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Technoparque Internacional de Panama

Location: The International Technopark of Panama (ITP) is located in Panama's "City of Knowledge," on the former U.S. military base of Fort Clayton at the Pacific entrance of the Panama Canal.¹

Map of Panama from CIA World Fact Book.

Photograph of the International Technopark of Panama, courtesy of the International Technopark of Panama.  Used with permission.

Year founded: ITP is the first technology park in Panama2 and has been operational since December of 1999.³  (Note that the Panama Canal and remaining U.S. military bases were turned over to Panama from the United States on December 31, 1999.⁴)  The ITP received special support from economic cooperation programs developed by the European Commission.⁵

Focus:  Currently the ITP is developing two "concentration clusters," a "Bio Cluster," and a "Communications Cluster."⁶  However, the Park's website is careful to note: "The ITP is does not specialize in any particular technological or industrial sector. It will host companies that meet the selection requirements. Both production and service related activities will be admitted."⁷

Size: 120 hectares8 (296 acres). 25 tenants. ⁹

Composition:  The Park currently has 25 tenants, with 9 applications under consideration and 16 additional companies in the negotiation stage.10  Of the tenants currently in the Park, 16 are in the technology industry (11 of these in software development), one in biology, one in energy, one venture capitalist, 4 operating call centers or training facilities and 2 in consulting services.  Graphically, the composition of the Park is as follows:

Notable Tenants:  Xerox, Citibank

Governing Body: "The City of Knowledge is under the direction of the City of Knowledge Foundation, a private non-profit foundation created in 1995. It is directed by a Board of Trustees comprised of representatives from the academic, business, labor, and government sectors."¹¹
 

Universities:  The ITP is affiliated with the following Panamanian universities and research centers:¹²

• University of Panama
• The Gorgas Memorial Institute for Health Studies
• Smithsonian Tropical Research Institute
• Santa Maria La Antigua University
• Technological University of Panama

Infrastructure:  Panama has significant telecommunications infrastructure and is serviced by undersea fiber optic cables by Pan American, Global Crossing, Maya, Project Oxygen, Arcos and others.¹³

The ITP also contains an incubator that began operation in April 2000.  The incubator provides services such as advice in legal and business matters, financing, and assistance with the Panamanian business permitting process.¹⁴

Other infrastructure provided by the ITP includes access to information webs of the European Union, 24-hour security surveillance, purified drinking water, a conference room with simultaneous translation in 2 languages, landscaped areas with gardens, and houses and apartments for rent.¹⁵

Research Funding and Financial Incentives:  The Panamanian government has implemented many initiatives that facilitate business investment.  Some of these measures include standardizing the Panamanian currency to the U.S. dollar and the establishment of a Free Trade Zone where transactions are conducted tax free.¹⁶ Panama also passed Law No. 8 on June 14, 1994 that provides "incentives such as 20-year exemptions from import duties, fees for construction materials and equipment, and income, real estate and other taxes."¹⁷

In addition to general incentives provided by the Panamanian government, the ITP also offers special benefits for users of its incubator services, such as:

• "Fiscal incentives for import of equipment, machinery and cars.
• Free transfer and flow of capital.
• Income tax exemption for foreign personnel.
• Especial two years multiple entry visa for foreign personnel and their families. "18

Measures of Success:  While data on the ITP itself is difficult to find, as the ITP is still a very new initiative, Panama's Council for Investment and Development reports that Panama's business-friendly investment opportunities have resulted in millions of dollars of foreign investment and the creation of approximately 2,000 jobs.¹⁹  Panama's unemployment rate stood at 11.6% in 1999 with per capita GDP of $2,458.²⁰   In 2000, per capita GDP had increased to $6,000, however unemployment had also increased to 13%.²¹  Increased unemployment but greater wealth might indicate that foreign workers are immigrating to Panama to staff the ITP rather than local talent.  However, the trickle-down effects of investment in the Park could ultimately foster growth in other sectors of the economy as well.  It remains to be seen whether the ITP will become the technology incubator Panama desires, but the initial interest shown by many international businesses gives the ITP a lot of promise.

REFERENCES

1. City of Knowledge, "What is the City of Knowledge?," http://www.ciudaddelsaber.org.pa/en/, visited December 13, 2001.

2. Consulate of Panama in London, "Business Investment Opportunities: Fort Clayton," http://www.panaconsul.com/pages/bus_invest_clayton.htm, visited December 13, 2001.

3. International Technopark of Panama, "About the ITP," http://www.ciudaddelsaber.org.pa/en/technopark/about/, visited December 13, 2001.

4. CIA World Factbook, "Panama," http://www.cia.gov/cia/publications/factbook/geos/pm.html, visited December 13, 2001.

5. Lacave, Allemand & Associés, "Technoparque Internacional de Panama," http://perso.club-internet.fr/mlac/tip.htm, visited December 13, 2001.

6. International Technopark of Panama, "What is the Technopark?," http://www.ciudaddelsaber.org.pa/en/technopark/, visited December 13, 2001.

7. Id.

8. City of Knowledge, "What is the City of Knowledge," http://www.ciudaddelsaber.org.pa/en/, visited December 13, 2001.

9. International Technopark of Panama, "Companies and Institutions in the International Technopark of Panama," http://www.ciudaddelsaber.org.pa/en/technopark/companies/, visited December 13, 2001.

10. Id.

11. City of Knowledge, "What is the City of Knowledge," http://www.ciudaddelsaber.org.pa/en/, visited December 13, 2001.

12. City of Knowledge, "The Local Offer," http://www.ciudaddelsaber.org.pa/en/academia/local_offer/, visited December 13, 2001.

13. International Technopark of Panama, "Communication Cluster - Information Technology," http://www.ciudaddelsaber.org.pa/en/technopark/communication_cluster/information_tech nology.html, visited December 13, 2001.

14. International Technopark of Panama, "Incubator," http://www.ciudaddelsaber.org.pa/en/technopark/incubator/, visited December 13, 2001.

15. International Technopark of Panama, "Infrastructure and Services," http://www.ciudaddelsaber.org.pa/en/technopark/about/infrastructure_services.html, visited December 13, 2001.

16. Council for Investment and Development, "Petroleum Free Zones," http://www.businesspanama.com/investing/investmentOpportunities/petroleumfreezones.ht m, visited December 13, 2001.

17. Council for Investment and Development, "Tourism," http://www.businesspanama.com/investing/investmentOpportunities/tourism.htm, visited December 13, 2001.

18. International Technopark of Panama, "Incubator," http://www.ciudaddelsaber.org.pa/en/technopark/incubator/, visited December 13, 2001.

19. Council for Investment and Development, "About the Council," http://www.businesspanama.com/theCouncil/whoWeAre/index.htm, visited December 13, 2001.

20. Council for Investment and Development, "Economic Indicators," http://www.businesspanama.com/aboutPanama/economicIndicators/index.htm, visited December 13, 2001.

21. CIA World Factbook, "Panama," http://www.cia.gov/cia/publications/factbook/geos/pm.html, visited December 13, 2001.