TRANSFORMING BUSINESS INCUBATORS TO SCIENCE AND TECHNOLOGY PARKS: A REVIEW OF PROGRAMS AT THE SCIENCE TECHNOLOGY PARK LIPI

105

A REVIEW OF PROGRAMS AT THE SCIENCE TECHNOLOGY PARK LIPI

V. Susirani Kusumaputri, Yovita Isnasari, Tommy Hendrix Centre for Innovation, Indonesian Institute of Sciences (LIPI)

Bogor,­16912,­Indonesia susirani.kusumaputri@yahoo.com

yovita.isnasari@gmail.com tommy.hendrix@gmail.com

Abstract

A­technology­transfer­process­increases­research­capacity­so­that­inventions­can­be­used­

by­communities­and­industries.­In­Indonesia,­the­Centre­for­Innovation­LIPI,­as­a­technology­

transfer­office,­does­this­by­instituting­incubators.­The­Indonesian­government­create­science­and­

technology­parks­(STP)­as­facilitators­of ­a­knowledge­infrastructure.­Incubators­have­become­

a­core­element­of­STP­programs­to­encourage­development.­This­paper­describes­the­develop- ment­of­business­incubators­and­technology­in­STPs.­This­is­a­qualitative­study­that­reviews­the­

activities­involved­in­technology­transfer.­The­study­discusses­transforming­business­incubators­

to­science­and­technology­parks­in­an­interactive­technological­environment­in­STP­LIPI,­which­

acts­as­an­intermediary­for­commercialization.

Keywords: business­incubators,­Science­Technology­Park,­transforming,­transfer­technology JEL Classification:­O32,­O34,­M13

INTRODUCTION

Research­institutes­contribute­actively­

to­a­nation’s­scientific­capacity­build- ing.­ They­ also­ have­ a­ responsibility­

to increase research capacity so that inventions­ that­ have­ been­ generated­

can­ be­ used­ in­ the­ community­ and­

by­ industries:­ this­ is­ known­ as­ the­

technology­transfer­process.­Technol- ogy­transfer­has­been­characterized­as­

the adoption of innovation that relies

heavily on national innovation systems and­government­policies­with­an­ex- tensive­range­of ­effectiveness­(Abetti,­

2004;­Wahab,­2012).­In­Indonesia,­the­

Centre for Innovation LIPI as a tech- nology­transfer­office­also­engages­in­

these­activities,­one­of ­which­is­in­the­

formation­of ­technology­incubators.­

The­development­of ­technology­

transfer­by­the­Indonesian­Institutes­

of ­Sciences­(Lembaga­Ilmu­Pengeta-

huan­Indonesia­[LIPI])­instigated­by­

Government­ Regulation­ No.­ 20­ of ­ 2005 concerning intellectual property technology­ transfer.­ This­ regulation­

has­ been­ reinforced­ by­ Indonesian­

Presidential­Regulation­No.­27­of­2013­

on the development of entrepreneurial incubators­that­are­to­enable­improve- ments to national competitiveness.

The­purpose­of ­these­regulations­is­to­

disseminate­knowledge­and­technology­

and increase the capacity of communi- ties­to­master­and­utilize­the­benefits­

of science and technology (Pusat Ino- vasi LIPI, 2014).

The­ primary­ goal­ of ­ business­

incubators­ is­ to­ facilitate­ economic­

development­by­promoting­entrepre- neurship, innovation, employment opportunities,­ and­ growth.­ Most­ of ­ the­incubators­are­operated­directly­by­

national or local authorities to achieve the­goal.­Specialised­incubators­have­

been­established­by­universities­and­by­

private­sector­organizations­(European­

Commission, 2002). LIPI’s specialty is incubators­based­on­technology.

