The Knowledge and Innovation Road - psa.gov.qa · Main Messages Knowledge and Innovation-based...
Transcript of The Knowledge and Innovation Road - psa.gov.qa · Main Messages Knowledge and Innovation-based...
T H E K N O W L E D G E - B A S E D E C O N O M Y I N T H E G C C
O C T O B E R 1 0 - 1 1 , 2 0 1 2
D O H A , Q A T A R
Jamal Al-Kibbi World Bank Program Manager - GCC
The Knowledge and Innovation Road
Main Messages
Knowledge and Innovation-based Economy: key for coping with the job challenge
Low KE competitiveness, but notable efforts
Need for ambition and pragmatism (low-hanging fruits)
Adapt to countries’ own circumstances and capabilities
Importance of regional-global integration
Youth Unemployment by Region
KE and Growth
Algeria
Morocco
Brazil
China Egypt, Arab Rep.
Ethiopia
Finland Germany
Ghana India Indonesia
Ireland
Jordan
Korea, Rep.
Lebanon
Oman
Poland
Qatar
Russian Federation Saudi Arabia
Singapore
Slovenia
South Africa
Sudan Thailand Tunisia
United Arab Emirates
United Kingdom
United States
Yemen, Rep.
R² = 0.8334
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KEI 2012
Estimating Employment Effects of Knowledge
KnowledgeEconomic Growth
Employment Growth
Estimating Employment Effects of Knowledge
Employment Effects due to Knowledge
(via economic growth)
Employment Elasticity to KEI
0.0
0.3
0.2
0.4
0.2
0.4
0.2 0.2
0.3
0.1
0.20.2
0.10.2 0.2
0.23
1.3
0.8
0.60.5
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0.2
1.1
0.9
0.8
0.6
0.90.8
0.6 0.50.5 0.4
0.69
0.0
0.5
1.0
1.5
Employment Elasticity to KEI - MENA Countries
1991-1999
2000-2009
Oil Exporting Developed Oil Exporting Developing Oil Importing Developing
Reshaping the Growth Model
From comparative to competitive advantage
Shifting competitiveness from resource- or location-based sectors (rent economies) to knowledge-based ones.
Knowledge-based significantly contribute to higher valued added, faster growth and consequently job creation, notably for the youth.
Green Growth is a real opportunity Can secure 10% of the jobs needed to keep unemployment from
rising.
Example: Solar Energy
Decreasing costs & increasing electricity demand
High demand from Europe – By 2030, the European Union foresees about 45 percent of total energy demand will be met by renewables.
An investment of $1 million in clean energy is estimated to produce 16.7 jobs, compared with only 5.3 jobs for the same amount spent on fossil fuel industries (PERI and AAM 2009).
KBE sub-plan with just the main KBE pillars
0
20
40
60
Pillar 1: Business environment + Governance performance
Pillar 2: Innovation ecology + entrepreneurship
Pillar 3: Education and life-long learning system
Pillar 4: Telecom and IT infrastructure and usage pattern
Pillar 5: Trust-based society, networking capability
National development plan with myriad themes
Focus Integration
Futu
re-s
hapin
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ncy
Successful KEs focused on a few, especially future-shaping pillars and treated them in an integrated manner
Promising Niches through FDI Lens in the Mediterranean Area (Number of Jobs created per Million Euros Invested)
• Call center function: 299
• R&D center function (in IT + auto): 211
• Textile (production): 196
• Consulting and services to companies: 136
• Software (services): 103
• Electronic components (production): 103
• Agribusiness (production): 77
• Logistics platforms: 67
• Automotive and aeronautics: 63
• Green techs: 39
Source: 2011 Anima Background Report for CMI
Knowledge and Innovation Ecology
MENA Governance rankings, 2010 compared with 2005
Economic and Institutional Regime
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2012
2000
More entrepreneurial economies with a dynamic private sector should be the source of wealth, jobs, and personal and collective accomplishments.
Some pertinent reforms were carried out in several countries before the Arab Spring, but, major constraints remain:
• rigid regulations on product and labor markets,
• competitive conditions burdened by monopoly and privilege,
• restrictions on external trade and foreign direct investment,
• lack of development and venture capital,
• bureaucratic hurdles of all kinds.
