Transcript Slide 1

Unified Innovation Theory for Re Designing Africa’s Development Agenda

The 5th International Conference on Appropriate Technology

November 20-24, 2012, Saint

George Hotel, Convention Centre, Pretoria, South Africa .

November 20-24, 2012 Mammo Muchie: (SARChI) on Innovation Studies, IERI, TUT,Pretoria, South Africa, Professor, DIR,Aalborg University & Senior Research Associate, SLPMTD, Oxford University, UK.


 Inspiration   Theoretical Background Africa’s Growth Pattern over the Years  Problems with the Current African Development Agenda (ADA)?

 Variables for Re-Designing the Development Agenda  Useful Models for ADA  Concluding Remarks


  ”The future is not some place we are going, but one we are creating. The paths to it are not found but made, and the activity of making them changes both the makers and the destination.” (John Schaar) ”Africa is not really ’poor’ as many portray it:it is poorly managed and yet to be developed.” Duncan Clarke, Business in Africa Corporate Rights, Penguin Books, 2012, p.17)  After the colonial interregnum of about 70 years there emerged the struggle for survival:of the fittest,fastest, favoured and fattest(ibid:p. 20)

Theoretical Background

 There is an established literature on innovation systems spanning from Fredrich List (1885), Schumpeter (1934) and recently evolutionary economics (Nelson and Winter, 1982).  The range of areas that innovation system covered can be captured by drawing a mental map

Figure 1: Innovation Systems - Theories/ Concepts/ Typologies/ Taxonomies Spatial

1. Global 2. National 3. Regional & Sub-regional 4. Cities/ Metropolitan/ Local

Economic & Social

1. Innovation primarily driven by profit motives 2. Innovation primarily driven by social objectives

Industry/ Technology Specific

1. Sectoral 2. Agricultural 3. Manufacturing 4. Services 5. Technology specific such as ICT and Biotechnology

Innovation Systems Technological/ innovation Complexity

1. Incremental 2. Radical 3. Revolutionary 4. Systemic 5. Paradigm

Innovation Types

1. Product 2. Process 3. Service 4. Organisation 5. Modular & Design

Towards Unified Innovation System

 The unified innovation system is not new. We have always probed the issue trying to explore the linkages between innovation systems and industrial economic growth (narrowly), and between innovation systems and structural social and economic development/transformation (more broadly).  As a consequence we have generated a number of models trying to capture as realistically as possible the uneven and lopsided existence of the innovation landscapes in large developing countries such as India, China, South Africa and Brazil and even smaller countries in Africa (e.g. Muchie et al, 2003).

Unified System of Innovation & African Development Agenda

 By taking Africa’s economic development challenges as the case, it is possible to explore how science, technology, engineering and innovation (STEI) can be integrated in designing an African development agenda  How unified systems of innovation concept can be employed to link STEI with the African development agenda.

STEI IN AFRICAN DEVELOPMENT  The description of Africa with the language of failure is challenged by the rise of Africa.  There is now a welcome beginning where Africa is no longer to be observed with either the lens of pessimism or optimism.

   Realism in seeing the African development dynamics is emerging as the perspective.

Even the


(December 3, 2011) that characterized Africa in 2005 as the ‘hopeless continent’ now describes it as a hopeful continent. Similar observations have been made also characterizing Africa from a basket case to a breadbasket (Juma, 2011). It looks there is good news in the air for Africa.


   The rise of Africa is now on the development agenda. The question is what development trajectory is evolving with this rise.

It is Africans that must solve Africa’s problems.

 A study by the McKinsey Global Institute (2010) stated: “If Africa can provide its young people with education and skills they need, this large workforce could account for a significant share of global consumption and production”.

 “Some African countries, termed the African Lions, are showing a clean pair of heels to the much-vaunted BRICS emerging markets…10 African countries have per capita incomes greater than China; 17 enjoy a greater per capita GDP than India. Life expectancy in the African Lions countries is higher than the average in the BRICS - 75 years compared to 69 in the latter” (Versi, 2012, p.13).

 The McKinsey Global Institute Classification In category one are what it describes as the advanced, pre-transition and transition economies. Egypt, Tunisia, Morocco and South Africa are classified as advanced.

