Private vs. Public Technological Incubator Program - The lesson from Israel

The Public Technological Incubator Program (PTIP) was initiated by the Office of the Chief Scientist (OCS) in the Ministry of Industry and Trade in Israel in the wake of a large influx of immigrants from the former USSR, many of whom were scientists and engineers. This massive immigration of highly skilled labor bolstered the Israeli high-tech industry which in the early 1990’s blossomed in an unprecedented manner. Between 1990 and 1993, 28 incubators were established. Today there are 24 incubators that are still in operation and they can be found near metropolitan areas and in peripheral areas, as well. Since the year 2000, private technological incubators began operating in Israel. This development owes its activity to the rapidly growing private (venture) capital (VC) that traditionally did not funded such projects. This study examines the differences and similarities between these two types of technological incubators – public vs. private. It addresses the question weather there is still a need for PTIP. The study points to the unique role played by VC funds and private investment companies in sponsoring projects in the private and the public technological incubators. VC funds tend to invest more in projects within private incubators than in projects in public incubators. However, they are only of secondary in importance compare to the financial support rendered by the (CSO) to public incubators and to the owner/sponsor in the private incubators. Thus, these sources of funds serve as complementary rather than as a substitute of funding for projects. Based on our empirical analysis and our findings, the main conclusion is that private incubators cannot substitute public incubators program; even after the entrance of the private sector into the area of technological incubator activity, there is still justification for the continuation of the TPIP. Private incubators tend to concentrate in selected fields while public incubators sponsor a large variety of fields. The PTIP is found to be the only answer to advance national objectives such as the geographical distribution of economic activities and providing special incentives to some selected population groups (such as new immigrants) for whom such activities would otherwise be out of reach.

Modelling Joint Development of Light Rail Transit Stations and Land Use - The Case of Tel-Aviv

Light Rail Transit (LRT) has been gaining popularity as a means of decreasing private automobile dependency and thus reducing car pollutants, relieving congestion and enhancing community liveability. LRT is also perceived as an important generator of economic growth, mainly in old urban centers. Through the improvement of accessibility to CBDs (Central Business Districts) planners and decision makers expect to revitalize central cities' vis-a-vis the increasing competition from the growing suburban shopping malls. More specifically, the objective of this paper is to explore the complex relationship between transportation and land use by analyzing the optimal composition of land use around the proposed light rail stations. Density and diversity are the two most important characteristics of urban land use development. We examine changes in land use adjacent to the LRT stations in metropolitan Tel-Aviv, and their impact on the demand for total travel in particular. These changes include hypothetical scenarios of alternative land use compositions, densities and intensities of residential, employment, and commercial land uses. In order to measure the impact of these changes on travel, a demand model is calibrated. The traditional four-step transportation model is retrofitted with alternative land use density and diversity variables. Among these are: residential density, job-population balance etc. As such, the re¬structured model is more sensitive to the different hypothetical land use scenarios and is expected to predict ridership demand changes more accurately. The results have shown that some of the land use variables are extremely important for trip generation trends forecasts, especially trip attraction trends. Furthermore, the simulations of the various land use policies are able to display the spatial reaction of trip rates to land use function, density, degree of mix, and household characteristics. The results of this study could serve to better assess urban transportation ridership demands, especially since they serve as input for mode choice analyses. Moreover, by exploring this subject even further, planners and decision makers will be able to attain a clearer and more comprehensive picture of optimal land use patterns surrounding station areas, and in doing so, improving the quality of life of urban dwellers, commuters and visitors.

INCORPORATING AGGLOMERATION ECONOMIES IN COST-BENEFIT ANALYSIS OF TRANSPORT PROJECTS

Economic evaluation of transport projects relies primarily on the impact of the project on road users. Economic benefits are calculated from the reduction in the aggregate value of time saved by the transport users as well as saving on vehicle operation costs. Most often the analysis assumes fix demand. Major mass transit, like the new Light Rail Transit (LRT), currently being proposed for the Tel-Aviv Metropolitan Area in Israel, is anticipated to generate substantial new traffic. This new traffic generation will most likely enhance the agglomeration forces at work in major urban concentration. Agglomeration economies could shift upward the production function of the metropolitan area, thus generating substantial additional benefits accrued to the transport project. In this paper we present the methodology used in the estimation of the benefits derived from agglomeration economies induced by the proposed new Light Rail Transit in the Tel-Aviv Metropolitan Area. We estimate the increase in the number of employees in the CBD due to the proposed LRT and their potential contribution to the total annual production of the CBD. Agglomeration economies could add a significant amount of additional benefit to the transport project. The extend of these benefits, in our case study, increased the benefit-cost ratio from 1.15 to 1.40