Promoting the emergence of a dynamic private sector
Strength of investor protection in the Arab World
6 5.7
5.4 5.1 5
4.8 4.5
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1
2
3
4
5
6
7
Source: Author’s calculation based on World Bank and IFC (2012).
Areas to improve: The economic and institutional regime
• Strengthen governance
• Improve government efficiency
• Improve the business environment
• Integrate into the global economy
Education - Enrollments Measures Adult Literacy Rate, Secondary Enrollment, and Tertiary Enrollment
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1
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8
2000
2011
Education - Performance: Results on 2009 PISA test
Areas to improve: Education
• Enrollment vs. Quality
• Correct the mismatch between the skill needs of the economy and the outputs of the education/training system
• Link higher education to employment – some Arab countries started to do so.
• Invest in technical and vocational education and training
• Align the governance, management, financing, and performance incentives of the education system to produce better learning outcomes
ICT pillar Measures the number of telephones per 1,000 people, computers per 1,000 people, and the
number of Internet Users per 10,000 people
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2
4
6
8
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12
2000
2011
Mobile and Internet penetration in MENA, 1999–2009
Source: International Telecommunications Union; Rasmala (2011).
Areas to improve: ICT infrastructure
• Strengthen competition in the ICT market and improve broadband access
• Make more effective use of ICT applications for more growth and better delivery of government services (e.g. YESSER in Saudi Arabia)
• Improve IT skills among the labor pool to increase productivity and employability (e.g. Jordan Education Initiative)
Innovation
Improving the innovative climate implies: • Develop programs to support innovators
• Connect innovators with sources of human and financial capital and with market channels (e.g. Kafalat in Lebanon)
• build vibrant innovative sites by improving existing sites, such as techno‐parks and industrial clusters, and opening new ones.
• Change traditional, theoretical R&D approaches to be practical and to serve the economy and society
• tap into global knowledge through research cooperation, foreign direct investment, and well‐organized diasporas
A number of relatively inexpensive measures would have a strong impact of the creativity and dynamism of the academic and business communities
innovation policy
research
education
finance
industry
others
trade
Arab Countries’ Total Exports by Technology Level (2005-2009)
0%
10%
20%
30%
40%
50%
60%
70%
2005 2006 2007 2008 2009
Pe
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Resource-based exports Low-technology exports
Medium-technology exports High-technology exports
Areas to improve: The innovation system
• Broaden the concept of innovation policy
• Bring R&D structures into the service of the economy and society (RDI Program in Egypt)
• Tap into global knowledge and technology
• Educate for innovation (Rabat International University) • • Build innovation sites (Berytech in Lebanon & Knowledge and
innovation cities in Saudi Arabia)
• Support innovators. (Yomken.com)
Regional Integration: Selected Actions
Strengthen integration in education
Develop joint qualification and certification mechanisms
Scale up scholarship programs (ERASMUS)
Expand networks of engineering and management schools
Develop learning and evaluation mechanisms for university management
Increase cooperation in the innovation and research space
Mobilize actors through sector task forces and online platforms
Develop networks of incubator managers, business angels, and R&D program leaders to share good practices
Establish multi-country and multi-partner R&D platforms and programs
Stimulate FDI and strengthen linkages for technology transfer, business management practices, etc.
Mobilize diasporas through efficient networks and good policy practices inspired by international experience
Regional Integration: Selected Actions
Promote the information society in the Mediterranean
Cooperate to develop ICT applications (e-government, e-business, etc.)
Assist in efforts to liberalize telecommunication markets and improve regulatory frameworks
Promote industrial and local development in the Mediterranean
Reinforce cooperation in the development of growth sectors through joint projects (solar, energy saving, water management, transport, etc.)
Stimulate city networks for good practice exchanges and mutual assistance in innovative urban development and related policy measures (techno-parks, city planning, smart cities, etc.)
Conclusion
Multi-instrument approach combining a set of key actions
Supportive measures for R&D to encourage product development (e.g. Turkish tax exemption on R&D activities)
Shortage in domestic skills can be reversed by: increasing capabilities of technology absorption at the firm level Linking curricula with market needs (notably for vocational education)
Niche opportunities are available in many segments of the value chain. Challenge is to benefit from the comparative advantage and enhance them through knowledge and innovation to become a competitive advantage.
First Step: Start with pilot programs (at a local, national, or even regional level) to act as catalyst and to gain quick wins
By time, this can attract more investment, more demand for change, and other positive side-effects.