with this notion because this affects the property value of the residents’ houses. The BJFEZ has feared

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that the MIP problem could ruin the master plan of the entire free economic zone and has come up with two alternatives to resolve the problem. The first alternative is to convert MIP into an EIP. The managerial board of MIP felt that the EIP approach promoted by MCIE could settle its stench problem. The chief manager strongly requested the BJFEZ and MCIE to involve the industrial park in the project. The BJFEZ sympathized with the view of MIP and requested the involvement of MIP in the pilot project to MCIE. However, this happened because of their conceptual misunderstanding of EIPs (Kim, 2008). In principle, the EIP is a resource-symbiotic network constructing a food-web of resources and wastes, creating a closed loop. However, the stench is not a resource in which the project is interested. A zero-emission approach which is popular in Japan, can be considered in this case, but the governing ministry is the MCIE and not the Ministry of Environment. MCIE is more interested in recycling and energy-efficiency issues than environmental ones. This implies that MIP and BJFEZ began the project with poor assumptions. The cooperation between businesses and local authority in the EIP project is essential for the successful promotion of the project. Despite this need the attitude of the public officials was not only passive but skeptical due to sectionalism and display administration which are prevalent in the Korean administrative culture. MCIE was in charge of the pilot project to construct the EIP. However, the post of environmental affairs in the local authority manages the project. Due to sectionalism, the EIP project is considered an extra duty by the local environmental post. In this situation, the pertinent post has been rarely interested in the EIP project and cooperation with MCIE has not been effective. Particularly, the City of Jinhae and Gyeongna Province seem passive in developing the project (Kim, 2008). After the central government launched the pilot EIP project in 2005, the central government created relevant policies and directed local authorities to promote the project substantially. Since then, local governments have developed very few ideas about the project or policy means to promote it. In addition, government authorities, regardless of their level, have not secured the budget to support the project. Local authorities do not concentrate efforts on securing extra funds because the project is considered an extra duty. Previous studies on EIP in other countries indicate that the EIP project requires more funds than ordinary industrial park management costs. Therefore, the financial support from the public sector is necessary considering the social benefits. However, in the case of Macheon Industrial Park, there is no substantial support plan for funds from central government or the local government. There is no financial support program because the basis of environmental policy is the polluter-pays principle. The existing support program suggested by the public sector requires some modification to draw more businesses into the EIP project. Businesses want substantial subsidies but the government does not have any specific support program. The reality is that just emphasizing the conceptual superiority of the EIP cannot realize the project without any support in Korea. Structured display administration and the absence of concrete policy means generate administrative lethargy and risk averse behavior. The EIP project in the view of local public employees is nothing but a mere fad, and thus given a low priority.

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Because the long-distance network between the pertinent industrial complexes makes the original concept of EIPs unclear, the project manager tried to exclude MIP from the entire project. MIP has not been excluded from the project yet, but the fact is the manager tried to launch a separate project targeting MIP. The interim assessing group of MCIE pointed out that the pilot project in Gyeongnam Province is not feasible economically due to the long-distance transport of wastes and by-products between industrial parks. KNCPC knew that the idea of the long-distance network was theoretically and practically unreasonable from the beginning, but they accepted the present structure because of the local politics. The Center could not refuse the local authority’s requirement to include MIP in the project, and subsequently the poor initial selection of the target industrial park deteriorated the vitality of the project as a whole.

5. Lessons and Policy Implications for Science Parks

This lecture discussed the promotion process of the EIP project in Korea through the case of MIP. The need for the EIP project is mainly found in the pollution and civil complaints in Korea. The conceptual understanding of the EIP in Korea is quite different from the original idea. That is, the EIP primarily aims to construct organic material flows and a resource-symbiotic network within an industrial complex. However, the approach was adopted to deal with environmental complaints from residents caused by the industrial plants in the case of MIP. This might pervert the aim of the project and finally threaten the sustainability of the project itself. Therefore, a re- conceptualization or a training program for ordinary citizens is needed for the successful promotion of the park. The EIP initiative in Korea is in its early stage and is experiencing trial and error. There are sharp gaps between the expectation of the interested parties and those actually benefitting from it. This problem mainly results from a conceptual misunderstanding of the project. The public sector should play a more active role for the environment and economies in connection with the EIP project. Furthermore, private companies seem too passive in the promotion of the project. They have tendency to wait for governmental action and to simply want to get a free ride on the support. This passive stance of businesses makes the future of the EIP project gloomy. Only the spontaneous and active participation of businesses guarantees the success of the project. Businesses need to realize that the project is an effective solution for the environmental regulation, which is becoming strict. The active participation in and accurate understanding of the project by the local residents is also essential for the success of the project. The experience from the EIP initiative in Korea can be applied to make our science and technology parks more eco-friendly and greener science parks. First, it is necessary to gather accurate data for environmental and industrial fields aw well as material balance from the activities in science parks. We also need to review the experience of existing and technology parks and identify their institutional and/or organizational structure; and estimate what fraction of the activities might be considered relevant to eco-innovation for

