UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA. Investing in the Future: R & D Expenditure in Africa

Transcription

1 UNITED NATIONS ECONOMIC COMMISSION FOR AFRICA Investing in the Future: R & D Expenditure in Africa Science with Africa Conference, 3 to 7 March 2008, Addis Ababa, Ethiopia United Nations Economic Commission for Africa ICT, Science & Technology Division United Nations Economic Commission for Africa P.O. Box 3001 Addis Ababa, Ethiopia Tel: Fax:

2 Table of Contents 1. Introduction Science in Africa R & D in Africa...7 Page 3.1 R&D personnel Expenditure on R&D R&D outputs Patent statistics as indicators Conclusion...19 i

3 List of Boxes Box 1: 8 th Africa Union Commission Heads of State Summit Declaration on S&T List of Graphs Graph 1: Government expenditure in key science sectors in Tanzania from 1999/00 to 2006/07 Graph 2: Percentage of allocation against national budget in key fields of Science and Technology in Rwanda Graph 3: Researchers per million inhabitants by principal region/sub-regions, 2002 Graph 4: Shares of world researchers by regions, 2002 Graph 5: Shares of world R&D expenditure by regions, 1990 Graph 6: Shares of world R&D expenditure by regions, 2000 Graph 7: Gross domestic expenditure on R&D (GERD) as % of GDP, 2002 Graph 8: Gross domestic expenditure on R&D per researcher by principal regions/sub-regions Graph 9: Gross domestic expenditure on R&D by sources of funds for selected countries, 2005 Graph 10: Gross domestic expenditure on R&D by executing sector in selected countries, 2005 Graph 11: World Scientific output and world share in R&D expenditure, 1990 and 2000 List of Tables Table 1: World researchers, 2002 Table 2: World Scientific output and world share in R&D expenditure, 1990 and 2000 Table 3: R&D personnel for selected African countries for more recent years Table 4: Gross Domestic Expenditure on R&D (GERD) for selected countries in Africa ii

4 1. Introduction As one of its main areas of focus in its business plan, ECA promotes science and technology (S&T) and innovation for Africa s development through policy analysis, advocacy and capacity building among its Member States. ECA is also a bridge that brings emerging global United Nations issues on S&T to Africa, and takes Africa s S&T issues to the United Nations. It achieves its objectives through alliances and partnerships, most notably with the African Union, the African Development Bank (AfDB) and with the African S&T communities and networks of Centres of Excellence. The recent repositioning of ECA to better serve Africa s development needs has created a new, focused Division of ICT, Science and Technology (ISTD), thus aligning S&T more closely with its partners for enhanced collaboration. The Constitutive Act establishing the African Union calls upon the development of the continent by promoting research in all fields particularly in science and technology. In this regard, the first Conference of African Ministers for Science and Technology, in November 2003, recommended the integration of Africa's science and technology programmes, particularly AU Commission and NEPAD programmes, into a consolidated and well-coordinated policy and programme framework for Africa in order to direct socio-economic development of the continent through science and technology. Furthermore, one of the strategic focus areas of ECA s programme priorities is promoting regional integration in support of the AU vision and priorities. ECA support to the implementation of AUC regional integration agenda will focus on undertaking research and policy analysis on the issues. It will also seek to strengthen capacity and provide technical assistance to institutions driving the regional integration agenda, including RECs, and working on a range of trans-boundary initiatives and activities in sectors vital to the regional integration agenda. Emphasized in NEPAD s S&T Consolidated Plan of Action, African countries made a bold attempt to make progress in S&T by adopting in July 1979, the Monrovia Strategy and in April 1980, the Lagos Plan of Action (LPA) for the Economic Development of Africa and the Final Act of Lagos. The LPA was a visionary, far-reaching and unprecedented blueprint on how to foster collective self-reliance and sustainable development of the continent. However, Africa remains the poorest and economically marginalized continent in the world. 1 A key challenge to the realization of the vision and goals articulated in the LPA and subsequent socioeconomic development frameworks has been that of implementation of specific policies and programmes. Often for short-term activities and solutions, however, the continent has continued to rely on external financial support. It has not largely given serious attention to science, technology and innovation as engines of long-term development. This therefore shows that there has been a low or declining public expenditure on research and development (R&D) 2 coupled with a weak or lack of Research and experimental development comprises: Original investigation undertaken in order to gain and exchange knowledge and understanding; Creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of humanity, culture and society, and the use of this stock of knowledge to devise new applications, rather than the application of existing knowledge; Any activity classified as research and experimental development is characterized by originality; it should have investigation as a primary objective and should have the potential to produce results that are sufficiently general for humanity s stock of