 The second tier advancing transition countries are the oil economies of Nigeria, Angola and Algeria.

 The third category includes countries like Ghana, Kenya and Senegal with lower GDP per capita than those classified under advanced and transition groups of countries.

 The countries classified as pre-transition states include the Democratic Republic of the Congo, Ethiopia and Mali with per capita income as low as 353 US dollars.

Despite these very hopeful developments Africa remains an agricultural and mineral based economy where much of the export is from the mines of African countries and farmland.

 Transforming the African Resource based Economy Transformation of the African resource based economy is thus more than the availability or abundance of physical and financial capital. In fact wealth in the form of financial and physical capital without strong human and mental capital can be a burden, even a curse.

 There is a social and technical component in building these much needed social and human capitals.  On the technical side it requires establishing a robust African STEI for building and sustaining the African developmental infrastructure.


 On the social side it is imperative to build a governance system that puts as a priority the wellbeing, capability, freedom, learning and innovative acumen of the population with fairness and clear, transparent, accountable justice for all.

Africa’s Long -Cycle Growth

 1500-1870--- GDP growth rates 0.15 %  1820-70 ------------ 0.7 %  1870-1913--------1.3%  1913-60------ 2.8 %  1960-1980…. 4.5 %  1980-1990…. 2.3 %  1990-2000----- less than 2.8 %  2000- 2010…. 4.8 %

Factors Impacting on Africa’s EconomicDevelopment Picture

 On the long Term cycle:  Global economic boom or decline  Demographic expansion  Structural unemployment  Employment growth does not necessarily match positive annual growth rates  Governance and other regulatory conditions

From 1980s to 2010

 Annaul per capita growth declined to 0.7%  GDP did expand during the same period  But per capita income was dampened by demographic growth  What long cycle growth can Africa expect by 2050?

 Three recent different perceptions on Africa

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Some More Claims Indicating Africa’s Potential

Africa’s Collective GDP at 1.6 trillion dollars is now roughly equal to that of Brazil or Russia South African GDP is said to outrank that of Belgium and Sweden!

The DRC Congo has untapped raw material deposits estimated at 24 trillion dollars that is worth the combined GDP of Europe and USA In 2011 Ghana had the fastest growing GDP at 14 % in the world!

Foreign Direct investment is booming in Africa, 20 billion in credit extended by China … … and so on..

Re-Branding Africa Continues

 Not Just from Hopeless to Hopeful (Economist)  But also: Say—be—do… to: be---do –say   Africa Rising A Fresh chapter is opening in Africa’s history ( UK’s Guardian)  Why Africa is leaving Europe Behind— Financial Times)

FDI to Africa

        FDI from India grew from 1 % in 2003 to 14 % in 2010 Middle East from 3 % to 12 % at the same time China’s grew from 1 % to 10 % in the same period Overall emerging markets contributed 50 % of FDI USA ’s FDI declined from 30 % in 2003 to 8 % in 2010 The UK’s share has fallen from 12 to 11 % France from 10 to 8 % 51 % of Africa’s FDI is in resources and most FDI goes to 5 countries: Egypt, South Africa, Nigeria, Algeria and Angola.

FDI from BRICs

 Huawei has become a global company that has prioritised Africa in terms of product development,manufacturing and market access. In 2010, it invested 9 % of its turnover in research and development in Africa, showing its commitment to a long-term presence on the continent.(p.46)

Lions on the Move

     2.6 trillion dollars of business opportunity by 2020 1, 380 dollars billion opportunity from consumer such as food and beverage, non-food consumer goods, telecommunications and financial services Agriculture will represent 880 billion opportunity by 2030, 600 billion dollars more than today Infrastructure .. By 2020 infrastructure 200 billion dollars, more than 130 billion dollars today Resources.. 540 billion dollars by 2020 , 110 billion dollars more than today. (p.34)

Problems of African Development

 Poor social capital that makes finance, physical and other capitals to disrupt social cohesion  Lack of adequate capital of the mind or human capital: the gold in the head needs to excavate the gold in the mines!

