Addressing STI Challenges of the Gambia. Dr. S.T.K Naim Consultant COMSTECH

Transcription

1 Addressing STI Challenges of the Gambia Dr. S.T.K Naim Consultant COMSTECH UNU-Merit Conference on Innovation & Governance in Development in Maastricht, The Netherlands on Nov

2 STI Challenges of The Gambia 1. Deficient human capital 2. Undeveloped education and research infrastructure 3. Very low R&D expenditure with negligible contribution from private sector 4. Single crop economy, exports concentrated in one crop 5. Industrial sector dominated by informal SMEs 6. Limited production facility 7. Share of manufacturing exports in total exports is only 8% (2010) 2

3 STI Policy and Development Challenges 1. Innovation and learning are fundamental for growth and industrial competitiveness (Nelson, 1993) 2. More than half of economic growth in developed countries is due to technical change (Abramowitz) 3. Firms are key players in promotion of innovation and technical change 4. Innovation works in a system where each component has specific functions Contd.. 3

4 6. In a Knowledge intensive system, firms have strong network relationships between: i. Local firms ii. Universities and R&D organizations iii. Local firms, international knowledge clusters and transnational companies (TNCs) 7. Developed countries with strong institutions and STI policy capability have built their innovation system 8. Public R&D expenditure stimulates private R&D 9. Competing priorities of addressing poverty, water, energy, sanitation do not motivate politicians to allocate resources for R&D 4

5 A Minimum level of R&D Activity is Essential for Building Technology Capabilities

6 50,000 45,000 40,000 35,000 STI CHALLENGES OF OIC STATES Per Capita GDP, Region wise average of OIC Counties, Japan and South Korea ( ) East Asian Countries OIC Countries World (Current US$) 30,000 25,000 20,000 15,000 10,000 5,000 0 Japan Korea Republic Pakistan Avg. 3 OIC South East Asian Countries Avg. 14 OIC West Asian Countries Average for West Asian OIC: year 1960: 4, 1970: 11, 1980: 11, 1990: 13 countries Average for North African OIC: Year 1960: 5 Countries Average for Western OIC : year 1960: 9 countries Average for S. Asian OIC: Year 1960: 3 countries Source: i) World Bank Avg. 6 OIC North African Countries Avg. 13 OIC West African Countries Avg. 5 OIC South Asian Countries World Average

7 Per capita GDP growth of Nigeria and South Korea US dollars Establishment of Korean Advanced Institute for Sciences & Technology (KAIST) Establishment of Korean Institute of Science & Technology (KIST) Launching of National Research & Development Program (NRDP) Source Korea: Science & Technology Policy Institute (STEPI), Korea, World Bank Nigeria: & SESRIC 7

8 STI Policy Works in Systems Stages in the Development of an Innovation System Emerging IS Mature (well functioning) IS U F G F U U U F G F F TC F TC F TNC TC F TNC Time F Indigenous Firms G Government U Universities TNC Transnational corporations TC Technological centres Source: Chaminade and Vang, (2008) 8

9 Science, Technology and Innovation Require two types of learning systems: 1. STI Learning: formal education, research and intellectual property rights 2. DUI Doing, Using and Interacting: Informal education, firm level learning and network learning, inter-industry, local regional and international collaboration, reform of Financial and Market Institutions Government has a role to promote both STI and DUI learning 9

10 Design of STI Policies Require evidence based research which identifies key components strength and weakness of the system System may have deficient organizations or Regulations Components of the system may lack Competence or are unable to function Limited interactive learning between components due to low competence Lack of Trust Hinders flow of Tacit Knowledge Social capital is important for innovation 10

11 Evidence Informed Research Productivity Gaps in Agriculture New scientific discoveries are made and utilized Biotechnology etc Science T 3 Science Gap Successful Applied Research -- Funding and Working Environment T 2 World Extension, Education & Health Agri. Finance Availability of inputs Soil Quality Gypsum Proper Ratio of N&P Markets & Infrastructure Weeds and pest infestation Sowing time, plant population Research Best Practice Average Inputs T 1 T 0 X 1 11