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sustainable development. From these analyses, the experience garnered in previous science/technology park efforts can be utilized to help establish a new arrangement for green growth. Second, while a wide range of technologies might be appropriate for green growth efforts, it may be appropriate for the science and technology park to be become more focused on the specific area of eco-innovation. It may be appropriate for the proposed entity to focus on clean energy technologies, eco-environment protection, cleaner production technologies, water efficiency technologies, agriculture and health issues, or other topics of immediate concern to each society. The selection of technologies and the area of eco-innovation can be done effectively by establishing governance system with interested parties. Third, networks between science-parks and eco-industrial parks should be established to explore potential opportunities for new business. Public sector can facilitate the establishment of these networks by providing incentives to encourage park entities and businesses to participate. Fourth, when a potential institutional arrangement for the network has been developed, the next step will be to estimate the financial needs necessary to establish the project, and to sustain its future efforts. A more comprehensive understanding of the interaction between supply and demand for eco- innovation will be a pre-requisite for creating successful eco-innovation policies. Eco- innovation has the potential to lead to significant economic opportunities. But the costs of some innovations may be very high initially, and government will have to share the risk of new technologies with the private sector in some circumstances. A number of other measures are already being employed by countries to support environment-related R&D. An analysis of the results of the OECD survey on current government innovation policies reveals several areas for improvement among such measures: Supply-side measures include equity support, research and development, pre- commercialization, education and training, networks and partnership, and information services. Demand-side measures include regulations and standards, public procurement and demand support, technology transfer. With eco-innovation gaining ground within both industry and government as a way to tackle environmental degradation and to foster green growth, both developed and developing countries are intensifying its work in this area. But research on eco-innovation is still in its infancy, particularly concerning systemic eco-innovations, which have greater potential for overall environmental improvements but are also highly complex, involving non-technological changes. In this context, the management entities of science and technology parks need to intensify activities such as - Develop a toolkit to help businesses benchmark their performance and improve their production processes and products - Gather examples of eco-innovations, particularly those of more integrated, systemic approaches, and conduct in-depth analyses of such innovations to deepen understanding and extract lessons for practitioners and policy makers - Identify promising policies that encourage eco-innovation by sharing best practices

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among countries with science and technology parks.

References

Indigo Development. 2005. South Korean EIP Initiative. OECD. 2009, June. “Sustainable Manufacturing and Eco-Innovation: Towards a Green Economy. Kim, Heungsoon. 2007. “Building an Eco-Industrial Park as a Public Project in South Korea. The Stakeholders’ Understanding of and Involvement in the Project.” Sustainable Development 15, 357-369. Ayres, R.U. 1989. Industrial Metabolism Technology and Environment, in Ausubel J.H. (eds.) National Academy Press: Washington, DC. Deutz, P., D. Gibbs. 2004. Eco-industrial development and economic development: industrial ecology or place promotion? Business Strategy and the Environment. 13: 347-362. Lowe, E.A. 2001. Eco-Industrial Development in Japan. Indigo Development: Emeryville, C.A. Lowe, E.A. A.S.F. Chiu. 2005. Consultant’s Report on Korean EIP Project. Korea National Cleaner Production Center Von Malmborg, F. 2004. Networking for knowledge transfer. Business Strategy and Environment. 13: 334-346. Park, H.S., E.R. Rene, S.M. Choi, A.S.F. Chiu. 2008. “Strategies for sustainable development of industrial park in Ulsan, South Korea –from spontaneous evolution to systematic expansion of industrial symbiosis”. Journal of Environmental Management. 87: 1-13. Chiu, A.S.F. 2005. Training Package for NCPC on CP/Environmental Management of Industrial Estates. Ver. 3.3. UNEP.inWENT, Paris, France. http://www.uneptie.org/pc/ind- estates/event. Ehrenfeld, J., N. Gertler. 1997. Industrial ecology in practice- the evolution of interdependence at Kalunborg. Journal of Industrial Ecology. 1: 67-79.

