Adnan Shihab-Eldin

The need for additional Financing Resources & Mechanisms for R&D (S&T) in the Arab Region

Adnan Shihab-Eldin

On the Issues and Problems of Scientific Research in the Arab World

14-15 November, 2006Alexandria - Egypt

Adnan Shihab-Eldin

Outline

BackgroundStatus of RD and Financing in the Arab Region

Role of State and private SectorAdditional novel mechanismsNational vs. Regional/International : Is there a need for a pan-Arab Financing of RD?

For What and How

Adnan Shihab-Eldin

Background

Financing is Necessary but not Sufficient for success of Knowledge-Based Economy

R&D and Innovation within modern Knowledge Economy

What we learn from recent experiences: The case of Finland

Implications for Developed, Developing (including Arab) Countries and Region

Adnan Shihab-Eldin

Development of Knowledge Economy: Lessons From Finland

The Finnish approach to the broad innovation system, including the creation of new knowledge and the commercialization of that knowledge, is very relevant for the larger and more technologically advanced countries with a critical mass of scientists and engineers, as well as a critical mass of R&D expenditures,

It is also relevant for middle-income countries, as the ever-increasing globalization (in particular the increasing importance of technology and information) means developing effective strategies of tapping into the rapidly growing stock of global knowledge, ( Finland still doing);

However, for the majority of developing the focus needs to be somewhat different (modified) than Finland’s.

Adnan Shihab-Eldin

Lessons LearnedBecause DC are still very far from technological frontier, still

need to put priority on developing effective means of tapping preexisting and rapidly growing stock of global knowledge.

DC should conceive of innovation system broadly & include all of the relevant actors. However, DC need to put more weight than they do now on understanding, acquiring, adapting, diffusing, and using existing knowledge, including indigenous knowledge.

This priority includes putting in place basic technological infrastructure such as norms and standards, metrology, testing, and quality control, as well as strong dissemination mechanisms and institutions such as technical information centers, productivity organizations, and agricultural and industrial extension agencies.

DC also need to set up/develop public research institutes that can help them access what global technologies may be relevant and help them adapt these technologies to their circumstances.

Adnan Shihab-Eldin

Implications I Importantly, utilizing their existing knowledge involves creating

technological capability in their productive firms and in getting them to invest in improving and eventually creating their own technologies in their most advanced sectors.

DC will have to pay more attention to all levels of education. DC will have to pay more attention to strengthening universal

basic and secondary education as well as higher and secondary education for their citizens to become effective users of technology, & to keep up with and make effective use of the rapidly expanding technological frontier.

Developing an effective innovation system also involves attracting FDI that can bring in relevant new technology to advance local economies.

Attracting FDI can be an important tool if properly utilized! It includes getting into global value chains controlled by multinational companies and trying to move up those value chains. It also includes developing linkages & networks between domestic public & private research institutes and universities & foreign ones, and among all of these domestic institutions.

Adnan Shihab-Eldin

Implications II A final implication for all countries is the importance of focusing

not only on what can be learned from the past but on anticipating and preparing for the future. ;

This Finnish example explains why Finland not only was able to make such a dramatic transformation to a knowledge-based economy but also why it has been able to remain competitive;

as a result of the rapid advances in knowledge & continuous challenge of globalization, the world is not standing still;

What worked in the past may not work in future prerequisites for being successful seem to be rising ever higher &demanding

importance of looking forward to see how to be better prepared for future challenges & opportunities.

Arab countries in particular need to monitor this aspect closely because there may be important new areas that can be exploited; One must be ready to take advantage of them.

Adnan Shihab-Eldin

Study Knowledge Economy Index and Its Components at www.worldbank.org/kam

What Institutional Changes are Needed for Improved Innovation System?

What Model Would Best Advance Economic Development?