 Prevalaence of donor-prenurship  Rent-seeking- prenurship  Tender-prenurship

Problems with the African development Agenda

    Agriculture-manufacture-services are weakly integrated in nearly all current African States Agriculture remains primary occupation for the majority African population, manufacturing grows very unevenly and slowly, service caters mostly for outside consumers The informal and formal economies are bifurcated and not connected The informal is very large, the formal is smaller in most states.

 SET is not embedded systematically to create products with added value and unite the African economic system at any level at the moment!

 The world is going through a data revolution that is creating products with senses, while Africa remains an economy mainly and largely that exports primary resources: minerals and agriculture!

 Can we truly say we have an African economic growth strategy? Or each of the states have developed a strategy that works for Africa and the well being of the people?

 In addition: Indigenous knowledge is not mapped and researched systematically  SET is not communicated or exchanged at the community level to upgrade and develop the community level knowledge  Knowledge that is useful has not been promoted to innovation systematically  Those who have the knowledge do not often know the economic value of what they own  There is thus a great need to excavate this knowledge  And develop indicators appropriate to this knowledge  The African research area is still waiting to be made!

      There is still a job to be done: to intergrate agriculture, manufacturing and services Linking community level indigenous knowledge with SET and design From a resource to a knowledge, learning, innovative and competent independent economy Connecting or articulating informal with formal economy To use SET infrastructure, training and research to build an integrated learning, competent African national economy.

To develop a unifying economic growth strategy that works for Africa!

New Approaches

   There is a need to open the door for theories that are grounded and contexualized in the African setting and that can serve also as lenses to illuminate the empirical reality and specificity of the African situation Such appreciative reorientation in anchoring the African development agenda would require the innovation approach to integrate KLICs with African development Explore new conceptual lenses for examining the African development dynamics:

            

Variables Necessary for Re Designing the Development agenda

Inclusive Sustainable SMART(Specific, measurable, action oriented, realistic and timely) Integrated horizontally in order to manage vertical links with the global economy Nation-state vs. State-nation Knowledge,Learning, innovation and comptence building systems (KLICs) Removing entrepreneurishp drought Removing systematically tenderpreneurship,donorpreneurship & rent seeking preneurship Wellbeing anchored and empowering Strong social and human capital anchorage Competition with collaboration Building a shared African identity Ecologically sound and removing social wellbeing and spatial disparity

To achieve

An ability to integrate the various state and economic policies to inform an integrated African development agenda or shared project that centres on making sure an African horizontally inter-linked economy fully emerges by building the capability to valorise external links to build the African economy.

Conceptual Re-Framing

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The theory of productive power which argues that the causes of wealth are different from wealth itself or making wealth from exporting raw and importing cooked need changing to less raw and more cooked exports and less cooked imports!

Knowing and agreeing to building the African system of science, technology, engineering and innovation by reducing or even eradicating the current collaborative distance amongst the key stakeholders in Africa Knowing how to combine Indigenous knowledge with knowledge gleaned outside Africa Knowing how to move from the domination of knowledge or technology transfer to knowledge exchange [1]

Conceptual Re-Framing

   

Knowing how to engage in smart, inclusive, sustainable and integrated African structural transformation by a well crafted and managed synthesis of the economic, social,cultural, environmental and political processes.

Knowing how to be far when near the global economy and how to be near when far from it as well Creating structural transformation from agriculture to manufacture and services through a co-evolutionary dynamics rather than a linear economic development logic An ability to integrate the various state and economic policies to inform an integrated African development agenda that centres on making sure an African developing horizontally inter-linked economy is made fully and not as it is currently practised by retaining at a disporportinate scale the vertical links external to Africa based on exporting raw materials and importing services and luxury products and merchandise.

Re-Framing with List’s Productive Power

     List is right in his claim that a national political economy facing constraints needs to find a way to organise transformation!

Those that trade in raw materials and agriculture remain underdeveloped Those that build productive power have made it (e.g.USA, Germany, Japan, East Asian Tigers) The lesson is clear: if a nation wants to develop, it has to organise its national system of political economy with a logic of stimulating rapidly and comprehensively productive power.

Otherwise it can have very rich minerals and agriculture and territorial size, but will remain underveloped!