12 Meeting STI Challenges of The Gambia Human Resource Development 1. Promote universal education to address regional and gender inequalities 2. Experiment with IT base learning MOOCS delivered from MIT and Stanford Universities, USA 3. Promote interactive learning, life long learning and strengthen communication skills 4. Focus on vocational and technical education in accordance with market demands (Swiss and German examples) Contd 12

13 5. Train critical number of scientists and engineers and other professionals 6. Train high quality researchers in agriculture, minerals, IT, engineering etc. 7. Attract diaspora for institutional reforms, faculty development and entrepreneurship 8. Promote informal learning through other jobs training incentives to industry 9. Invest in training management staff and f---- entrepreneurs 13

14 Higher Education 1. Invite private investment for high education to set up colleges or universities in other regions 2. Invest in Professional and Engineering Education with emphasis on top quality Management schools 3. Ensure quality and relevance through regulations 4. Invite diaspora to head key science departments for short or long term basis 5. Train faculty abroad and train critical number of researchers in core science subjects 6. Create virtual institutes and centre of excellence through national and regional collaboration 7. Provide access to digital library - INASP 14

15 Build Knowledge Clusters Co-location of industrial clusters and universities to facilitate sharing of tacit knowledge can help attract talent and FDI. 1. Silicon Valley generates US$220 billion annually, provides employment to 1.3 billion people (Visions: Terman) 2. MIT has founded 25,000 companies ( ) Revenue US$2.0 trillion 3. Daedeok Innopolis in South Korea contributes US$10 billion annually 4. Hsinchu Science based Industrial Park earns US$30.6 billion annually 5. Zhongguancun Science Park in China has a net income of US$147 billion and employees 170,000 workers 6. METU Science Park hosts over 250 companies and earns 40 million Euro per year 15

16 Role of Universities 1. The fundamental role of universities is to train high quality graduates 2. University training should be research based, they should impart problem solving skill, promote group learning and working in multicultural environment 3. Internship programmes for university graduates in local industry. 4. Promotion criteria for researchers and faculty need to change from current emphasis on publications to promotion of relevant research and researchers helping industry in trouble shooting, better organization and process innovations 16

17 Research Priorities 1. Diversify agriculture to ensure food security and to substitute grain imports (Torch Programme of China) 2. Research on sustainable management of plant disease, post harvest loses 3. Health research on cheaper health solutions /Tele- Health, Telemedicine 4. Research on Renewable Energy i.e. solar, wind energy 5. Water management and water preservation technologies 6. Information technology provide unlimited opportunity for innovation in IT related services 7. Promote Frugal Innovations 17

18 Building Technology Competence Technology Infrastructure Upgrade technology infrastructure in particular infrastructure for metrology, standards, testing and quality Provide tax incentives or grants to industry for adoption of international production standards Establish National Accreditation Council Create demand for technology through public purchasing Promote competition in both import substitution and export industry 18

19 Building Technology Competence Absorptive Capacity Developing countries do not innovate at technology frontiers Firms in developing countries source, Import, adapt and absorb foreign technology Public incentive can stimulate Firm level Learning for absorption of foreign technology (OEM learning strategy) Most successful incentives are those linked to staff development programmes in firm or salary subsidies, hiring high quality engineers and managers Contd 19

20 Government can offer salary subsidy to Firms for hiring high quality engineers and management staff Promotion of university faculty / researchers be partly linked to their helping industry with trouble shoot, sourcing of technology, process improvement etc. 20

21 Building Technology Competence Establish an Innovation development fund to support technology activities in local firms (SMEs) Incentives should target export firms or those firms that provide the greatest public benefits Choice of incentives (tax breaks, R&D grants or loans for machinery purchase or skill development) are context specific Introduce a scheme of innovation credits for design and engineering activities in firms Focus on linkages and supply chains through industrial linkage programmes 21

22 Building Technology Competence Technology policy can only be successful when it is closely coordinated with commerce, industrial, education and trade policies In Japan, South Korea and Malaysia industrial vision were prepared to identify technology priorities (role of MITI and KIST) Demand for technology is created through public purchasing (example: South Korea, Japan, US etc.) Rodrik recommends that developing countries support and protect entrepreneurial experimentation Example: Pakistan Industrial Development Cooperation (PIDC) Contd 22

