Stepping into the age of innovation

You may not associate Bahrain with Internet innovations of the kind that could outstrip Google, climate change solutions that could eradicate a reliance on fossil fuels or aerospace expertise that can produce space applications - but that could be about to change.

A revolutionary company based in Bahrain recently helped to launch the kingdom's first aerospace company, Bahrain Aerospace - a nascent organisation which will not only create components for aircraft but could one day make space applications.

The company is also negotiating a substantial shareholding of a software start-up company which has developed a 'knowledge-based' Internet search engine.

The key technology includes algorithms which automatically merge and interact the mapping of documents to knowledge networks on the web. In layman's terms: a search engine that is a lot faster and cleverer than Google.

Despite the company's base in the world's richest oil region, it is also interested in developing alternative energy solutions as a way of stepping ahead of the future.

Founded in 2005, the innovation company, named Intelnacom is not only trying to 'predict the future but create it'.

The company proudly labels itself 'solutions for mankind'. Although lofty, the ideas that they are harvesting have the capacity to revolutionise Bahrain as it strives to become a knowledge-based economy.

"There are four types of people in this world: those who make things happen, those who watch things happen, those who wonder what happened, and those who won't realise that anything has happened. I wanted to be the guy who makes things happen," explained CEO Prof Dr Bernd J Hoefer, an economist whose previous appointment was vice-chairman of German Aerospace Centre, overseeing a budget of two billion euros a year.

"We're trying to bridge the gap between invention and innovation. Intelnacom is a clearing house for ideas, intellectual property and innovations. The trick is to find the right people, the right network and funding to make it happen."

Essentially a high-tech and business innovation firm which takes seeds of brilliant ideas and provides funding in return for a shareholding, Intelnacom is a unique organisation in a region that is addicted to quick returns.

The company typically invests between one and five million dollars per project, before searching out new investors to take it to the next level.

"It's not always fun to convince people to invest in technology in this part of the world," said Prof Hoefer. "Once they invest in real estate and see 25 per cent return annually on a project that can be sold three or four times before it is completed, they think why should we go for technology?"

But a technology and knowledge-based economy, he explained, are essential for the development of the region. Knowledge and innovation are assets that must harnessed and turned into products and services.

Organisations like Bahrain Aerospace, which Intelnacom has a 95 per cent stake in, will help to bring innovation back to the region.

"Aircraft manufacturers want to spread their resources all over the world, so some components can come from Bahrain. It could be service innovation, it could be creating components for aircraft and I would not rule out space applications, which could also mean space tourism," explained Prof Hoefer.

Bahrain Aerospace is a member of the International Astronautical Federation and holds and aircraft charter operation license from the Bahraini government. The company deals with the scientific and investment related issues of Intelnacom's aerospace activities such as creating satellite applications.

Prof Hoefer explained that production and manufacturing of applications will happen here.

"A lot of the applications are aluminum related and Bahrain has a strong aluminum industry," he explained.

Prof Hoefer is also convinced that Bahrain can tap into the multi-billion dollar business of alternative energies, such as solar and geothermal energy.

Last year the company sponsored the Arab Regional Solar Energy Conference that brought scientists and academics from around the world to Bahrain.

"It is emerging technology which gives Bahrain a fair chance of getting ahead," he explained. "The understanding of CO2 issues are increasing and developing alternative sources of energy here could give this part of the world the ability to develop that expertise and serve the world market. More and more governmental bodies and investors understand that."

He added: "It may also be a good idea for countries in this region to sell oil and gas on the world markets and cover their own energy needs with alternative energy."

Intelnacom is currently in the process of screening ideas in the field of alternative energy, but due to disclosure restrictions Prof Hoefer was unable to discuss them in detail.

But the question remains whether countries like Bahrain, whose oil revenue is currently worth $30 million a day, are ready to embrace alternatives.

"To some extent a mind-change is needed," said Prof Hoefer. "But to some extent, that change is already on its way."

Intelnacom's mission is to "always be at the forefront, to find new technology and new business," sits comfortably with the drive for training and education in the kingdom.

Intelnacom brought the celebrated World Memory Championships to Bahrain in September, the first time it had ever been held in the Middle East.

As a result it raised Bahrain's profile, and led to Intelnacom acquiring an exclusive license from the founder of Mind Maps, Tony Buzan, to develop an Internet search and display function using Mind Map technology.

The championships followed hot on the heels of the Festival of Thinkers in Abu Dhabi and the Knowledge Village in Dubai both of which showed a growing reverence for intellectual capital. As a knowledge-based economy is tentatively built, companies like Intelnacom will do the risky, but essential work to put Bahrain on the map.

"It's not realistic to deal with technologies on the one hand, and on the other still want sit in a market that is cosy and warm and established," said Mr Hoefer.

In the process of buying and developing clever ideas, Intelnacom will benefit Bahrain in a number of ways.

Technology projects are sourced from all over the world and cultivating contacts with start-ups and academic researchers will raise Bahrain's profile. Start-up companies funded by Intelnacom are also encouraged to shift some of their operation to kingdom.

In the process it aims to strengthen Bahrain as a financial hub, promote it internationally as "a stable, tax-free gateway to the GCC" and, offer an alternative investment opportunity.

"Not every single BD can invested in real estate. There is a lot of money here that needs to be invested and we enrich the playing field," said Mr Hoefer.

It is still an irregular playing field but the well of human ingenuity is endless. Linking intellectual capital with financial capital is an essential way of forging change.

Intelnacom may not render Google obsolete or launch a space tourist into the earth's orbit - but it is enriching the world by striving for a new future ... starting with Bahrain.