Role of Science, Technology and innovation policy in stimulating economic growth and competitiveness

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1 Commission on Science and Technology for Development Twelfth session May 2008 Role of Science, Technology and innovation policy in stimulating economic growth and competitiveness By Minister of Science and Technology of Sri Lanka Prof. Tissa Vitarana

2 Keynote address to the 12th Session of the UN Commission on Science and Technology for Development Prof. Tissa Vitarana Minister of Science and Technology Sri Lanka

3 Rapid growth and globalization of markets (until recent economic downturn) Unprecedented flow of products and services/ processes into the global markets Scientific advances and technological innovations are two strong driving forces of this global transformation Shift towards knowledge society

4 This global transformation is uneven and concentrated in certain countries, regions and cities The international trade is split between low priced, primary or raw commodities (largely exported by developing countries) and expensive high-technology products and services (exported by more industrialized nations).

5 The current globalization process has widened the gap between the rich and the poor

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7 Points to note in bridging this technology gap S&T should empower especially the rural poor Generate technology to add value to natural and agricultural resources Micro, SME, Macro industries Much higher value addition to products and processes through advanced technologies Economically less developed countries need to focus on new waves of technology

8 Nanotech In 21 st Century Industrial Revolution in late 18th and early 19th centuries In early 1960's, the beginning of Electronics revolution ICT Revolution since 1980 s Biotec Revolution since 1990 s

9 The phenomenal rate of economic growth shown by Japan, Taiwan, South Korea, China, Singapore and several countries in Latin America, is due to their strategically harnessing these waves of technology

10 Year Billion US $ Electronics ,200 IT ,073 Telecom ,662 Biotech products Nanotech products * *This figure is set to grow to $3.1 trillion in 2015 Note: The values were obtained from Ernest ad Young and other sources

11 Biotechnology Nanotechnology Estimated global market value of products in billion US $ Estimated global investment in R&D in billion US $

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13 Biotech % % Grow th % Year

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15 Sri Lanka Singapore South Korea Per capita (Nominal) GDP in 1960 s - US $ Per Capita (Nominal) GDP today - US $ Population as at present (in million) * 1,617 39,130 19, *GNI per capita from Korean Institute of Science and Technology (KIST)

16 1960s Labor: Natural resources 1970s Capital: Light industry 1980s Capital/Trade: Heavy & Chemical Industry 1990s Technology: High Technology Industry 2000s Knowledge & Innovation: High-tech & knowledge industry

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18 Scientific Research and Development GERD/ GDP % 's 1970's 1980's 1990' Year Sri Lanka S. Korea Singapore

19 Low investment in S&T (and R&D) both by the government and private sector Inadequate human and physical resources Weak operational mechanisms to support R and D and commercialization of technological innovations Weak university-institute-industry partnerships Poor awareness on the role of S&T in development among policy makers and the public

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21 Composition of foreign born skilled S & T workers in the USA: 40% of the PhD holders 57% of computer and electrical engineers 54% of civil engineers 52% of mechanical engineers Less industrialized countries have to compete for their own scientists and technologists in the global market!

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23 Science and Technology have a vital role to play in the developmental process (including the achievement of the MDGs) R & D, particularly innovations in high end technologies essential for all developing countries. Include at the top of the agenda of all international organizations working towards eradication of poverty and improving the well being of the people

24 Fund and build Capacity in R&D (both physical and human) Promote industry oriented developmental research Promote R&D in advanced technologies

25 Total Investment in R&D as a % of GDP No. of Countries >4% of GDP 1 (Israel) >3% of GDP 4 (Sweden, Finland, Japan, Iceland) 2-2.9% of GDP % of GDP % of GDP % of GDP 25 <0.4% of GDP 46 No information 76 Total /2008 Human Development Report, UNDP 122 of of 177 countries (69 %) spend less than 1% of of GDP on on R&D

26 Encourage and empower Governments of less industrialized countries to invest in S&T through Highlighting its importance in International instruments as has been done for environment and climate change Multi-lateral/ bi-lateral support for capacity building in S & T Establish and support programmes for capacity building in R&D in all high tech areas