Transcript Presentation for Vietnam…

Building STI Capacity for
Sustainable Development and
Poverty Reduction
Alfred Watkins
World Bank S&T Program Coordinator
Presentation to the AAAS Meetings
Boston, MA
February 17, 2008
OVERVIEW:
Basic Approach
and
Stylized Facts
2
Underlying Philosophy
• Investing in S&T capacity is not a luxury for the rich;
it is an absolute necessity for poor countries that
wish to become richer
• The time to start investing and building STI capacity
is when you are poor
• In today’s rapidly changing global economy, the
critical economic development issue is no longer
whether countries should build STI capacity but
what type of capacity to build and how to build it,
given each country’s economic constraints and
starting point
3
Why Worry About All This?
Knowledge makes the Difference between
Poverty and Wealth...
14
Thousands of constant
1995 US dollars
Rep. of Korea
12
Difference
attributed to
knowledge
10
8
6
Difference
due to
physical
and human
capital
4
2
Ghana
0
1960
1965
1970
1975
1980
1985
1990
1995
2000
4
Difference Attributable to
Knowledge
•
•
•
•
What kind of knowledge?
Where do you get it?
How do you find it?
How do you learn to use it?
5
Dimensions of STI Capacity
Import, adapt, and adopt
knowledge produced
outside the country
Produce and use new
knowledge via R&D
National (and local)
government capacity to
formulate and implement
coherent S&T programs
and policies
Technologically and
scientifically skilled
workforce trained to
work with modern
equipment and
production processes
Enterprise capacity to
utilize knowledge to
innovate and produce
higher value added,
globally competitive
goods and services
Education, vocational
training, and R&D
institutes
6
Where Do You Start?: East Asia Capacity Building Model
Creation
Improvement
Assimilation
Acquisition
STI Capacity
Focus
Development
Stages
Imitation
internalization
generation
Developing
Newly-Industrializing
Advanced
Country
Country
Country
7
Korea R&D (% of GDP) 1963-2003
3
2.5
2
1.5
1
0.5
0
1963
1970
1980
1990
2003
Source: Korea Science and Technology Policy Institute; WDI, 2007
8
Korea Patent Trends (1965-2006)
7000
6000
5000
4000
3000
2000
1000
19
65
19
67
19
69
19
71
19
73
19
75
19
77
19
79
19
81
19
83
19
85
19
87
19
89
19
91
19
93
19
95
19
97
19
99
20
01
20
03
20
05
0
Source: United States Patent and Trademark Office (USPTO), 2007
9
Capacity for technology absorption and diffusion
Removing Barriers is Necessary But Does
Not Automatically Build STI Capacity
Low Barriers
High Capacity
Low Barriers
Low Capacity
High Barriers
High Capacity
High Barriers
Low Capacity
Sub Saharan Africa
Barriers to technology absorption and diffusion
10
Source: Adapted from RAND
Groups of Firms According to
Technological Capability
High
Type 4 Firms
High capability and
absorptive capacity
Type 3 Firms
‘Know what, but not
always where and how’
Awareness
of What
and How
to Change
Low
Type 2 Firms
‘Know they don’t know,
but don’t know what’
Type 1 Firms
‘Don’t know that
they don’t know’
Low
Awareness of the
need to change
High
11
National Technological Learning
S&T learning
capacity
Knowledge
generation
capacity
+
S&T learning
opportunities
Knowledge
absorption
capacity
Diaspora
and Expats
Capital
imports
Education
Inward
FDI
Internet
R&D
Licensing
S&T
Networks
Export
Customers
12
High Tech Does Not
Always Equal High Income
8,000
Argentina
7,000
GDP Per Capita (Contant USD)
Mexico
6,000
Chile
5,000
Costa Rica
Malaysia
Brazil
4,000
3,000
Thailand
Fiji
2,000
Colom bia
Philippines
China
Sri Lanka
1,000
0
Pakistan
India
B'desh
Cam bodia
0
Indonesia
Vietnam
10
20
30
40
50
60
70
Hi Tech (% of Manufacturing Exports)
13
Source: World Development Indicators, 2007
F
Th i ji
ai
la
M nd
al
ay
si
a
Ko
re
a
In
In dia
do
ne
Sr si a
iL
Ph ank
i lip a
pi
ne
s
Ti Nep
m
or al
-L
C est
am e
Ba bod
ng ia
