By Fiona Mullen from "Financial Mirror"
8-14 September 2004

Businesses lay down minimum requirements

A feasibility study for the establishment of a technology park in Cyprus will be offered in a month's time, according to Financial Mirror sources, while businesses already involved in the hi-tech sector have laid down their minimum requirements for the project to succeed.

No official announcement has been made about the timing of the expected tender next month, nor where the technology park will be sited, but informed sources expect the park to be sited in Kornos, close to Limassol, where the government owns land.

Real estate agents report that land prices have already been rising in the area in anticipation of a technology park project.

A seminar with interested parties was held at the Hilton Park Nicosia on Monday, bringing together experts from the Sofia Antipolis technology park in France (who are also the favourites to win the tender), companies already in hi-tech business in Cyprus, as well as government and public-sector officials.

The seminar was sponsored by the Cyprus Chamber of Commerce and Industry (KEVE) and the Employers and Industrialists' Federation (OEV) under the auspices of the Ministry of Commerce.

A technology park would be the main plank in the government's goal of raising public and private expenditure on research and development from 0.18% to 3% by 2010.

Planning Bureau chief Panicos Pouros noted that the establishment of the University of Cyprus, the Institute of Neurology, the development of the agricultural institute as well as allowing private colleges was a key part of that strategy.

Quickly and with no bickering

One of the main messages that came out of the seminar was the importance of establishing a technology park quickly: that if the park is not established very soon, there will be no point because Cyprus will have been taken over by the competition.

There is already fierce competition for technology parks in the region. Israel, Greece, Lebanon and Egypt already have parks, while Turkey is also planning one and Dubai is investing heavily.

Technology parks can range from a small business centre, which simply brings together researchers and companies in the same area of research, to an entire purpose-built city, together with schools, kindergartens and so on, such as Sofia Antipolis in France or the Internet City in Dubai.

However, following the sham made of the airport upgrade project, and the failure to find any bidders for new marinas, Cyprus has not given itself a good reputation for implementing big projects.

Perhaps with such examples in mind, Dr Bernard Musyck, Associate Professor at the Frederick Institute of Technology, asked whether this project would merely end up as a "cathedral in the desert".

In response, the French experts emphasised that as well as timing, a shared vision and common, long-term goal by all levels of government and all levels of the private sector was a key factor in success.

This could be one of the key weaknesses in Cyprus: there has already been criticism over the government's deal with the Harvard Institute for health research, while there appeared to be disagreements at the seminar between the Ministry of Finance on the one hand, which wants the project to be self-financing and the Ministry of Commerce on the other, which argues that at least the government should put up the costs of the infrastructure.

Critical mass needed

Another key requirement would be to site all hi-tech companies and research centres into the technology park, so that a critical mass could be created.

Given Cyprus' lack of a significant manufacturing base, the French experts recommended specialisation in a small number of areas for which there could be demand in Cyprus, such as accounting and finance software, maritime technology and marine biology.

Concentrating the various units in one area makes it more likely that the benefits will trickle through to business and further employment.

Businesses make demands

Representatives of two companies already operating in the hi-tech field in Cyprus, Nir Caftori of AMDOCS Development Ltd, a company listed on the New York Stock Exchange, and Ermis Stefanou of Thunderworx, laid down minimum requirements for the technology park to work.

Both companies described how difficult it is to retain staff in Cyprus, owing to the lack of support infrastructure.

Cypriots tend not to have the qualifications to work in the hi-tech sector.

It is worth noting, for example, that Athena High Technology Incubator's first project is with an Israeli company.

More support is therefore needed to help workers from abroad to contribute to the project.

Foreign labour rules are too rigid

AMDOCS, which employs 600 highly qualified software technicians mainly from India, which itself has a fast-growing tech sector, demanded more support from the labour office over work permits and allowing spouses to work (bored wives is a key reason for employees leaving).

It also demanded public transport to help employees get to work, as well as kindergartens and schools onsite for the employees' children.

AMDOCS noted that it was forced to build its own premises at the Maritime Business Centre because no building could match its hi-tech needs. It even built its own cafeteria because staff were spending too long in traffic jams trying to get lunch.

AMDOCS also called for better suppliers of computers and equipment, more direct flights to key destinations abroad and more appropriate accommodation for its staff.

Human environment is missing