Download The Magtech Network - In development phase

Panel Discussion
Abdelkader DJEFLAT
The Maghtech Network
Lab. CLERSE/CNRS
University of Lille1- France
Expectations of the session
– Discuss appropriate definitions of innovation in
the context of Africa
– Gain and share experiences on issues of
innovation
– Understand what innovation is in the context of
improving social economic development
– Learn from the current trends on innovation
thinking – insights from the field that are
applicable to Tanzania/ Africa.
– Understanding the importance of measuring
innovation activities
Distinct features of innovation in
Africa
Africa : a highly heterogenous continent
But a trend seems to dominate
Phase one
Phase 2
Phase 3A
sap
Attempts to in
dustrialise (Public
sector)
Rural & agricultural
dominant economy
Mineral resources
Regression of
industrial
Reformes and
privatisation
Appropriate definition of
innovation for Africa
• The capacity to satisfy the changing needs of
the economy ans society for inclusive
development and competitiveness in the
world market
Is innovation low in Africa?
Innovation is low using
conventional indicators
•
•
•
R&D funded by companies in East Asia is
250 times more than in African countries
(not including South Africa), 25 times
more than in Latin America
Innovation index 3.95, North Africa and
the Middle ,East: 6.14, Latin America :
5.80, South Asia : 4.23, East Asia and the
Pacific : 7.43, Europe and central Asia ,
8.28 and America : 9.45 (WBI)
Global Innovation Index 2011 class
African in the last position with Algeria
125th position (out of 125)
Yet innovation more
important
• Informal sector
• Use of alternative
protection (dominant family
business)
• Mistrust of institutions
• Limited access to
information
• Economic reasosns
Is innovation different in Africa
Similarities
differences
• Many AFC aiming at Semiindustrialised, and or
emergent) countries (catch up)
• Promotion of exports of value
added
• Facing world competition and
quality issues as central
• Limits of competition on wage
level
• Need to reduce dependency
on primary products
• is not always driven by R&D :
include other sources of
knowledge. (learning by doing,
using and interacting,
indigenous, experience from
informal economy and R&D.
• is still highly dependant on
foreign technology
(collaboration, spillovers)
• instability, the inequalities and
the heterogeneities
• Weak culture of innovation
Specific to African environment
• Inability of local institutions to interact, difficulty in
building local knowledge through the tacit
knowledge ,
• repetitive techniques of learning through imitation
rather than innovation (Oyelaran-Oyeyinka, 2004).
• Networks between industry and R&D tend to be
absent (Wangwe, 2003).
• High capacity of dis-accumulate through de-learning
(Djeflat, boidin 2002)
• lack of “an organic evolvement of a STI system Astrid
Szog (2009)
Salient features of IS
• The difficulty of Innovation systems theory for
system construction (Lundvall et al., 2002)
• Built ex post and not emerging from learning
• Weak and fragmented
• non coordinated and mostly tacit
• Often supply driven and not demand driven
and top down dominance
Different context
• -Innovation for resources (mineral and non mineral
resources) based economies
• in a context of Rentier economies with strong vested
interest in conservatism and protecting existing non
innovative income generating
• in a context where part of human capabilities are
located outside through migration of SIC (scientific and
intellectual capabilities)ie. an important diaspora.
• in a context where a strong informal sector dominates
and where dynamic learning occurs but also where
knowledge can be destroyed: (informal or semi formal
IS – linking formal to informal
The African Science and Technology Indicators
Initiative (ASTII)
• The survey found that innovation in
companies is driven by clients' and customers'
ideas and collaboration, as well as the
acquisition of new machinery and equipment
• instead of coming from the ideas of public
research institutions and universities,
Which are the most important actors in African
innovation systems?
• The State a key actor in shaping innovation
through
• Key ministries (a lobby within government)
• In Maghreb Ministry of industry and commerce
(not the ministry of higher education
• The private sector and entrepreneurs
(Shumpeterian profile)
• A decentralised key actors : farmers and paysants,
universities , Chamber of commerce, professional
bodies
What sectors are more active in innovation activity in
Tanzania/ Africa?
Traditional sectors
• Agro food (export
requirements)
• Mineral
Emerging new sectors
• Pharmaceuticals (export
and domestic competitive
pressure)
• ICT
• Nanotechnology
Can innovation activities address and support
inclusive development?
• Innovative activities can reduce inequalities by
stimulating growth
• Give all strata of society the possibility to
vreate income and self empoyment
• Through enhancing informal sector activities
and
• Give creative women and youth to create
wealth and income through knowledge
Appropriate types of innovation
in Africa
What types of innovation are relevant for
Tanzania considering level of development
and productive structure of the economy?