la
de
M sh
on
go
Vi lia
et
na
Pa m
ki
st
an
GDP per capita in 2006
(constant 2000 US$)
16,000
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
14
Export Structure by Technology Category
Producing “what” vs. producing “how”
Finland
Hi Tech
22%
Reso urce
B ased
38%
M edium
Tech
30%
Lo w Tech
10%
15
Manufacturing Value-Added Per
Capita (Constant US Dollar)
Finland
Singapore
United States
Korea
Malaysia
Thailand
Indonesia
Philippines
Sri Lanka
Pakistan
India
Bangaldesh
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
Source: UNIDO, 2005
9,000
16
Agriculture Value-Added Per
Worker (Constant US Dollar)
Singapore
United States
Finland
Korea
Malaysia
Philippines
Mongolia
Sri Lanka
Pakistan
Thailand
Indonesia
India
Bangladesh
Cambodia
Vietnam
Timor-Leste
Nepal
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
Source: World Development Indicators, 2007
50,000 17
Labor-intensive
Electrical
Industrial
Machinery
Special
Industrial
Machinery
Pulp of
wood,
paper &
paperboard
Metal &
Wood
working
Machinery
Furnitures
& Fixtures
Containers
& Boxes
Saw &
Other Mills,
Planing
Export Structure of Forest Cluster in Latvia and Finland, 2000
25
20
15
Latvia
10
Finland
5
0
Technology-driven
18
19
20
RECENT ACTIVITIES
21
How can we help countries build
the STI capacity they need to
increase value added and generate
wealth?
Should countries focus on building
capacity to create new knowledge
or utilize existing knowledge?
22
Main Finding
Much of the science, engineering, and technical
knowledge needed to achieve these objectives
already exists outside Rwanda and is widely
used outside Rwanda. Unfortunately, this
knowledge is not being applied in Rwanda to
solve Rwanda’s problems. The STI capacity
building challenge, therefore, is to train farmers,
entrepreneurs, engineers, technicians,
scientists and teachers to find the appropriate
knowledge, import it, adapt it to local
conditions, and use it to solve local problems
and produce and market higher value, more
knowledge intensive goods and services
23
STI Capacity Building and
Mr. Zoellick’s Six Themes
Goal: Sustainable Inclusive Globalization
STI Program touches on many of these themes
•
•
•
•
•
•
Low Income Countries
Middle Income Countries
Arab World
Global Public Goods
Knowledge Sharing
Fragile States
24
Low Income Countries (1)
• Basic Approach: Technical solutions to most
problems facing low income countries are
already known and widely utilized around the
world. Unfortunately, most people and
institutions in low income countries do not have
the STI capacity needed to utilize this knowledge
to solve problems in their own countries
• Challenge: Create the necessary capacity,
starting from generally low initial capacity levels
25
Low Income Countries (2)
• Ongoing Activities: STI Needs Assessments and
Action Plans
 Pilot programs in Rwanda, Ghana, Mozambique and
Uganda
 Rwanda book has been published
 Rwanda issues: clean drinking water, food
processing, development and diffusion of appropriate
technology, adding value to natural resources,
geothermal and geological sciences, diffusion of
agricultural R&D
 Ghana – non-traditional mfg. exports, value added
agriculture, herbal medicines
26
Low Income Countries (3)
• Need Assessment issues: survey existing
capacity, understand what new capacity is
needed, action plan for building the additional
capacity
• Complements ongoing World Bank work in
agriculture, infrastructure, energy, education,
PSD, etc.
• Next Steps: Implementation projects, tool kits
27
STI Capacity Building: A Cross Cutting Issue
Higher Education and TVET
Private Sector Development
R&D
Standards & Quality
Infrastructure
Agriculture & Rural Dev.
STI needs assessment focuses on solving a problem (ex: food
processing capacity building) and probes across multiple silos
to identify capacity needs.
