S&T and Entrepreneurship Development Education

2. S&T and Entrepreneurship Development Education “International Conference on Technology-Based Development: Strategies & Options” 22nd-23rd August 2006, Islamabad, Pakistan Vladimir Kozharnovich, Programme Manager Investment and Technology Promotion Branch United Nations Industrial Development Organization

3. THE NEW ECONOMY: THE CHALLENGE The new economy brings opportunities but also challenges to developing countries Without investment, technology and innovation, they run the risk of becoming increasingly marginalized from global markets

4. UNIDO in Figures • Established in 1967 • 16th Specialized Agency of UN since 1985 • 171 member states (Monaco joined in 2003) • 750 staff members at Headquarters in Vienna and in the fields • 2 liaison offices in New York and Geneva • Represented in 35 countries • 9 International Technology Centres in different stages of development • 20 Investment and Technology Promotion Offices & Units • 47 Subcontracting and Partnership Exchange Offices • UNIDO Exchange electronic platform for development

5. The Technology Divide: Outlook • A small number of industrialized countries provide practically all the world’s technology innovation • Some developing countries are able to adopt these technologies in production and consumption • The remaining part is technologically disconnected, neither innovating nor adopting foreign technologies

6. Lack of access to information on new technologies and innovations • Inadequate institutional infrastructure, management and marketing human skills • Organizational rigidities within the firms themselves • Limited access to finances • Regulatory constraints • Inefficient R&D institutes and disconnection from needs of industry • Inadequate human resources and mechanisms for their upgrading • Lack of resources, knowledge and capabilities within policy institutions • Low efficacy of government support schemes Barriers to Technology Transfer

7. Objective: To assist the countries in strengthening their capabilities in transfer, absorbing and mastering technology: • At policy level, technology foresight permits to define strategic development directions, guide innovation policy and set up supporting infrastructure • At institutional level, strengthening National Innovation Systems, technology and innovation centres, high-tech parks, etc. and networking them with UNIDO International Technology Centres, bringing a culture of innovation to business, strengthening R&D institutions to become ‘demand driven’ and respond effectively to industry needs • At enterprise level, efforts are focused on building capacities in transfer and commercialization of technology and sustainable mechanism to manage technological change UNIDO Response

8. Application of modern Information and Communications Technologies (ICT) for improving access to international knowledge, education, training and networking to meet the basic requirements for industrial capability building • Establishment of International Technology Centres as a unique tool to promote international collaboration, diffuse technological knowledge and innovations and expand UNIDO capacity in technology transfer • Promotion of environmentally sound technology (EST) to reduce the unfavourable environmental effects of industry • Strong links to financial sources • Integration of technology transfer process with other dimensions of the business development, trade liberalization and protection of environment to enhance the contribution to competitiveness and performance of a firm • Assistance through the whole cycle of technology transfer UNIDO Approach

9. 1. Industrial Governance and Statistics 2. Investment and Technology Promotion 3. Quality and Productivity 4. Small Business Development 5. Agro-Industries 6. Industrial Energy and Kyoto Protocol 7. Environmental Management 8. Montreal Protocol UNIDO Service Modules

10. Technology & Investment Promotion Objective To help developing countries and economies in transition bridge the technology divide and the investment gap by strengthening their capacities for transfer and acquisition of new technologies, assisting them in technology needs assessment, attracting investment for industrial projects, as well as by establishing sustainable mechanism for technology diffusion and promotion of business alliances

11. Integrated Strategies for Technology & Investment Promotion • Technology Needs Assessment to identify Critical Development Technologies • Application of ICTs • Mobilization of Technology and Investment resources through ITCs and ITPOs • Country Investment Surveys in priority areas of National Industrial Development • Regional and sub-sectoral networking of IPAs & private sector institutions

12. Key Investment & Technology Promotion Services • Advice on Policy and Legal Framework • Technology Foresight & Roadmapping • Integrated Strategies for Technology and Investment Promotion • Strengthening National Innovation Systems through Institutional Capacity Building • Establishment International Technology Centres • Support to Technology Transfer • Promotion of FDI through Business Alliances

13. UNIDO Technology Promotion Programme Components • New and enabling technologies (bio-technology, ICT, new materials) • Technology Foresight • Technologies for the Poor • Technology Centres • Technology Parks • Investment and Technology National Innovation Systems Promoting enabling and new technologies to address critical social and economic problems for poverty reduction and achievement of MDGs

14. National Innovation System Government R&D Business Organisations Firms S&T Structure Market Place Productive Chains Financial System Learning &Education System Conformity System

