A. National innovation system
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1 Jang, Yongsuk, Science, technology and innovation for sustainable growth in Korea, paper presented at UNESCO Science Education Workshop, Seoul National University, Seoul, 26 July. Kim, Linsu, Imitation to Innovation: The Dynamics of Korea s Technological Learning (Massachusetts, Harvard Business School Press). Kum, Dongwha, Role and accomplishments of government R&D for advanced S&T catch-up, paper presented at the Special Symposium of 40th Anniversary of S&T Administration and 3rd Anniversary of Vice Prime Minister of S&T Administration, Seoul, 29 October (In Korean). Yu, Seongjae, Evaluation of R&D institutes: an integrated approach the Korean model, paper presented at the Korea-France Seminar on Science and Technology Policy, Seoul, 20 September. XI SRI LANKA 25 A. National innovation system Sri Lanka has a system that offers free education up to tertiary level. The lack of private tertiary education institutions, however, limits the number of university seats and only about 5 per cent enrol in tertiary education. This, in turn, has an effect on the human resources situation in Sri Lanka, particularly in the science and technology (S&T) field, where the funds for research and development (R&D) have fallen substantially because of the prolonged war in the country. Sri Lanka established a National Science and Technology Commission (NASTEC) in 1998 and reorganized its scientific institutions. NASTEC is essentially a policy-making body given the responsibility of make recommendations to the government on all aspects of S&T development. In 2006, Sri Lanka had 4,520 R&D scientists, distributed across 31 research institutes and 16 universities, while the critical mass required was 18,000 research personnel [according to the world average of 894 researchers per million inhabitants estimated by the United Nations Educational, Scientific and Cultural Organization (UNESCO) Institute for Statistics (2004 data)]. The gross expenditure on R&D (GERD) in 2006 was only 0.17 per cent of the gross domestic product (GDP), with government contributing close to 65 per cent of it and the private sector accounting for the rest. GERD has further fallen to 0.13 per cent of the GDP in Sustained neglect of R&D commercialization practices, including protection of intellectual property rights (IPR), has severely affected the wealth-creating capacity in the R&D sector in Sri Lanka. Foreign contribution to R&D has also dropped significantly, from 22.6 per cent in 1996 to 4.8 per cent in Sri Lanka s national innovation system (NIS) has not engaged in any cutting-edge technology for a long time, and the country is just starting to engage in nanotechnology 25 Presented by Mr. Daya Ranjith Pullaperuma, Chairman, National Engineering Research & Development Centre (NERDC), Sri Lanka. 162
2 with the formation of the Sri Lanka Institute of Nanotechnology (SLINTEC) that the Ministry of Technology and Research (MTR) established in partnership with the private sector. SLINTEC has already generated five patents. The government is planning to establish a Nano Science Park and develop it as a centre of excellence. The first National Strategy on Science, Technology and Innovation for Sri Lanka, for the period , was prepared by the then Minister of Technology and Research, Prof. Tissa Vitarana, 26 with assistance from his Science Advisor and a task force constituted for the purpose. The strategy has four main goals: 1. An efficient system to actively harness innovations and technologies to generate and improve products and services to contribute towards doubling the per capita GDP in an equitable manner by increasing the high tech value added exports and the production for the domestic market; 2. Well-established, dynamic and well-resourced world-class national research and innovation ecosystem; 3. An effective framework to prepare the people of Sri Lanka for a knowledge society; and 4. Sustainability principles entrenched in all spheres of scientific activities. The strategy is aligned with the Vision of the President of Sri Lanka and has been approved by the Cabinet recently. It aims to achieve economic development through science, technology and innovation (ST&I) and to this end, to restructure and mobilize knowledge-creating systems. B. NIS governance issues Through efficient and effective governance of the country s innovation system, Sri Lanka s aims to achieve the following: To establish a world-class national research and innovation eco-system to focus on socio-economic development by 2015; To orientate and focus R&D efforts towards socio-economic development needs in the country; To make optimum use of financial, physical and human resources for R&D through a well-coordinated mechanism; To identify the national and provincial R&D needs on an annual basis and to incorporate financial provisions into national budget and for speedy completion; To ensure maximum return to society by harnessing R&D outputs to develop and commercialize technologies as products and processes; To ensure international standards of safety and quality in research, technology transfer and scientific services; To ensure that highest ethical standards are maintained; To ensure that R&D findings are used in the development of national policies and strategies; To ensure S&T input into national planning processes; and To protect natural resources with scientific beneficiation through value addition. 26 Currently Senior Minister, Scientific Affairs. 163
3 The responsibility of implementing the national S&T policy is vested with the Ministry of Technology and Research as per the National S&T Policy, which was approved by the Cabinet in The National Strategy on Science, Technology and Innovation has recognized the need to create a governance platform to ensure efficient governance of R&D in the S&T sector. To achieve this, certain measures have been identified as required: Reorganize research facilities under one framework; Integrate R&D activities with national development programmes; Set up a national cadre of researchers; Create a national technology and research fund; Encourage and support the creation and facilitate the management of intellectual property (IP) arising from R&D; Develop strategic public-private partnerships (PPP) for innovation and utilization of research results; Develop strategic international partnerships for R&D; Develop essential support structure at the Ministry level; Encourage international quality standards and systems in R&D, technology transfer, product development and testing services; and Infuse S&T into national development projects. There are a number of issues that need to be addressed for implementing the National Strategy on Science, Technology and Innovation. The first is to convince all stakeholders such as the ministries, provincial councils, R&D institutes and universities to firmly support the implementation of the strategy. It is very important to set off adequate funds from the national