Transcript Slide 1

Science and Technology Parks Stimulating a
Diversified Economic Growth in Africa
Hauwa Yabani
MD, Abuja Technology Village
Nigeria
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Outline
Global Economy – African Perspective
Science and Technology Parks – An Overview
Contents
A “Developing” to “Developed” Nation – Need
for Diversification
Role of Science and Technology Parks in
Economic Diversification
Key Learning Points for Africa
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The world is
changing
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Greatest
debt
Total Debt as
% of GDP
Least
debt
$ 0 4 0, 6 8 5, 2 4 5, 3 7 9, 8 6 6
USA
Japan
Cyprus
Greatest
debt
Greece
Ireland
Italy
Total Debt as
% of GDP
Portugal
Spain
Recently
Downgraded
Least
debt
Hungary
France
UK
Brazil
Colombia
Ecuador
Greatest
debt
Indonesia
Nigeria
Peru
Philippines
Total Debt as
% of GDP
Turkey
Ukraine
Recently
Upgraded
Least
debt
Chile
Uruguay
GDP ranking
The accelerating
shift of global
economic power
2009
Forecast 2050
1. US
1. China
2. China
2. India
Forecast E7 overtake G7
3. Japan
3. US
2013 Brazil overtakes the UK
4. India
4. Brazil
2014 Russia overtakes Germany
5. Germany
5. Japan
2015 Indonesia overtakes Turkey
6. Russia
6. Russia
7. UK
7. Mexico
2018 China overtakes US; Indonesia
overtakes Canada
8. France
8. Indonesia
2019 Mexico overtakes Italy
9. Brazil
9. Germany
2020 Turkey overtakes Canada
10. Italy
10. UK
2021 Indonesia overtakes Spain
11. Mexico
11. France
12. Spain
12. Turkey
2024 Indonesia overtakes South Korea;
Turkey overtakes Spain
13. South Korea 13. Nigeria
14. Canada
14. Vietnam
15. Turkey
15. Italy
2025 Brazil overtakes Germany
2028 Mexico overtakes France, Turkey
overtakes South Korea
2030 Indonesia overtakes Italy
2031 Mexico overtakes the UK
2033 Turkey overtakes Italy
Technology as a Key Driver to Economic
Advancement
 Customers increasingly expect to access services where, when
and how they want – using smart phones and tablets.
• Forward-looking institutions are starting to explore the growing
impact of using social media to communicate with customers,
cater to evolving buying behaviours.
• Mobile payments are expected to grow globally by 97 percent
per annum over the next 2 years to 2015, driven by customers’
desires to shop in environments that are ‘always on, always
fast and always accessible.’1
• Data stored in “Clouds” makes data management more
convenient, cost-effective and secure.
• Crowdsourcing is driving innovation and enhancing the customer
experience.
• Biometrics and microchips embedded under the skin may be
in use by 2020.
Digitalisation
Technology Speed and Adaptation
75 years
The time it
takes to reach 50
million users
38 years
13 years
4 years
3.5 years
3 years
2.5 years
50 days
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Case Study - Singapore
• In 1979, after the shock of two
oil crises, the Government
started a program of economic
restructuring. This was achieved
by modifying education policies,
expanding
technology
and
computer education, offering
financial incentives to industrial
enterprises and launching a
productivity campaign.
• Public housing was given top
priority. New towns sprang up
and Housing and Development
Board apartments were sold at a
low cost. To encourage home
ownership, Singaporeans were
allowed to use their Central
Provident Fund savings to pay
for these apartments.
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Case Study – Singapore Contd.
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Singapore took measures to promote innovation, encourage entrepreneurship,
re-train her workforce, and even attract foreign talents. These measures boosted
Singapore's productivity, so that Singapore became competitive and ready for
the challenges of a knowledge-driven global economy
•
Government-linked corporations play a dominant role in Singapore's domestic
economy. These fully and partially state-owned enterprises operate on a
commercial basis under guidelines established by Temasek Holdings and are
granted no competitive advantage over privately owned enterprises. State
ownership is prominent in strategic sectors of the economy, including
telecommunications, media, public transportation, defense, port, airport
operations as well as banking, shipping, airline, infrastructure and real estate.
•
Today, Singapore is a developed country. Her income per capita is high by current
developed country standards. The structure of the economy is oriented towards
high income services and the production of sophisticated manufactured goods
and the level of welfare of the indigenous population is higher than in many fully
developed countries
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Africa’s Macro-economic Review
 A majority of the problems of Africa revolve around
natural resources – “resource course”
 Most African countries suffer from the “Dutch
Disease” - which is prevalent in countries with
large endowments of natural resources, such as oil
and gas, but often perform worse in terms of
economic development and good governance.