5 link between industry and S&T or R&D institutions. Furthermore, the results of R&D activities do not often get accessed and used by local industries, particularly small and medium-scale enterprises (SMEs). In many cases there is mismatch between R&D activities and national industrial development goals and strategies. In many countries infrastructure for R&D has been neglected and is deteriorating. Institutions of higher education, particularly universities and technical colleges, are in urgent need of renewal after many years of neglect and disorientation from local and national priorities. Since 2000 there has been an increasing recognition of the place of science in international development. In 2005 the United Nations World Summit addressing the follow-up to the Millennium Development Goals stated We recognize that science and technology, including information and communication technology are vital for the achievement of the development goals (United Nations 2005, para 60). At regional level the African Union Commission Plan of Action aims to promote human resource development, capacity building and science and technology as tools and youth as partners for socio-economic development, while NEPAD 2005 S&T Consolidated Plan of Action aims to enable Africa to harness and apply science, technology and related innovations to achieve sustainable development, and to ensure that Africa contributes to the global pool of scientific knowledge and technological innovation. UNECA supports the NEPAD S&T Consolidated Plan of Action, and promotes establishment of S&T parks and incubators in member States. It has also been undertaking research and development activities on selected emerging issues and topics of importance. As part of its work to promote the application of S&T for development, ECA provides support to selected centres of excellence in the various subregions and facilitate networking among them. As one of such efforts, ECA in collaboration with Intelligence in Science is organizing the Science with Africa conference from 3 to 7 March 2008 in Addis Ababa, Ethiopia with the aim of exploring how African science-based entities can increase their collaboration with and participation in international science and R&D projects. This publication is prepared by UNECA to provide participants of the conference with background information on the state of Science in Africa in general and on research and development in particular. It refers to the framework of UNESCO s World Science Reports and looks at a number of commonly used S&T indicators related to research and experimental development (R&D), including R&D expenditures and personnel, scientific outputs and international collaborations including patents. Though the data may be incomplete it aims to provide a picture of the status and progress of R&D in Africa. knowledge (theoretical and/or practical) to be recognizably increased. 2

6 2. Science in Africa Why invest in Science? It is recognized that there is a strong correlation between the size of the investment that a nation makes in science and technology research and development (usually assessed as the fraction of the country s GDP invested in R&D) and the standard of living and other measures of economic wellbeing that predominate in that nation. The productive sector of the economy of any industrial nation demands a labour force that is scientifically literate. Thus, a country s economic well-being depends on there being high levels of scientific and technical literacy. Economic development certainly depends on the scientists and engineers who discover and invent and on those who develop these innovations. But the successful implementation of these innovations depends on there being cadres of educated workers, skilled in the management of machinery, computers, control centres, quantitative information and materials. The workers required by modern industries have to understand technologically complex instructions in order to operate equipment and communicate and cooperate with each other in tasks that are far from purely repetitive. The decision makers need to rely on policy advisers who are scientifically and technologically qualified for adequately briefing government officials and others on development issues and strategies. 3 The decision-makers on their part need to be scientifically literate in order to interpret, evaluate and use the experts advice for making policy decisions and implementing them through the political process. Therefore, science and technology knowledge provides the essential raw material for the production of the vast majority of goods and services within a modern economy. It also provides essential information to improve the health and well-being of citizens, society and the environment. It is an essential input into effective government policy and funding decision-making across all sectors. Cognizant of this fact, the eighth African Union Heads of State Summit, held in January 2007 in Addis Ababa, made science, technology, and sustainable development the main topics of discussion. 3 UNESCO (1996) World Science Report London: UNESCO. 3

7 Box 1: 8 th AU Heads of State Summit declaration on S&T The Heads of States Summit declaration (abridged as follows) commits African governments to: Encourage more African youth to take up studies in science, technology and engineering, and invite Member States to pay special attention to the teaching of science and technology; Promote and support research and innovation activities and the requisite human and institutional capacities; Ensure scrupulous application of scientific ethics in Africa with a view to preserving the continent s environment and national resources and preventing all practices harmful to African populations; Ensure the enhanced role and the revitalization of African universities and other African institutions of higher education as well as scientific research institutions so that they can play an effective role as loci of science, technology and engineering education and development and also contribute to public understanding of science and technology; Promote and enhance regional as well as South-South and North-South cooperation in science and technology; Increase funding for national, regional and continental programmes for science and technology and support the establishment of national regional centers of excellence in science and technology. Finally strongly urges Member States to promote Africa s Research and Development (R&D) and develop innovation strategies for wealth creation and economic development by allocating at least 1% of Gross Domestic Product (GDP) of national economies by 2010 as agreed by Khartoum Decision (EX.CL/Dec.254 (VIII). Several African nations have already increased their investment in science and technology. Rwanda for example, has boosted its expenditure on science to 1.6 per cent of its gross domestic product (GDP), striving for 3 per cent within the next 5 years. Research and development funding in South Africa is scheduled to grow to 1 per cent of its GDP by Nigeria plans to invest $US5 billion to create a national science foundation. Zambia, with a $US30 million loan from the African Development Bank, will offer postgraduate fellowships to train some 300 science and engineering students in its country. Brazil's Pro-Africa Programme supports scientific and technological capacity building in sub-saharan Africa, especially in Angola and Mozambique 4, to help these countries in their development endeavours. This increase in R & D expenditure is succinctly illustrated by the graphs below, which display how Tanzania and Rwanda have directed their resources towards R&D in the key science and technology sectors of their countries in the last five years: 4 Hassan, Mohamed H. A. (2007). A New Dawn for Science in Africa. 4

