panel discussion
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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 - PowerPoint PPT PresentationTRANSCRIPT
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Panel Discussion
Abdelkader DJEFLATThe Maghtech Network
Lab. CLERSE/CNRSUniversity of Lille1- France
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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
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Distinct features of innovation in Africa
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Africa : a highly heterogenous continent
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But a trend seems to dominate
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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
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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
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Is innovation different in Africa
Similarities• Many AFC aiming at Semi-
industrialised, 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
differences• 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
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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)
• Rent seeking positions
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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
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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
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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,
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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
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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
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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
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Appropriate types of innovation in Africa
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What types of innovation are relevant for Tanzania considering level of development and productive structure of the economy?
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Main DifferencesIncremental vs. Radical Innovation
• low uncertainty
• exploits existing technology
improvements in existing products/processes
• business plan developed at the beginning
• process is formal
• key players are cross-functional teams
• high uncertainty
• explores new technology
• business plan evolves throughdiscovery-based learning
• process is informal
• key players are cross-functional individuals
development of new products/processes
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Global Innovation outlook
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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 semi-industrialized economy with a modern rural sector and high productivity in agricultural production
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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.
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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
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Measuring innovative activities
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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
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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)
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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
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Building capabilities for innovation
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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
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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
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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)
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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
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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
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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
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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?
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Part I
Empirical evidence for innovation take off difficulties
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Countries and Regions
Number of Engineers involved in
R&D
Total R&D (%GNP)
Performance (%): Production
sector
Performance (%): Higher education
Developed countries
2 704 205 1.94 53.7 22.9
Developing Countries
1 034 333 0.39 13.7 22.2
Sub-Saharan 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
World 4 684 700 0.92 36.6 24.7
Table 1: State of R&D in the world (2001)Source: Lall and Pietrobelli (2003) ; Note: NA : Not Available
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year
average1999-2004
2006 2007 2008 2009 2010 Total2006-
2010
R&D as % GDP
0,22 0,38 0,56 0,74 0,92 1 /
R&D as a percentage of GDP in Algeria ( période 2006 – 2010)
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Weak irregular and uncertain R&D result.
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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).
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Schéma : Financement prévu par la loi 98 et budget effectivement consommé
0
10
20
30
40
Mil
lard
s D
ina
rs
Financementprévu
Réalisé
Difficult absorption by the research and innovation system
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Registration in scientific disciplines in decline: market absorption of graduates
Evolution des effectifs en science exactes et technologie : graduation
44 500
45 000
45 500
46 000
46 500
47 000
47 500
48 000
48 500
49 000
49 500
1 2 3 4
années: 2000/2004
no
mb
res
Série1
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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)
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Public Entreprises
PrivateEntreprises
Universities
Policy-makers
TechnicalcenterCETIMTechnical
centerCNTC
Independantinnovators
IForeign firms active in the domestic
market
Valorisation agency
ANVREDET
ResearchCentres
Foreign Firms in arms’length situation
(technological partners) Professional Bodies
National Patent OfficeINAPI
Funding Agencies(FNR, ANDRS, ANDRU,…)
The current national innovation system: excludes most key players
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SNII Français:flux financiersCrédit Impôt RechercheAvance RemboursableDotation fonctionnementSubventionTaxe
Pôles de compétitivité
Pouvoirs publics
EntreprisesexistantesAII-OSEO
ANR
AssociationsProfessionnelles
CTI
ADEME
GrandsOrganismes
UniversitésGrandesEcoles
Start-up et filiales
Régions
Centres Régionaux de transfert
NSI in France
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Characteristics of Innovation systems in the stage of take off
C
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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).
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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)
• Rent seeking positions
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Part III
What should an NSI for take off (pre-catch-up) and to build it?
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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.
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Driving engine
• The guarantee to innovation effort : create opportunities to apply knowledge to local problem-solving
• Public demand and public procurement • Technical centers• technopoles
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Steps in the construction of NSI in the take off stage
Phases Modes of construction Caracteristics PoliciesStep 1 national system of
inertia Perspective de non-système
Step 2 Improvement of decentralised knowledge
National System of Construction of Competences (NSCC)
utilisation des connaissances locales et perspective d’amélioration des capacités d’apprentissage :
Step 3 Centralized improvement of knowledge
Knowledge creation through NSI in the broad sense
diffusion of foreign technology: R&D et other learning efforts .
Step 4Take off
Création de connaissances nouvelles
Knowledge creation through NSI in the broad sense (sens strict)
création of new knowledge and technology
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Phases Modes de construction Caractéristiques Politiques Step 1 pre take off
Perspective de non-système
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 National d’absorption
diffusion des technologies étrangères : R&D et autres efforts d’apprentissage technologique.
Step 4 Construction of competencies and technical support to l’innovation
National System of Construction of Competencies (SNCC)
Step 5 Take off of innovation Finalisation du SNI création de nouvelles connaissances : activités intensives en R&D
Etapes de décollage des SNI
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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)
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Partie V
Decentralized modes of innovation :Industrial technical centres
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Modes décentralisés de décollage: les CTI
Centres Techniques
Industrie
Laboratoires de recherche
Organismes de Valorisation
Etudes spécialisées Etudes collectives
Environnement National et international
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Pays Number of CTI
Numberof employees
Date of création
Financing Status
France 16 2500 1948 54% public Loi spécifique
Tunisia 8 455 1969 50% public Ets d’intérêt économique public
Algeria 2 210 1990 Self-financing
SPA
Morocco
9 50 2005 40% public Association
Caractéristiques et nombre en Europe et au Maghreb
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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.
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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.
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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
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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.
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Conclusions