Information and Knowledge Management using ArcGIS ModelBuilder

Ghassan Kbar
Example (profit): Investment cost: I = 50,000,000 SR , Pi: 1/W=30%, Fi=1/F=50%, Ki=20%, Initial
value of IP V= 20,000,000 SR
V i= current Value of Investment = 100,000,000 SR
Current value of IP = Vc = 20m+0.2*(100m-50m)=20m+10m=30m
ROI = Vi-I-Vc = 100m-50m-10m = 40m
Table 4: Example for sharing the profit of investment partnership calculation
IP owner Science Park Partner Funder
Investment cost
percentage
0 0.2*50m= 10m 0.3*50m= 15m 0.5*50m= 25m
ROI percentage of V-Vc=25m-
s of ROI = p of ROI = 0.3*40m q of ROI = 0.5*40m
parties (profit) 20m=5m 0.2*40m= 8m
= 12m
= 20m
Example (Loss): Investment cost: I = 50,000,000 SR , Pi: 1/W=30%, Fi=1/F=50%, Ki=20%, Initial
value of IP V= 20,000,000 SR
V i= current Value of Investment = 40,000,000 SR
Current value of IP = Vc = 20m+0.2*(40m-50m)=20m-2m=18m
ROI = Vi-I-Vc = 40m-50m-2m = -12m
Table 5: Example for sharing the loss of investment partnership calculation
IP owner Science Park Partner Funder
Investment cost
percentage
0 0.2*50m= 10m 0.3*50m= 15m 0.5*50m= 25m
ROI percentage of V-Vc=18m-20m= - s of ROI = 0.2*(- p of ROI = 0.3*(- q of ROI = 0.5*(parties
(loss)
2m
12)m= -2.4m 12)m= -3.6m 12)m= -6m
4. Conclusion
The concept of fair partnership models has been presented, which is based on a fair calculation
method for sharing the benefit/loss of the knowledge creation, as well as presenting a proper way for
attracting funds through VC. The fair partnership methodology requires identifying the relevant
partners, their contribution, and the formula for calculating their shares and return on investment. The
VC funding in development country at Saudi Arabia has been analysed and the indications has shown
a lack of trust in innovation caused by low level of innovation skills and problems in education
programs and management, in addition to other obstacles associated with regulation and internal
process. A new method for sharing the IP among partners and innovators has been described, which
provide a fair and proper way for sharing the benefit or loss. In addition to presenting the method for
sharing benefit or loss among investors and partners who support the project development toward
creating products to assist the knowledge based economy. Two examples for calculating the benefit
and loss for all partners in the investment partnership model has been presented, where it is clear
how fair is the suggested solution in sharing the outcome of the projects. This would achieve a high
level of trust among partners, and therefore make them doing their best toward achieving successful
project and celebrating their achievement.
References
Freel, M. (2000) “External linkages and product innovation in small manufacturing firms”, Entrepreneurship and
Regional Development, 12, 245-266.
Galbraith, (2002) “The Chronicle of Higher Education”, Technology Parks Become a force in Europe, vol 48,
Issue 18.
Gibb, A. (1995) “Learning skills for all: The key to success in small business development”, ICSB Annual
Conference Proceedings, 1-21.
Ncsu, (2011) [online], http://centennial.ncsu.edu/technology-incubator.php.
Optimice, (2008) The Partnership Scorecard, [online],
http://www.optimice.com.au/documents/ThePartnershipScorecard.pdf, Optimice.
Rothwell, R. (1991) “External networking and innovation in small and medium size manufacturing firms in
Europe”, Technovation, 11(2). pp. 93-112.
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