The Polar Star business incubator is the first Norwegian-Russian bilateral business incubation project, which is an innovative concept of the Norwegian Corporation for Industrial Development (SIVA). Polar Star has 800 m2 of modern business incubation premises and is situated inside the Polar Star Innovation Center in Murmansk, Russia. The incubator opened on April 8, 2008, and has already recruited 6 companies to date. Polar Star's main activities are within the marine and maritime sectors.
This interview was carried out with Ms. Alma Karabeg, International Project Manager at Polar Star, in February 2009.
What are the objectives of your incubator, and who are the main shareholders and founders?
The objective of the incubator is to stimulate Norwegian - Russian cooperation, and to facilitate the establishment of Norwegian entrepreneurs, companies and business activities in Northwest Russia. The shareholder is SIVA, the Norwegian Corporation for Industrial Development, as SIVA owns the Polar Star Innovation Center. Polar Star was initiated a couple of years ago as a natural prolongment of SIVA's engagement in northwest Russia. The founders are young entrepreneurs that have ideas that can benefit cooperation across borders.
The bilateral cooperation element differentiates Polar Star from other incubators and business support services. How is this reflected in the services you offer to your clients?
Business incubation is a unique and highly flexible combination of business development processes, infrastructure and people, designed to support entrepreneurs and grow new and small businesses, products and innovations through the early stages of development and change. Polar Star business incubator has created a system of service companies around 4 key service components: physical infrastructure, a safe environment, various support services, and a benefial work environment. These services are dedicated to assisting companies within business incubators and rendering them services at reduced – not market – prices. Services include company establishment procedures, judicial support, accounting services, consulting, business planning, web site design, as well as translation & interpretation.
What are the entry criterias for your clients? Are there certain industries you focus on?
Entry criterias are same as for other SIVA incubators across Norway. First and foremost, the entrepreneurs need to have a clear business plan or a clear business idea that can contribute to increased Norwegian – Russian economic cooperation, and faster growth of business and technology or commercial innovation that is future-oriented and based on sustainable development. Furthermore, companies should be in a development phase, and should contribute to strengthening the incubator's profile and technical environment, as well as have a huge innovative and development potential for a longer term perspective. The focus is on the sectors and industries specified by the Norwegian government, namely the oil and gas, marine, maritime, environment and tourism sectors.
How would you assess the demand for your incubator services in Russia and Norway so far?
The incubator is still very young. It was opened in April last year, but we already have 6 companies inside. The demand for incubators in Russia is strong since this is relatively a new concept in the region. At the moment we have four Russian and two Norwegian companies in the incubator. Each company employs about 1-3 employees. These companies represent expertise areas ranging from company administration and management services to waste recycling and environmental protection. [More information about the Polar Star tenant companies is available here.]
What is the business model of the incubator?
The incubator is publicly financed. SIVA is engaged in northwest Russia on behalf of the Norwegian Government.
How did you promote your incubator in both countries?
We had marketing campaigns in both countries simultaneously. We use media, conferences, presentations and marketing tours. We are actually on tour right now! We are marketing our projects and services to the Norwegian business community in the northern part of Norway. We hold meetings with local officials and employees working in the municialities and counties, as well as politicians and representative of companies, as well as confederations of SMEs. It is important to spread the information on the administrative level, but also to include the business activity in the region and to get in contact with the potential entrepreneurs. During these meetings we exchange information, find new ways to coooperate and use the ressources in a more efficient way.
Based on your learnings so far, what experience(s) would you like to share the most with other incubators or incubator planners that are considering to build up a bilateral or international incubator?
We believe that one can learn much more from an international incubator and that it stimulates cross-border cooperation. Bi-lingual incubators offer a lot of opportunities. However, in our case, it is a challenge to work with two such different markets, but despite that we experience progress. We have had positive cooperation with Russia. However, this incubator is created by a Norwegian initiative, meaning that it is for Norwegian businesses and is also open for Russian businesses that are going to cooperate with Norwegian ones.
Further information about the Polar Star Business Incubator, please see their incubator profile in iDISC's Global Network of Business Incubators.
To view a short video of Polar Star, please see a YouTube video here.