To­achieve­the­goal­of ­increasing­

capacity of science and technology, there is a necessity to ensure the avail- ability­of ­input­factors;­these­include­

science and technology policies that will­ encourage­ the­ development­ of ­ technopreneurship,­as­well­as­facilita- tion strategies for novice entrepreneurs through­a­business­incubator.­Incuba- tor development and the improvement of technology transfer are activities that­ should­ be­ increased­ to­ enable­

development­of­new­technology-based­

companies­in­Indonesia.­These­compa-

nies­are­a­path­to­the­future,­bringing­

economic independence and attracting qualified­human­resources­to­the­coun- try and, in turn, provide tax revenue for the state (Pusat Inovasi LIPI, 2014).

The­Indonesian­government­has­

begun­ to­ encourage­ a­ ‘knowledge- based­economy’­by­implementing­Sci- ence­and­Technology­Park­(STP)­as­an­

element­of ­the­knowledge­infrastruc- ture.­The­incubators­differ­from­STPs­

because­ they­ are­ created­ to­ support­

companies­in­their­start-up­phase­(Tola­

&­Contini,­2015).­The­National­Me- dium­Term­Development­Plan­2015- 2019­(Rencana­Pembangunan­Jangka­

Menengah­Nasional­[RPJMN])­has­set­

a­goal­of ­establishing­100­technology­

parks­in­regencies­or­cities,­and­science­

park­in­every­province.­The­Science­

and­Technology­Park­in­the­Cibinong­

Science­Centre­and­Botanical­Garden­

(CSC-BG)­is­one­of ­the­STP­admin- istered­by­the­Centre­for­Innovation­

LIPI.­The­aim­of­establishing­this­STP­

is­to­support­and­increase­the­ability­to­

innovate, to improve competitiveness and to optimise the interaction and utilization­of­the­resources­universities,­

research­institutions,­and­the­business­

world.

A­ science­ and­ technology­ park,­

in­brief,­is­a­center­of ­excellence­or­a­

kind­of ­space­where­productive­activ- ity­ result­ from­ the­ collaboration­ of ­ governments,­academics,­business,­and­

the community. An organisation may be­referred­to­as­an­STP­if ­it­meets­

the­following­requirements:­there­are­

local resources, facilities to process those resources, outstanding human

capital, a research and development centre,­a­business­incubator,­easy­of ­ access, a medical and educational centre,­right­policies­and­an­efficient­

bureaucracy­(Kusharsanto­&­Pradita,­

2016).­Therefore,­business­incubators­

and­technology­parks­owned­by­LIPI­

can­ be­ developed­ into­ an­ STP.­ This­

paper­describes­such­as­development,­

with­case­studies­from­LIPI.­

This­article­reviews­the­interactive­

transformational environment in the development of technology transfer in STP­LIPI­and­the­process­of ­facilitat- ing­commercialization­of ­results­of­re- search­and­development.­The­purpose­

of ­ this­ study­ is­to­ seek­information­

related to research topics transforming business­incubator­to­Science­Technol- ogy­Park.­The­other­target­is­to­find­the­

potential environment development of technology­transfer­in­STP­LIPI­and­

process of performance in facilitating commercialization­ of ­ R&D­ results.­

This­paper­is­expected­to­be­an­input­

for a potential source of information in the development of science and technology,­as­well­as­the­nature­of­the­

process implementation.

LITERATURE REVIEW Incubators

Incubators­ have­ become­ a­ distinct­

stage in the process of technology transfer.­ Incubation­ is­ not­ only­ for­

developing­ aspects­ of ­ a­ new­ com- pany’s­business­but­also­to­ensure­that­

the­technology­adopted­by­a­firm­is­

ready­ to­ be­ accepted­ by­ the­ public.­

The­concept­of ­incubation­according­

to the literature has evolved over the years.­Until­now,­there­have­been­three­

generations­of ­incubators,­which­are­

characterized­ by­ different­ services­

in­business­support.­First­generation­

of ­incubators­provide­basic­physical­

space­and­shared­facilities.­The­second­

generation­of­incubator­provides­more­

specialized­business­support­services,­

such­ as­ mentoring­ in­ activities.­ The­

third­ generation­ of ­ the­ incubator,­

appearing­in­the­late­1990s­with­the­

assistance of the internet revolution and­ informatics,­ is­ characterized­ by­

the­availability­of ­networks­to­share­

knowledge­on­how­and­the­promotion­

of ­best­practices­among­entrepreneurs­

(Salvador, 2010).

