SPEECH BY THE MINISTER FOR ECONOMIC SERVICES PROF. JOSEF BONNICI AT THE IPSE SEMINAR ON ‘BUSINESS INCUBATION’ HELD AT THE MALTA CHAMBER OF COMMERCE, VALLETTA

I am very happy to open this morning’s seminar, which is the first in a series of similar activities that IPSE will be holding to introduce and disseminate the subject of ‘business incubation’.

This is a concept that is still relatively novel to Malta although it has already been tried and tested in a number of other countries. ‘Business Incubation’ can have many ramifications but it is ultimately the conscious and pre-meditated attempt to encourage, facilitate and assist new business ventures, expecially those that are intrinsically innovative and which are most likely to break new ground.

IPSE has been entrusted with a dual role; namely to guide the industrial restructuring process and to assist small firms in general. In addressing both these objectives, the initial emphasis has been on helping existing firms to enhance their competitiveness by improving their operational capabilities, by increasing their efficiency, by re-assessing their marketing horizons. Our principal focus, until now, has been to assist existing enterprises to evolve.

We have now reached the next stage in our restructuring strategy where we are starting to focus also on the need for existing firms to develop new initiatives and for new enterprises to emerge. However, new ideas and new ventures need to be assisted during their birth and nurtured and sustained in their early days. Hence the concept of ‘business incubation’, which is the subject of this morning’s seminar; which subject, will be developed in detail by our two guest speakers and by the representatives from IPSE.

Mr Larry Albertson is the Chairman of the US National Business Incubation Centre and a consultant who specialises in all aspects of business incubation. Mr. Patrick De Latour is here in representation of the European Business Innovation Network, of which IPSE has become a member.

Mr Ray Cassar and Mr Ray Muscat are the two IPSE officials who have been most closely involved in the preparation of a Business Incubation strategy to support the ‘Business Incubation Centre’ in Kordin, that I had the opportunity to launch just a couple of weeks ago.

If we were to make an analogy with computers, the Business Incubation Centre at Kordin is our hardware. Calling it ‘state-of-the-art’ might not be the relevant term in this particular case. It is however certainly an excellent platform for what we intend to do. Under one common roof, it brings together no less than 57 units - each of which will provide between 25 and 150 square meters of working space – with access to common support services and shared facilities, including opportunities for training in various fields related to business management.

Going back to our analogy with computers, even the most advanced hardware platform is only as good as the software running on it. This requires both a good ‘operating system’ as well as relevant ‘applications’. This is precisely the stage that we have now reached. After considerable thinking on the subject, IPSE has developed the necessary procedures and mechanism to run the Business Incubation Centre and has now earnestly begun the process of looking for prospective tennants. We think we have the right ‘operating system’ in place and we are now looking for practical ‘applications’.

Initially at least, the principal focus will be on ‘applications’ in the field of information and communications technology, mechanical and electrical engineering design, projects related to renewable energy and biotechnology. Innovative projects in other areas, however, will also be considered.

Ultimately, our objective is to encourage entrepreneurship and to facilitate the emergence of new and innovative business so as to stimulate further growth and the desired development of our economy. It is only through such development that we can secure the increase in our standard of living, for which we all aspire.