 Globally, countries do not make it economically
long term relying on one primary product and
sustainable growth depends largely on
diversification.
 It is imperative African Countries find ways to
diversify their economies, i.e. non-traditional
sectors; expanding their range of products and
exports
 Embracing scientific and technological innovation
through the development of Science and
Technology Parks (STP) - can foster economic
development and accelerate diversification of
Africa’s economy.
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Challenges to Economic Diversification
Infrastructural
Deficit
Poor
Innovation
Culture
Institutional
Incapacity
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Macro-economic Factors to Watch
1. Energy
2. Regulation
3. FDI Inflows
4. Socio-Political Terrain
5. Technology & Digital Economy
6. Infrastructure
7. Security
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Science and Technology Parks
Science and Technology Parks support
university-industry and government
collaboration with the intent of creating
high technology economic development
and advancing knowledge.
These institutions offer a number of
shared resources for their clients such as;
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Incubators,
Programs and collaboration activities,
Uninterruptible power supply,
Telecommunications hubs,
Reception and security,
Management
offices, restaurants, convention
center, parking, internal
transportation, etc.
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Science and Technology Parks
While each country or municipality may have different reasons for creating
technology parks, generally the primary purpose of a STP is to increase the
number of entrepreneurial, knowledge-based small and medium-sized
enterprises in an economy.
STP’s provide an environment that enables market-oriented technological
development. They improve the well-being of the community they are
located by encouraging a culture of innovation. They nurture the
relationship between universities, R&D institutions, companies and markets
and have the core elements for sustainable development. They can help
bridge the gap and connect our economy to the global economy by
developing industries that lead the way to diversification.
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Role of STPs in Economic Diversification
 Science parks are sources of entrepreneurship, talent, and economic
competitiveness, and are key elements of the infrastructure supporting the
growth of today's global knowledge economy. By providing a location in which
government, universities and private companies cooperate and collaborate,
science parks create environments that foster collaboration and innovation. They
enhance the development, transfer, and commercialization of technology.
 STP can be used as one of the investment tools of economic diversification.
 They provide an environment that enables market – oriented technological
development.
 Improve the well being of the community they are located by encouraging a
culture of innovation
 They can help bridge the gap and connect economies to the global economies by
developing industries
 They perform an economic development function. By drawing together large
businesses and start-ups in the same place: they enable clustering as well as the
development of networks and trust. This allows the transmission of ideas and
knowledge, which foster new companies, innovation and ultimately, growth.
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The Case of Malaysia: The Palm Tree
Example
Despite being endowed with tin, oil and gas, Malaysia has successfully diversified its
economy since gaining independence in 1957 to a multi sector economy driven by high
technology.
Notable impacts of technology on national development are best illustrated by the palm
tree value chain in Malaysia. The country imported palm seedling from Nigeria in the
early 1960s. Through well-planned R&D and technology applications, Malaysia
developed commercial value from the entire palm tree:
 The palm fruit was enhanced significantly to yield large quantities of palm oil and
palm kernel.
 Through R&D, palm oil was converted into an environmentally friendly and
biodegradable drilling fluid called Petro free, which sells for more than USD 20/bbl.
 Palm kernel is being converted to soap detergent and animal feed for industrial use.
 The broom stick derived from the frond is crushed and compressed to make table
tops and is used in car-seat manufacturing.
 The interior of the palm trunk is treated with protein and converted to animal feed.
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The Case of Malaysia: The Palm Tree
Example Contd.
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Technology Park Malaysia (TPM) was established to allow high tech local
companies to become global multinationals. It was designed to be the
world’s most comprehensive center for technological innovation and
R&D for Knowledge based industries.
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Today, Malaysia is one of the world's largest exporters of semiconductor
components and devices, electrical goods, solar panels, and information
and communication technology products.
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In Malaysia technology is clearly an engine of growth. Africa must not
view technology as a consumable item, not something that must be
created or produced but as the primary engine of growth and they key
to unlocking any nations potential. Countries that want to develop must
invest insignificantly in S&T.
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Key Learning Points for Africa
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Establishment of
favorable incentives
around tax regimes
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Focus on developing
their ICT and power
sectors
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Synergies between
academia and private
sector
Innovation should be
adapted to fulfill local
needs
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International
Cooperation should be
adapted for the
benefit of all African
Nations
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Thank you!
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