There­ is­ no­ precise­ definition­

of ­ an­ incubator:­ the­ concept­ of ­ an­

incubator­that­often­used­is­that­it­is­

any­organization­that­is­helpful­in­the­

‘hatching’­ and­ development­ of ­ new­

firms­(Chan­&­Lau,­2005).­However,­

Bergek­&­Norrman­(2008)­proposes­

the main components that separate incubators­from­others,­which­are­se- lection,­business,­and­mediation­shown­

in­Table­1.

Table 1.­Incubator­Model­Components

Incubator Model

Selection Business Support Mediation Source:­Bergek­&­Norrman­(2008)

Most­of­the­incubators­worldwide­

are­nonprofit,­and­depend­on­direct­

funding (in cash) and indirect funding (in­ subsidized­ services)­ from­ their­

sponsors,­which­are­central,­regional­

and local governments, economic de-

velopment­organizations,­foundations,­

universities,­and­colleges,­or­combina- tions­ of ­ such­ organizations­ (Abetti,­

2004).

An­incubator­can­be­considered­as­

a container or area that supports start- up and fledgling companies (Peters, Rice,­&­Sundararajan,­2004).­However,­

any­understanding­of­incubation­refers­

to the same primary characteristics, including­ a­ sound­ intellectual­ base,­

business-boosting­administrations,­and­

networking­(Bøllingtoft,­2012).­The­in- cubator­can­also­be­classified­regarding­

geography,­business­policy­instruments,­

industrial sectors involved, competi- tive scope, the source of technology, markets­and­other­criteria­(Barbero­et­

al., 2012).

Entrepreneurship­ becomes­ a­

benchmark­for­assessing­the­commer- cial conditions of a state. Entrepre- neurship,­when­linked­to­an­incubator,­

in­general,­benefits­a­new­company­or­

a­beginner­who­needs­guidance­in­de- veloping­their­business.­Organisations­

represented­ in­ incubators­ could­ be­

current­organizations­or­agencies­un- dergoing­a­conversion­period­(Tola­&­

Contini,­2015).­The­existence­incubator­

also­affects­the­growth­of ­innovation­

and entrepreneurship.

In addition to entrepreneurs, another­actor­who­plays­a­role­in­the­

work­and­organization­of­an­incubator­

is­the­incubator’s­manager.­Incubators­

are not only to facilitate any assistance for­development­but­also­to­provide­

office­ space,­ shared­ equipment­ and­

administrative­ services­ (Bøllingtoft,­

2012).­The­significance­of ­incubators­

originates from any association that enables­ and­ systematizes­ a­ venture’s­

creation and start-up procedures, and provide­ such­ ventures­ with­ a­ wide­

choice of integrated services, such as business­ support­ services­ and­ inte- gration­ and­ networking­ possibilities­

(European­ Commission,­ 2002).­ The­

incubator­ was­ instrumental­ in­ the­

development of entrepreneurship in any­field­of ­research­that­will­support­

economic and social development (Etzkowitz,­ 2002).­ Incubators­ were­

established­with­the­main­purpose­to­

facilitate­ economic­ development­ by­

promoting entrepreneurship, innova- tion, employment opportunities, and growth.­For­this­reason,­most­of ­the­

incubators­are­operated­directly­by­the­

national­or­local­authorities.­Specialized­

incubators­have­been­establishing­by­

universities­or­private­sector­organiza- tions (European Commission, 2002).

