Nigeria's NIS

FROM LAB TO MARKET: LESSONS FOR AND FROM AISA

ON COMMERCIALISING R&D OUTPUTS IN NIGERIA

Abiodun A. Egbetokun Technology Innovation and Enterprise Studies

National Centre for Technology Management (NACETEM), Federal Ministry of Science & Technology (FMST),

Obafemi Awolowo University, Ile-Ife, Nigeria

[email protected] [email protected]

OUTLINE2

Introduction Conclusion

Introduction3

Despite the abundance of information in the globalised world economy, a competitive gap exists between nations and organisations.

The most significant cause of this competitive gap is knowledge

Competing successfully in the long run means innovating and innovating entails building new competencies, new capabilities and new knowledge…

…competencies and capabilities for the ultimate practical application of new or re-combined knowledge, through innovation/value addition.

My aims

discuss the challenges of successful R&D-driven innovation within Nigeria’s National Innovation System (NIS)

draw lessons from Asia in this regard

highlight a few areas where Asian economies might learn from the Nigerian situation

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Science, Technology and Innovation (STI) Concepts

S&T have become so closely related that the one now depends on the other for its development (Ilori et al, 2002).

The concept of “Science and Technology” means, in our time, the totality of activities in a nation that lead to innovation. These include, according to UNESCO, 1982):

Scientific and technology research Experimental development Scientific and technological services Innovation Diffusion

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R&D, Innovation, Diffusion

The benefits derivable from S&T are not actually realised in an economy until innovation and diffusion occur.

It is innovation that transforms R&D results into useful products or processes which are placed on the market (commercialised).

For this reason, it is now becoming increasingly important to foster a connection between the universities and research institutes where knowledge is created and the industry where knowledge is deployed

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R&D and the National Innovation System (NIS)

Research and innovation are intimate bedfellows.

The cumulative R&D effort is intimately related to the national capacity of a country to produce and commercialise a flow of innovative technology over the long term (Stern et al., 2000).

The success achieved by any nation in exploiting R&D outputs for growth and development depends on the effectiveness of the nation’s National Innovation System (NIS).

The NIS provides a framework for evaluating holistically a nation’s attempt at generating and applying knowledge for meeting the needs of her society.

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The NIS is “the network of institutions in the public and private sectors

whose activities and interactions initiate, import, modify and diffuse new technologies.” (Freeman, 1987)

“a constitution of elements and the relationships located within or rooted inside the borders of a nation state, which interact in the production, diffusion and use of new and economically useful knowledge.” (Ilori, 2006)

“integrated system of economic and institutional agents directly promoting the generation and use of innovation in a national economy” (Adeoti, 2002)

THE NIS

THE ELEMENTS OF THE NIS

Managing Nigeria’s NIS (c) 2009 W. O. Siyanbola [email protected]

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The key elements are: Education and Research (universities, polytechnics and research

institutes), Industrial Production (private enterprises) Finance (gov’t, venture capitalists, development partners, NGOs,

banks), and Public Policy and Regulation (Government)

Other elements: Bridging institutions which act as intermediaries between the main

elements (research councils/associations, IPTTOs, patent offices, technology transfer organizations, etc)

Other public and private institutions that play cognate roles (public laboratories, joint research institutes, training organizations, etc)

Industrial Industrial

ProductionProduction

EducationEducationandand

ResearchResearch

FinanceFinance

Venture Fund

Policy Instruments

Policy Instruments

Policy Instruments

Venture Fund

Brokerage, Interface, Bridging Institutions

GovernmentGovernment

Policy Instruments

Industrial Industrial

ProductionProduction

EducationEducationandand

ResearchResearch

FinanceFinance

Venture Fund

Policy Instruments

Policy Instruments

Policy Instruments

Venture Fund

Brokerage, Interface, Bridging

Institutions

GovernmentGovernment

Policy Instruments

A d a p t e d f r o m T if f in , 19 9 7A d a p t e d f r o m T if f in , 19 9 7

Structure of Interactions among elements of the NIS

NIGERIA’S NIS

SOURCES OF KNOWLEDGE IN THE NIS

Sources: http://nicoys.net.ng/nigeria/orgs.php?n=1, accessed June 26, 2007; http://www.nucnigeria.info/universities.htm, accessed April 17, 2007