8 Graph 1: Government expenditure in key science sectors in Tanzania from 1999/00 to 2006/07 Expenditure pattern in key science areas / / / / / / / /07 Health Water Agriculture (Research and extension) Transport The above graph shows the percentage of expenditure against the national budget in key priority sectors of Science for the Government in Tanzania. Over the past ten years and even more, the GDP of Tanzania has grown more than double from $US 4.5 bn in 1994 to $US 10.5 bn in 2003 and $US 10.9 bn in 2004 which to a certain extent, could be attributed to an increase in expenditure on R&D, science and technology. 5

9 Graph 2: Percentage of allocation against national budget in key fields of Science and Technology in Rwanda Percentage of allocation against national budget in key fields of S&T in Rwanda 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% 2006/ / / /10 Agriculture Transport and communication Water and sanitation Energy ICTs Health Rwanda has also recorded an increased GDP growth with its more focused strategy in Science and Technology investment with an average GDP annual growth of 4.2 per cent from 2004 to Some of the countries have made bold statements in their budget speeches on the importance of investing in scientific research and development activities as shown in the following examples from South Africa, Uganda and Ghana: In South Africa, during 2006, real GDP grew by 5.3 per cent 5. The 2006 budget speech stated: To encourage businesses to increase investment in technology and innovation, the deduction for current research and development expenditure will be increased from 100 per cent to 150 per cent, and a more favorable regime for depreciation of R&D capital expenditure is proposed. 6 In Uganda the 2006/07 budget speech stated: Government has prioritized the provision of support to scientists who are undertaking research and innovations related to our production processes. In this regard, I provided Shs 8 billion towards research in banana development, fruit juice processing and malaria research. In addition, Government has negotiated a five-year US$ 30 million project under the Millennium Science Initiative funded by the World Bank, to support research, education and training in science and 5 Economist Intelligence Unit (2006). Country Forecast February 2006 Sub-Saharan Africa, Regional overview. London: The Economist Intelligence Unit. 6 Budget speech, Ministry of Finance. The Government of South Africa. 6

10 technology with linkages to the industry. 7 In Ghana, the 2006/07 budget speech focused on supporting the commercialization of research, innovation and development, and stated: The Government s belief that accelerated growth cannot easily be achieved without commercialization or linking our commercial and industrial sector to research, innovation and development in the country. In view of this, it is planned to give special support to industries that will commercialize research findings. 3. R & D in Africa This overview of the African science milieu looks at research and development (R&D) expenditures and their relationship to gross domestic product (GDP) for selected countries where UNESCO made recent data available. We then look at Africa s R&D capacities through its institutional and human resources engaged in R&D. We will then assess the scientific output using the twin indicators of evolution in scientific publications and world ranking of all these components. Technological output is measured by the number of patents registered in both the US and European patenting systems. These patents are a means of legal protection, for a given period of time and for a specific country or region, of inventions developed by firms, institutions or individual persons. The number of patents registered by national and international patent offices provides valuable insights into the levels of technological capability, productivity and competitiveness of countries and regions. Whereas the bibliometric 8 indicators are more closely linked to science in its broadest sense, patents are more closely related to industrial R&D and technological innovation. Depending on countries and international patent agencies, these statistics may concern the number of patents applied for or reflect the number of patents finally granted R&D personnel The foundation of a vigorous R&D programme is the talent in the education system as well as in science and technology fields, hence contributing significantly to development and economic growth of a country. The following table portrays selected indices of the base of human resources for R&D in the world. As is shown in the figures, Africa lags behind in the evolution of an R&D intensive economy -- a fact that hampers its economic growth. 7 Budget Speech Financial Year 2006/07 Theme: Enhancing Economic Growth and Households Incomes through Increased Production and Productivity. Ministry of Finance, Planning and Economic Development, The Republic of Uganda. 8 Bibliometrics is a type of research method used in library and information science. It utilizes quantitative analysis and statistics to describe patterns of publication within a given field or body of literature. Researchers may use bibliometric methods of evaluation to determine the influence of a single writer, for example, or to describe the relationship between two or more writers or works. One common way of conducting bibliometric research is to use the Social Science Citation Index, the Science Citation Index or the Arts and Humanities Citation Index to trace citations. 9 UNESCO (2001). The State of Science and Technology in the World Quebec: UNESCO, UIS. 7