Indonesian Institute of Science (LIPI) is the governmental authority for science and research in Indone- sia. As the development of national capacities­in­the­field­of ­science­and­

technology,­a­scientific­institution­in­

Indonesia­has­also­experienced­growth­

and development. Center for Innova- tion­LIPI,­was­established­in­June­2001,­

this center is one of LIPI’s research department. As an intermediary institu- tion, Center for Innovation LIPI also plays­a­role­in­making­technology­incu- bation.­A­LIPI­technology­incubator­is­

an intermediary institution that engages in coaching, mentoring, and developing a participant’s (tenant) enterprise. A LIPI­technology­incubator­strives­to­

create­and­develop­new­businesses­that­

have economic value and are highly competitive­by­utilizing­the­advances­

developed­by­science­and­technology.­

LIPI­technology­incubator­plays­a­role­

in­bridging­between­research­institu- tions to community or industry.

In­LIPI,­the­technology­incubator­

program is intended to provide services for inventors or innovators, internally and­from­the­public,­and­also­for­busi- ness­and­technology-based­innovation­

in­Indonesia.­The­program­is­designed­

to­give­birth­to­new­opportunities­for­

new­entrepreneurs­in­technology-based­

business.­Through­this­program,­there­

are various activities to strengthen the capacity of management to use technology and innovation to create a­climate­for­the­growth­and­develop- ment­of ­new­businesses.­

In practice, the experts in an incubator­ advisory­ service­ can­ help­

with­business­planning,­market­plan- ning,­ marketing­ research,­ business­

development­strategy,­new­product­de- velopment,­financing­strategy,­website­

development and optimisation, human resource­development,­and­bookkeep- ing.­Assistance­to­a­new­company,­in­

general,­is­for­two­to­five­years­(Tola­&­

Contini,­2015)­but­the­period­may­be­

adjusted depending on the readiness of the company.

Science and Technology Park The­term­of­‘Technology­Park’,­‘Tech- nopolis’,­ ‘Technopole’,­ ‘Technology­

Precinct’,­and­‘Research­Park’­can­be­

a­relief ­as­the­term­of ­‘Science­Park’.

Science­ and­ Technology­ Park­ (STP)­

have­become­an­essential­element­of ­ a national innovation system (Zou, 2014).­ An­ STP­ can­ be­ defined­ as­ a­

center­ of ­ excellence­ or­ a­ kind­ of ­ space­where­productive­collaboration­

between­governments,­academics,­busi- ness,­and­the­community­can­take­place­

(Kusharsanto­ &­ Pradita,­ 2016).­ An­

STP­is­a­form­of ­diffusion­of ­innova- tion­and­technology­(Tola­&­Contini,­

2015).­Activities­undertaken­in­an­STP­

are­intended­to­build­bridges­between­

research­centers­and­their­public,­which­

in this case (LIPI) is an industry. Usu- ally, industry spending on R&D is mea- ger,­and­STPs­have­become­an­oppor- tunity for research centers to provide the innovative technology (Zou, 2014).

STP­is­a­business­support­initiative­and­

technology transfer that supports start- up­ companies,­ incubation­ activities,­

and innovation-led development, high growth,­knowledge-based­businesses­

(Parry and Russell, 2000). Start-up company is a major component of the­economy­of­a­nation.The­develop- ment­ of ­ technology-based­ starts­ up­

the company into one of a raft of the main goals of economic development and science and technology.

