Day 2 - Tuesday 21 March - Edith Cowan University, Joondalup Campus Video Conferences Kyoto Research Park - Japan Subject: Networking Business Links Conference Opened at 3.30pm IN ATTENDANCE IDEA CONFERENCE MEMBERS Dusan Mills – Chairman Steve Arnott – Deputy Chairman KYOTO RESEARCH PARK Mr K Kitani Mr G Nishitani There were 8 members of the IDEA Conference also in attendance Theme: Establish a basis for networking and business links strategy between Kyoto Research Institute (KRI), Japan and the IDEA Project at St Andrews, Western Australia. Defining mutual opportunities. Scenario: Internal research conducted by the IDEA Project has identified 11 industry clusters in which Western Australia enjoys a regional competitive advantage. Proponents of the IDEA Project wish to facilitate international alliances with Western Australian companies who are active participants in the industry clusters. KRI gave an overview of their tenancies: Tenants 120 entities 2000 people Information Technology 45% Chemistry 15% Technical Services 15% Public Sector 10% Consulting 10% Material Machine 5% Start-up Companies 30% Question 1: Does Kyoto Research Institute (KRI) wish to have research associations with West Australian companies in the areas of: International English language education Agricultural sciences Health Mining Response: Environmental protection rated a group of companies 3-years ago. The companies visited Australia last year and companies in Australia visited Kyoto. Environmental research and technology ideas were exchanged. Healthcare was identified as an area where collaboration between companies would be of mutual benefit and further discussions will take place to establish specific opportunities. Question 2 Can you provide an example of a successful collaboration you have with another country? Response Mr Kitani: Australian and Japan have collaborated in areas of environmental protection. Question 3 We would like to understand Kyoto Research Park operations. Response Mr Nishitani: This particular site was constructed for research work, the land was provided by the gas company who had switch from fossil fuels to LNG. Question 4: Is KRI associated with companies requiring alliances in the areas of Biotechnology enterprises including: Human health and medicines Biochips – biosensors Response: Japan’s aged population is growing year by year, the Government is interested in ways to support elderly people. Research is being undertaken on a group of aged people and they are being educated on how to achieve a healthy life in later years. KRI is interested in health and lifestyle. Question 5 In order to pursue collaboration would it be useful to send a list and see if we get a match? Response Mr Kitani: Yes, collaboration and Environmental Industry Moderator. Establishing a framework for strategic co-operation. Scenario: The proponents of the IDEA Project wish to establish strategic alliances with KRI in areas of mutual opportunity. Question 1: How does KRI normally facilitate the creation of strategic alliances? Response Mr Kitoni KRI Identifies need of the company and finds the most appropriate partner/suitable person. Question 2: How many people do you have in Kyoto Research Park? Response Mr Kitani: We started 7 years ago with 3 staff and one assistant, we now have a further 3 staff after the opening of our new company 18 months ago. We now have 6 staff to cover SME within TLO. Formulating strucutral and organisational requirements. Scenario: The IDEA Project wishes to establish a formal organisational structure to pursue opportunities. Question 1: How does KRI fund its operations? Response: Through rents and also by agreeing with some companies to take a percentage of their stock instead of rent payment. We offer support to tenants and identify funds which may be available to them through Government funding. KRI does not receive money directly from the Government but our tenants may be eligible for assistance and we can make them aware of funds which may be available to them which assists them in paying rent. Question 2: Should KRI and the IDEA Project establish a joint entity to pursue joint opportunities? Response: It is most important to identify enterprise needs. Question 3: Does KRI have explicit connections with Japanese Universities who support its activities? Response Mr Kitani: Large Japanese companies provide universities with money for research to develop new technology. Their findings are passed on to small and medium sized enterprises. 8-years ago we started KRI, there are now 100 companies based here. KRI finds out the needs of enterprises and which university can best meet their needs. 2-years ago we set up a new company. TLO company in charge of new technology for new projects. Identifying key interation processes Scenario: Should KRI and IDEA Project enter collaboration then other stakeholders will need to participate. Question 1: Has our own Local Government any lessons to learn from assisting Small to Medium size enterprises grow? Response Mr Kitani: Central Government set -up some financial programmes and Local Government outsourced activities. The Government tried to make up some research and development groups in the area of environmental protection. Industry knows where money is buried and Local Government supports local industry to dig out money! Question 2 Is the Japanese Government involved in KRI’s activities? Response Mr Nishitani: We are now going through our second phase. The Central Government was involved in the first phase, it did not provide capital but allowed us to make use of this very unique project and supported the activities. The Government provided instruction and guidance. The gas company initiated the KRI which filled the Government’s need to address a change of direction. Question 3 Is there a Government need at the Park? Response by Mr Kitani: The Government provided $2 Billion-Yen which goes to industry and university collaboration and training programmes. The entrepreneur applies to Central Government to fund technology development. KRI staff assist in providing knowledgeable and experienced staff. Question 4 Do you help get venture capital and ongoing capital? Response by Mr Kitani: We put 2 hundred million-Yen aside for 4-5 small tenants, we instruct them to venture capital. Question 5 It seems that although money is of great importance, it is equally important for KRI to understand company needs? Response by Mr Kitani: Yes Question 6: Is an alliance between KRI and the IDEA Project able to utilise Japanese Government or Australian Government connections. Many people, including our Minister for Commerce and Trade, will be visiting Japan in June 2000, could he meet and discuss incubator centre with you? Response, Mr Kitani: Yes, I am available at that time and will be happy to welcome the Minister and other visitors from Australia. Clarifying implementation issues and "next steps" Scenario: KRI and IDEA Project from collaboration: Question 1: What are the next steps to continue this conversation. We have already agreed to exchange information on our databases, activities and facilities. Response Mr Kitani: We should find out similarities and differences between us. Question 2: We will provide each other with list of common interests in order to build a relationship between IDEA and KRI, we already have a common interest because your change of fuel from coal to LNG provided Western Australia with a new market. Mr Kitani: Keep providing LNG thank you. Dusan Mills thanked Mr Kitani and Mr Nishitani on behalf of the IDEA Group, the State Government and the community for their time and input and informed them that we look forward to future communications with KRI. In summary: 30% of tenants are start-up companies. KRI provides 2000 jobs. Companies may be attracted to Perth from Kyoto. Government did not provide financial assistance but did provide KRI with other assistance. It was agreed that the most positive outcomes of the conference were: Deputy Premiers will be meeting in Kyoto later in the year, as a result of the conference. Exchange of activities and requirements and company visits. St Andrew’s project can bee seen as a gateway for future alliance with Japanese companies. Matters of importance were: A Technology Park can be financially viable in the long term. Some tenants may be unable to pay rent but it can be of mutual benefit to agree to payment in the form of percentage of stock. Maintain close, strong links with Universities to assist new businesses. Provide tenants financial and information support. Conference closed at 4.30pm.