15. StrengtheningNational Innovation System

16. Advice on Policy & Legal Framework • Legal and contractual framework for Technology Transfer, Adoption and Management and related Investments • Identification of vision, scenarios, priorities and relevant strategies for national industrial development • Decision Support Systems for enhancing Government functions in Policies and Information Management and Monitoring (e-Government)

17. Technology Foresight Need for • Know about future needs of society and economy (“anticipatory intelligence”) • Competitiveness of a nation is related to knowledge-based economy • Determining technology trends & trajectories • Setting priorities on resource use (“targeting and focusing”) • Regional dimension - UNIDO’s comparative advantage/niche • Future technologies require modified infrastructures in innovation systems

18. Approach Wide-ranging focus on: • Technological advances and trends • Policy & strategic decision making • Socioeconomic impacts Cross-linking & enhancing in-house capacities • PTC/ITP, Other Branches (Research, Environment; Water; Energy; Agro-food; Cleaner Production; Trade Capacity Building) Inter-agency cooperation • UNCTAD, EC, UNESCO, OECD Meeting manifest demands • Countries defining technology development strategies, Funding agencies requirements (e.g. EC), Donors support to UNIDO Initiative on Technology Foresight • 2007 Technology Foresight Summit - Budapest, Hungary • 2007 Technology Fair of the Future – Izmir, Turkey

19. International Technology Centres (ITCs) UNIDO is the only UN agency establishing ITCs to promote new technologies & facilitate partnerships. • Acts as distributed knowledge resource base due to their networks • Expands UNIDO competence in many technological areas at no extra cost • Self-financed and help mobilize funds for new projects • Acquires confidence of partners interested in decreasing investment risks • Has limited staff leveraged by experts, when required • Fast growing demand on technical services Global Forum • Awareness and dissemination of technological advances and global trends • Effective framework for public/private and research/industry partnership • Fosters N-S, S-S and E-S cooperation Technology Diffusion • Technology sourcing and advice with focus on provision of options • Verification of technology and ownership • Facilitation of technology transfer and acquisition

20. Approach Wide-ranging focus on: • Awareness building on technological advances • Promotion Cross-linking & enhancing in-house capacities • ITP/IPU, ITPOs (Delegate Programme, technology sourcing) • Other Branches (Agro-food, Energy, Environment, Trade Capacity Building) Inter-agency cooperation • WIPO, WTO, ICGEB, HABITAT, WAITRO, ICSTI, ICIE, IIW, etc. Meeting manifest demands • Portfolio of hard pipeline projects (US$9,0 million), pipeline (US$6,0 million) and project concepts (3,0 million) • South-South Cooperation (low cost housing): Projects for US$9,5 million submitted to Donors on their requests • East-South Cooperation (low cost housing): Hard pipeline project (US$2,3 million) • Request of SIRIM, Malaysia on establishment of ITC

21. International Centre for Science and High Technology (ICS, Trieste, Italy) • International Centre for Advancement of Manufacturing Technology (ICAMT, Bangalore, India) • International Centre for Small Hydro Power (ICSHP, Huanzhou, China) • International Centre of Hydrogen Energy Technology (ICHET, Istanbul, Turkey) • International Centre for Promotion and Transfer of Solar Energy (ISEC, Lanzhou, China) • UNIDO-Shanghai International IT Technology Promotion Centre (Shanghai, China) • UNIDO-Shenzhen Environment Technology Promotion Centre (Shenzhen, China) • International Centre for Materials Technology Promotion (ICM, Beijing, China) • Russia-Brazil Centre for Technological Cooperation INTERNATIONAL TECHNOLOGY CENTRES (Ongoing Projects)

22. Programmes Technology Trends Technology Foresight Techn.Upgrading Progr Training Packages Tools Capacity Building Advisory Services Technology Services EGM Acquisition Workshops Transfer Assessment Marketing Sourcing Awareness Monitoring ITC Model Think Tank UNIDO ITCs Ind.Associations R&D Institutes Universities Acad.of Sciences Consulting comp. Funding Agencies National Technology & Innovation Centres

23. Investment and Technology Promotion Network: (Locations) ITCs ITPOs

24. NAT I ONAL I NNOVAT I ON S Y STEMS Technology Parks International Technology Centres (identified needs of extension services for follow-up into) Technology Foresight (identified technology priorities implemented through the set-up of) Cooperation with Investment Promotion and ITPO services (attraction of foreign driven technology businesses) TPU focus TECHNOLOGY PARKS ECO-TECH PARKS BIOTECH PARKS Cooperation with Energy, Environment, Trade Capacity Building Services International agenda focus

