Efficiency Enhancers

The six pillars of enhencer effciency 1. Higher education and training2. Goods market effciency3. Labour market efficiency4. Fininacial market spophistication5. Technological rediness6. Market size

• These six pillars represent 35% of Egypt Score of GCI

Critical factors of human devolpment:1. Quality of higher education2. Secondery &teyiery enrolloment

rates3. On- job trainingThese factors are obsoletes of

comptitvnes

Higher education and trainingOverall Rank 91 882008/09 2009/10

Higher education &Training comperised of 3 sub groups:1. Quantity of educationQuantity of education decreased

because decreased of enrollment rates of secondry &tetierty education

2. Quailty of educationEgypt has shown poor performance in

the quailty due to ------

3. On job training

Expenditures / student may be indicator of higher education which is very low compared to other students in all world

Egypt Unvierstives can strnghed through some points

National efforts to upgrade education

2. Good Market effciency

The deterioration in demostic comp etition to poor performance in the extent market dominace

Egypt continue to enhance ease of starting bussince

Agriculture policy costs still effect of Economy

One tool for improving compeition

“ECA” health enviroment for bussiness

3. Labor Market

Heavy regulations combined with brain drain &. Low female participation lead to limit sucess

Many skilled Egyptian migratesOnly six countries have lower

female participtationEgypt rankes among worst from

worest countries using Talent

4. Financial market

The improvement of ranking is due to:

1. Local equity avalability2. Ease of access loans3. Venture capital avaliability4. Restiraction on capital flow &the

strengh of investor protection have contributed to this improvment

5. Technologlical redinees

Egypt has comparitive advantages than others countries namely in:

Firm –level technology absorption & technology transfer

6. Market Size

Egypt has relative copatitve advantages in termsof both domestic and foreign market size.

Foreign market size improvement is partially due to the success of the country in accessing other markets and recent expansion of energy-related exports.

There has also been a rapid increase in mobile telephone subscribers. According to the Ministry of Communications and Information Technology, the total number of mobile subscribers in Egypt reached 53.7 million in November 2009, a mobile penetration rate of 70 percent.

The number of Internet users also doubled between 2006 and 2008, reaching 16.4 users per 100 people.(18) Because these rates of increase were faster than in a number of other countries, Egypt’s ranking also improved.

Egypt’s relatively large market size includes both its domestic market (which is growing) as well its access to foreign markets

Innovation and Sophistication Index 

 Innovation is vital to the future competitive-ness of all of Egypt’s economic sectors

The innovation and sophistication index measures:

1. investment in Research & Development (R&D) ,

2. availability of high-quality scientific research institutions

3. extensive collaboration in research between universities and industry,

4. the protection of intellectual property.

Despite the importance of innovation in Egypt’s economic strategy going forward,

Two pillars :1. business sophistication 2. innvation

1. Business Sophistication

Egyptian businesses are perceived as having a comparative advantage in two indicators:

1. the state of cluster development (41out of 133) and

2. willingness to delegate authority (31 out of 133)

Egypt’s ranking improved in most of the indicators. Namely, it improved in terms of the :

nature of competitive advantage, value chain breadth

production process sophistication, extent of marketing,

willingness to delegate authority and reliance on professional management

2. Innovation

Egypt’s ranking in innovation deteriorated by7 places to 74 out of 133 countries.

This year, Egypt’s ranking deteriorated in all the factors that determine the innovation score :

1. (intellectual property protection, 2. utility patents,3. availability of scientists and engineers,4. government procurement of advanced

technology products,5. university-industry research collaboration,

and capacity for innovation), with the exception of company spending on R&D which improved by 3 places to 54 out of 133.

 

Egypt’s rank for the availability of scientists and engi- neers fell to 53 out of 133 countries as compared to

47 out of 134 countries the year before (Figure 1.24). Egypt’s score fell from 4.5 last year to 4.3, above the mean of 4.1, where 1= scientists and engineers are rare and 7 = scientists and engineers are widely avail- able.

CONCLUSIONThe improvement in Egypt’s

competitiveness rankings is encouraging, especially related to the

financial sector, primary education enrollments, port and airport expansions, and

other areas

CONCLUSIONmany weaknesses remain,

especially : the quality of the workforce, labor markets, government bureaucracy and macroeconomic management.These continue to drag down

Egypt’s overall performance.

CONCLUSIONTo make a major positive impact

on future competitiveness and growth, Egypt would do well to focus on :

educating and training productive people,

improving the business environment