"LOCAL INNOVATION SYSTEMS, AND SOCIAL CAPITAL : NEW RESEARCH AGENDA FOR THE MAGHREB COUNTRIES" Abdelkader Djeflat University of Lille (France) Chairman : the MAGHTECH Network
Four key questions are asked – 1/ The need for innovation: the global conditions and challenges – 2/Performances and – 3/ obstacles to innovation in MCs: the NSI perspective – 4/ Success stories and lessons to be learnt. – 5/ New research avenues: social capital and Local Innovation Systems
1. Global conditions & challenges
Major Challenges • internal challenges • External challenges – Unemployment 20% – digital divide (graduates) – competition – Erratic growth, – free trade zones – Increasing Poverty – External debts – Brain drain – Crisis of foreign direct – Heavily resources- investments etc. based economies
Target to solve major economic & social problems • New growth regime needed - Annual growth needed: 6% a 7% – More diversified production – Choc absorbing economies – Higher total factor productivity – Shifting from low wage based to INNOVATION-based competitivity
2. Performances and obstacles in S&T
Performances in innovation ALGE TUNISI MORO S.KOR RIA A CCO EA R&D/GDP 0,3% 0,31% 0,3% 1.92 Patents 200 178 333 Publicatio 311 342 597 6353 ns (1995)
R&D/GDP expenses 35 30 25 20 Série1 15 10 5 0 JAP ALL PORT TURK MAG
Publications 50 40 30 Série1 20 10 0 MARAB IND MAGH HOL
Patents 25000 20000 15000 Série1 10000 5000 0 ALG MAR TUN LIB MAG TURK SUIS
Exports of manufactured products Evo lu tio n o f GNI p e r cap ita in M o r o cco 3600 3500 3400 3300 US Dollars 3200 3100 3000 2900 2800 2700 1995 1996 1997 1998 1999 2000 Y ears
Share of technology-intensive exports Algeria 9% Tunisia 22.8% Morocco 20.7% South Korea 66% Malaysia 67%
3. Obstacles
What are the obstacles? • Weak Human capabilities : education,training • Lack of Services : information, infrastructure • Institutions : coordination • Actors : rent-seekers, gatekeepers, • Financing: venture capital • Infrastructures • Market and State failure : • Culture and values : etc.
NSI: Standard framework EXTERIEUR • nsi SPHERE INDUSTR SPHERE I EDUCATIO FORMATI NATIONorm ONific traini ati scientifique echnical ng SYSTEME NATIONAL D’INNOV A SHERE RECHERCHE &DEVEL
NSI AS OPEN SYSTEM (a) (I) SFST SI (1) SNI (b) (2) (3) (c) (II) (III) SRD
NSI AS COMPLEX SYSTEM National National Development Scientific Policy Policy System of scientific and technical information Organisation of Ministry of Ministry of finance and Technical Affairs Education research Centre for industrial Councils of research research and public Universities institutes research Centre for applied studies Centre for technical studies Pilot factories National Techniques USER
NSI AS COMPLEX AND OPEN SYSTEM International sources of technology supply Local large Donor Agencies scale enterprises with in-house Universities R&D Small and R&D Centres medium size enterprises (SMEs) Private Government consulting firms
NOT CONNECTED WITH THE NSIs IN THE NORTH (a) (a) (I) (I) SFST SI SFST SI (1) (1) SNI SNI (b) (2) (3) (c) (b) (2) (3) (c) (II) (II) (III) (III) SRD SRD
WEAK ATTRACTION AND NEGOTIATING POWER (a) (I) SFST SI (1) (a) (I) SNI SFST SI (1) (b) (2) (3) (c) SNI (b) (2) (3) (c) (II) (III) (II) SRD (III) SRD
4. Success stories: individual cases • Several success stories exist: it can be done – Public : SAIDAL: pharmaceuticals in Algeria – Private : POULINA Group: various activities in Tunisia • MAGHTECH : knowledge network of university researchers
Saidal (Public) • Performances • Impact • NEW Product (10 en • Imports reduction 2001) • Certification ISO Domestic market share 9001/9002 from 15% to 40% within • Employment creation 5 years from 14000 jobs from • Price reduction of 5% 1998 to 2001 • Exports : 10Mns USD en • Confidence to the local 2001 to 10 countries industry that they can • Annual growth 30% innovate and compete (2002) • Position of Leader internally
POULINA (Tunisia) • Creation 1967 • Capital private • Shareholders 3000 • Size 7000 • Annual growth 10% • Innovation : Various : agro-food example: exhaust pipes, electrical goods etc.. • Success in exporting to Europe and other LDCs
The MAGHTECH network a knowlege network • A network of university researchers and some pratictionners (15% ) • Born in 1994 with a group of 30 researchers • Currently 350 members in 7 countries • 6 books published , 5 international conferences • Consulting with various governments anf international organisations • Leading organised group in the sub-region in te area of research on S&T
5. What are the major prospects? Current research questions • Using the social capital tools to enhance innovation, • Looking at the local Innovation systems approach
Conditions • human capital and local capacity • leadership : to mobilise knowledge • social capital : vital to overcome bureaucracy and mistrust end resistance to technical change • Breaking the wall between intermediate institutions • Institutional networking • Mobilising of pré-existant relationships and creation of new relationships
Social capital • The common ingredients in the three experiences : – Long-terme relationship (poulina/maghtech) – Trust and confidence amongst the actors – A great of informal relationships – Sharing of values – Code of conduct (norms) – Referent power
Local Innovation Systems (cappelin 2002) Receptivity Accessibility Innovation Identity Value Customer Creativity
Simultaneous Management of LIS 1. Manage accessibility and technological capital 2. Manage receptivity and human capital 3. Building identity and institutional/organizational proximity 4. Lever creativity and internal organizational capital 5. Enhance entrepreneurship and innovation capital 6. Customers satisfaction 7. Financial performance and creation of value
New Agenda for North-South Cooperation • Building proper NSI ¨ Promoting Innovation partnership at local level and strengthening existing ones -decentralised innovation-based -education and training cooperation -contribution to brain -strengthening gain intermediate institutions -helping with coping -mobilising tacit with new property rights knowledge protection (WTO) -Funding of R&D
Social capital and north south cooperation Innovation has definitely to come into the egenda of the various agreemenst and negociations (eg; Barcelona agreemnt and the free trade zones Magreb-Europe) -promoting continuous flow of S&T knowledge -building trust between instituions & organisations (SMEs, NGOs, Gov. ) -encouraging north-south networking, -encouraging informal and social interractions amongst actors ( entreprises, NGO, institutions and individuals : visa issue)
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