25. Approach Wide-ranging focus on: • Institutional support to new integrated approaches for eco-parks and biotech parks • International assessment and monitoring • Leveraging competences through network of networks Cross-linking & enhancing in-house capacities • ITP/TPU (Technology Foresight, ITCs, Biotech): cross sector focus • Other Branches (Investment Promotion/ITPOs) (Environment and Energy (eco-parks) Trade Capacity Building (biotech parks) Research (assessments and global forum functions) Inter-agency cooperation • AFDB, UNDP, UNEP, EC Meeting manifest demands • Implementation of WTO, GEF and Trust Funds/OPEC countries

26. Policies & Investments Strategies Promotion Financial Services Technology Business Foresight Technology Devising & strengthening a TP Technology Technology Alliances needs Roadmapping Management Business Investments GIS fordecision-mak.g Needs Plan Appraisal Intellectual Assessment Property Rights Technology Transfer Establishment &Capacity Build.g Planning & Operation & Monitoring & Conceptualization Designing Management Cont . Improvem.t FacilitiesDevelopment SkillsDevelopment IncubatorsPlanning Technology VentureCapital Equities &Bonds BusinessPlanning Management Needs InvestmentsAppraisal ICTs forManagement Assessment

27. Biotechnology • Key driver of the knowledge-base economy • Set of technologies cutting across all industrial sectors • Essential for upgrading & diversification of industries • Wide ranging impacts on socio-economic problems/challenges • UNIDO mandates • Unique opportunity to lead within the UN system • Task Manager for Chapter 16 of Agenda 21 • Biosafety - ECOSOC 1999, renewed 2004 • Industrial Biotech - Global Biotechnology Forum, 2004

28. Approach Wide-ranging focus on: • Technology assessment • Policy & regulatory (IPR, biosafety, technical barriers to trade) • Socioeconomic impacts Cross-linking & enhancing in-house capacities • ITP/TPU (Biotech foresight; Biotech parks; ITPOs) • Other Branches (Environment; Energy; Agro-food; Cleaner Production; Trade Capacity Building) Inter-agency cooperation • CBD, UNEP, FAO, UNESCO,WHO, UNCTAD,EU, OECD Meeting manifest demands • Implementation of WTO, CBD, POPs; ITPOs

29. Technologies for the Poor Technologies for sustainable poverty reduction • “The Fortune at the Bottom of the Pyramid” • Technology diffusion methods for industrial application on • Inter-Agency synergies (WFP-UNICEF-WHO etc.) Market-led technology upgrading • Industry catering to health care market • Supply and recycling chains • Inter-Agency synergies (WHO – UNEP); MDG Relevant • Income and Productivity • Water and Sanitation • Food and Shelter • Health and Environment

30. Approach Wide-ranging focus on: • Pro-poor technologies promotion and diffusion • Pro-poor innovative business models • Local sustainability and independence Cross-linking & enhancing in-house capacities • IPT/TPU : Value chains and South-South technology cooperation • Other Branches : PTC/PSD-ECB-AGRO and PCF/RST-SPP Inter-agency cooperation • UNICEF, WFP, FAO, UNESCO, WHO, etc. Meeting manifest demands • Through cooperating agreements with partner agencies • Low cost housing

31. Technology Related Tools & Methodologies • Technology Needs Assessment Manual and reporting software system • UNIDO Manual on Technology Transfer Negotiation and Training Kit • Training Package on Technology Management • Guidelines on Business Alliances • Guide on Joint Ventures • UNIDO BOT Guidelines • UNIDO’s Subcontracting System

32. Technology Upgradation Quality Upgradation Market Access Capacity Building ICT Application Waste Minimization Environment Skill Upgradation A holistic approach A holistic approach

33. Global Forum Activities • Research and Publications • Technology Trends Assessment • Investment paper series • UNIDO’s industrial investment perspectives • Ranking of African countries investment attractiveness • Tools, Guidelines and Manuals • COMFAR (environmental assessment) • Technology Needs Assessment • Technology Roadmapping • High-Tech Park Guidelines • Conferences & Policy dialogue • Technology Foresight/Roadmapping • Management of Technology • Afripanet • Networking • ITCs, ITPOs, IPAs, SPXs, Exchange

34. Revitalization of R&D Institutes:New Global Setting • Increased financial, trade, investment and technology flows. • Rapid and accelerating technological progress, including ICTs, biotechnology, new materials, electronics, robotics. • New managerial and organizational systems. • New international rules and regulations: trade, quality, environment, intellectual property rights.

