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Dr. S.T.K Naim Consultant COMSTECH

Addressing STI Challenges of the Gambia

UNU-Merit Conference on “Innovation & Governance in Development” in Maastricht, The Netherlands on 26-28 Nov. 2014

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)

STI Challenges of The Gambia

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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

STI Policy and Development Challenges

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Contd…..

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

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

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Japan Korea Republic Pakistan Avg. 3 OIC South East

Asian Countries

Avg. 14 OIC West Asian Countries

Avg. 6 OIC North African

Countries

Avg. 13 OIC West African

Countries

Avg. 5 OIC South Asian

Countries

World Average

(Cur

rent

US$

)

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

STI CHALLENGES OF OIC STATES Per Capita GDP, Region wise average of OIC Counties , Japan and South Korea (1960 - 2012)

1960 1970 1980 1990 2000 2009 2012

OIC Countries

East Asian Countries

World

Establishment of Korean Institute of

Science & Technology (KIST)

Source Korea: Science & Technology Policy Institute (STEPI), Korea, World Bank

Nigeria: http://www.indexmundi.com/facts/nigeria/gdp-per-capita & SESRIC

US

dolla

rs

Per capita GDP growth of Nigeria and South Korea

Establishment of Korean Advanced Institute for Sciences & Technology

(KAIST)

Launching of National Research & Development

Program (NRDP)

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Stages in the Development of an Innovation System

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U G

F F

TNC F TC

Emerging IS

U U

U

TC

F F

F F

F TC

TNC

G

Mature (well functioning) IS

Time

Indigenous Firms Government Universities Transnational corporations Technological centres

F

U

TC

G

TNC

Source: Chaminade and Vang, (2008)

STI Policy Works in Systems

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

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

Design of STI Policies

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Evidence Informed Research Productivity Gaps in Agriculture

New scientific discoveries are made and utilized – Biotechnology etc

Successful Applied Research --

Funding and Working Environment

• 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

Average

T 1

T 2

T 3

Scie

nce

G

ap

X 1

Research

Science

Best Practice

T 0

Wor

ld

55- - 8

3

Inputs

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)

Meeting STI Challenges of The Gambia

Human Resource Development

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Contd…

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

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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

Higher Education

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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 (1865-2000) 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

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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

Role of Universities

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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

Research Priorities

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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

Building Technology Competence

Technology Infrastructure

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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

Building Technology Competence

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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.

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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

Building Technology Competence

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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)

Building Technology Competence

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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.

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Technology learning through Licensing: the ‘OEM’ subcontracting system Technological Market Transition Transition

1960s/1970s OEM 1980s ODM From 1990s OBM

Learns assembly process for standard, simple goods Learns design and product innovation skills Designs brand new products & conducts R&D

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; PPVA* = Post-production value added ODM = own-design and manufacture; OBM = own brand manufacture;

Source: East vs South East Asian Innovation Systems, Mike Hobday (2008)

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

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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)

Functions of the Government

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Monitoring and Evaluation Plans

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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.

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Regulatory

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

Functions of the Government

Establish Institutions of Policy Research and Training

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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)

Office of Science Advisor

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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

Selection of Science Advisor

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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

Science Advisor

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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

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

Organizational Infrastructure for Implementing STI

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