NUC, NBTE and NACETEM compilations

Institutions Total number

Research Institutes

Public Research Agencies/Institutes/Centres 75

International Research Institutes with major activity in Nigeria 6

Total 81

Higher Education Institutions

Universities 94

Polytechnics 71

Monotechnics 27

Total 192

GRAND TOTAL 273

http://nicoys.net.ng/nigeria/orgs.php?n=1

http://www.nucnigeria.info/universities.htm

AFRICAN RANK UNIVERSITY COUNTRY WORLD RANK1 UNIVERSITY OF CAPE TOWN SA 3562 RHODES UNIVERSITY SA 5633 UNIVERSITY OF PRETORIA SA 6044 STELLENBOSCH UNIVERSITY SA 6435 UNIVERSITY OF THE WITWATERSRAND SA 7026 UNIVERSITY OF THE WESTERN CAPE SA 1,0577 UNIVERSITY OF SOUTH AFRICA SA 1,3558 UNIVERSITY OF KWAZULU NATAL SA 1,5359 AMERICAN UNIVERSITY IN CAIRO EG 1,659

10 UNIVERSITE DE LA REUNION RE 2,02344 OBAFEMI AWOLOWO UNIVERSITY NG 5,83465 UNIVERSITY OF IBADAN NG 6,80979 UNIVERSITY OF BENIN NG 7,31896 UNIVERSITY OF LAGOS NG 7,601

QUALITY: WORLD RANKING OF UNIVERSITIES, 2007

SOURCE: http://www.webometrics.info/top100_continent.asp?cont=africa; 2007

n ly 4 N ig e r ia n u n iv e r s i t ie s r a n k e d a m o n g t o p 10 0 in A f r ic a !

933

756

816

872 879

700

750

800

850

900

950

1000

2000 2001 2002 2003 2004

No. of Publications

Year

Trend in scientific research publications in Nigeria: 2000-2004

PRODUCTIVITY: NUMBER OF PUBLICATIONS

Sources: Oke (2005); http://www.comtech.org.pk./doc.ssr%20in%20oic/Nigeria.pdf

KNOWLEDGE GENERATION


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Generation of Inventions by Researchers

Yes44%

No56%

Source: NACETEM, 2009aSource: NACETEM, 2009aLevel of researchers’ awareness on patent matters

High25%

Moderate41%

Low34%

Consultation of patent documents for technical information

Yes72%

No28%

NOWLEDGE PRODUCTIVITY: PATENTING

YEARS FOREIGN PATENTS (CONVENTIONAL)

LOCAL PATENTS (CONVENTIONAL)

NO. SUBMITTED NO.REGISTERED NO. SUBMITTED NO. REGISTERED

2000 215 20 19 5

2001 348 28 42 12

2002 392 10 29 8

2003 335 25 44 36

2004 295 29 80 6

2005 (Jan.-June 17)

190 10 45 7

Total 1775 122 259 74

Source: Patents and Trademarks Office – Abuja (Complied by NOTAP, 2005)

a t e n t s t a t is t ic s in N ig e r ia , 2 0 0 0 -2 0 0 5

Source: Oyewale, 2005Source: Oyewale, 2005

5 = highest 1 = lowest5 = highest 1 = lowestt i l i s a t io n o f E R O r e s e a r c h r e s u l t s b y in d u s t r y

LINKAGES

NIGERIA’S NIS CHALLENGES

MAIN WEAKNESSES OF THE NIS IN NIGERIA


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Data insufficiency (innovation surveys, STI indicators etc)

Weak elements Weak links among the elements Personnel immobility Unfavourable policy regimes


Inadequate research orientations whereby more than 75% of research projects executed in the educational institutions/research institutes are not demand-driven;

Non-availability of information on commercialisable inventions and R&D results to the intended user industries;

Poor technological entrepreneurial culture;

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Inadequate infrastructure; Inadequate motivation for the commercialisation of

inventions/research results; Lack of funding and efficient funding structure for

innovation; Inadequate patent education; Absence of effective linkage between research

organisations and industries, and Preference for foreign technology.

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NIGERIA’S NIS REFORMS


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The reform programme focused on critically analysing the components of the NIS and proffering strategic policy responses for its revitalisation consistent with the objective of responding to the challenges of global competition in the industrial sectors, and meeting national social objectives (Bamiro et al, 2008 and Okujagu, 2009).

NIGERIA’S NIS REFORMS


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The reform agenda was expected to address the following (among others): The weak S&T management system; Lack of interaction and cooperation among elements of the

system; Inefficient and insufficient S&T budget procedures; and Poor state of research activities in Nigeria.