Cross-Cutting Nature of STI Capacity
Building
Education and
Human Resource Development
(develop transportation for
(develop higher education, TVET,
on-the-job training)
perishable goods; power for processing
units and cold storage)
Agriculture and Rural
Sector Development
(develop cottage industry for
packaging material from fiber crops)
Private Sector and
Industrial Development
(streamline informal
food processing units)
Infrastructure
Building
Capacity in
Food
Processing
Industry
Standards and
Quality Assurance
(develop capacity for testing, certification
and compliance)
Business Regulatory Environment
(improve ease of doing business,
trade freedom,
FDI incentives)
29
Capacity building is needed at all skill levels
Skill Levels
Required Tasks
Hydrological Analysis of Surface
and Underground Water
R&D
Design &
Engineering
Technician & Craft
Skills &
Capabilities
Basic Operators
Skills and Capabilities
Required Skills
Hydrology, Geology, Limnology,
Geochemistry, GIS and Remote Sensing
Watershed Conservation and
Pollution Control
Environmental Engineering, Chemistry,
Soil Science, Geology
Well Boring and Pumping
Underground Water
groundwater engineering, Construction,
Masonry, Pump operation, maintenance
Harvesting Rainwater Run-offs
from Roofs and Fields
Geology and Hydrology
Construction and Masonry
Water Storage & Distribution
Infrastructure
Civil Engineering; Construction,
masonry (for tanks, reservoirs, pipes)
Water Purification and Water
Quality Control
Chemistry, Microbiology, Public Health,
Environmental Science,
Laboratory Assistance
30
Enterprise-based model of STI Capacity Building:
PPP Options
Farmers and
Outgrowers
Farmers and
Outgrowers
Entrepreneur
(Diaspora, FDI, Expat, Local, NGO)
Uses and invests in welltrained manpower through
•On-the-job-training
•Vocation schools
•Universities
Strives for product and
process innovation through
•Technology Searching
•Technology Acquisition
•Technology Adaptation
Meets Standards and
Quality through
•Engineering
•Production techniques
•Field and lab testing
Produces Saleable products and services
Information from market
research and from buyers
Market
(Local, Regional, Global)
31
32
Middle Income Countries (1)
• Starting Point: MICs had an initial competitive
advantage based on trade preferences, prior
abundance of low wage, unskilled labor
• But rising wages and higher standards of living
are leading to a loss of competitive advantage –
need to move from (i) cheap labor to (ii) skilled
labor and innovation (iii) producing higher value
added, skill intensive goods and services
• How can late-comers catch up?
• Existing laws, institutions, business practices are
not designed to address these issues
33
Middle Income Countries
 Work currently underway in several countries and could be extended
 Review IP Legislation to ensure it fosters and supports
innovation and technology diffusion
 Review governance structures for research institutes – do they
work in a financially sustainable way on economically relevant
innovation issues? Do they combine first rate R&D with
technology search and diffusion?
 Emphasis on technology diffusion capacity and technology
upgrading of local industry – SME spin-offs, cluster and supplier
development
 Prepare needs assessments and action plans for relevant
sectors where FDI and/or significant domestic investment is
taking root.
 Work in collaboration with local industry and foreign investors
 Identify relevant lessons of experience/international best practice
34
Knowledge Sharing:
Current and Potential Activities
• Global Forum on STI Capacity Building -www.worldbank.org/stiglobalforum
 Reducing poverty and achieving MDGs
 Adding value to natural resources
 Technology upgrading and catch up strategies
 R&D
Proceedings available in March 2008
• STI capacity building tool kits
• Book on technology diffusion institutions and
programs
• Networking opportunities
35
Network Programs, Needs, and
Resources
Development Partner – World Bank
STI Capacity Building Programs
Developing country STI
Capacity Building Needs
G-8, OECD, BRICS
Capacity Building Resources
36
Network Types
Intra-Regional
G-8, OECD
vis. a vis Africa
BRICS --- Africa
37
Network Objectives
Training Africans (In Africa?
In network partner institutions?)
Joint R&D
Programs
Technology
Diffusion
Building Faculty Capacity
at African Universities
38
Networking About Networks
•
Carnegie Corporation Regional Initiative in Science and Education www.ias.edu/sig
and ten click on RISE for further details
•
Independent networking proposals/inquiries from various universities in US, Asia and
Europe
•
The US National Science Board draft report entitled, "International Science and
Engineering Partnerships: A Priority for US Foreign Policy and Our Nation's
Innovation Enterprise."
http://www.nsf.gov/nsb/publications/2007/draft_isep_nsb0710.pdf
•
US AID report entitled, "The Fundamental Role of Science and Technology in
International Development: An Imperative for the US Agency for International
Development."
•
World Bank-JICA Workshop – Networking for Change: STI and Higher Education in
the Global Economy, Tokyo, February 1, 2008
39
THANK YOU
Alfred Watkins
Science and Technology Program
Coordinator
[email protected]
www.worldbank.org/sti
40