The­use­of­science­and­technology­

parks,­as­facilitators­of ­innovation,­has­

spread during the second half of the twentieth­century­(Link­&­Scott,­2003).­

An­STP,­the­Stanford­Research­Park,­

was­established­in­1951­in­California,­

followed­by­the­Cornell­Business­and­

Technology­Park­in­1952­and­the­Re- search­Triangle­Park­in­1959­(Link­&­

Link,­2003;­Link­&­Scott,­2007;­Wess- ner,­2009).­Science­Technology­Parks­

originated from research in universities

that­required­industry­support­for­its­

development.­The­Stanford­Research­

Park’s­initial­objective­was­not­to­cre- ate­new­businesses­but­to­do­research­

on­innovation­(Tola­&­Contini,­2015).­

The­term­‘science­park’­is­more­usual­

in­Europe,­but­‘research­park’­‘is­more­

common­in­the­USA­and­‘technology­

park’­is­more­common­in­Asia­(Link­&­

Scott, 2007).

An­STP­is­the­practical­applica- tion of the concept that efforts must be­made­in­regional­and­other­areas­to­

connect­science­and­business­to­create­

new­ employment­ opportunities­ and­

to­use­modern­scientific­achievements­

in­ high­ technology­ to­ generate­ new­

products­(Razovic­&­Mimica,­2013).­

The­ main­ characteristics­ of ­ an­ STP­

often­differ,­but­the­European­Com- mission­uses­the­following­indicators­

(European­Commission,­2014):

a)­ ­Area­of ­the­parks­and­their­built- up area.

b)­ Some­hosted­companies­and­the­

number­of ­employees.

c)­ Rent­and­services­that­STPs­pro- vide,­either­by­month,­a­year­or­in­

general.

d)­ Type­and­range­of ­services­that­

the­parks­offer.

e)­ Type­and­range­of ­professional­

services­ that­ either­ the­ park­ or­

companies offer

f) Funding for capital and operating purposes.

g) Investment projects attracted to the­ region­ by­ the­ parks­ and/or­

in­cooperation­with­other­institu-

tions, such as research centers and regional agencies.

Science­ Technology­ Parks­ serve­

to spur and support start-up com- panies,­ incubation,­ and­ innovation­

development to support economic growth.­STPs­also­facilitate­technology­

transfer­by­attracting­companies­from­

a technology sector and promoting companies’­growth.­Activities­under- taken­at­an­STP­are­based­on­business­

knowledge,­in­a­business­environment­

that­ allows­ specialized­ and­ close­

interaction­with­relevant­experts­who­

can­review­progress­for­their­mutual­

benefit­(Parry­&­Russell,­2000).­For­the­

external­collaboration,­STP­also­added­

the performance of research and ap- plying for patents. All activity of the STPs­is­doing­by­the­professionals.­A­

managed­park­has­a­full-time­manager­

whose­main­function­is­to­oversee­the­

park’s­activities­and­organizations­and­

aims to increase the competitiveness of ­business­and­knowledge-based­in- stitution (Westhead & Batstone, 1999;

Sofouli & Vonortas, 2007).

The­ STPs­ often­ state­ that­ their­

principal mission is to transfer tech- nology from a research environment to­ the­ marketplace­ (Phillips,­ 2003).­

The­manager­of ­an­STP­should­en- able­ technology­ transfer­ in­ the­ STP­

as a form of technology diffusion.

The­management­of ­an­STP­will­as- sist­ researchers­ to­ develop­ ways­ for­

the­research­result­to­be­used­on­an­

industrial­scale.­In­this­way,­the­STPs­

help­industry­to­utilize­the­results­of ­ research.

RESEARCH METHODS

This­ study­ was­ conducted­ by­ using­

qualitative­research­methods,­reviewing­

the­literature­dealing­with­incubators­

and­STPs­in­the­technology­transfer­

of research results, in Indonesia, and especially in LIPI. For an efficient review­ of ­ the­ literature,­ we­ used­ a­

data-mining­ technique;­ we­ collected­

and­ synthesized­ pertinent­ reports,­

policy documents, journal articles, and information­from­unpublished­sources.­

The­journal­articles­were­browsed­and­

selected­based­on­relevance­to­the­topic­

and­using­keywords­such­as­technology­

transfer, technology licensing, a start- up company, and intellectual property.