11 Table 1: World researchers, 2002 Region /category Researchers (thousands) % of World researchers Researchers per million inhabitants GERD per researcher (US$ thousands) World Developed countries Developing countries North America Latin America and the Caribbean Europe Africa SubSaharan Africa Arab States Africa Asia Oceania Selected African countries South Africa Source: UNESCO Institute for Statistics estimations, December 2004 As shown in table 1, Africa had the lowest R&D personnel with 1.1 per cent of world researchers, trailing Latin America and the Caribbean and Oceania with 2.5 per cent and 1.4 per cent respectively. South Africa alone contributes 0.2 per cent (one-third of sub-saharan Africa) of the World s researchers following combined figures of sub-saharan Africa and Arab States Africa with 0.6 per cent and 0.5 per cent respectively. If we single out the number of researchers per million inhabitants from the above indicators, it is observed that the lowest number of researchers is in Africa (See the graph 3 for more details). Graph 3: Researchers per million inhabitants by principal region/subregions, 2002 Researchers per million inhabitants by principal regions / sub regions, 2002 Arab States (in Asia) Sub-Saharan Africa Africa Arab States (in Africa) Latin America & Caribbean Developing countries Asia World 894 Oceania Europe Developed countries North America

12 Source: UNESCO Institute for Statistics estimation, December 2004 This low number of researchers per million inhabitants in Africa is positively correlated to the scientific production output recorded in the continent in the last decade as shown in table 2. The world share of scientific output in Africa remains constant at 1.4 per cent in both 1990 and 2000 as compared to other continents for example Latina America and the Caribbean, which have recorded significant growth in scientific output from 1.7 per cent in 1990 to 3.2 per cent in 2000 and Oceania a growth from 2.8 per cent in 1990 to 3.3 per cent in Table 2: World scientific output and world share in R&D expenditure, 1990 and 2000 Region World share in publications World share in R&D expenditure North America 41.6% 36.7% 38.2% 37.2% Europe 34.0% 40.2% 24.9% 23.1% Asia 14.5% 21.1% 23.0% 30.5% Latin America and the Caribbean 1.7% 3.2% 2.8% 2.9% Africa 1.4% 1.4% 1.3% 0.8% Oceania 2.8% 3.3% 1.0% 1.1% Graph 4: Shares of world researchers by Regions, 2002 Shares of world researchers by region, 2002 Asia 37% Africa 1% Oceania 1% Europe 33% North America 25% Latin America and the Caribbean 3% Asia, Europe and North America represent 95 per cent of world researchers whereas the other 5% is represented by Latin America and Caribbean, Oceania and Africa. 9

13 Table 3: R&D personnel for selected African countries, 2005 or more recent years Country Year Total no of Researchers Technicians R&D personnel Algeria ,331 5,593 1,134 Botswana ,140 1, Burkina Faso Cameroon Cape Verde Congo Democratic ,478 10,411 1,510 Republic of Congo Ethiopia ,112 1, Gabon Gambia Guinea ,711 2, Lesotho Madagascar , Mauritius Morocco ,835.. Mozambique , Niger Nigeria ,574 28,533 10,854 Saint Helena (UK) Senegal ,200 2,349 1,751 Seychelles South Africa ,696 17,915 5,176 Sudan ,726 11,208 5,569 Tunisia ,289 14, Uganda , Zambia , ,240 Source: UNESCO Institute for Statistics estimation, December 2004 Nigeria, South Africa, D R Congo, the Sudan and Tunisia including Morocco showed a large number of R&D personnel in Africa. The figure for D R Congo looks exceptional with a population of 3.9 million (2004), it has significantly high number of R&D personnel (i.e. 33,478) compared to Nigeria which has registered 66,574 R&D personnel in a population of million (2004). If we look at R&D in terms of gender, globally, women represent slightly more than one-quarter of researchers. Among the 103 countries where data was available, in 40 per cent of these countries, women represent less than one-third and only about 17 per cent of these countries have achieved gender parity and only a few of the others have more women researchers than men. In Africa, it is estimated that about 31% of researchers are women UNESCO (2006). Women in science: under-represented and under-measured. UIS Bulletin on Science and Technology Statistics, Issue No. 3, November Paris: UNESCO. 10

