vision and way forward setting a model for investment and...

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Vision and Way Forward

Setting a Model for Investment and RDI in the ICT Sector in the Arab Region

Ibrahim Akoum

Andrea Renda

Expert Group Meeting on Investment, Research, Development and Innovation in the ICT Sector

Hammamet, Tunisia, 7-8 May 2013

ICT Sector’s Competitiveness

R&D

InvestmentInnovation

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Sustainable Competitive Advantage

National Strategies

Regional Strategy

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Regional ICT

Strategy

National ICT

Strategy

Competitive ICT Sector

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Regional & National

Competitiveness

ICT:

Stand-alone Sector

ICT: Enabling Sector

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National Model …

Best practices

Public-private partnership (PPP). ICT infrastructure. Institutional framework. Financial systems and modes.

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Caveat: Region’s SWOT

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Declare ICT as a strategic sector with public policy priority

Government commitment.

ICT strategy: Integral part of development plan.

WSIS, Tunis 2005

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Bottom-up, holistic, double ecosystem view of innovation

Double ecosystem view.

ICT and innovation are ecosystems. Synergy of all actors.

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Three-layer ICT innovation policy

Government as a partnership

Government as a facilitator

Government focus of infrastructure

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Enhance the legal and regulatory frameworks

Regional and national regulatory frameworks.

Liberalization but:1. no private sector monopoly.2. preserve all stakeholders’ interests.3. manage competition.

Challenges for the region: lack of adequate expertise in the embryonic and swiftly changing ICT industry.

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ICT Start-ups Funding

Government support

Private equity

Debt

International organizations’

support

Develop financing systems, modes, and sources of funding to promote investment

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Regional & national financing schemes.

Debt and equity through primary and secondary capital markets.

Encourage lending schemes in scope & scale.

Equity financing: seed funds, VC, & angel networks:

Arab Business Angels Network (ABAN) Lebanese Business Angels Network (LAB) Qatar Business Angels Network

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Ensure the deployment of physical infrastructure

Resilient energy networks. Good transport and logistics. High-speed broadband connectivity.

Requisites:

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Repeal the application of access policy in telecoms regulation to prioritize investment (Dynamic vs. static efficiency).

Spectrum policy designed to leave sufficient spectrum for wireless broadband applications.

Affordable access.

Recommendations:

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Invest in education and skills

Achieving ICT objectives require ICT human capital and technical skills.

Revamp education system.

Promote ICT-related vocational training.

Connect with ICT firms in developing countries.

Regional focus and cloud computing.

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Promote demand-side innovation policy

Best way to stimulate innovation in ICT is to demand innovative ICT solutions

i.e. e-government services and small business innovation research (SBIR) services …

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Leapfrog in technology, and harness the potential of the cloud

Developing countries can boost an advanced ICT ecosystem bypassing the lengthy transition of developed countries…

Partnering with emerging cloud giants to achieve solutions to fit the needs of local SMEs

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Smart specialization

choose the layers of the ICT ecosystem in which investment should be stimulated;

Innovation strategies must be based on local strengths ..

Bottom up policy …

Multi-level governance structure.

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Economies of scale, preferably at the regional level.

ICT is not purely a technical issue ..

Holistic approach which rests on regional collective efforts ..

Region does not encompass homogeneous countries ..

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Regional Model …

Identify ICT Priorities

Examine Comparative Advantage by Country

Formulate Resource-

Based Strategies

ICT Value Chain

Activities

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The Arab Region

Cannot afford a digital gap.

Can afford promoting ICTs.

Knowledge economy and ICTs constitute a necessary condition for development.

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Thank You