Other­material­came­from­the­Centre­

for Innovation LIPI, government and private institutions, and from online sources.

RESULTS AND DISCUSSION Incubators­ and­ STPs­ have­ become­

an international phenomenon (Phan, Siegel,­&­Wright,­2005).­It­became­a­re- flection­of­national­and­regional­policy­

regarding research and technology to boost­the­economic­growth.­The­cur- rent economic system of a country is often­associated­with­the­presence­of ­ incubators­and­STPs.­Incubators­and­

STPs­have­in­common­that­they­are­

a­place­to­develop­that­will­be­to­the­

advantage­of ­the­public.­Innovation,­

creativity,­and­knowledge­as­economic­

resources are the three-element of establishment­the­STP­and­incubator.­

Establishing­ incubators­ and­ STPs­

comes from a desire to increase the rate­of ­economic­growth­of ­a­country­

(Ratinho­ &­ Henriques,­ 2010).­ Many­

research­institutions­have­established­

incubators­ and­ STPs­ to­ foster­ the­

creation­ of ­ start-up­ firms­ based­ on­

technologies­ developed­ by­ research­

institution­(Link­&­Scott,­2003).

Science­and­technology­parks­and­

incubators­ are­ often­ the­ results­ of ­ public-private­ partnerships­ (Phan­ et­

al., 2005). It provides for alleviating the gaps­between­funding,­research,­and­

information on the science and tech- nology­policy.­STPs­imply­that­many­

stakeholders­ (for­ example,­ commu- nity groups, regional, and state govern- ments)­have­enormous­influence­over­

reviews­their­missions­and­operational­

procedures.­The­stakeholders­can­also­

be­ universities­ (academicians),­ firms­

(business),­ and­ the­ society.­ Hence,­

STPs­ are­ also­ referred­ to­ as­ places­

to­bring­together­the­elements­of ­an­

Academicians-Business-Government- Society­(ABGS).

Science­and­technology­parks­and­

incubators­ not­ only­ bring­ expertise,­

but­also­help­to­identify­markets­for­

the innovation, provide on intellectual property­protection,­offer­business­de- velopment­ skills,­ identify­ surrogate­

entrepreneurs and venture capitalists (Franklin,­Wright,­&­Lockett,­2001).­

The­ duties­ and­ functions­ of ­ STPs­

and­ incubators­ are­ as­ intermediary­

institutions­in­the­downstream­from­

research and development results. It is­a­business­support­and­technology­

transfer­initiative­that­support­incuba- tion, entrepreneurship, development of ­innovation,­knowledge­based­busi- ness­that­may­develop­the­knowledge­

creation.

The­incubator­model­is­similar­to­

the­STPs­structure.­­It­is­an­important­

tool of a technology policy fostering the­development­of ­the­new­technol- ogy-based­firm.­The­European­Com- mission (2002) reports the relationship between­different­incubator­modalities­

and other SME promotion structures that include a physical space element, illustrated in Figure 1.

Industrial estates in the top left- hand corner of the matrix have a non-selective­intake,­provide­little­or­

no management support and have no particular­criteria­for­business­activities­

and­technology­content.­At­the­bottom­

right-hand corner, technology centers have highly selective admission crite- ria,­ provide­ ‘hands-on’­ management­

support,­and­have­a­highly­specialized­

expertise in technology. Business incubators­are­positioned­close­to­the­

bottom­right-hand­corner­of ­the­ma- trix­because­they­provide­a­high­degree­

of management support to tenants

and­usually,­although­not­always,­cater­

for­technology-based­enterprises.­The­

mainpurpose­of ­business­incubators­

is to facilitate economic development by­ promoting­ entrepreneurship,­ in- novation, employment opportunities, and­ growth.­ Moreover,­ most­ of ­ the­

incubators­are­operated­directly­by­the­

national­or­local­authorities.­Incubators­

started­by­government­authorities­and­

agencies­are­often­associated­with­STP.