35. Role and Impact of Technology • Worldwide economic growth offers many new opportunities for selling products and services in countries previously inaccessible because of geography. • To compete effectively in foreign markets, local manufacturing is important and will increase the potential markets for local industry. • Technological advances and innovation will provide many new market opportunities, reduce product development response times and help industry meet customers’ rising expectations. • R&D, new technologies and innovations are the greatest drivers of productivity increases. • Success in capturing new, emerging markets will depend on the industry’s ability to compete in different environments. • To meet expanding customer expectations, the industry needs to apply innovative technology throughout all phases of R&D, production and distribution.

36. Major Reasons For Revitalization of R&D Institutes: Challenges of Industry • Global competition is getting fiercer • Cooperation and strategic alliances are now essential • Flexibility is becoming increasingly necessary in order to adjust to rapid technological pace and changing costumer demands • Quality requirements are higher than ever

37. Needs in Research/Industry Partnerships • SMEs are normally short of the existing R&D facilities due to high cost of research, whereas R&D institutes generally possess these in abundance. • SMEs cannot manage all new technologies due to multidisciplinary nature of innovation projects and R&D institutes can provide this knowledge and competence. • SMEs need an objective partner in monitoring technological advances, testing of new products, international standards, etc. enabling to manage the technological change in time so that to be competitive at the international market.

38. Present Performance of R&DInstitutes • Technology push and supply-driven approach • Absence of marketing mechanism • Largely disconnected from the needs of industry • Weak international linkages • Limited knowledge of international best practice to improve competitiveness through technology upgrading and technology support services to industry

39. Main Challenges Facing R&DInstitutes Today • Re-establish new links with the productive sector • Seek out new sources of finance • Exploit the centres’ S&T capabilities on the national and international stage

40. Motivation For Encouraging Revitalization • Seek out new sources of finance • Eestablish links with the productive sector and increaseindustry expenditures through improved services to enterprises • Exploit the centres’ S&T capabilities on the national and international stage • Upgrade the performance and international competitiveness • Strengthen S&T infrastructure & improve networking capabilities

41. Types of Support Services • Formulation of new vision and strategy • Development of new management tools • Advice and assistance in policy formulation • Development of funding mechanisms • Introduction of marketing and project management tools • Benchmarking and training

42. Focus Areas in Specific Services • Innovation mechanisms • S&T funding systems • Best practices in management & marketing • Networking & collaboration • Vision and strategy development • High level policy advice

43. Strategy Process • The process starts with a diagnosis of selected R&D institutes followed by the formulation of a joint with industry vision and business plan for technology promotion and provision of technical support services to industry. • The implementation of strategies on commercialization of new technologies and innovations by industries and their support institutions are at the core of the process. • The government policies focus on key elements of the innovation and learning support system: global business linkages, development of skills, incentives, technological efforts, entrepreneurship, SMEs and infrastructure. • Joint programmes with focus on strengthening the relations between the support system and industry, including linkages with external knowledge partners and business and between research and the education institutions.

44. Recommendations To Improve Performance • Develop vision and strategy based on rapidly changing economic environment • Improve and adjust organizational structure & strengthen management system • Design funding mechanism • Apply best international marketing practices • Implement project management system • Undertake market needs analysis • Improve negotiation skills

45. ITP: Strengthening Research – Industry Links(Revitalization of R&D Institutes) Cultural Transformation Vision Leadership Adapting and responding to the external environment. Legal,technological, environmental, political, regional and national institutions, commercial, financial, international,global Business Process Engineering R&D Institutes R&D Institutes Adopt Best Practice Organizational Restructuring Introduce New Services Benchmarking Adopt Best Strategies Become a Learning Organization IT Systems Quality Management Management Support Services Innovation Management Networking Fund Raising

46. ITP: Strengthening Research – Industry Links (Revitalization of R&D Institutes) Approaches Actions IPT Services Cultural Transformation IT Systems New Vision & Leadership R&D Institutes Business Process Engineering Quality Management Organizational Restructuring National Innovation System Management of Supp. Services Benchmarking Adopt Best Strategies Innovation Management Adopt Best Practice ITP as facilitator Become a Learning Organization Networking Leading change processes -towards revitalisation Fund Raising New Services & Activities

47. Research/Industry Partnerships:Outputs Innovation and learning vision and strategies are formulated, implemented and monitored through consultations and partnerships at national and local level between the government, industries and R&D institutions, technology and innovation centres and learning support system

48. Preconditions for Success • North-South, South-South & East-South technological cooperation as agenda of high-level political dialogue with Member States • Active involvement of business & scientific communities & civil societies organizations

49. Thank you ...for your attention.