Link back to:
Information Technology Landscape in Nations

What is a technology park? "Technology park" is a vague term by all accounts, used to describe a variety of efforts to stimulate the development of "entrepreneurial, knowledge-based small and medium-sized enterprises" (or SMEs) within a country.  The term has at least 16 synonyms, with the most common being "science park," "research park," and "technopole."  New terms are constantly arising as technology parks attempt to distinguish themselves from the considerable competition of at least 295 technology parks worldwide.

Technology parks have been in existence in the United States since at least the early 1950's and have since spread around the world, with new technology parks continually arising.  Originally, the term "technology park" had a very limited definition, focusing on the real estate aspect of the park concept, in which universities typically leased real estate, office space or research facilities to businesses.  Sometimes these arrangements are referred to as "industrial estates"¹ or "firm hotels."²  The term, however, has evolved to include a much broader range of functions, including economic development and technology transfer.

While definitions on the subject vary widely, the definition we have focused on in our research describes a "technology park" as one that:

1. is linked with educational or research institutions
2. provides infrastructure and support services for businesses, particularly real estate and office space
3. performs a technology transfer function
4. performs an economic development function

Note, however, that not all technology parks will meet all of these characteristics and some may contain additional functions.  As the British Council explains in their definition, "[T]he term 'Science Park' can encompass a range of initiatives which can vary greatly, even within any one country. There is thus no question of a rigid definition or of a single transferable model being appropriate throughout the world."

For example, in 1993 in the United States, the average technology park has 200 acres, over 200,000 square feet of buildings, 12 tenant companies, 300 employees and a $250,000 operating budget.³  Parks outside the United States often are smaller in size and can be found in a variety of settings, from sprawling green spaces in rural areas to "vertical parks" in high rise buildings in larger cities.  To date, there are 212 technology parks that are members of the International Association of Science Parks⁴ and 295 members of the Association of University Research Parks.⁵

Formal definitions of "science park" and "technology park" can be found at the following links:

• International Association of Science Parks
• Association of University Research Parks
• Financial Times Industry Report on UK Science Parks
• UK Science Park Association

A rose by any other name . . .

As much as there is no consistent definition for "technology park," there is also no consistent term for the functions that a technology park provides.  While in the United States, "technology park," "research park" or "research and technology park" are frequently used, "science park" is popular in Britain and Europe and "technopole" is widely used in France.  The following is a list of terms that are often used interchangeably with "technology park":

• business park
• cyber park
• hi-tech park
• industrial park
• innovation center
• R&D park
• research park
• research and technology park
• science and technology park
• science city
• science park
• technology incubator
• technology park
• technopark
• technopole
• technopolis

For an article that distinguishes between science parks, incubators and technopoles, see the following link:

• The British Council, "Briefing Sheet on Science Parks," http://www.britishcouncil.org/science/science/pubs/briefsht/science_parks/parks. htm, visited December 11, 2001.

For an article that makes further distinctions between typologies of science parks, research parks and provides a laundry list of other terms used to describe technology park arrangements, see:

Nam, Kee Bom, "The Evolution of Science Parks and Metropolitan Development," http://www.uos.ac.kr/~nahm/Evolution%20of%20Science%20parks.doc, visited December 11, 2001.

Goal of a technology park

While each country or municipality may have different reasons for creating technology parks, generally the primary goal of a technology park arrangement is to increase the number of "entrepreneurial, knowledge-based small and medium-sized enterprises" (or SMEs) in an economy.⁶  SME's have been described as "the backbone of the private sector as they help diversify the economy."⁷  Developing countries with no local expertise in technology, may use technology parks to attract foreign direct investment to create jobs and increase tax revenues. 

REFERENCES

1. Lalkaka, Rustam, "Venture Creation and Growth through Business Incubators and Technology Parks," http://waitro.dti.dk/Publications/Seminars/Best_Pra/Lalkaka.htm, visited December 14, 2001.

2. Löfsten, Hans and Lindelöf, Peter, "Science parks in Sweden - industrial renewal and development?," R&D Management, July 1, 2001, 313.

3. Lalkaka, Rustam, "Venture Creation and Growth through Business Incubators and Technology Parks," http://waitro.dti.dk/Publications/Seminars/Best_Pra/lalkaka2.htm, visited December 14, 2001.

4. International Association of Science Parks, "Statistics," http://www.bida.es/clientes/iasp/information/statistics.php, visited December 14, 2001.

5. Association of University Research Parks, "Members," http://www.aurrp.org/parks.html, visited December 14, 2001.

6. Lalkaka, Rustam, "Venture Creation and Growth through Business Incubators and Technology Parks," http://waitro.dti.dk/Publications/Seminars/Best_Pra/Lalkaka.htm, visited December 14, 2001.

7. Id.