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SSEESSSSIIOONN 44

Country Presentations

Nigeria Saudi Arabia Algeria Agerbaijan Chinese Taipei China Congo Djibouti Egypt Gambia Indonesia Iran Mogolia Namibia Sudan Thailand

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Nigeria

THE ACCELERATED DEVELOPMENT OF SCIENCE AND TECHNOLOGY PARKS IN NIGERIA

(SPECIAL REFERENCE TO THE ABUJA TECHNOLOGY CORRIDOR (ATC) AND THE KANO ICT PARK (KIP))

Engr Umar B. Bindir PhD Director General/CEO

National Office For Technology Acquisition and Promotion, (NOTAP)

Federal Ministry of Science and Technology, NIGERIA

Paper Presented at the 2009 UNESCO-WTA International Training Workshop on Science and Technology Park Governance, jointly organized and sponsored by World Technopolis Association and UNESCO

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INTRODUCTION The recent economic and technological boom in many emerging South East Asian countries is encouraging the increase in the debate in many African Countries on the need to change their development strategies.

In many African Countries, the realization that Skills, Science and Technology, Research & Development, ICT and improved quality of Education is a pre-requisite to an effective economic development is increasing. Additionally, many are asking the question on why has R&D outputs from the vast array of Tertiary Institutions and Research Institutes are uncommercialised and weakly linked to the needs of society and industry. These are some of the challenges that is encouraging The establishment of Science and Technology Parks (STPs) as viable solutions.

Trade visits, conferences, and cross country experiences, particularly by institutional leaders, academics and investors between Africa and Asia has sensitized many on the strategic importance of STPs and incubators in the speedy socio-economic development of a country. In Nigeria, though the establishment of Technology Business Incubators (TBICs) commenced well back in the late 80s, real discussions and specific programmes on developing Science and Technology Parks (STPs) gained prominence particularly in the last 3 – 5 years. Today, the movement towards the development of STPs is a National strategy.

THE NATIONAL PROGRAMME ON SCIENCE AND TECHNOLOGY PARKS DEVELOPMENT The Federal Republic of Nigeria is composed of 36 States and a Federal Capital Territory (FCT). The States are clustered into 6 Geo-Political Zones. Arising from the experiences from some States commencing efforts to establish STPs, the Federal Government launched a National Programme to facilitate focus, synergy, and effective use of expertise and other resources, all aimed at ensuring that viable STPs evolve and emerge in the country. As a result, a programme blue print was launched, and a specific national study was commissioned to identify all elements of the National Innovation System (NIS), leading to the identification of Six Zonal STP pilots, and the process is currently on-going.

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EVOLUTION OF THE NIGERIAN STP DEVELOPMENT MODEL The past experiences and current efforts in Nigeria to modernise and industrialise the economy particularly through technology transfer are numerous. Such high investments include: a) Establishment of many industrial estates; b) Establishment of many automobile assembly plants; c) Establishment of many steel-rolling plants; d) Establishment of many crude oil refineries; e) Establishment of many manufacturing companies; f) Establishment of many Technology Incubation Centres; g) Establishment of many Industrial Development Centres; h) Establishment of many Trade Free Zones; i) Establishment of numerous river basin development authorities; etc.

Furthermore, to enhance the massive production of highly skilled workforce and facilitate for the emergence of an innovative economy, the following landscape in the innovation system is also available: a) 102 Universities; b) 125 Polytechnics; c) 98 Colleges of Education; and d) over 200 Research Organisations and centres.

The net desired technological effect of this infrastructure on the economy has not been realised. Further efforts and strategies are therefore required.

A close look at the traditional methods of evolving STPs where Universities sponsors the development of an associated Park for the emergence of spin-off and hightech companies presents difficulties in Nigeria, including the effects of low quality research work, the non- existence of venture capitalists, weak IPR regime, low investments in R&D and the lack of specific policy on commercializing the outputs of R&D for National Development.