Even so, some previous studies mention­ that­ incubators­ differ­ from­

STPs­in­that­they­are­created­to­sup- port companies in their start-up phase (Tola­&­Contini,­2015).­The­differences­

are­based­on­the­differing­concepts­of ­ incubators­and­STPs­in­several­coun- tries.­ The­ incubator­ concept­ should­

not­be­used­for­an­organization­such­

as­science­parks­and­technology­parks­

(Bergek­&­Norrman,­2008).­The­idea­

of ­an­incubator­is­to­bridge­or­close­

the­gap­between­the­conceptof ­a­new­

company­and­the­company’s­viability.­

Figure 1.­Typology­of­Business­Incubators

Source:­European­Commission­(2002)

Most­ research­ centers­ and­ STPs­ do­

not offer technical assistance to SMEs, which­ is­ the­ mark­ of ­ an­ incubator­

program­(Tola­&­Contini,­2015).

The­Centre­for­Innovation­LIPI­

was­ established­ in­ 2001­ and­ links­

research centers and industries. At its inception, the Centre for Innovation LIPI­did­not­have­technology­incuba- tor­ facilities.­ This­ new­ incubation­

facility­has­been­owned­by­the­Centre­

for­Innovation­since­2013.­As­an­incu- bator,­it­is­engaged­in­the­development­

of ­the­technology-related­business.­At­

least­18­technological­innovation­has­

been­adopted­after­finding­a­strategic­

partner, that is, start-up companies that­became­tenants­at­the­Centre­for­

Innovation­LIPI­and­able­to­get­the­

necessary­help.­The­tenants­use­LIPI­

technology­and,­through­the­incuba- tion process, it is applied directly to a start-up­company.­Through­this­pro- gram, various activities to strengthen the management capacity to do so as technology and innovation to create a climate­for­growth­and­development­of ­ new­businesses­based­on­technological­

innovation.

In 2014, the President of the Republic­of ­Indonesia­initiated­a­pro- gram, called Nawacita, to give priority to a program that assures Indonesia’s economic sovereignty and indepen- dence.­ One­ of ­ the­ requirements­ of ­ the­program­is­the­establishment­of ­ 100­ science­ and­ technology­ parks­

(Widodo­&­Kalla,­2014).­This­program­

is intended to generate national and regional­competitiveness.­This­shows­

that­government­has­begun­to­appreci-

ate the implications and necessity of a

“knowledge-based­economy”­(Kush- arsanto­&­Pradita,­2016).­­Moreover,­

there are also other policies in previous years that support technology transfer in Indonesia.

The­Indonesian­Government­has­

promulgated several regulations to emphasize­the­urgency­of­building­and­

developing­STPs,­there­are:

• The­ Act­ No.18­ of ­ 2002­ about­

the­National­System­of ­Research,­

Development, and Application of Science­and­Technology

• The­ Act­ No.­ 3­ of ­ 2014­ about­

Industry

• The­Act­No.­17­of­2007­about­the­

National­ Long-Term­ Develop- ment Plan 2005-2025

• The­ Act­ No.­ 32­ of ­ 2004­ about­

Local­Government

• The­ Act­ No.­ 26­ of ­ 2007­ about­

Spatial Planning

• The­ Act­ No.­ 17­ of ­ 2003­ about­

State Finances

• Government­ Regulation­ No.­ 28­

of ­ 2008­ about­ National­ Spatial­

Plan

• Joint­Regulation­between­Minister­

of ­Research­and­Technology­and­

Minister­of ­Home­Affairs­No.­3­

of­2012­and­No.­36­of ­2012Presi- dent’s­Regulation­No.­32­of ­2011­

on Master Plan for the Accelera- tion and Expansion of Indonesian Economic Development