Reform activities have included workshops and training programmes entailing technological entrepreneurship capacity building, and the design and evaluation of Innovation policy in developing countries (Okujagu, 2009).

AFTER THE REFORMS...


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National Research and Development Coordinating Council (NRDCC)

National Science and Technology Fund (NSTF)

Strengthened FMST

Stable Policy

SOME OUTSTANDING EXAMPLES

ChinaSouth Korea

Malaysia

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China

The rate at which China emerged to attain leadership status in science and technology-led development has attracted the attention of the whole world.

The achievement was undoubtedly contingent upon aggressive S&T human capital development and strong institutional structures.

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China

There were just about 50,000 science and technical personnel in China in 1949, of which only 1% was involved in scientific research.

By 1955, a total of 840 scientific and technological research institutes which engaged over 400,000 researchers had been formed.

The number of R&D centres in the high-tech industry sector has been on the increase, being 750 in the year 2004.

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China

China’s technology-led growth has not only attracted FDI in the real sector, records show that 39% of high-tech R&D centres across the globe prefer to locate in China as against 29% and 28% for US and India respectively.

Consequently, China has grown to become a major industrial economy, with the country’s manufactured goods as percentage of total exports growing from already high 84% in 1995 to about 92% in 2005.

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South Korea

The case of South Korea offers us a good understanding of the place of education in national development.

The Republic of Korea which lacked indigenous technological capabilities for industrialization in the 1960s sought a more radical solution of establishing educational and R&D institutions.

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South Korea

From an illiterate workforce in the 1950s (22.0% in 1953), literacy rate increased to nearly 90% within two decades.

Interestingly, the private sector invests more than the government in education.

All levels of education are concurrently focused, creating a uniquely balanced system complemented with aggressive training of high calibre scientists and engineers in the West.

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South Korea

In addition, technological capabilities are key facilitators of the development process in Korea.

In the past three decades, the Korean government has shifted its stance from having a leading hand in R&D activities from the 1960s and 1970s to the encouragement of private firms to perform R&D.

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South Korea

In 1980, 62% of R&D was performed by public institutes, along with 9.2% by Universities and only 28.8% by private firms.

By 2005, this had dramatically shifted to over 76% of research performed by private firms (an increase of over 48%) whilst the public sector only performed 13.8% (a drop of almost 48%).

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South Korea

South Korea now focuses on technology development rather than basic research.

Basic research declined from 22.9% in 1970 to 13.2% in 1996.

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Malaysia

Malaysia’s dream of replicating the experience of the newly industrialized economies of Asia via technology-driven and high-tech production patterns may be said to have materialized as it is now being categorized among nations that have significant potential to develop new technologies.

This arose directly from the strategic focus on S&T human capital development.

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Malaysia

Between 1990 and 2000, the percentage of S&T based graduates increased from 32% to 39% and research scientists and engineers increased from 2 to 10 per 10,000 persons.

The biggest portion of the R&D expenditure in Malaysia is used for applied research targeted at solving current and immediate future needs of industry as against the dominant basic research in Nigeria.

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Malaysia

Malaysia also imitated the Asian Tigers in the establishment of S&T parks having identified its tremendous prospects.

For instance, the Multimedia Super Corridor which caters for software and IT services employed 13,000 people and had 53 institutions in its first 4 years of establishment.

As part of the dividends of such efforts, Malaysia recorded a technology transfer index of 1.08, higher than China of 0.90 in 2001.

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Appropriate measures must be taken in the areas of institutional framework, support structure, knowledge generation, education and technological entrepreneurship.

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There is also a dire need for institutions to re-structure, refocus and re-organise their R&D activities different from the present approach whereby research planning is not systematically carried out; and research priorities and targets are not usually clearly defined

institutions would be focusing more on market-driven research rather than basic or curiosity-oriented projects.

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designing policy to encourage researchers to nurture spin-off companies within or outside their institutions.

The institutions should also map out mutually beneficial guidelines for disbursement and sharing of royalties that emanate from such activities.

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The quality of R&D outputs could be improved through the involvement of the industry in the formulation of research agenda/projects of the R&D organisations, adequate funding, and the provision of shared R&D facilities and equipment. Each institution could use whatever meagre fund is available to provide facilities in areas where they have comparative advantage and which other institutions could share.

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Concluding Remarks41

with a stable political environment, the benefits of the measures recommended above would be channelled to build internal and international competitiveness for growth and development. The same strategies suggested here are also useful for Asian economies particularly when combined with existing programmes and strategies.

Nigeria's NIS

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