Then decide on additional resources needed for key targeted interventions, sources & mechanisms;

For Each Country:

Adnan Shihab-Eldin

Sources, Targets & Mechanisms for Financing RD/ST in Arab region

State of Arab RD/ST, State Financing vs. Private Financing in the Arab Region:Additional financing by Arab States : Must establish strategic goals of additional financing (intervention) in priority areas

Targets & Sources for additional intervention (priority areas for Knowledge economy)

Sources for Additional Financing by Private Sector

Additional Financing by Regional and International sources

Adnan Shihab-Eldin

Additional Sources and Mechanisms for Financing RD/ST National Level:

National Sect oral Funds Redirect “Corporate Tax” for direct support of RD/ST/TD•Brazil•Pakistan Telecommunication (1% of gross income for national ST)

National Budgets must be increases for targeted interventions •Education•Innovation/knowledge-based economy•KFASNOC Direct small part of Oil revenues to support both energy and other targeted research; Direct IOC to allocate part of revenue to support targeted research (KISR)

Encourage Private Sector funding of innovations to increase profit (TDI UK Scoreboard 2006)

Role of VC Funds (national, regional & international)

Adnan Shihab-Eldin

Additional Sources and Mechanisms for Financing RD/ST II

Regional Level: ( An AFSTD again?)Centers of excellenceSupport programs in priority areas of regional dimension

International LevelGlobal Institutional and Program Funds (p 42)Maintain open RD/ST system in DC Debt SwapFDI (Partnerships)Support capacity building

Adnan Shihab-Eldin

The case for an Arab Fund for RD/ST

1976 CASTARAB Decision to Establish an Arab Fund:ObjectiveCapitalMissionGoals reason for failure

Have conditions changed? Is there a need now? The case for reviving the

AFSTD

Adnan Shihab-Eldin

AFSTD Detailed Feasibility Study carried out by AFSED, KF and

KISR 1976-1978 proposed the establishment of a regional body to assist Arab countries in their efforts to overcome ST ”backwardation” and dedicate ST efforts to Development;

Among key objectives for the fund were the following:Using available capacities effectively;Developing ST capacities;Assist in formulating appropriate policy of ST development;

Support initiatives of Arab Cooperation Scope was found too broad and Role fo AFSTD was

seen as partial: supplementary, promoting and catalysts through:Grants, Technical Assistance, loans, etc…through support for specific objectives avoiding provisions for general support;

To be capitalized at 150 m KD (500 $ m KD)

Reason for not failures: Mainly political disagreements among key Governments on HQ location and Governance structure

Adnan Shihab-Eldin

AFSTD II?

Reasons for Failure of prior effort:Conditions changed? Yes and no!Reasons for renewed effort:

Capacity Building at regional levelCenters of excellenceCommon Regional Priorities that may be best addressed through regionally/sub-regional coordinated efforts

Call for AFSED to take a lead and call for, initially, creating a 10-y regional funding program that could be a nucleus for such a FUND open for participation by other concerned national/international funds (OFID,IDB, etc..

Adnan Shihab-Eldin

Features of RD in Arab Region : Then and Now

Common: quantitative growth in numbers in most Arab Countries, institutional, manpower and coverage; However

Evolving quality paths and expenditure differ dramatically:Retreated in some,Advanced rapidly and then stagnated/retreated, etc.. Continued advance (slow and fast) (Ups and downs)

Overall capacity converged with small average growth positive but behind OECD and emerging developing countries;Need for strong intervention to produce results; Some additional financing is needed: Targets for and Sources of additional financing: national, regional, international

Adnan Shihab-Eldin

The End

Thank You

Adnan Shihab-Eldin

GDP and Average Growth (WB WDR 2006)

DGP Avg. growth,

$ million2004 % (2000-2004)

World 40,887,837 t 2.5 % Low income 1,253,353 5.4% Middle income 6,930,704 4.4 % Upper middle income 2,988,438 2.7% Lower middle income 3,941,575 5.7% Low & middle income 8,183,030 4.6% East Asia & Pacific 2,367,508 7.5% Europe & Central Asia 1,768,088 5.0 % Latin America & Carib. 2,018,715 1.5 % Middle East & N. Africa 600,256 4.5 % South Asia 878,785 5.8 % Sub-Saharan Africa 543,990 3.9% High income 32,715,777 2.0%

Adnan Shihab-Eldin

Sharing Knowledge between Companies and Universities

R&D Coopera

tion

Recruitment

Recruitment

Education and training

Cooperation benefits both parties, but independent basic and applied research in unversities is equally important