14 3.2 Expenditure in R&D Research and development (R&D) expenditure and intensity are two of the key indicators used to monitor resources devoted to Science and Technology world-wide. A more meaningful indicator is to express R&D expenditure as a percentage of the gross national product (GNP). Governments are increasingly referring to international benchmarks when defining their science polices and allocating resources. In this context, table 3 and graphs 5 and 6 illustrate the percentage of gross domestic product (GDP) devoted to R&D activity. This indicator reflects a country s R&D intensity by presenting R&D expenditure relative to the size of the national economy. The data for the different regions of the world given in the following table show the pattern of R&D expenditure in the last decade. Africa s R&D expenditure showed a decline from 1.3 per cent in 1990 to 0.8 per cent in Graph 5 shares of world R&D expenditure by regions, 1990 Graph 6 shares of world R&D expenditure by regions, 2000 Shares of world R&D expenditure by regions, 1990 Shares of world R&D expenditure by regions, 2000 Africa 1% Asia 23% Europe 34% Oceania 1% Northern America 38% Latin America & Caribbea n 3% Asia 31% Africa 1% Oceania 1% Europe 27% Northern America 37% Latin America & Caribbea n 3% Africa, Latin America and the Caribbean and Oceania regions showed much lower levels of expenditure. R&D expenditure in Africa decreased in the first half of the last decade and recovered in the second half continuing with constantly to R&D intensity also fell from an initial 1.3 per cent to 0.8 per cent of GDP spent in R&D. South Africa accounted for 62 per cent of the estimated total expenditure in Africa in 2000, spending 0.8 per cent of its GDP on R&D and contributing significantly to fluctuations of regional figures over the decade. 11

15 Graph 7: Gross domestic expenditure on R&D as % of GDP, 2002 GERD as a % of GDP Arab States (Asia) Arab States (Africa) Sub-Saharan Africa Africa Latin America and the Caribbean 0.6 Developing countries 1 Asia Oceania Europe World Developed countries 2.3 North America If we relate the GERD on R&D among the different regions as portrayed in the above graph one unique event is found in the Arab States of Africa which contributed just 0.2 per cent of world GERD while the entire continent only contributed 0.3 per cent of the world s GERD. The above graph also indicates the low R&D intensity on the African continent. There is however progress made in a few countries such as Botswana, D R Congo, Mauritius, Morocco, Mozambique, Seychelles, South Africa and Tunisia (as shown in table 4) that spend more than the average 0.3 per cent on R&D. They all meet the target set by the Conference of Ministers for each African country to earmark at least per cent with the exception of Botswana and Mauritius who spend a little below 0.4 per cent. Tunisia is an exception in investing 1.03% of its GDP on R&D. The Second Conference of Ministers Responsible for the Application of Science and Technology to Development in Africa (CASTAFRICA II), held on 6 to 15 July 1987, agreed that African countries should devote 1 per cent of their GNP to R&D by However, many countries could not achieve the target until recently. This target has been reaffirmed on the eighth African Union Heads of State Summit, held in January 2007 in Addis Ababa that made science, technology, and sustainable development the main topics of discussion. At this meeting the African Heads of States agreed to achieve spending one percent of GDP on R&D by So far this has only been achieved by Tunisia which has invested 1.03 per cent of its GDP in R&D. This is shown in the table 4: 12

16 Table 4: Gross Domestic Expenditure on R&D (GERD) for selected countries in Africa Country Year GERD GERD in GERD as a GERD per ( 000) in PPP $( 000) % of GDP capita local currency Algeria 2005* 4,994, , % 4.7 Botswana ,567 85, % 48.3 Burkina Faso 2005* 4,914,954 28, % 2.2 Democratic 2005* 16,116, , % 3.4 Republic of Congo Egypt 2000* 654, , % 6.8 Ethiopia 2005* 192, , % 1.9 Lesotho 2004* 5,400 3, % 2.0 Madagascar 2005* 15,942,004 27, % 1.5 Mauritius 2005* 690,030 59, % 48.1 Morocco ,144, , % 30.1 Mozambique ,580,800 94, % 5.1 Saint Helena 2000* 51, (UK) Senegal 2005* 4,090,000 19, % 1.7 Seychelles 2005* 15,271 5, % 65.7 South Africa ,009,981 4,176, % 88.5 Sudan ,284, , % 6.0 Tunisia , , % 85.8% Uganda ,531,052 95, % 3.3 Zambia 2005* 9,272,025 3, % 0.3 Source : UIS, UNESCO 2007 *partial R&D intensity in sub-saharan Africa, where 34 of the 49 least-developed countries in the world exist 11, is generally less than 0.3 per cent, with the exception of Tunisia, which invests 1.03 per cent, followed by South Africa, Morocco, Mozambique, DRC, Seychelles, Botswana and Mauritius (0.87 per cent, 0.75 per cent, 0.52 per cent, 0.40 per cent, 0.39 per cent and 0.38 per cent respectively). Looking at their GDP, we can see that some of the countries are more serious on R&D investment such as D R Congo investing 0.52 per cent of the GDP (4.4 billion $US in 2004 GDP) as compared to Mauritius 0.38 per cent of her GDP (6.1 billion $US in 2004 GDP) although the population of Mauritius (1.2 million in 2004) is smaller than that of DRC (with 3.9 million people in 2004) Economist Intelligence Unit (Feb 2007). Sub-Saharan Africa regional overview Main Report. London. Economist Intelligence Unit Ltd. 12 Economist Intelligence Unit (Feb 2005). Sub-Saharan Africa regional overview Main Report. London: The Economist Intelligence Unit Ltd. 13

