Jamil Alkhatib∗
Jerusalem, Palestine
Abstract
In the rapid changing world, neither the financial capital nor the
human power are the only factors to the continuous progress in the
economy, the innovation and the knowledge play nowadays major
role in the economic growth. This article will discuss the role of sci-
ence, technology and innovation on the economical development of
the IDB member countries.
In order to achieve such economical development, the investment
in innovation and knowledge based projects should be supported
and the industry awareness of the importance of science should be
increased. Besides that, the educational and research systems have to
focus on the applied researches to improve the quality of investment
outcome. Some approaches that could be adopted to increase the
awareness of innovation and the investment in technological related
∗
Technology and Innovation Management Consultant
1
2
Contents
1 Introduction 4
References 19
4 1 INTRODUCTION
1 Introduction
“Diffusion of technical know-how does not simply depend
on ability to pay. It owes a great deal to personal contacts and
discussion, or to the movement of people” (Freeman and Soete,
2004, p.179)
Both Marx and Smith have considered Technology, Science and Inventions
as elements in the economical growth. Empirical studies showed that be-
fore the industrial revolution, the difference between industrial and devel-
oping countries was small and after that the difference has increased dra-
matically (Freeman and Soete, 2004, p.317). It is important for the devel-
oping countries to catch-up with the Technological development to reach
the economical growth. The catch-up can be achieved by imitation or in-
novation.
The Technological change and inventions can be drivers for new invest-
ments in new machines, new services or even training the staff. Innova-
tions and Inventions can attract not only local investment but also foreign
6 2 TECHNOLOGY, SCIENCE AND ECONOMY
Further more, the scientific researches are too expensive and tend to be
beyond the ability of universities and research institutes. “In addition, the
lack of skilled personnel is a key barrier to innovation that needs to be
addressed. While a case can be made for greater international mobility
of human resources, countries also need to address education, skills up-
7
For all these reasons, the demand for cooperation between institute and
the establishment of innovation networks become the most common ap-
proach to innovate. Links between firms and research institutes and al-
liances between industrial firms have been established.
This section will give an outlook at the Innovation system in some of the
IDB countries by reviewing the innovation indicators.
Input indicators
The expenditure Education in most of the IDB member countries are too
far away from the international standards and even in countries in the
same region as the IDB countries. Table 1 shows the expenditure of some
selected countries. Moreover the expenditure on R&D activities is very
low when it is compared to the global average expenditure in 2003 which
8 3 THE INNOVATION SYSTEM IN THE IDB COUNTRIES
was 2.4% (Watkins et al., 2005, pp.262–265). The industry plays minor role
in the R&D expenditure in the Arab states and the African countries while
in the USA 66% comes from the private sector (Watkins et al., 2005, pp.17–
18) .
Output indicators
Countries Patents
Egypt 80
Saudi Arabia 250
Syria 17
UAE 56
Senegal 4
Indonesia 201
Iran 35
Malaysia 776
Pakistan 32
Turkey 179
Israel 14649
Singapore 3565
South Korea 46773
Taiwan 71518
Germany 241584
Canada 71216
tured exports in the Arab States. This figure in the most IDB countries is
lower than the world average which was 18% except Malaysia (Watkins
et al., 2005, pp.274–277).
In the IDB countries there is a direct need for investments in the education
system improvements specially in the fields of science and technology and
to increase the students enrollment in these fields. Moreover, the gradu-
12 4 PROMOTING INVESTMENT IN INNOVATIONS
ates from these fields should be able to find jobs in their field of the study
otherwise the investment in the students will be lost either due to brain
drain problem or because they will be working in fields other than their
specialty. In order to minimize such problem, the R&D activities should
be promoted in both the public and private sectors.
The main factor in promoting the FDI is the proper policies and incen-
tives structure planned by governments. Establishing business alliances
and building cooperation and innovation networks will encourage and
increase the FDI.
Moreover Small and Medium Enterprises (SMEs) play great role in Inno-
vation and employment while the investments in their activities are rela-
tively small compared to large firms. That is why lot of economies in the
world are based on the investments on SMEs.
The transfer of ideas and technologies from the science or research insti-
tutes to marketable products in the industry is considered a major process
to be managed which is known as the Technology Transfer. This will be
elaborated later in the next section.
14 5 PROMOTING UNIVERSITY-INDUSTRY LINKAGE
Lot of ideas and research results are generated from universities and many
of them could lead to better (or new) products in the market. The univer-
sities license their research results to start-up companies that are directly
linked to the university through its staff that could be shared between the
company and the university. Such kind of start-up companies play major
role in connecting the local industry to the universities.
Such alliances or networks are created for large innovative projects where
neither companies nor universities can handle them alone. So they coop-
erate to gather the talents, knowledge and investment. They will be able
to produce joint projects or joint publications.
• Mobility of scientists
They are projects that are developed in cooperation volunteers where the
results are made available for free on the Internet. Such kind of projects
knows no boundaries and is open for all participants. Through Internet
the researchers and engineers with specialty in specific field can cooper-
17
ate together to produce large project no matters where they are. Moreover
the open source projects speed up the knowledge transfer between coun-
tries and the access to experts from all over the world and from different
industries.
The investment in such projects will improve the skills of local researchers
and increase the spirit of cooperation which in turns could improve the
cooperation between the industry and research institutes.
The IDB aims to support the development of the Islamic states. Science
and Technology are of the key fields that will support the economical de-
velopment and the IDB focus on them.
One of the main programs that support the accumulation of the knowl-
edge is the Science and Technology Scholarship Program. The study schol-
arships enable the students to learn about new fields of knowledge and get
them back to their countries or to their field of work. In order to have such
program effective suitable jobs and work chances for the graduated stu-
dents must be created. Otherwise they will be overqualified in their work
field and may either leave the country for better jobs (brain drain problem)
or will stay and not be able to benefit the country with their study.
The IDB has implemented some programs to support the technology and
science. Science Development Network (SDN) is one of the major pro-
grams that support the science and knowledge diffusion among the IDB
countries. Establish network of scientists and experts that can cooperate
to promote scientific progress and the cooperation between research insti-
tutes among the IDB countries.
18 7 CONCLUSIONS AND RECOMMENDATIONS
The article has discussed the role of Science and Technology for the eco-
nomical development and the status of IDB countries. In order to promote
the science and technology, investment in these fields must be carried on.
The key factor to success in investment is not the amount spent on tech-
nology import but it is how and where the investment goes and how much
knowledge it generates.
The IDB plays major role in the investment in technology and science in
its member countries. It has several programs in that field. Moreover
there should be more focus on supporting studies on the economics of
innovation. The IDB should try to invest in non-conventional methods
like open source projects.
Finally the IDB has to support the establishment of institutes that provides
direct support to researchers and investment.
REFERENCES 19
References
Farida Bennani, Hoda Elsadda, Nader Fergany, Fahmi Jadaane, and Atif
Kubursi. The Arab Human Development Report 2003: Building a knowl-
edge society. United Nations Development Programme (UNDP), New
York, USA, 2003. URL http://hdr.undp.org/reports/detail_
reports.cfm?view=712. Last accessed September 2006.
United Nations Economic & Social Commission for Western Asia ESCWA.
New Indicators for Science, Technology and Innovation in the KNOWLEDGE-
BASED Socity. United Nations Economic & Social Commission for West-
ern Asia (ESCWA), New York, USA, 2003.
S. Qasem. Strategy for the development of science and Technology in the Arab
world, volume I, chapter 1, pages 11–94. The Arab League Educational,
Cultural and Scientific Organization (ALECSO), Tunis, 2003.