Transcript Egyptian Industry and Academic Research

Egyptian Industry and
Academic Research
An Industry Perspective
By
Amir Wassef
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
VALUE ADDED
Development of Economies
Industries In
Wealth Based
Economy
Industries in
Innovation Led
Economy
Industries in
Factor Based
Economy
Industries in
Growth Based
Economy
TIME
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Development of Economies
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Factors Phase
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Land
Natural Resources
Human Resources / Labor
Capital
Characteristics:
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May 15-2008
Basic / Low tech
industry
Low value added
Price sensitive
Imported
Technology
ICSTI Conference Alexandria-Egypt
Amir Wassef
Development of Economies
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Growth Phase (Investment
Driven Growth)
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Economies of Scale and
Economies of Scope
Aggregation and Clustering of
Industries
Learning Curve Dynamics
Improved Quality
Improvement of basic factors
May 15-2008
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Characteristics
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ICSTI Conference Alexandria-Egypt
Applied Research
in Products and
Process
Improvements
Lower Mobility
Barriers of Labor
and Researchers
Amir Wassef
Development of Economies
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Innovation Based
Economy
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Knowledge Based value
added
Close ties across the Supply
Chain
High degree of Clustering,
Consolidation, and Vertical
Integration
High circulation of
Information
May 15-2008
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Characteristics:
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Capitalizes on Innovation
and Revolutionary
Products and Materials
State of the Art R&D
Activity
Close ties between
industries and Academia
Stable IPR Environment
ICSTI Conference Alexandria-Egypt
Amir Wassef
VALUE ADDED
Industry Distribution
Industries In
Wealth Based
Economy
Industries in
Innovation Led
Economy
Industries in
Factor Based
Economy
Industries in
Growth Based
Economy
TIME
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Classification according to
Generic Strategy
Economies of
Scale
Low Cost
&
Focused
Differentiated
Industries
Differentiated
&
Focused
Focused Industries
Porter Classification by Generic
Strategy
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Classification according to
Generic Strategy
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Commodity Producers with
Economies of Scale
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Characteristics: Stable
production lines, limited
flexibility, little innovation
in core products
High switching costs
Price sensitive
May 15-2008
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Research
activities
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ICSTI Conference Alexandria-Egypt
Centered on
piecewise
improvements in
materials,
products and
processes.
Amir Wassef
Classification according to
Generic Strategy
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Differentiated Industry
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Characteristics: Competitive
strategy based on increased
value added and customer
value
Flexible production
environment
Lower production volumes
Higher profit margins
May 15-2008
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Research needs:
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Innovative
applications in
materials, knowhow and Processes.
Advanced Features
rather than
Revolutionary /
Innovative products
ICSTI Conference Alexandria-Egypt
Amir Wassef
Classification according to
Generic Strategy
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Niche Industries
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Characteristics: Based on
specialized skills
Special materials
Narrow scope of
application ,usually small
market size, high value
added, commands
premium prices, high
profit margins.
May 15-2008
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Research Needs :
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Very innovative
applications
Narrow specialization
and skills
R & D costs spread
over limited
production quantities
ICSTI Conference Alexandria-Egypt
Amir Wassef
Industry Evolution
Differentiated
Marketer
Innovator
2
4
1
3
Caretaker
Hi Volume / Continuous Flow
Low
R& D
Reorganizer
Differentiated and Cost Leader
Product
R& D
Materials
Processe
s
Revolutio
nary
Products
R& D
Process
&
Manuf.
R& D
Cost Leadership
2-3 Transition thru Supply Chain efficiency
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Issues Characterizing Industry’s
Cooperation with Academia
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Fragmentation
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No clear market leaders
No significant market share for any
particular firm
Fragmented and diversified markets
(Diverse market needs)
Low entry barriers
Absence of Economies of Scale
Lack of Standards
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Issues Characterizing Industry’s
Cooperation with Academia
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No appreciable Clustering of Industries,
thus reduced economies of scope (Same
product or technology used across a wider
spectrum of products and industries)
Weak links between Academia and
Industry
Intellectual Property Rights procedures
need improvement (Patents, Trademarks,
Copyrights etc…)
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Issues Characterizing Industry’s
Cooperation with Academia
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Limitation of Finance by Industry in
Academic R&D.
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May 15-2008
Several Industry Modernization Programs (IMP)
support research activities
ICSTI Conference Alexandria-Egypt
Amir Wassef
Industry and Research
Institutions Joint Plan:
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Overcoming Fragmentation
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Clustering
Consolidation
Vertical Integration and industry growth:
Forward and Backward increase entry
barriers
Promoting Standardization
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Industry and Research
Institutions Joint Plan:
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Sustaining Transition between Factor
Economy and Growth Economy:
Improving Technological Content
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Continuous Product improvements
Process improvements
Materials Improvements
Investing in the Learning Curve
Innovation Management
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Industry and Research
Institutions Joint Plan:
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IPR Processes and Procedures :Find
suitable model and formula
Contractual relationships between
Industry and Academia (Model
contracts , best practices applied
elsewhere)
Increase Rate of Diffusion of proprietary
knowledge: (Academia might have solutions to problems
Industry did not know they had!)
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Industry and Research
Institutions Joint Plan:
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Lobby for improved Government policies
vis-à-vis R&D:
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Research Funding
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May 15-2008
The IMP research and Development Support
Incentives for Industry to use Own funds
Subsidies and Government Support
Offering Grants for government supported
research programs (Ex : A National program
to reduce reliance on imports)
ICSTI Conference Alexandria-Egypt
Amir Wassef
Industry and Research
Institutions Joint Plan:
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Research Institutions need to adapt to
a Paradigm Shift :
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Lack of Economies of Scale in research:
Work with different industries to reduce
fragmentation and improve
Standardization-
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Industry and Research
Institutions Joint Plan:
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Research Institutions need to adapt to
a Paradigm Shift :
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Research Institutions need Broad
Problem Solving skills in view of
Industry Fragmentation and Differentiation
strategies
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Critical Factor !
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Standardization
 Standards are Know How
 Standards are Best Practices
 Standards enhance Quality
 Standards Preserve the Knowledge base
of Industry
 Standards promote Consolidation and
Defragmentation of industry
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Proposal: Bibliotheca Alexandrina
with ICSTI support
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BiblAlex establishes a Standards
Dissemination Library to serve
Industry
Concentrate on Electronic
Dissemination
Capitalize on Support available to
Developing Economies ( ex. ISO)
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef
Thank you
Amir Wassef
[email protected]
Chairman, Economic Committee,
Board of Trustees of Borg el Arab
May 15-2008
ICSTI Conference Alexandria-Egypt
Amir Wassef