17 Graph 8: Gross domestic expenditure in R&D per researcher by principal regions/subregions (GERD) Gross Domestic Expenditure in R&D per researcher by principal regions / subregions ('000 $) Arab States (Africa) 40.9 Africa 76.2 Developing Countries Sub-Saharan Africa Asia Europe Oceania World Developed Countries Arab States (Asia) 66.6 Latin America and the Caribbean North America Another view of R&D expenditure related to the GDP emerges by comparing purchasing power parity between regions. This implies important issues to effective R&D systems in terms of salaries and proper working environment, as well as providing access to equipment, laboratories, etc. Compared to the R&D systems in other developing countries, Africa as a whole is the least established. The situation shown in graph 8 is even more interesting in that Africa s expenditure per researcher is the lower, amounting to $US 76,200 compared to US$ 114,300 of the average in developing countries and even USD$113,900 in sub-saharan Africa. However, the relatively high figure for sub-saharan Africa is due to small number of researchers. According to UIS data, the region counts just 1.1 per cent of the world s total number of researchers and 0.3 per cent of world GERD. South Africa alone is responsible for 90 per cent of this expenditure. The following figures provide country perspectives on the sources of R&D investment. The indicator reflects the percentage of total investment originating from the business sector, government, higher education institutions, private non-profit organisations or from abroad. 14

18 Graph 9: GERD by sources of funds for selected countries, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% South Africa Tunisia Morocco Uganda Burkina Faso D R Congo Senegal Ethiopia Madagascar Private Sector Government Higher Education Institutions Non Profit Organisations External Funds Which sectors receive the most investment? Are financial resources concentrated in the private or public sector? What about funding for research conducted by higher education institutions? The graphs 9, 10 and 11 show how R&D investment is allocated and spent by key sectors: business, government, higher education institutions or private non-profit organizations. In some countries, such as Burkina Faso, D R Congo and Senegal, government purely finances R&D activities. In some other countries a wide range of sectors are involved in both financing and executing R&D activities such as in South Africa, Tunisia, Morocco and Uganda. Private businesses are active in South Africa, Tunisia and Morocco where relatively the R&D investment is a bit higher than the rest of the countries. The fact that business accounted for nearly half of South Africa s R&D spending shows just how important its contribution is in boosting R&D. The graph 10 shows GERD by executing (implementing) sector in selected African countries: 15

19 Graph 10: GERD by executing sector in selected countries, 2005 GERD by executing sector in selected countries, % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% South Africa Botswana Sudan Tunisia Uganda Burkina Faso D R Congo Seychelles Ethiopia Senegal Madagascar Private Sector Higher Education Institutions Government Non Profit Organisations From the data presented in this document, it is clearly apparent that R&D expenditure has grown worldwide between 1996 and Most African countries invest less than 1 per cent of GDP in R&D, but there are some notable exceptions such as Tunisia, which have significantly increased its investment during the past 10 years. There is, however, a clear need to collect and analyse quality R&D statistics especially in Africa, to support evidence-based policy-making at the national and regional level. As portrayed in graph 10, in many of the countries, government executes the majority of R&D programmes. Private sector significantly contributes to both the financing and executing of R&D activities in South Africa while the data for Madagascar shows that higher education institutions are the main sources of funding and the sole executing sector for R&D activities. 3.3 R&D Output In order to make a pertinent evaluation of the efficiency and impact of national S&T systems, the above R&D statistics wouldn t be enough. The results or output of R&D take the form of new knowledge and competence, scientific breakthroughs, new discoveries or inventions, new or considerably improved products or services and innovative scientific and technical methods, etc. Bibliometric and patent indicators are useful tools to examine the impact of R&D output. The principal method used to measure or evaluate the results of fundamental research is that of bibliometric indicators. Such research is still principally performed in universities or other academic institutions. The evaluation procedures for industrial R&D are essentially based on an analysis of statistics on patents and trade in high-technology products and, at more aggregated levels, the technology balance of payments of countries UNESCO (2005). What do bibliometric indicators tell us about world scientific output?. Bulletin on Science and Technology Statistics. Issue no. 2,September UNESCO, UIS 16

