How to increase national absorptive capacity for green technology

Transcription

1 How to increase national absorptive capacity for green technology MichikoENOMOTO -UNECE- Bishkek, 7 November 2012

2 Some introductory questions 1. If 50 major firms with promising innovative green technologies came to create affiliates in Bishkek or Dushanbe next week

3 Some introductory questions (a) Do you have enough qualified scientific researchers to work for these firms? (b) Can you offer high-speed broadband access?

4 Some introductory questions (c) Can you ensure that their technologies will have spillover effects on your local economy?

5 Some introductory questions 2. If you spend $$$$$ in R&D, can you overtake the world s innovation leaders? 3. Should Kyrgyzstan and Tajikistan follow developed countries innovation policies?

6 Kyrgyzstan and Tajikistan Innovation landscape Source: Source: The Global The Global Innovation Innovation Index 2012, Index INSEAD 2012, INSEAD

7 Mapping of innovation indicators, Kyrgyzstan (Generated from the database of GII 2012, figures in the brackets = national rankings out of 141 countries) Creative outputs (130) Knowledge and technology outputs (119) Institutions (100) Human capital and research (86) Infrastructure (102) Business sophistication (131) Market sophistication (34) Investment (75)

8 Innovation indicators, Tajikistan Generated from the database of GII 2012, figures in brackets =national rankings out of 141 countries Institutions (119) Creative outputs (129) Human capital and research (96) Knowledge and technology outputs (68) Infrastructure (116) Business sophistication (137) Market sophistication (65)

9 Opportunities for emerging economies? Using new technologies, emerging economies can rapidly move up to the world s technological frontier Examples of developing developed in less than 55 years: Japan, Hong Kong,* Republic of Korea, Malta, Singapore and Taiwan* through innovation and technology *China

10 Innovation policy priority for emerging economies They imported what the rest of the world knew; and they exported what the rest of the world wanted Their strong absorptive capacity made this possible

11 Innovation policy priority for emerging economies What should be the key innovation policy for emerging economies? To acquire and use existing knowledge---less costly and less risky than creating new Build strong absorptive capacity

12 Absorptive capacity The [a firm s] ability to recognize the value of new information, assimilate it, and apply it to commercial ends (Cohen and Levinthal)

13 5 capacities Access knowledge Anchor knowledge Diffuse knowledge = Absorptive capacity Create knowledge Exploit knowledge = Development capacity

14 What is absorptive capacity? (Source: INSEAD) Development capacity and absorptive capacity Absorptive capacity Knowledge creation Knowledge exploitation Development capacity Access external knowledge Anchor external knowledge Diffuse external knowledge External knowledge/ Innovative green technologies

15 Access capacity for external knowledge Enhanced through Private and public investments in ICT infrastructure Expected results stronger cross-border activities Trade Legal frameworks that facilitate knowledge transfer through trade and investment Cross-border connectivity Foreign investment Integration in global value chains Hosting of affiliates of firms with global networks

16 Measuring access capacity Indicators to measure access capacity Internet users Broadband access per 100 persons Business Internet use Trade barriers Indicators to measure realized access capacity Participation in global value chain Broad participation in international markets Advanced service providers Infrastructure

17 Capacity to access knowledge and innovation, Kyrgyzstan (generated using the database of GII 2012) Market access for non-agricultural exports ICT access ICT use Good work done in removing trade barriers (tariff rate, market access) Improved ICT access and use, business use of broadband, general improvement of infrastructure will greatly improve access capacity Applied tariff rate, weighted mean General infrastructure

18 Capacity to access knowledge and innovation, Tajikistan (generated using the database of GII 2012) Market access for non-agricultural exports Applied tariff rate, weighted mean ICT access General infrastructure ICT use Good work done in removing trade barriers (tariff rate, market access) Challenges to improve ICT access and usage (Ranking -133/out of 141 countries) Improved ICT access and use; general infrastructure will improve access capacity

19 Anchor capacity of external knowledge Anchor capacity will be enhanced through Good business environment Ease of royalty and licence fee payment Political stability Good regulatory quality Good investment climate Ease of foreign ownership restrictions Expected results Increased FDI Technology clusters Technology transfer Inward skilled migration

20 Anchor capacity of external knowledge Indicators to measure anchor capacity input Indicators to measure increased anchor capacity Number of days for starting a business Dealing with licences Political stability Regulatory quality Protecting investors Foreign ownership restrictions FDI inflows Presence of clusters Technology transfer through FDI Royalties paid to foreign IP owners Inward skilled migration