23 Sources of Technology 1. Direct purchase of technology plants, licensing 2. Training of scientists and engineers abroad 3. Diaspora network 4. FDI 5. Published scientific articles, patent etc. 23

24 Technology learning through Licensing: the OEM subcontracting system 1960s/1970s OEM 1980s ODM From 1990s OBM Technological Transition Learns assembly process for standard, simple goods Learns design and product innovation skills Designs brand new products & conducts R&D Market Transition Foreign TNC/buyer designs, brands and distributes (simple goods) TNC buys, brands and distributes TNC gain PPVA* Local firm invests in distribution, branding gain PPVA OEM = original equipment manufacture; ODM = own-design and manufacture; OBM = own brand manufacture; Source: East vs South East Asian Innovation Systems, Mike Hobday (2008) PPVA* = Post-production value added 24

25 How can OIC Institutions help? 1. COMSTECH through regular organizations of courses provide training for building STI policy capability 2. COMSTECH also holds training workshops on Frontier Technologies 3. COMSTECH-IFS Scholarships provide support to young researchers from OIC states to conduct relevant research in home laboratories 4. COMSTECH-TWAS Scholarships support OIC scientists and researchers for post graduate training in best OIC institutions 5. Islamic Development Bank Scholarships advertised each year support post graduate training in developed countries 6. Member states that have achieved a certain level of technology capability offer scholarships for less developed OIC states: Malaysia, Turkey, Pakistan and Saudi Arabia 25

26 Functions of the Government 1. Design of STI policies and preparation of implementation plan 2. Allocation of financial resources for implementation 3. Linking STI Policy to other development policies: economy, trade, education, health and environment 4. Providing technical and professional assistance to S&T organizations, SMEs (technology upgradation in Turkey) 5. Allocation of R&D budgets and its distribution to priority sectors (agriculture, health, energy, water and ICT technologies) Contd 26

27 Monitoring and Evaluation Plans Evaluating and monitoring imported technology and identifying areas where local technology can be developed Incentive for inter-firms collaboration in local firms to achieve economy of scales Incentives for inter-regional and international alliances Incentives to promote firm level learning Selection of suitable technology for production and industrial activities and making plans for its acquisition Contd. 27

28 Regulatory Functions of the Government Creation of metrology, standardization and quality institutions and ensuring their effective functioning HRD and Capacity Building To provide resources and other facilities to produce high quality scientists, technicians and engineers Infrastructure for S&T Development of information services: establishment and maintenance of R&D institutions relevant to social and economic sector 28

29 Establish Institutions of Policy Research and Training 1. Build policy analysis capacity for decision makers, civil servants and secretaries of Ministries 2. Provide training in STI Policy 3. Train diplomats in S&T issues relevant to the country and for technology negotiations 4. Regular Foresight to identify strengths, weaknesses and gaps in the knowledge systems 5. Publish national S&T indicators 6. Promote research on future technologies (technology prospecting) 7. Experiment with white papers to attract political will (STI Visions) 29

30 Office of Science Advisor Advisory function require statutory, legislative, jurisdictional mandate Should have its own operating budget Should have access to credible S&T information Regular interaction with legislators Coordination of vertical and horizontal policy and administrative work Evaluation and accountability 30

31 Selection of Science Advisor Academically sound and politically correct Enjoys confidence of scientific community Confident of Chief Executive Trusted by the key pillars of state: Judiciary, politicians and security personnel Is respected by public at large 31

32 Science Advisor Should posses leadership skills Clarity of vision Work in close collaboration with National Planning Should coordinate all STI policies Promote STI policy research Should encourage international collaboration Commission Foresight and research on future technologies 32

33 Organizational Infrastructure for Implementing STI 1. Office of Science Advisor 2. National Coordinating Agency : Ministry of Science and Technology or a Coordinating Council 3. National Science Foundation for competitive R&D funding and for regular publishing of STI indicators, promotion of gross root innovations 4. Promotion of Science in the Society 5. R&D organizations in agriculture, health, energy, water, environment 6. Technology centres equipped with high quality technical staff / engineers for technology transfer 33