20 Bibliometric indicators seek to measure the quantity and impact of scientific publications as a proxy for the overall output of scientific research and are based on a count of scientific papers and the citations they receive. Together with patent indicators, they are one of the most frequently used indicators of research and experimental development (R&D) output. The graph 11 shows the scientific literature production by the principal regions: Graph 11: World Scientific output and world share in R&D expenditure, 1990 and 2000 World share in R&D expenditure World share in publications 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% North America Asia Africa Europe Latin America and the Caribbean Oceania North America Asia Africa Europe Latin America and the Caribbean Oceania The picture of the world science can be analysed by looking simultaneously at R&D expenditure, and scientific output as seen in the above graphs. North America shows a relative decline from 1990 to 2000 in both respects. Asia showed a sharp increase in R&D expenditure and publications. Oceania and Latin America increased their share in publications, while maintaining R&D expenditure constant. Europe increased its share of publications but also lost ground in expenditure. Africa shows an alarming drop in its (already low) proportion of global R&D expenditure, while the share of publications with authors in Africa remained constant throughout the period. As regards international collaboration, UNESCO s recent survey indicates that international collaboration in science and technology has increased over the last 20 years. One indicator of this process is the rise in papers co-signed by authors from different countries. The share of world papers with authors in two or more countries has more than tripled between 1981 and 2000, from 5.7 per cent to 18.4 per cent. The proportion of publications from authors in developed countries co-signed with authors in other countries has risen more than three times from 6.0 per cent to 20.4 per cent between 1981 and 2000, and in developing countries the share of collaborative papers doubled from 15.1 per cent to 30.8 per cent. Of the total 107,637 internationally collaborative papers in 2000, 74.0 per cent were collaborations between scientists in different developed countries ( North-North ), 24.5 per cent collaborations between authors in developed and developing countries ( North-South ), and only 1.6 per cent between scientists in different developing countries ( South- South ). From the total number of papers by authors in developing countries, 28.9 per cent were written in collaboration with authors in developed countries ( South-North ) and 1.9 per cent with scientists in other developing countries ( South-South ). South-North collaboration represents therefore 93.7 per cent of total collaboration involving developing country authors. On the other hand developed countries 17

21 collaborate manly between themselves: 75.1 per cent of their collaborative papers were written with authors in other developed countries in 2000, down from 80.9 per cent of papers in North-North collaboration in A more structured international partnership and collaboration therefore needs to be forged and facilitated by such regional initiatives in order to build on the existing South-South and North- South collaborations between the researchers. 4. Patent statistics as indicators Depending on countries and international patent agencies, these statistics may concern the number of patents applied for or reflect the number of patents finally granted. Africa s share of patents is very low. According to the UNESCO Institute for Statistics, sub-saharan Africa registered 0.2 per cent of the world s patents registered by the European Patent Office (EPO) and 0.1 per cent of the world s patents registered by the United States Patents and Trademarks Office (USPTO) in Furthermore, the topic of patent protection deserves particular attention. The patent system aims to foster innovation by rewarding the inventor with a temporary monopoly on the invention. This system has undoubtedly contributed to the creation of new technologies and markets in developed countries by motivating research and development activities. However, by excluding third parties from using the invention protected by the patent, the system can also hinder innovation. This is true in particular for developing countries that often do not have the resources to pay licensing fees. For example, the South African government planned to deal with the HIV crisis by compulsory licensing of the necessary anti-retroviral drug patents. Several pharmaceutical companies sued South Africa for violating its obligations under the TRIPS (agreement on trade related aspects of intellectual property rights). 16 Often it is claimed that the patent system has contributed to the technology gap between developing and industrialised countries, because it hinders technology transfer and the developing countries therefore remain excluded from new technologies. 17 On the other hand it is argued that a lack of IP protection prevents companies from investing in developing countries. 18 International organizations such as the World Intellectual Property Organization (WIPO), the European Patent Office (EPO) and the WTO have recognized that the patent system can have negative effects for developing countries and are looking for ways to make the patent system work for them. The WIPO has for example established an office for the strategic use of IP for development and the EPO is discussing ways on how to protect traditional knowledge and genetic resources in developing countries. 19 With Art. 66.2, the TRIPS agreement has a provision that obliges developed country members to provide incentives to enterprises and institutions in their territories for the purpose of promoting and encouraging technology transfer to least-developed member countries. Finally, patent offices worldwide promote the use of patent information in order to facilitate knowledge transfer on all levels Ibid. 15 UNESCO (2001). The State of Science and Technology in the World Quebec: UNESCO, UIS. 16 See for example 17 Fourie, Pieter, Vickers, Brendan: Pharmaceuticals, Patents, Polemics and Pretoria, p. 85, 18 Dasgubta, "Patents, Priority and Imitation or The Economics of Races and Waiting Games." Economic Journal 98: European Patent Office, Scenarios for the Future, p