21 (generated using the database of GII 2012) Foreign direct investment net inflows Royalty and license fees payments Ease of protecting investors Political stability and absence of violence/terrorism Capacity to anchor knowledge and innovation, Kyrgyzstan Ease of starting a business Ease of paying taxes Ease of resolving insolvency Good work already done to ease start of business; protect investors - facilitated FDI inflow Low royalty and licencepayments shows low level of technology transfer and knowledge-related investments Improvements in environment, such as the ease of resolving insolvency and paying taxes, will enhance anchor capacity

22 (generated using the database of GII 2012) Foreign direct investment net inflows Royalty and license fees payments Ease of protecting investors stability and absence of violence/terrorism Capacity to anchor knowledge and innovation, Tajikistan Ease of starting a business Ease of paying taxes Ease of resolving insolvency Good work already done to: protect investors, promote inflow of FDI and ease resolving insolvency Low level of royalty and licence payments indicate low level of technology transfer and knowledge related investments Improvements in other aspects of business environment, e.g. ease of starting business &paying taxes, will enhance anchor capacity

23 Diffusion capacity of external knowledge/green technologies Enhancing diffusion capacity through Improved education, tertiary education, R& D Increased number of scientists and engineers Higher level of trained staff Higher level of e-participation Locally available specialised research and training services Improved management system Improved general infrastructure Expected results strong activities Increased technology adoption by firms Higher technology awareness Sophisticated production process

24 Diffusion capacity of external knowledge Indicators to measure input to increase diffusion capacity Literacy rates Quality of educational system Availability of scientists and engineers Degree of staff training Degree of e-participation Local availability of specialized research and training services ISO certification Gross capital formation Indicators to measure realized diffusion capacity Firm-level technology adoption Percentage of merchandise imports Production process sophistication ICT goods imports

25 (generated using the database of GII 2012) Computer and communications service imports ISO environmental certificates Expenditure on education Capacity to diffuse knowledge and innovation, Kyrgyzstan Graduates in science and engineering Quality of scientific research institutions Government makes good investments in education and in infrastructure Improvements in: quality of scientific research institutions; number of graduates in science and engineering; e-participation; awareness of management system will enhance diffusion capacity Gross capital formation Online e- participation

26 Capacity to diffuse knowledge and innovation, Tajikistan (generated using the database of GII 2012) ISO 9001 quality certificates Computer and communications service imports Expenditure on education ICT use Graduates in science and engineering Quality of scientific research institutions Strong tradition of producing graduates in science and engineering Importing actively ICT goods and services Weak ICT access was translated into the low level of ICT use Room to increase awareness of quality-management system

27 Knowledge creation capacity Enhancing creation capacity More company investment in R & D Stronger intellectual-property protection Higher quality of scientific-research institutions Greater enrolment in doctoral programme More researchers in R & D Expected results More scientific publications per researcher Increased patent filings Increased trademarks per firm More tertiary graduates, particularly in science

28 Exploitation capacity of external knowledge Exploitation capacity will be enhanced through Expected results Venture capital Good quality of management schools Local equity market access Government procurement of advanced technology products Good entrepreneurship Increased goods & service exports Creating goods & services Increased GDP per capita Increased industry value added

29 Summary -1 Absorptive capacity is the [firm s] ability to recognize the value of new information, assimilate it, and apply it to commercial ends Developing absorptive capacity enhances national productivity, international competitiveness and facilitates transformation to green economy

30 Summary -2 A key innovation policy for emerging economies could be to acquire and use knowledge that already exists, which is less costly and less risky than creating new knowledge. Strong absorptive capacity will facilitate the process Selected and targeted policieswill improve absorptive capacity in Kyrgyzstan and Tajikistan, and facilitate the adoption and adaptation of green technologies

31 Summary -3 Absorption of green technologies implies adoption of a new green technology product or process developed elsewhere, upgrading of an old green technology product or process, and using a green-technology licence Access capacity(i.e. ICT, trade flows), anchor capacity (i.e. ease of business, labor mobility, FDI), diffusion capacity (i.e. quality of education, research and development, training) are all key channels for domestic knowledge absorption.

32 References Cohen, Wesley, M. & Levinthal, Daniel A Absorptive Capacity: A New Perspective on Learning and Innovation, ASQ, 35, INSEAD Innovation & Policy Initiative. Innovation Efficacy Index: Mapping Innovation Capacity in a Selection of natural Resource Rich Economies. ents/the_innovation_efficacy_index_a_snapshot_report_000.pdf INSEAD/WIPO The global Innovation Index 2012 Itzhak Goldberg and Smita Kuriakose Globalization and Technology Absorption in Europe and Central Asia: The Role of Trade, FDI and Cross-border Knowledge Flows (World Bank Working Papers) UNU-WIDER Does Lack of Innovation and Absorptive Capacity Retard Economic Growth in Africa? Working Paper No. 2011/19 World Bank Innovation Policy: A Guide for Developing Countries

33 THANK YOU! Michiko ENOMOTO (UNECE)