budget for carrying out the tasks associated with the implementation. Action plans must prioritize tasks based on funds allocated. The focus of research training needs to be on advanced technologies, and initially around 725 R&D personnel could be trained over five years. In any country, the government plays a crucial role in building the NIS, of which the building of talented human capital forms the strongest pillar. The very low output (below 100 per year) of postgraduate research degrees by the Sri Lankan universities is an area of concern. Therefore, the National Science Foundation s Support Scheme for Research Degrees (SUSRED), Overseas Special Training Programme (OSTP) and International Partnership for Science & Technology (IPSAT) are to be utilized to remedy the situation. Another area of concern is the very low number of university academics (less than 20 per cent) who are engaged in R&D. Furthermore, there are only 21 per cent of R&D personnel in engineering disciplines, which is affecting the capacity for technological development. It is essential to have a critical mass of researchers trained in research methodology and skills if Sri Lanka is to engage in wealth creation through innovation and R&D. Therefore, there is an urgent need to increase research job opportunities, even establishing a cadre for full-time research. Brain drain has been and is a major factor for Sri Lanka lagging behind in S&T-driven economic development. A significant part of 164
4 the brain drain has been due to low remuneration and lack of a favourable environment for R&D. While addressing these issues, it would also be worthwhile to establish a scheme to obtain the services of Sri Lankan expatriates and foreign scientists. As said earlier, the proper functioning of the governance platform is critical to the implementation of the National Strategy on Science, Technology and Innovation. Therefore, the strategy document proposed a National Science and Technology Innovation Council (NSTIC) to be chaired by the nation s President. Ministers in charge of the various ministries will be the members of NSTIC. The main objectives of NSTIC are: Coordinate S&T policy across the diverse entities; Identify specific areas for R&D that needs to be coordinated across several line ministries and private sector, aimed at accomplishing multiple national goals; Decide major S&T and R&D initiatives; Set funding priorities for the annual budget; and Monitor the performance of the Strategy and the research system. A restructuring of MTR has been proposed to enable it to carry out effectively its responsibilities, as envisaged in the National S&T Policy of The creation of a Department of Science, Technology and Innovation headed by a Director General under MTR was one of the measures proposed. The Strategy document also proposed: To strengthen the functioning of S&T Committee of Line Ministry Secretaries with regard to inter-sectoral issues; To coordinate line ministries and their R&D functions; and To streamline human resources development and to focus research training on specified advanced technologies even if researchers are in other line ministries. The Strategy took note that knowledge-based companies are valued by the investors at a much higher level than their actual net worth or assets; the assets of such companies are tied to aspects such as creativity, knowledge and skills, and they are all characterized by their IPR and knowledge content. Therefore, a coordinated and efficient system to manage IPR of Sri Lanka needs to be part of the operational mechanism for the country to create wealth through its R&D outputs. Sri Lanka s existing IP code was established in 1979 and is administered by the Sri Lanka Inventors Commission, which was under the Finance Ministry but has now come under MTR. The objectives set for the Commission were: To encourage the making or creation of inventions by citizens of Sri Lanka; To give technical, financial and legal assistance to inventors; and To exercise, discharge and perform all the powers, functions and duties conferred or imposed on such Commission under the Sri Lanka Inventors Commission Act 53 of The National Intellectual Property Office functions under the Ministry of Trade and Commerce. It promotes the use of IP systems in the development process by IP owners, enterprises and industries; conducts awareness programmes; and facilitates enforcement of IPR. 165
5 The functioning of the Commission has not been up to the mark and there have been some complaints regarding effectiveness of enforcement of the IP code. In view of this, the Strategy recommended that: An IP policy to be formulated urgently and a strong legal system to protect IP in the country; The Sri Lanka Inventors Commission be reactivated to fully enforce IP governance; A National Centre be established to file manage and exploit our patents, nationally and internationally; and A Patents Pool be established. The development and application of S&T in any country critically depends upon the extent to which the general public understands S&T, the Strategy document noted. Therefore, popularization of S&T among the general public, particularly enhancing awareness among young people and school children, is important in generating a science culture. To inculcate a culture of innovation among school children, the Institution of Engineers Sri Lanka has instituted a Junior Inventor of the Year award scheme. Special awards are granted to themes such as efficiency improvement, energy efficiency and environmental protection. Some of these inventions have won at international events, and the National Engineering Research & Development Centre (NERDC) is willing to assist such innovators. A mechanism will soon be formulated for implementing this course of action. C. Conclusion As has been discussed above, the governance of Sri Lanka s NIS is at present dispersed under different ministries. Assistance is sought through APCTT-ESCAP in identifying a proper functioning framework for the effective governance of NIS. XII THAILAND 27 A. National innovation system The Ministry of Science, Technology and Energy 28 of Thailand was established only about 30 years back, in 1979, and the term innovation began to gain currency in the country only about a decade back. As shown in Figure 40, the current Ministry of Science and Technology (MOST) has under it 14 agencies all working more like private companies that together provide governance of the national innovation system (NIS). All NIS governance policies are monitored in terms of their output, outcome and impact (Figure 41). 27 Presented by Maj. Gen. Chainarong Cherdchu, Deputy Director, National Institute of Metrology, Thailand. 28 This later became Ministry of Science, Technology and Environment and then, under Restructuring of Government Agencies Act of 2002, the ministry was trifurcated into: Ministry of Science and Technology; Ministry of Energy; and Ministry of Natural Resources and Environment. 166
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