Main Differences
Incremental vs. Radical Innovation
• low uncertainty
• high uncertainty
• exploits existing technology
• explores new technology
• key players are
cross-functional teams
• key players are
cross-functional individuals
• business plan developed at
the beginning
• business plan evolves through
discovery-based learning
• process is formal
• process is informal
improvements in existing
products/processes
development of new
products/processes
Global Innovation outlook
Two types of sectors
Traditional sectors
• Agricultural research (agro sector
contributes more than 2/3 of GDP
and accounts for almost 85% of
the total exports)
• Health sector
• Natural resources
• Industrial R&D (Small industrial
sector : food processing, light
consumer goods, mining (gold ,
natural gas)
New sectors: 2025
development vision
• Industry : fastest growing
(agricultural processing, wine), diamond-,
gold-, and iron mining, oil refining, wood
products, salt, soda ash, cement, shoes,
apparel and fertilizer productions
Objective to become : a diversified and semiindustrialized economy with a modern
rural sector and high productivity in
agricultural production
What type of innovation?
Upgrade and reinforce
• Incremental innovation
• Product innovation
• Use of traditional and
modern technology
Encourage basic innovation
• Incremental product and
process have limits
• All kinds of innovation are
necessary : organisational,
marketing and
management, financial
• the global value chain is
important as well as the
accumulated experience.
Is replication and copying desirable in an African
context or should Africa design its own pathway to
innovation?
Copying desirable
• Catch up context (windows
opportunities & late comer
advantage)
• Emerging economies
(shortcuts and leap
frogging)
• Global chain value strategy
requires building on
existing technologies
(compete on global market)
• Some generic technologies :
ICT
Copying not desirable
• Specific problems and
issues (agriculture, health,
minerals etc. )
• a rich cultural and
traditional heritage which
risks being marginalised
• No outstanding example of
successful copying
• Africa should find its own
pathway to innovation
Measuring innovative activities
Do current existing indicators fully capture
innovations taking place in Africa?
• The dominant position of the Oslo manual in
defining indicators to insure comparability at
regional and international level
• But Bogota manual shows the need to take into
account the specific characteristics of innovation
systems and firms (Largely unknown processes of
innovation and technical change at firm level,
unstructured IS , Embodied technology, minor
incremental changes , importance of organisational
change,
• The UNU-Merit study
Implications
• Current indicators do not capture all the innovation
taking place
• indicators explaining ‘systemic failure’
• Technological learning pattern seems different
• innovation systems of late-comer countries are
fundamentally different from those of developed
ones
• Difficult to conduct Innovation surveys
• Late-comers are “most sucessful” (East Asia) and
“less successful” (Africa)
What is the relationship between Science &
Technology indicators, and Innovation indicators
• Normally close relationship
• In African countries De-linking between the
two
• Rising performances regarding research
results et dismal innovation performances
• Need to create innovation links through :
innovation hubs, incubators, clusters,
technopoles
Building capabilities for
innovation
Should focus be on research capacities or innovation
capabilities?
• Both as certain sectors require research
capacities: outlined earlier
• But current problem is major innovation
deficit through dismal share of exports oh high
technology products
• At firm level : both R&D and incremental
technical changes are needed
What inhibits the absorption and
adaptation of technologies in Africa?
• Lack of endogenous capabilities: the human
element at the centre
• Lack or weak policies and strategies with
regards to adaptation and absorption
• In some countries with rent surpluses : easy
access to final goods and services
• Competitive imported goods through
infromal channels
What is the role of higher education and research in
adoptive and incremental type of innovation?
• Higher education current role in incremental innovation is
very weak if not absent
• Coule contribute through developing more spirit of
innovation, desire for change & entrepreneurship including
• Innovative thinking be integrated to school system?
• Need toreview syllabuses to integrate : new course on the
management of innovation
• Establish stronger and more permanent links with the
productive sector (4% of SMEs have formal relations in NACs)
What is the right balance between theoretical
education and vocational training in emerging
economies
• Vocational training has suffered from neglect
for many years
• Need to put stronger emphasis both at
secondary level and in hgher education : the
experience of professional masters in France
• Theoretical education is also a key in the new
knowledge economy: higher scores in
innovation are alos correlated with high scores
in maths, Physics (TIMMS, Pisa etc.)were
Africa is lagging
How to analyze and stimulate the demand
for knowledge in emerging economies?