22 5. Conclusions Science, technology and innovation (STI) indicators are crucial for monitoring Africa s scientific and technological development. They are useful for formulating, adjusting and implementing STI policies. R&D indicators assess the total amount of human (researchers) and financial resources (R&D spending) that are used to generate innovations and scientific knowledge. To this end, NEPAD has been leading the work on the establishment of the African Intergovernmental Committee on Science, Technology and Innovation Indicators (ASTII). The first meeting of the African Inter-Governmental Committee on Science, Technology and Innovation (STI) Indicators was hosted by the Government of the Republic of Mozambique in Maputo from 17 to 18 September 2007 organized by NEPAD Office of Science and Technology. The Committee decided that the Steering Committee of the African Ministerial Council on Science and Technology (AMCOST) serve as the Bureau of the ASTII; that the African countries use the existing internationally recognized STI manuals and/or guidelines, particularly the OECD Frascati and Oslo Manuals to undertake R&D and innovation surveys respectively; that each African country designates a National Focal Point; and it stated the criteria for selecting countries to participate in the pilot STI indicators survey. Science and Technology research and development funding in Africa is still largely lower than 1% of GDP. With only two years to go, is the approved target of devoting 1 per cent of GDP to R&D by 2010 that the eighth African Heads of States Summit in Jan 2007 have agreed can be achieved in practice? According to surveys made by Research Africa 21, some countries like Rwanda, Burundi and the Democratic Republic of Congo (DRC) have set targets that far outstrip those set by Heads of State. Rwanda aims to spend three percent of her GDP on R&D by In Burundi, the Science ministry is aiming for 25 per cent of the domestic budget to be spent on research and it want to raise the national R&D spend to five per cent of GDP by The government of Democratic Republic of the Congo also reported to Research Africa in May 2007 that it hoped to raise its R&D spend from 0.15 per cent of GDP to four per cent over the next 15 years. Thus, with increasing importance on investment in R&D and a demand for increased funding for national, regional and continental programmes for science and technology and the need to support the establishment of national and regional centres of excellence in science and technology, there is a great need on the part of UN, bilateral and multilateral organizations to support Member States, Regional Economic Communities and the African Union to implement the Summit decision on Science and Technology. Furthermore, the eighth Ordinary Session of the Heads of State and Government of the African Union endorsed the need for South-South and North-South cooperation in science, technology and innovation and to enhance its role in international partnership. Although it can not be determined empirically, research expenditure by the private sector in Africa has been insignificant because of the predominance of primary production in the GDP of countries in the region, the low value-added in manufacturing, the fact that imported plants tend to have a monopoly on innovations and because subsidiaries of multinational corporations in Africa carry out requisite research outside Africa. Hence, private sector involvement in R&D is of paramount importance towards a new shift for self-reliance that helps to cut the continent s dependence on overseas funding. Recognizing the root causes of poverty such as inadequate access to financial resources, lack of funding for education, institutional limitations, and underdeveloped technological and scientific capabilities, Africa also needs to benefit from a harmonized intellectual-property (IP) regime which 21 Research Africa -Newspaper for the research world, January

23 can stimulate foreign and domestic funding for research and development, technology transfer projects, and improvements to infrastructure which are all crucial to economic progress. In addition African governments, on their part, need to consider R&D expenditure tax deduction incentives in order to encourage participation of the private sector in scientific research and development activities. Finally, despite all these initiatives and needs, from this paper it is also observed that very little has been achieved in promoting science and technology in Africa, as evidenced by the low number of researchers per million of inhabitants in Africa, and the total amount of expenditure on R&D by African countries, hence leading to low scientific production output in these countries. This, it is believed, to a certain extent has an impact on the relatively slow pace of economic growth in most African countries. Which means that for African countries to fit and operate efficiently and effectively on the global knowledge economy, there is a need to improve expenditure on R&D and there should be close monitoring of the same. This could only be achieved if there are efficient monitoring mechanisms (i.e. institutional mechanisms for both coordinating R&D activities at national level and gathering data for monitoring progress) to make sure the investments are made to achieve the intended objectives, and evaluation systems, in order to make sure the intended objectives are met. This could only be made possible if the different countries have access to timely and accurate data pertaining to the input and output indicators relevant to the assessment of scientific and technological developments. This will lead to the formulation of sound policy initiatives and hence constitute a significant contribution to the overall development agenda of the different countries in Africa. 20