The identification of clusters of institutions that are related and exists in close proximity then presents an option for Nigeria where scientific institutions that are currently not clearly networked, but existing in the same geographical area are forged into a functional and viable STP by injecting energetic facilities that will synergise the functions and steer the

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institutions to be more efficient. This is the option adopted for the currently developing Abuja Technology Corridor (ATC).

Also, the assessment of efforts by selected State Governments, particularly Benue State, Akwa-Ibom State and Kano State in the last 5 years revealed that Kano has made tremendous progress, and the Kano ICT Park is herewith accordingly presented.

THE ABUJA TECHNOLOGY CORRIDOR Abuja is the Capital City of Nigeria. Strategically located in the centre of the country, it’s master plan presents several viable options for innovation clusters to evolve and emerge.

With the successful launch of the Science and Technology Parks Establishment movement by the Federal Ministry of Science and Technology in 2006, preliminary studies has revealed that several STPs can be established in Nigeria without having to go through the traditional methodology of a University establishing an associated park. The ATC has been identified as a viable cluster for the following reasons: 1. the stretch of the identified area for the corridor has several relevant institutions already established; 2. the road infrastructure on the stretch is excellent; 3. the stretch leads to the Nnamdi Azikiwe International Airport; 4. There is ample space to establish all the additional facilities to trigger the functionality of the park.

In the identified area, the following are some of the already established institutions: 1. An Olympic size and standard stadium and sports facility; 2. The African University of Science and Technology; 3. The Abuja Technology Village; 4. The National Space Research and Development Agency; 5. The Nigerian Communication Satellite Limited; 6. The National Biotechnology Development Agency; 7. The Abuja Science and Technology Museum; 8. The National Cancer Centre; 9. Abuja Chamber of Commerce and Industry; and 10. Several housing estates.

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THE ABUJA TECHNOLOGY CORRIDOR (ATC) CONCEPT

To activate these facilities the following are required: 1. Specialised skill acquisition centres; 2. Technology incubation centres; 3. ICT service facilities; 4. Specialized commercial R&D facilities; and 5. High quality areas such as conference and meeting facilities.

A presentation has already been made to the Government on this proposal and currently it is being considered favourably. Consultations have already commenced to re-orient and market the concept to the existing technology based institutions in the area. Positive progress is being registered in this regard.

At the current pace, the ATC will be fully functional and commissioned by 2011.

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THE KANO ICT PARK Kano State is one of the 36 State Governments in Nigeria. That Government ventured into the programme of establishing an ICT Park to achieve the following objectives: 1. Generate revenue for the state; 2. Attract foreign investment in the ICT sector; 3. Create employment opportunities for the state; 4. Develop highly-skilled ICT manpower in the state; 5. Promote the use of ICT as an economic development sector in the State; 6. Create conditions for the adequate supply of IT manpower for the State; 7. Promote the penetration and use of ICTs in the State; and 8. Provide opportunities for technology transfer and acquisition.

These objectives were clearly set based on the following attributes of the State: 1. Availability of an international airport; 2. Good road network to many states in the country; 3. Large population for a major local market; 4. Major centre of commerce in the country; 5. A robust financial sector; 6. Kano has been an economic nerve centre not only for Nigeria but for the entire West African sub-continent; 7. Recently, Kano has been experiencing a downturn in commercial and industrial activities; 8. The new business opportunities in the ICT sector can be used to restore Kano’s economic prosperity; 9. The Economic Development Roadmap has identified ICT as one of its core areas; 10. The development of ICT parks is the fastest way of promoting ICT as an economic sector.