Adnan Shihab-Eldin

Cooperation between companies

0 10 20 30 40 50 60 70

Italy

Greece

Portugal

Spain

Germany

Austria

EU

Belgium

Netherlands

France

Great Britain

Ireland

Denmark

Sweden

Finland

Source: Towards a European Research Area - Key Figures, Special Edition. EU 2001

%

Docs 3611004-2002

Share of cooperating companies of all innovating companies

Adnan Shihab-Eldin

JapanKorea

IrelandSweden

SwitzerlandUnited States

BelgiumFINLAND

OECDGermany

Czech Rep.EU

DenmarkUK

NorwayAustriaCanada

NetherlandsFrance

AustraliaSpain

ItalyIcelandTurkey

HungaryPoland

N. ZealandPortugal

GreeceMexico

R&D financing in 1999R&D expenditures by source of funds

Source: OECD, MSTI database, April 1999

0 20 40 60 80 100 %

J07/ 00-06

Business enterprisesPublic sectorOther nationalresourcesAbroadNo breakdown

Adnan Shihab-Eldin

Services in the Mobile Information Society

Information

Entertainment

e-shoppingand banking

Voice

Corporate access and e-mail

e-education

Video

Adnan Shihab-Eldin

Second ECA Education Conference

Tertiary Education: Quality, Financing and

Linkages with Innovation and Productivity

Dubrovnik, Croatia, October 2-4, 2005

CREATIVITY, INNOVATION AND ROLE OF

HIGHER EDUCATION IN ECONOMIC DEVELOPMENT

Professor Jorma Routti

CIM Creative Industries Management & Helsinki University of Technology

jorma.routti@cimfunds.com jorma.routti@hut.fi

Former President of Sitra & Director General of Research DG of European Commision

Adnan Shihab-Eldin

15 Largest Economies: GDP 2002 (Trillions of international $)

United States$10.14t

China$5.73t

South Korea$0.78t

India $2.69t

Indonesia$0.66t

Mexico $0.88t

Brazil $1.31t

Spain $0.85t

United Kingdom$1.51t

Italy $1.48t

France$1.55t

Germany $2.17t

Canada$0.90t

Japan 3.26

-3

-1

1

3

5

7

9

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000

GDP per capita (international $) 2002

Ave RGDP per capita growth 1990-2002 (%)

Russia $1.41t

©Knowledge for Development, WBI©Knowledge for Development, WBI

Adnan Shihab-Eldin

Real GDP (PPP): Projections 2004-2015 (Using 1991-2003 Average Growth Rates)

0

2

4

6

8

10

12

14

16

2003 2005 2007 2009 2011 2013 2015

Trillions of 1995 international $

India China Brazil

Canada France Germany

Italy Japan Mexico

Russian Federation United Kingdom United States

India

China

United States

JapanGermany

United Kingdom

France

Italy

Canada

Mexico

Russian Federation

Brazil

Adnan Shihab-Eldin

Telecommunications and Nokia's Change

1988 1998

Mobile Phones 60% Infrastructure 33% Other 7%

Floorings 1%

Chemicals 2%

Machinery 4%

Electrical Wholesale 4%

Rubber 6%

Information Systems 23%

Cables 9%

Paper 10%

Consumer Electronics 31%

Mobile Telephones 5%Telecommunications 5%

Mobile Telephones 5%Telecommunications 5%

2000

Net sales USD 5.2 billion 1988 Market capitalization USD 1.4 billion at year end 1988

Net sales USD 19.9 billion 1999Market capitalization USD 236.5 billion, as of February 28th 2000

Adnan Shihab-Eldin

Services in the Mobile Information Society

Information

Entertainment

e-shoppingand banking

Voice

Corporate access and e-mail

e-education

Video

Adnan Shihab-Eldin

FOCUS IN THE VALUE CHAIN

CONSUMERCONTENTCREATORS

CONTENTPRODUCERS

CONTENTDISTRIBUTORS

CREATES IDEA

HOLDS IPRs

TECHNOLOGY DRIVEN IDEAS

DEVELOPSCOPYRIGHTS

PACKAGES IPRs

PROGRAMMINGCONTENT

DISTRIBUTESCOPYRIGHTS

MARKETS / BRANDS IPRs

DISTRIBUTIONPLATFORMS

TICKETSMAGAZINESBOOKS, CD,VIDEO, DVD,RADIO, TV

NET, WAP/3G

Adnan Shihab-Eldin

Innovation – Weighted by Population

Adnan Shihab-Eldin

Education and Innovation Keys to Competitiveness

Education is the fundamental enabler of the knowledge economy and a key to competitiveness and growth

Critical; no longer basic or even secondary but higher education and the constant upgrading of skills

Increasing competition for people with high level skills

Education couples with research and innovation

Adnan Shihab-Eldin

R&D input in some OECD countries

Sources: OECD, Main Science and Technology Indicators database, Statistics Finland (Finland 2002) and Statistiska centralbyrån (Sweden 2001, estimate). Docs 36109

02-2003

USA

Japan

Germany

Sweden

Great Britain

France

Austria

FINLAND

Denmark

85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02

OECD total

3.5

3.0

2.5

2.0

1.5

1.0

4.0

Percentage of GDP

est.