• Demand for knowledge is linked to a host of
factors
• Stimuleate demand for high knowledge
contents goods and services
• Enhance innovation in Marketing and
management
• Promote innovation drive in family businesses
Introduction
• Two decades of attempts to put up ,innovation
policies gave very little results.
• Investiment in R&D is only part of the story
(doubled in some cases)
• Some policies aimes to integrate many actors
(state , entreprises, training sphere)
• Some situations indicate true involvement of key
actors
• Only limited number of success stories
Questions
• Birth crisis and not growth crisis (Catch up)
• Life cycle of NSI blocked at initial stage
• Question : How to get out of this situation?
How to get innovation take off the ground in
African countries?
Part I
Empirical evidence for innovation
take off difficulties
Table 1: State of R&D in the world (2001)
Source: Lall and Pietrobelli (2003) ; Note: NA : Not Available
Countries and
Regions
Developed
countries
Number of
Engineers
involved in
R&D
2 704 205
Total R&D
(%GNP)
Performance
(%): Production
sector
Performance
(%): Higher
education
1.94
53.7
22.9
1 034 333
0.39
13.7
22.2
3 193
0.28
00
38.7
29 675
0.40
NA
NA
Latin America
107 508
0.45
18.2
23.4
(excluding )
893 957
0.72
32.1
25.8
4 684 700
0.92
36.6
24.7
Developing
Countries
Sub-Saharan
World
R&D as a percentage of GDP in Algeria ( période 2006 – 2010)
average
1999-2004
2006
2007
2008
2009
2010
0,22
0,38
0,56
0,74
0,92
1
year
R&D as %
GDP
Total
2006201
0
/
Weak irregular and uncertain R&D
result.
absorptive capacity weak
• Defined as a
– complementary necessity to knowledge creation in
relation to technologies acquired abroad (Mowery and
Oxley, 1997; Kim, 1997),
– as a prerequisite to the learning process at the firm level,
which necessitates notable intangible investments (Cohen
and Levinthal, 1989), and
– as capacity to create new knowledge and to search and
select the most appropriate technology (Narula, 2004).
Difficult absorption by the research and
innovation system
40
30
20
Financement
prévu
10
Réalisé
03
20
02
20
01
20
00
20
99
0
19
Millards Dinars
Schéma : Financement prévu par la loi 98 et budget
effectivement consommé
Registration in scientific disciplines in decline: market
absorption of graduates
Evolution des effectifs en science exactes et technologie : graduation
49 500
49 000
48 500
nombres
48 000
47 500
47 000
Série1
46 500
46 000
45 500
45 000
44 500
1
2
3
années: 2000/2004
4
Slow take off of NSI
• incomplete, unstructured , poor in
linkages(NARULA, 2004, DJEFLAT, 2004),
• deficient in interractions between main
componants (CASADELLA 2006)
• Missing capabilities (JOHNSON, EDQUIST, &
LUNDVALL, 2003).
• non existant (AROCENA & SUTZ, 2003)
The current national innovation system:
excludes most key players
Independant
innovators
Foreign firms active
in the domestic
market
Valorisation
agency
ANVREDET
Funding Agencies
(FNR, ANDRS, ANDRU,…)
I
National Patent
Office
INAPI
Policy-makers
Universities
Public
Entreprises
Private
Entreprises
Foreign Firms in
arms’length situation
(technological partners)
Research
Centres
Professional
Bodies
Technical
center
Technical CETIM
center
CNTC
NSI in France
SNII Français:flux financiers
Crédit Impôt Recherche
Avance Remboursable
Dotation fonctionnement
Subvention
Taxe
Pouvoirs publics
ADEME
ANR
Entreprises
existantes
AII-OSEO
Régions
CTI
Associations
Professionnelles
Grands
Organismes
Universités
Grandes
Ecoles
Start-up et filiales
Pôles de compétitivité
Centres
Régionaux
de transfert
Characteristics of Innovation
systems in the stage of take off
C
Characteristics of NSI prior to
innovation take off.
• R&D activities are not clearly defined and
formally articulated within enterprise
strategies (Arocena and Sutz, 1999; 2002).
• vulnerable and unstable macroeconomic
environment (Cassiolato and Lastres, 1999)
• relational, normative and built ex post
(Arocena and Sutz, 1999; 2002)
• national system of inertia (Hobday 1995;
Hobday et al, 2004).