The following are some of the historical details that led to the current level of development of the Kano ICT Park: 1. August 2003: Establishment of the Office of the Special Adviser to the Governor on Education and ICT; 2. July 2005: State Government approves ICT Policy; 3. July 2006: Visit of Kano State Delegation to Malaysia led by His Excellency, the Executive Governor, and the signing of an MOU;

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4. October 2006: Visit of Malaysian Delegation to Kano State to assist Kano State Government in ICT Park project; 5. June 2007: Kano State Government incorporates ICT Park project in its Economic Development Road Map; 6. July 2007: Visit of Kano State Government to MSC, Kuala Lumpur and Johor Bahr to study ICT parks in Malaysia; 7. Oct 2007: Government re-engages contractors to complete Ado Bayero Building; 8. November 2007: Government makes provision in the 2008 budget for both the completion of the outstanding work at the Gidan Ado Bayero, the site of the ICT Park and for the execution of the ICT Project itself; 9. Jan 2008: Adverts appear in newspapers inviting companies that want set up ICT businesses and ICT training institutes in the park; 10. Feb 2008: A consortium of firms is contracted to design the IT infrastructure for the Park; 11. May 2008: 2-Day International workshop/Interactive meeting with prospective ICT Park tenants; 12. June 2008: Adverts appear in newspapers inviting facility management companies interested in the different aspects of Facility Management of the Park; 13. Aug 2008: 1st Train-the-trainers workshop on Outsourcing; 14. Nov 2008 2nd Train-the-trainers workshop on Outsourcing;

Some of the opportunities that will be opened up by establishing the Park include: 1. Manpower training and development: the production of various categories of ICT professionals; 2. Outsourcing services: data entry, call centers, transcription of medical records, financial and HR services; 3. Software development: the design, development and testing of software packages for industries and general purposes; 4. Content creation and development: the development of local websites, databases, archival services, translation services, etc; 5. ICT system assembly: the manufacturing and assembly of computers and other related equipment; 6. Telecommunications Solutions: Sale of telecommunications equipment, network planning, design and implementation; and 7. R&D in ICT: research and development of new applications systems and software.

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Incentives being presented by the State Government include: 1. Attractive tax regime including Export Processing Zone status; 2. World class environment with state-of-the-art facilities; 3. Subsidies for rent and other services; 4. Patronage from Government in ICT contracts; 5. Business development assistance; and 6. Joint marketing of products and services.

The Management model being adopted for the park is: 1. The Park is being modelled on a Public Private sector Partnership (PPP) model where Government’s main role is to provide a conducive and enabling environment; 2. An ICT Park Board consisting of eminent and highly technical and experienced personalities drawn from the public and private sectors will be in charge of dictating policy and taking major decisions; 3. The ICT Park management will be small relying on several facility management companies responsible for the different services to be provided with a leading Facility Management company to supervise the others.

THE KANO ICT PARK

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Current Status of the Park development 1. Building Complex including external grounds virtually complete; 2. Implementation of ICT infrastructure on-going; 3. Marketing of the ICT Park on-going; 4. Process to allocate space to prospective tenants currently underway; 5. Process to select Facility Management companies has reached an advanced stage; 6. ICT Park to be officially commissioned 4th Quarter 2009

CONCLUSIONS As part of the growing popularity to establish functional and viable Science and Technology Parks in Nigeria, the Abuja Technology Corridor (ATC) and the Kano ICT Park has been briefly presented.

The movement to establish STPs in Nigeria is getting stronger. The partnership presented by the WTA and the UNESCO is a golden opportunity to reinforce the indigenous efforts to ensure that these parks and many more are established to facilitate for a sustainable development of the Nigerian economy.

With the current Government Policy of using clearly selected industrial areas to drive the economy to be a $900 billion GDP and one of the top 20 economies by the year 2020, the strategy to establish STPs is imperative.

With currently 102 Universities, 125 Polytechnics, 98 Colleges of Education and over 200 research facilitities and centres, the acquisition and promotion of local technologies with be enhanced by the establishment of appropriate and functional STPs in Nigeria.

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Saudi Arabia

King Saud University Joins the Asian Drive on Green Technology and Science Parks

By: Dr. Mezyad Alterkawi, CEO - RTIC, King Saud University (www.drmezyad.com –www.ksu.edu.sa)

Who doesn’t love green grass, ponds, walking trails, bike lanes and game courts? Parks offer a great place to relax and are a perfect getaway from our hectic workplace. This could well be the reason why work places are now looking to go green. Green is now global, it’s official. Science Parks around the world have recognized this and are now taking initiatives to implement green growth.