List’s strategy

     Industralisation and manufacturing to be driven by a capable nation and state Incentives to those who take risks of creating new industries Building the capital of the mind and training and spreading education to cover comprehensively the nation as a whole Choice of industries for protection on the basis of knowledge, experience and linkages with the rest of the national economy (p.69) Development of agriculture necessary to industralise

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Re-design with a Unified Systems of Innovation Focusing Device

The creation of the national system of production and consumption Knowledge,Learning, innovation and competence building skills (Klics) Networking ideas, economies, actors and institutions Bringing about resource circulations to break lopsided and uneven development between urban and rural areas, formal and informal activities in African various categories of economies.

Learning interactions emerging from the process of applying science, technology, engineering and innovation into production The influence of the social, cultural and institutional particularities in making science, technology, engineering and innovation in changing, creating, mobilising and distributing resources.

The system of innovation acknowledges the significance and relevance of the African varied spatial context for economic change despite the constraints of globalisation.

Different Approaches within Innovation System

Some approaches stress more on the problem of development and economic competitiveness of developing countries through the application of STEI without excluding entirely others Other approaches concentrate more on industrialized economies institutions and policies to absorb, modify and diffuse new technologies without excluding others. Others propose a global reach where what is independent is the understanding of the process of innovation, learning and competence building for economic growth, development, competitiveness, efficiency and productivity.

Figure 8: Appreciatve Approaches In the Innovation Studies Literature Approach 1: National System of Innovation (NSI) defined originally by Freeman and Others

1. Key concepts are related to initiating or creating innovation to diffusing to importing and modifying in order to diffuse new innovations. 2. Spectrum includes from initiating and creating new technologies to importing and appropriation of created new technologies.

3. Provides the conceptual approach or framework for using the national innovation system for all economies at various stages of development without dividing them first into developed and developing economies.

Approach 2: National Technology System (NTS) by Sanjaya Lall and others Approach 3: Broader NSI - Stimulated by the Globelics network (e.g. Muchie et al., 2003) Approach 4: Triple Helix concept developed by Etzkowitz and Leysdesdorff

1. Appreciates the empirical specificities and contexts of developing countries. 3. Provides the conceptual approach or framework for using the natonal technology stystem (NTS) for developing economies.

3. NTS captures the capacity they have developed in order to absorb, adapt and improve the acquired or transferred technology and know-how from elsewhere by developing countries.

1. Tries to broaden the national system of innovation to include problems and challenges of underdevelopment. 2. Tries to bridge the gap that may exist between innovation system dynamics and economic development.

3. Tries to combine innovation creation and technology acquisition or absorption and adoption to attain technology efficiencies to improve economic competitiveness for accelerating the development process .

1. The triple helix concept of university-industry-government relations to explain innovation in knowledge-based societies. 2. Suggests that innovation progresses in a spiral where multiple reciprocal relations are captured in the process of knowledge commercialisation. The models from the triple helix highlight the internal transformation of each of the helices.

3.Ttriple helix can also be extended like the national innovation system, but much of the original work came from the industrial economies.

Figure 4: National System of Innovation (Wider Setting): A Conceptual Framework NSI

1. Well developed 2. Learning/transitional 3. Nacent/ weak


Concptual framing


Institutions, technologies and knowledge


Incentives, investment and infrastructure


Implementation/ learning outcomes and changes General investment climate & economic policy framework Market, per capita income, domestic savings Industrial structure Financial institutions

6 Major Components of NSI Element Set 2 & 3

Foreign trade Skills, R&D and Technology development

But a Refrain ?

 In Africa, the nation is still a unit that has not been fully realised. The system is also still in the process of making and cannot be assumed it has been fully made. Innovation itself has many dimensions from the broad grassroots and community level to that driven by R & D. In a context where the concepts are contested, it remains challenging how to frame and use the NSI without running into the dilemma of imitating rather than creating and making the national system.

In the African Context?

 It may be time for a shift of focus from NSI (national systems of innovation) to NIS (Networked Innovation Systems) with boundaries of various natures giving way to the facilitation and incentivisation of networks that can or be often self-organising and self maintaining. That is open for debate as the states in Africa pretend they are nations and very often tend to produce National Innovation System plans!