Canada

Israel4.5

0.5

Iceland

South Korea

Singapore

China

Norway

Adnan Shihab-Eldin

Exports of Finnish high tech products totalled9.9 billion euros in 2001, i.e. 21 % of total exports of goods.

Exports of Finnish high tech products totalled9.9 billion euros in 2001, i.e. 21 % of total exports of goods.

Source: Statistics Finland, according to the OECD product catalogue defined in 1995

The share of high tech exportsin some OECD countries 1988-2001

Norway

USAJapanUnitedKingdomNetherlandsFINLANDSwitzerlandFranceSwedenGermanyDenmark

Docs 32187B 03 /02-03

0

5

10

15

20

25

30

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

% of total exports of goods

EU

Adnan Shihab-Eldin

MARKETS quality

competitiveness price

competitiveness environmental

expertise

F O R E S T I N D U S T R Y

Pulp and paper technology

Wood products industry

Machines, machinery and processes

A11/ 99-08

Securing competitiveness inthe Forest Industry

FORESTRY

CONSTRUCTION AND WOOD TECHNOLOGY modification of wood construction

technology andarchitecture

logistics, assembly

MANUFACTURING TECHNOLOGY forestry machines process and production machinery material technology

BIOTECHNOLOGY enzymes rot prevention gene technology

ENERGY AND ENVIRON-MENTAL TECHNOLOGY biofuels, combustion technology ecobalances closed cycles energy-saving and

emissions

CHEMICAL TECHNOLOGY paper and bleaching chemicals surface treatment

substances pigments, adhesives

INFORMATIONTECHNOLOGY sensors, measuring

and control computational

intelligence,simulation andmachine vision

multimedia and telecommunication tomography

Adnan Shihab-Eldin

Co-operation between companies and universities and research institutes

Norway

UK

Sweden

FINLAND

Portugal

Austria

Netherlands

Ireland

Italy

France

Denmark

Germany

Belgium

EU

Norway

UK

Sweden

FINLAND

Portugal

Austria

Netherlands

Ireland

Italy

France

Denmark

Germany

Belgium

EU

0 20 40 60 %

Share of innovative companieshaving co-operation agreements

with universities (1994-1996)

Share of innovative companies havingco-operation agreements with public

research institutes (1994-1996)

Source: Eurostat, Enterprise DG, 2nd Community Innovation Survey

J05/ 00-06

0 20 40 60 %

Adnan Shihab-Eldin

Forest Industry Cluster

Brasil, South Africa, China, Indonesia

Manufacturing and Operations

Valmet Paper Machines

• Design, manufacturing and remote operations

Production • Focus on specific

market segments and products

World wide marketing

Paper, cardboard, packaging material

Poyry Design and Consulting

Pulp Mills Sunds

Design, manufacting and maintenance

Timberjack Forest Harvestors

Adnan Shihab-Eldin

Composition of Regional Economies United States, 2001

Traded ClustersTraded ClustersTraded ClustersTraded Clusters Local ClustersLocal ClustersLocal ClustersLocal Clusters Natural Resource-Natural Resource-Driven IndustriesDriven Industries

Natural Resource-Natural Resource-Driven IndustriesDriven Industries

31.6%31.6%

1.7%1.7%

$44,956$44,956

133.8133.8

4.5%4.5%

144.1144.1

21.721.7

590590

31.6%31.6%

1.7%1.7%

$44,956$44,956

133.8133.8

4.5%4.5%

144.1144.1

21.721.7

590590

67.6%67.6%

2.8%2.8%

$28,288$28,288

84.284.2

3.7%3.7%

79.379.3

1.31.3

241241

67.6%67.6%

2.8%2.8%

$28,288$28,288

84.284.2

3.7%3.7%

79.379.3

1.31.3

241241

0.8%0.8%

-1.0%-1.0%

$33,245$33,245

99.099.0

2.0%2.0%

140.1140.1

7.27.2

4848

0.8%0.8%

-1.0%-1.0%

$33,245$33,245

99.099.0

2.0%2.0%

140.1140.1

7.27.2

4848

Share of Employment

Employment Growth, 1990 to 2001

Average Wage

Relative Wage

Wage Growth

Relative Productivity

Patents per 10,000 Employees

Number of SIC Industries

Note: 2001 data, except relative productivity which is 1997 data.Source: Cluster Mapping Project, Institute for Strategy and Competitiveness, Harvard Business School