Private vs. Public Technological Incubator Program - The lesson from Israel

The Public Technological Incubator Program (PTIP) was initiated by the Office of the Chief Scientist (OCS) in the Ministry of Industry and Trade in Israel in the wake of a large influx of immigrants from the former USSR, many of whom were scientists and engineers. This massive immigration of highly skilled labor bolstered the Israeli high-tech industry which in the early 1990's blossomed in an unprecedented manner. Between 1990 and 1993, 28 incubators were established. Today there are 24 incubators that are still in operation and they can be found near metropolitan areas and in peripheral areas, as well. Since the year 2000, private technological incubators began operating in Israel. This development owes its activity to the rapidly growing private (venture) capital (VC) that traditionally did not funded such projects. This study examines the differences and similarities between these two types of technological incubators – public vs. private. It addresses the question weather there is still a need for PTIP. The study points to the unique role played by VC funds and private investment companies in sponsoring projects in the private and the public technological incubators. VC funds tend to invest more in projects within private incubators than in projects in public incubators. However, they are only of secondary in importance compare to the financial support rendered by the (CSO) to public incubators and to the owner/sponsor in the private incubators. Thus, these sources of funds serve as complementary rather than as a substitute of funding for projects. Based on our empirical analysis and our findings, the main conclusion is that private incubators cannot substitute public incubators program; even after the entrance of the private sector into the area of technological incubator activity, there is still justification for the continuation of the TPIP. Private incubators tend to concentrate in selected fields while public incubators sponsor a large variety of fields. The PTIP is found to be the only answer to advance national objectives such as the geographical distribution of economic activities and providing special incentives to some selected population groups (such as new immigrants) for whom such activities would otherwise be out of reach

Modelling Joint Development of Light Rail Transit Stations and Land Use - The Case of Tel-Aviv

Light Rail Transit (LRT) has been gaining popularity as a means of decreasing private automobile dependency and thus reducing car pollutants, relieving congestion and enhancing community liveability. LRT is also perceived as an important generator of economic growth, mainly in old urban centers. Through the improvement of accessibility to CBDs (Central Business Districts) planners and decision makers expect to revitalize central cities' vis-a-vis the increasing competition from the growing suburban shopping malls. More specifically, the objective of this paper is to explore the complex relationship between transportation and land use by analyzing the optimal composition of land use around the proposed light rail stations. Density and diversity are the two most important characteristics of urban land use development. We examine changes in land use adjacent to the LRT stations in metropolitan Tel-Aviv, and their impact on the demand for total travel in particular. These changes include hypothetical scenarios of alternative land use compositions, densities and intensities of residential, employment, and commercial land uses. In order to measure the impact of these changes on travel, a demand model is calibrated. The traditional four-step transportation model is retrofitted with alternative land use density and diversity variables. Among these are: residential density, job-population balance etc. As such, the re¬structured model is more sensitive to the different hypothetical land use scenarios and is expected to predict ridership demand changes more accurately. The results have shown that some of the land use variables are extremely important for trip generation trends forecasts, especially trip attraction trends. Furthermore, the simulations of the various land use policies are able to display the spatial reaction of trip rates to land use function, density, degree of mix, and household characteristics. The results of this study could serve to better assess urban transportation ridership demands, especially since they serve as input for mode choice analyses. Moreover, by exploring this subject even further, planners and decision makers will be able to attain a clearer and more comprehensive picture of optimal land use patterns surrounding station areas, and in doing so, improving the quality of life of urban dwellers, commuters and visitors

Towards a regional science academy: A manifesto

This Manifesto provides a joint proposal to create a Regional Science Academy as a think-tank support platform for a strategic development of the spatial sciences. The Regional Science Academy is a strategic spatial knowledge catalyst: it acts as a global intellectual powerhouse for new knowledge network initiatives and scholarly views on regions and cities as vital centrepieces of interconnected spatial systems. This contribution highlights its role and presents various activity plans