Models for re-designing the African development agenda

 Conceptual framework  Realising efficient linkages &interactions  Unifying all the relevant components of the system  Overcoming the challenges  From SETI to Outcomes  Knowledge assimilation and exchange


Growth indeterminate Technology transfer- external Services- external Not integrated Dependence on low value sectors only Inclusive Indigenous knowledge Bottom-up People centred Social capital AGRICULTURE (LOW TECHNOLOGY) TRANSFORMATION MANUFACTURING SERVICES


Unified system of Innovation Integrated & Networked Growth determinate Technological learning Inclusive development Poverty reduction Dependence on both high value and low value sectors AGRICULTUR E (HIGH TECHNOLOGY MANUFACTURING SERVICES Radical Incremental Revolutionary Importance of R & D Innovation= f(resources; skills; education; politics; knowledge (scientific and indigenous); policies; trade; investment in R & D) Development outcome

Figure 1: Major Elements of National Innovation System (NIS) Conceptual Framework:: Ideas, policies need to be rooted / linked to conceptual framework Implementation and Learning: Implementation of strategies, policies and programmes should include feedback mechanisms Ability to learn and ability to take corrective measures are imperative for building technological capabilities and innovation dynamics.

NIS Institutions, Technologies, and Knowledge: Need strong interaction, linkages, synergies, and co-ordination to achieve more efficient innovation system and higher level of technology accumulation Incentives: Appropriate incentives to institutions lead to co-evolutionary dynamics between institution, technology, and knowledge production by linking economic and non-economic agents.

Figure 2: Linkages between Institutions, Technologies, Knowledge and Incentives in NIS Efficient or Inefficient National Innovation System Infrastructure:

Science & Technology, Intellectual Property Rights, Government Policy, ICT, and S&T Culture.

Relations and


University-Industry Linkages, Public R&D and Industry, Globalisation of MNC R&D, Transnational Networks.


R&D Expenditure and Government R&D Support, Venture Capital, and FDI .

Knowledge and Talent:

Education and Human Resources development, and Labour Flexibility.


•ICT •Nano-tech •Bio-tech


•Nation •Region •Local •city


•Ideology •Governance •Institutions •policies Knowledge Technology Hybrids


•Market •Agents •Incentives

System of Innovation Firm



•Product •Process •Organisational •institutional

Unifying model of SI


•Agriculture •Manufacturing •Pharmacy •electronics

Key Problem: Building NSI in fragmented 53 , states caught in prisoners dilemma situation today Any chances for Building NSI at AU,NEPAD,RECs levels?

Locally embedded triple helix emerging rather than the donor driven one today Africa First emerging as the logo and a united approach to NSI building favoured 2020/4/28 NSI by Accepting the Fragmentary current logic A Africa caught in an unstable state of non-self regenerating NSI achievable Neutralising the fragmentation Of the RECs Unsettling switching state for embedding NSI locally at Africa level or not Actual Dynamic NSI building State emerging The unity Will and Stability for NSI at integrated Africa level reached & achieved 43

Figure 4: Unified Innovation System Conceptual Framework for New Transformative Development Dynamics in Developing Economies Unified Innovation System Conceptual Framework Development Transformation Dynamics

Non-System to System

Developing Economies Innovation System:

Spatial Technology Specific Sector Specific Firm level Type/ complexty


Building productive power to transform selected sectors to a stage of manufacture whilst including the excluded communities by promoting broad based innovation

Figure 5: Locating Development Economics in the Unified System of Innovation Currently Predominant Development Context that Needs Change Transformative Dynamics New Development Context - Maturity Problematic Assumptions:

We can't assume system exists, innovation takes place, institutional framewrok and knowledge exist.

Need to Recognize

: - Problem of Non-system - Lack of innovation - Lack of Knowledge/ R&D - Lack of Institutions - Lack of User-producer Links

This EXCLUDES economies in which institutions, markets, and firms are not strong. SYSTEM OF INNOVATION Different Types:

Spatial, Firms, Technology Specific, and Industry Specific.

- System oriented - Innovation oriented -Human & Social capital enhancing - Economic development

OUTCOMES Creating Different Types of Innovation System:

Spatial , Firms, Technology Specific, and Industry Specific.