Adnan Shihab-Eldin

$15,000

$25,000

$35,000

$45,000

$55,000

50 100 150 200 250 300

Average Regional Wage, 2001

Share of Traded Employment in Strong Clusters (LQ > .8), 2001

y = 96.736x + 16218R2 = 0.377

New York, NYBay Area, CA

Boston, MA

Determinants of Regional Prosperity Cluster Strength and Wage Levels

Source: County Business Patterns; Michael E. Porter, The Economic Performance of Regions”, Regional Studies, Vol. 37, 2003

Adnan Shihab-Eldin

s

SOCIAL & HUMAN CAPITAL

TECHNOLOGY & INNOVATION

RE

SE

AR

CH

CA

PA

CI

TY A

BS

OR

TIO

N C

AP

AC

ITY

SUPPLY USERS

CREATORS DEMAND

Adnan Shihab-Eldin

s

SOCIAL & HUMAN CAPITAL

TECHNOLOGY & INNOVATION

RE

SE

AR

CH

CA

PA

CI

TY

AB

SO

RT

ION

CA

PA

CIT

Y

SUPPLY USERS

CREATORS DEMAND

JAPAN

USA

IRL

ITA

SWE

DE

FR

UK

FIN

Adnan Shihab-Eldin

ECONOMIC POLICY MANAGEMENT PROGRAMS SINCE 1977

Participants: Members of Parliament, Media Leaders, Civil Servants

Labour Movement, Industry Organizations, Academia

Objectives: Growth, Employment, Balance, Low Inflation

Instruments: Fiscal Policy, Taxation, Incentives, Echange Rates, Interest Rates

Topics: Globalization, Integration, Trade, Social Policy, Regional Policy, Education, Research,

Industry, Agriculture, Banking, Environment, etc.

Government: Consencus Building, Trade-offsSimulation Models, Economic Advisors

Adoption: Baltic Countries, New EU Members, Latin America, WB

Adnan Shihab-Eldin

TIME – ENERGY - INFORMATION

E = 0

I = 0 T = 0

I = maxT = max

E = max Jorma.Routti@cimfunds.com

Adnan Shihab-Eldin

Summary of Finland KE experience

Adnan Shihab-Eldin

Sharing Knowledge between Companies and Universities

R&D Coopera

tion

Recruitment

Recruitment

Education and training

Cooperation benefits both parties, but independent basic and applied research in unversities is equally important

Adnan Shihab-Eldin

Evaluations of the Finnish Science, Technology &Innovation Environment

According to WEF Finland is ranked 2nd both in growth competitiveness and microeconomic competitiveness. In technology Finland is ranked 3rd. WEF also ranks Finland first in the Networked Readiness Index (NRI), boosted by the best performance in terms of technology usage by its citizens, businesses and the government.

IMD ranks Finland 2nd in overall competitiveness in 2002. In technological infrastructure Finland ranks 2nd and scientific infrastructure 6th.

The Lisbon Review measures and ranks annually the performance of the European Union in achieving the goals laid out in the EU's Lisbon Strategy. Based on the Lisbon Review Finlandis the only consistently leading country in the EU. The dimensions of the Lisbon diamond are information society, innovation and R&D, liberalization, network industries, financial services, enterprise environment, social inclusion and sustainable development.

Docs 20377

Adnan Shihab-Eldin

R&D input in some OECD countries

Sources: OECD, Main Science and Technology Indicators database, Statistics Finland (Finland 2002) and Statistiska centralbyrån (Sweden 2001, estimate). Docs 36109

02-2003

USA

Japan

Germany

Sweden

Great Britain

France

Austria

FINLAND

Denmark

85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02

OECD total

3.5

3.0

2.5

2.0

1.5

1.0

4.0

Percentage of GDP

est.