• President’s­Regulation­No.­2­of ­ 2015­ about­ National­ Medium­

Term­ Development­ Plan­ Year­

2015-2019

These­regulations­serve­as­a­guide­

and underlie the implementation of the STP­program.­Science­and­technology­

parks­ serve­ as­ a­ guide­ for­ research­

institution­about­meeting­more­closely­

the needs of industry (Massey, Quintas

&­Wield,­1992).­The­founding­of ­STP,­

managed­ by­ the­ Centre­ for­ Innova- tion,­began­with­LIPI’s­engagement­in­

activities­to­do­with­technology­incuba- tors.­Incubators­are­often­the­core­of ­ STP­(Saublens­et­al.,­2008).­Another­

study­ also­ showed­ that­ one­ of ­ the­

components­of­an­STP­is­an­incubator­

(Razovic­&­Mimica,­2013).

The­ development­ of ­ new­

technology-based­ companies­ as­ well­

as developing a culture technopreneur- ship­through­technology­and­business­

incubation.­ STPs­ have­ traditionally­

focused on the creation and nurturing of ­new­businesses­(incubation),­typi- cally­incorporating­incubator­facilities­

at­their­campus­(OECD,­1997).­In­2016­

the Centre for Innovation LIPI helped to create some start-up companies through­the­incubation­facilities­at­its­

STP.­

An­ STP­ is­ a­ meeting­ point­ of ­ science and entrepreneurial initiative at the regional level that encourages collaboration­between­entrepreneurial­

firms­ and­ other­ entities­ (Razovic­ &­

Mimica,­ 2013).­ The­ new­ companies­

that­are­built­in­STP­are­more­likely­

to­have­connections­with­local­society­

because­the­research­results­produced­

by­the­STP­are­usually­based­on­local­

needs.­Science­and­Technology­Parks­

are­important­in­the­regional­area­be- cause they give the surrounding area an

economic­boost­(Bellgardt­et­al.,­2014).­

STPs­have­played­a­significant­role­as­

technology transfer mechanism, a source of relevant research result, and support­for­economic­growth­(Link­&­

Scott, 2007).

One­ recommendation­ that­ can­

be­made­from­a­review­of ­LIPI’s­STP­

activities­ is­ that­ STPs­ can­ establish­

networks­ that­ facilitate­ innovation­

in science and technology and its ap- plications.­A­region-wide­system­that­

facilitates innovation from the results of ­R&D­in­many­fields­also­enables­

and encourages more start-up compa- nies.­An­STP­can­coordinate­dispersed­

resources to aid the local economy and to increase industrial development.

CONCLUSION

A­program­for­transforming­a­busi- ness­ development­ incubator­ into­ a­

science­and­technology­park­needs­to­

pay particular attention to the local environment;­none­are­quite­the­same.­

This­paper­reviews­the­stages­of­devel- opment­that­are­required­when­using­

technology­in­incubation­projects­to­

provide socially useful outcomes, such as regional development, commercial- ization­ services,­ and­ diversification­

programs.

Transfer­technology­that­increases­

know-how­is­still­rarely­implemented­

well­and­this­can­be­ascribed­to­the­

lack­of ­communication­and­collabora- tion­between­both­parties.­This­lack­

of ­efficiency­can­be­deduced­from­the­

slow­progress­from­start-up­to­capital- ization,­to­achievement.­A­science­and­

technology­park­is­a­community­that­

needs­to­collaborate­and­synchronize­

the process necessary for the creation and­nurturing­of ­new­businesses.

This­review­can­generalise­that­the­

circumstances­for­successful­incubation­

depend­ on­ the­ incubator’s­ funding­

model,­the­­available­support­from­the­

state­and­from­other­stakeholders,­the­

availability­of ­infrastructure­necessary­

for­local­businesses,­the­availability­of ­ seed funding for start-ups, the degree of ­acceptance­by­the­local­community­

of ­a­culture­of ­innovation,­other­key­

industries in the area, the government policy­framework,­and­the­possibilities­

for­economic­growth.

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