: - Creating System dynamics - Creating Innovationcapabilities - Building Knowledge/ R&D base - Creating and strengthening Institutions - Creating User-producer Links

Results in INCLUDING economies in which institutions, markets, and firms are not strong.

Figure 6: Rethinking Innovation System Approach for Ecologically / Socially Sustainable Development and Growth OLD MODEL NEW MODEL Linear

NSI for Competitive Economic Growth NSI for Achieving High GDP Growth OUTCOMES: High Growth at the Expense of Ecology Sociail Inequality & Spatial Uneveness


Reframing NSI for Ecologically Sustainable Economic Growth Reframing NSI for Socially Inclusive Economic Growth OUTCOMES: Growth with Sustainable Ecology Sociail Inclusiveness & Spatial Justice

South Africa's Dilemma in the Globalised Economy Traditional Link Coutries/ Rest of the World Globalised Environment BRICS Regional Environment South Africa Rest of Africa

Nation- State vs.State Nation

 List understood Germany was a nation  It was a nation state trying to catch up with Britain which is another nation state  In Africa we have now many states trying to make nations  It is not clear how successful this has been  The African nation should be on the agenda  Integration is necessary to re-design the development agenda too!

Rich Africa, inhabited with mostly poorer Africans!

Africa before the current state-nation

tearing up…

Africans traded with the World, China and India.

After the Scramble for Africa this is what Africa looked like…


The impact was tremendous…

The Kingdoms shredded Ethnic differences used to arrange divide and rule!

Re-Design Infrastructure

 Interconnecting Africa to exist as an African integrated entity, there must be a strong effort to create a comprehensive system of infrastructure. Building infrastructure is not only technical. It includes economic and politics too. To date the African effort to interconnect with predictable and well managed infrastructure has remained poor. It needs to change. Africa needs a networked road system. It needs a networked railway system. It needs a networked telecommunication system. It needs to develop a networked infrastructure that interlinks the Africa land, air, and sea making it easier for an African integrated economic system to evolve.

Networked Systems of Innovation

 The networking of industry requires the networking of economics and politics. It is not easy to run an African railway system without networking and coordinating policy where the sharing of the costs and the gains are both just and fair

Re-Designing Africa’s Role in Space: the SKA

 The square kilometres array (SKA) radio telescope is now going to be driven in Africa by South Africa. The SKA is expected to be used to explore the spatial universe, the stars, galaxies, the dark matter and astrophysical processes. Knowledge related to unified field theory to understand not just how the universe works the way it does but also why it works will be explored. This research and opportunity has now been won by South Africa’s DST successful bidding. Now the real challenge is to get all of Africa behind this SKA exploration on the one hand and for South Africa to be open and welcome primarily other Africans first before inviting others.

Re-Design:Youth Focused Development Agenda

  The youth fall under the following categories Unemployed… skilled but jobless  Unederemployed- skill mismtach  Unemployable– no skill  Re-engineered strategies should be applied to address the real needs of youth  Contexualise the youth needs and assess the talents  Nurture the talents with hope, encouragement and confidence

Knowledge, Learning, Innovation and Capability Systems (KLICs)

 Diffuse from the bottom up to build wellbeing  Change Pyramids: bottom—Middle-----Top  Inclusive  Sustainale  Poverty free  Integrated  Harmonious  Ubuntu value anchored Africa

Concluding Remark

 We need not only the words but also to discover the grammar to grasp African entity in its current largely fragmentation dependence state in order to transform it into the being of an enabled self- sustaining capability building systemic dynamics to re launch and re-design the African development agenda on a secure pedigree.


 African development agenda does not exist yet  The unified innovation system framework can be useful to provide the lens to see how to integrate STEI in Africa’s social and economic dynamics to build an integrated African development agenda  Africa appears to lack the two key resources that can transform the African economy on an independent trajectory:

capital of the mind and trust capital


 In order to integrate STEI to build an integrated African development agenda it is important to pursue African unity and to overcome existing weaknesses.  We propose that making a unified innovation system for the African development agenda can also integrate the capital of the mind (mental capital) and the social capital (the capital to build interactive inter-African trustful and confident relationships and learning).


 Amsegnalehu  Asante Sana  Thank you!!

 Wishing for a sustianble and robust Indialics!

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