Canada

Israel4.5

0.5

Iceland

South Korea

Singapore

China

Norway

Adnan Shihab-Eldin

R&D input in some OECD countries

Sources: OECD, Main Science and Technology Indicators database, Statistics Finland (Finland 2002) and Statistiska centralbyrån (Sweden 2001, estimate). Docs 36109

02-2003

USA

Japan

Germany

Sweden

Great Britain

France

Austria

FINLAND

Denmark

85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02

OECD total

3.5

3.0

2.5

2.0

1.5

1.0

4.0

Percentage of GDP

est.

Canada

Israel4.5

0.5

Iceland

South Korea

Singapore

China

Norway

Adnan Shihab-Eldin

MARKETS quality

competitiveness price

competitiveness environmental

expertise

F O R E S T I N D U S T R Y

Pulp and paper technology

Wood products industry

Machines, machinery and processes

A11/ 99-08

Securing competitiveness inthe Forest Industry

FORESTRY

CONSTRUCTION AND WOOD TECHNOLOGY modification of wood construction

technology andarchitecture

logistics, assembly

MANUFACTURING TECHNOLOGY forestry machines process and production machinery material technology

BIOTECHNOLOGY enzymes rot prevention gene technology

ENERGY AND ENVIRON-MENTAL TECHNOLOGY biofuels, combustion technology ecobalances closed cycles energy-saving and

emissions

CHEMICAL TECHNOLOGY paper and bleaching chemicals surface treatment

substances pigments, adhesives

INFORMATIONTECHNOLOGY sensors, measuring

and control computational

intelligence,simulation andmachine vision

multimedia and telecommunication tomography

Adnan Shihab-Eldin

FOCUS IN THE VALUE CHAIN

CONSUMERCONTENTCREATORS

CONTENTPRODUCERS

CONTENTDISTRIBUTORS

CREATES IDEA

HOLDS IPRs

TECHNOLOGY DRIVEN IDEAS

DEVELOPSCOPYRIGHTS

PACKAGES IPRs

PROGRAMMINGCONTENT

DISTRIBUTESCOPYRIGHTS

MARKETS / BRANDS IPRs

DISTRIBUTIONPLATFORMS

TICKETSMAGAZINESBOOKS, CD,VIDEO, DVD,RADIO, TV

NET, WAP/3G

Adnan Shihab-Eldin

Adnan Shihab-Eldin

Source: Statistics Finland

R&D intensity and GDP growthin some countries

A 07B/ 01-06

0.0

1.0

2.0

3.0

4.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

USA

Japan

Germany

Spain

FINLAND

EU average

Ireland

Italy

Netherlands

FranceDenmark

Great Britain

Sweden

GreecePortugal

AustriaBelgium

4.0

3.0

2.0

1.0

0.00.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

R&D intensity, %

Real growth in GDP 95-99, %

Adnan Shihab-Eldin

INNOVATION SYSTEM

Economic andsocial needs

users

Knowledge baseknowledge producers

absorptivecapacity

interaction- knowledge transfer- user needs

- quality- relevance

Adnan Shihab-Eldin

Cooperation between companies

0 10 20 30 40 50 60 70

Italy

Greece

Portugal

Spain

Germany

Austria

EU

Belgium

Netherlands

France

Great Britain

Ireland

Denmark

Sweden

Finland

Source: Towards a European Research Area - Key Figures, Special Edition. EU 2001

%

Docs 3611004-2002

Share of cooperating companies of all innovating companies

Adnan Shihab-Eldin070598/EO/mwe

Council of State

Science and Technology Policy Council

Ministry ofEducation

Ministry ofTrade and Industry

OtherMinistries

TechnologyDevelopment

Centre

Academy ofFinland SITRA Fund

Universities and government research institutes

Enterprises, private research institutes,funds and foundations, learned societies

Adnan Shihab-Eldin

Fundamental changes taking place

Globalization

Knowledge-based economies

Digital revolution

Adnan Shihab-Eldin

Features of RD in Arab Region : Then and Now

Common: quantitative growth in numbers in most Arab Countries, institutional, manpower and coverage; However

Evolving quality paths and expenditure differ dramatically:Retreated in some,Advanced rapidly and then stagnated/retreated, etc.. Continued advance (slow and fast) (Ups and downs)

Overall capacity converged with small average growth positive but behind OECD and emerging developing countries;Need for strong intervention to produce results; Some additional financing is needed: Targets for and Sources of additional financing: national, regional, international