Background/Objectives

Through the Memorandum of Understanding (MoU) signed on August 01, 2006, CSF and HEC will partner to support initiatives promoting knowledge-based economic development and ensure long-term economic growth. These programs will complement the existing projects USAID has with HEC.

Historically, the research at Pakistan's universities has been purely academic, with little focus on applied research. Over the last three years, HEC has invested in research and development resulting in a marked increase in the number of research papers and international articles published by Pakistani academics. However, during the design of the CSF project, a lack of linkages between local industry and academia was identified as one of the major obstacles stifling innovation and technology-based growth in Pakistan.

One of CSF's main objectives, therefore, is to develop and support linkages between academia and industry for knowledge-based enterprise development.

CSF will provide matching grants to the academic community for projects that commercialize their research. It will also help them partner with the business community to start and develop new enterprises and will encourage the private sector and local governments to contribute financing to relevant research. CSF will highlight to the private sector in particular the benefits it can derive from commercializing the research it funds at academic institutions.

Another essential component of this undertaking will be the establishment of business incubators. HEC and CSF together will develop and implement a monitoring and evaluation system to ensure the successful and timely completion of the projects selected for the incubators. Finally, CSF will explore the possible financial involvement of other relevant bilateral institutions to share the cost of the relevant projects.

To further generate innovative ideas and cooperation, CSF and HEC will provide technical assistance by engaging foreign experts to support and initiate programs that promote the creation of knowledge-based enterprises in Pakistan. They will also jointly establish and fund a forum for the identification of research-based projects that will further the development of a knowledge-based economy. This forum will identify research institutions that may be invited for membership.

CSF will also act as a bridge between local and foreign universities and research institutions, particularly those in the US and Europe, so that the best international practices in promoting innovation and in addressing the workforce and technology development needs of the local industry can be conveyed.

ACTION PLAN

IMPLEMENTATION OF THE ACTIVITIES STATED IN THE MOU

CSF and HEC agreed that the two organizations will work together to generate and identify science and technology-based projects at universities throughout the country that have the potential to be commercialized. It was also noted that cooperation can build off three types of activities already initiated by HEC:

• 20/80 grants for 10-12 industrial projects
• Funding for a broader spectrum of hundreds of sector-specific research projects
• Support of Centers of Excellence within key universities and research institutions

The two entities will also investigate the feasibility of holding a series of trade fairs to highlight the science and technology-based projects developed at universities. The aim of the fairs would be to attract private-sector representatives looking for innovative products and systems to commercialize.

Another key point of cooperation, promoting professionalism in business schools, will be dealt with in a second venture between CSF and HEC.

This will begin by first visiting key universities to explain to senior faculty and professors directly engaged in relevant research of the support CSF can provide, focusing in particular on its capacity to provide matching grants and technical assistance. The two organizations will also use these meetings to attract the essential partnership of the private sector in this plan. Private sector invitees will center on chambers of commerce and industry representatives with a direct connection to the research envisioned. As these meetings will be informative in nature, they will encourage inclusion and may reach attendance of approximately 100 participants at each event. Approximately 20 universities have been identified as possible locations for these meetings. These meetings will be held in Islamabad, Karachi, Lahore and Quetta.

In the second phase of the effort, the stakeholders will convene in the aforementioned cities to discuss in greater specificity projects identified as worthy of support. The groups will also be briefed on requirements for proposal submission and funding. Attendance at these meetings will be restricted to senior faculty, researchers who have put forward research suitable for support, relevant industry and government representatives and staff from CSF and HEC. While attendance will be subject to the number of proposals developed, it is anticipated that no more than 40 Pakistanis will attend. These meetings are planned for mid- to late-October.

HEC has appointed Prof. Dr. Altaf Shaikh, as Coordinator / Director and Mr. Zarsher Khan as the Assistant Coordinator / Director to work with CSF for the implementation of the joint initiatives as stated in the MOU of co-operation signed between CSF and HEC.

The HEC – CSF Joint Initiatives Based on the MOU signed

Background
Through the Memorandum of Understanding (MoU) signed on August 01, 2006, the Higher Education Commission (HEC) and the Competitiveness Support Fund (CSF) have partnered to support joint projects to promote knowledge-based enterprise sector and ensure long-term economic growth in Pakistan. The HEC/CSF joint initiatives complement the existing projects that USAID has with the HEC.

The following joint activities of CSF and HEC have being implemented, which are based on the action plan that was prepared by both organizations.

STEP 1. THE INFORMATIVE WORKSHOPS

The Higher Education Commission (HEC) and the Competitiveness Support Fund (CSF) conducted a series of interactive workshops on promoting private sector involvement in commercialization of the viable research projects in the Pakistani universities and research institutions.

The workshops also included real life case studies from the academia and private sector representatives.

The informative workshops were held in Lahore, Karachi, Islamabad and Peshawar with active participation of the academia and industry representatives. The workshops attracted around 100-150 stakeholders in each city. There was also strong participation of women professionals in these workshops. The participation level by the Government officials was also very encouraging and has established the basis for a “triple-helix” of industry, academia and government collaboration on the projects.

The purpose of the workshops was two fold:

1. Help business people, academics and researchers to exploit the potential of applied research for innovations and identify areas of mutual interest with the private sector. The workshops encouraged researchers to link up with chambers of commerce and industries, private sector associations and other consortia of businesses.

2. Introduce the details of the HEC and CSF joint cooperation, including the financial criteria, application forms and scoring of the applications.

The following workshops were held from December 2006 to February 2007:


STEP 2. PROJECTS APPLICATIONS AND FINANCING

Applications

A joint application form has been developed to include, among other things, the following financing criteria of the both institutions:
– High potential to generate jobs, income, exports and investments
– High potential to improve quality of products and services
– Appropriate environmental, health and social impact
– Participation of the triple helix actors, specifically the private sector involvement in financing the 20% of the total project costs
– The number of the projects to be financed is expected around 10-15

Financing

The total amount of each project is US$20,000-US$250,000 from which the CSF’s possible financial contribution is expected to be a maximum amount up to US$125,000.
Partners’ contribution in details: 20% from private industry, 30% HEC and 50% CSF.

STEP 3. PROCEDURE AND TIMELINE

Procedure

The program will be advertised in local and national media for the invitation of proposal from the relevant quarters. The applicants will be asked to submit their proposals through the HEC/CSF application form to the HEC. The application will be reviewed by the HEC Review Committee (HRC), based on the joint criteria mentioned in the application form.

A joint CSF/HEC meeting will review the short- listed projects and select the project according the criteria of the both institutions. The selected projects will be submitted to the Board of Directors of  both institutions for the final approval.

Timeline

CSF / HEC APPLICATION PROCESS FOR MATCHING GRANT

STEP 4. FURTHER JOINT INITIATIVES

The CSF/HEC partnership will undertake initiatives to implement two other complimentary activities:

1. The HEC and CSF will hold the trade fairs in Islamabad and Karachi in the 2007/2008 to promote academia-based research projects with knowledge-based commercial potential to the private industry.

2. Develop jointly a business incubator project as a pilot to promote the incubator concept for business development in Pakistan.