Specific to African environment
• Inability of local institutions to interact,
difficulty in building local knowledge through
the tacit knowledge , repetitive techniques of
learning through imitation rather than
innovation (Oyelaran-Oyeyinka, 2004).
• Networks between industry and R&D tend to
be absent (Wangwe, 2003).
• High capacity of dis-accumulate through delearning (Djeflat, boidin 2002)
• Rent seeking positions
Part III
What should an NSI for take off (precatch-up) and to build it?
Conditions to be fulfilled
• more appropriate the take off stage
• Capable of exercising a relatively strong
push for an effective demand for R&D
products and services to emerge;
• could move the whole apparatus from
take off to catch up at a latter period and
make it sustainable.
Driving engine
• The guarantee to innovation effort : create
opportunities to apply knowledge to local
problem-solving
• Public demand and public procurement
• Technical centers
• technopoles
Steps in the construction of NSI in the take off stage
Phases
Step 1
Modes of construction
Step 2
Improvement of
National System of
decentralised knowledge Construction of
Step 3
Centralized
improvement of
knowledge
Step 4
Take off
Knowledge creation
Création de
création of new
connaissances nouvelles through NSI in the broad knowledge and
sense
technology
(sens strict)
national system of
inertia
Caracteristics
Perspective de nonsystème
Policies
utilisation des
connaissances
Competences (NSCC) locales et
perspective
d’amélioration des
capacités
d’apprentissage :
Knowledge creation diffusion of foreign
through NSI in the technology: R&D
et other learning
broad sense
efforts .
Etapes de décollage des SNI
Phases
Step 1
Modes de construction
Politiques
pre take off
Caractéristiques
Perspective de nonsystème
Step 2
creation of learning
capacities
Decentralized Mode of
capacity creation
Stratégies bottom
up et création
d’espaces interractifs
Step 3
creation of national
capacity of
absorption
Système
d’absorption
Step 4
Construction of
competencies and
technical support to
l’innovation
Take off of innovation
National System of
Construction of
Competencies (SNCC)
Step 5
National diffusion
des
technologies
étrangères : R&D et
autres
efforts
d’apprentissage
technologique.
Finalisation du SNI
création de nouvelles
connaissances :
activités intensives
en R&D
Empirical findings in the establishment
of innovation systems in the Maghreb
• Mostly centralized
• Institutional set ups (Ministries, agencies
commissions , think tank etc. and laws (ex: the
1998 law in Algeria)
• Significant growth of Research funding .
(doubled and troubles in last decade.
• Définition of lists of priority areas
• Incentive system (tax and non tax incentives)
Partie V
Decentralized modes of innovation :
Industrial technical centres
Modes décentralisés de décollage: les
CTI
Laboratoires de recherche
Environnement
National et
international
Organismes
de
Valorisation
Centres
Techniques
Etudes collectives
Industrie
Etudes spécialisées
Caractéristiques et nombre en Europe et au
Maghreb
Pays
Number
of CTI
Date of
création
Financing
Status
16
Number
of
employe
es
2500
France
1948
54% public
Loi
spécifique
Tunisia
8
455
1969
50% public
Ets d’intérêt
économique
public
Algeria
2
210
1990
Selffinancing
SPA
Morocc
o
9
50
2005
40% public
Association
Performances des CTI français
• Les CTI français :
– 4500 collaborators, (50% d’ingineers and cadres,
et 34% de technicians
– Contribute to the R&D of 70 000 entreprises, 26
secteurs, (68% of SMEs with less than 50
employees), and 30% of entreprises having
between 50 and 500 employees (2004)
– All sectors involved : industrial goods , jewellery,
wood and furniture etc.
Intensive exchange with the academic
world (research)
– 200 thesis et 50 post-doctorants par an,
– 220 partnership agreements with laboratories ,
– 34 000 service contracts per year ,
– 25 journals and magazines ,
– 300 study days and workshops, 30 000 stagiaires
en formation métier.
Could they be a mode of innovation
take off
• Prédominance of incrémental innovation.
• Technology transfert as a main preoccupation .
• Quality standard main preoccupation n
• Good at information gathering and economic
intelligence.
• Training of competences in specific field a key
component : learning and capability building
Compétences Uniques
• Un partenaire dans l’apprentissage ‘a learning
partner’ pour les entreprises (projets en
collaboration, R&D collectifs, programmes de
recherche publique ).
• Accroissement de la capacité d’absorption.
• Role de lubrification et d’intermédiation entre
(proximité simultanée entre enseignement
supérieur).
• Un entrepôt flexible de solutions R&D pour les
PME.
Conclusions