Although North America and Europe have been the frontrunners so far, Asian countries are now taking major green policy initiatives for their energy and economy. The Prime Minister of the Republic of Korea had the following to say at the 18th World Economic Forum, “We believe that a strong economy and a clean environment are not mutually exclusive, and that Korea has to take an active part in tackling climate change. Korea recognizes the symbiotic relationship between economic growth and environmental sustainability. In a nutshell, low-carbon green growth aims to shift the current development paradigm from the fossil-fuel dependent, quantity-oriented growth to a new paradigm of qualitative growth which uses less energy and is more compatible with environmental sustainability.” Korea plans to focus on low-carbon green growth for its new five-year development plan estimated at around 40 billion USD, something that the global economy has probably never seen before. China is playing its own part in creating a green based economy. A recent study shows that in terms of energy intensity, which is the amount of energy required to generate one unit of GDP, China has dropped 75% over the last 20 years. Nearly 40% of China’s 590 billion USD stimulus package is green project related.

Onto the Middle East where the government of Abu Dhabi, one of the most well- endowed petroleum-based economies, announces that it’s turning to nuclear power and building a carbon-neutral city from scratch, emphasizing that green is indeed the way to go.

The Kingdom of Saudi Arabia, under the leadership of His Royal Highness King Abdullah, is in the process of creating a knowledge based economy. His Royal

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Highness has approved several projects within King Saud University that promote research, education and self sustainability which the coming generations are sure to benefit from. KSU is on a mission, a mission to achieve what not many people thought possible, a well educated kingdom with its economy based on knowledge and not oil. Skeptics may think there’s no light at the end of the tunnel, but that hasn’t stopped KSU from digging.

From today’s perspective, economic development cannot be separated from environmental protection. Following this ideal, most STP’s within Asia have now agreed to comply with a number of environmental regulations for manufacturers in the park to follow and organized a task force to conduct regular checks for compliance. For example, when applying to enter the park, manufacturers need to submit an environmental impact report and an estimate of the pollution volume they are likely to produce. Before they start operations, they must file a health-risk evaluation report and establish a health insurance fund for community residents in case of any harm from pollution. Companies are also required to take certain air, water and waste pollution control measures during the construction of their factories, as well as for commercial operations after the buildings are completed. Violators face heavy and severe fines. Several environmental regulations that the STP’s impose, such as those relating to wastewater disposal, are stricter than their national standards. Many STP’s now have facilities that enable them to recycle a huge percent of its water usage. It is widely recognized that infrastructure provides the foundation for economic and social development and is key to improving livelihood opportunities as well as delivering critical needs and services to communities. Patterns of infrastructure development determine the environmental sustainability of economic growth and are critical to building low-carbon economies. The development and expansion of infrastructure, however, often has serious environmental repercussions. Infrastructure is very intensive in resource use, including energy, water, materials and land. Without careful planning, infrastructure can divert science parks into unsustainable production and consumption patterns that may prove difficult to reverse. A sustainable infrastructure system is one that facilitates a higher-quality delivery of housing, transport, energy, water, waste and sanitation services, with less use of resources, to support social and economic development in an integrated, eco-efficient and inclusive manner. Such a system will use less resources and have lower negative environmental impacts, as well as lower vulnerability to the impacts of climate change. By introducing policies, legislation and incentives and encouraging companies to pursue the greening of their business practices, STP’s can significantly contribute to environmental sustainability while adapting to the impacts of climate change. And science and technology parks in Asia are by no means far behind from becoming one of the major contributors to global green growth.

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AAppppeennddiixx

UNESCO-WTA Initiatives (2006-2010) Science Park & Technology Incubator

By Dr.Yoslan Nur Division for Science Policy and Sustainable Development, Natural Science Sector, UNESCO e-mail. [email protected]

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Daedeok Innopolis, Daejeon,Korea(November 11-14, 2009)

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REPORT 2009 UNESCO-WTA International Training Workshop

UNESCO-WTA Cooperative Project Steering Committee

United Nations Educational, Scientific and Cultural Organization (UNESCO) Division for Science Policy and Sustainable Development Natural Sciences Sector, UNESCO 1, rue Miollis 75732 Paris Cedex 15 France Tel. +33 1 45 68 39 17 Fax. +33 1 45 68 58 27 Website. www.unesco.org

1420 Dunsan-dong, Seo-gu, Daejeon 302-789, KOREA Tel. +82 42 600 2291-5 Fax. +82 42 471 2319 Website. www.wtanet.org