Promoting competitiveness investment in value addition and technology transfer
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CONFERENCE ON SOUTH-SOUTH COOPERATION SRI LANKA, AUGUST 2008. PROMOTING COMPETITIVENESS Investment in Value Addition and Technology Transfer. Prof Charles G Kwesiga Executive Director Uganda Industrial Research Institute. Outline of Presentation. Factors for success

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Promoting competitiveness investment in value addition and technology transfer

CONFERENCE ON SOUTH-SOUTH COOPERATION

SRI LANKA, AUGUST 2008

PROMOTING COMPETITIVENESSInvestment in Value Addition and Technology Transfer

Prof Charles G Kwesiga

Executive Director

Uganda Industrial Research Institute


Outline of presentation

Outline of Presentation

  • Factors for success

  • Current regional status

  • Value Addition

  • Conclusion

    Subsequent discussion assume that EAC is a microcosm of the “South-South world”, albeit at the lower end economically


Facts about eac

FACTS ABOUT EAC

  • Wealth of resources and favourable climatic conditions

  • Strong political commitment to EA Federation

  • Similarity of development profiles key to harmonization of policies, strategies and development agendas


Critical success factors

Critical success factors:

  • Skilled manpower

  • Optimal resource allocation

  • Capacity for Technology Transfer (TT) and technology development

  • Sound infrastructure

  • Effective value addition

  • Quality of products and well designed processes

  • Investment in R&D, Science and Innovation

  • Promotion of regional trade and joint strategies for global market

  • Good governance and political stability


Promoting competitiveness investment in value addition and technology transfer

Regional (EAC) Balance of Trade

2002

2003

2004

2005

2006

2007

2008

  • Negative balance of trade due to excessive imports

*Sources: British Chamber of Commerce Country Profiles (2002 – 2003) & CIA World Fact book (2004 – 2008)


Promoting competitiveness investment in value addition and technology transfer

Comparison of Regional & Select Country Balance of Trade

$54.6 billion

  • In contrast, Southeast Asian countries register positive & increasing balance of trade due to increased export of high value finished products


Challenges faced in eac region

Challenges faced in EAC Region

  • Post-harvest losses are very high

  • Exports are mostly raw materials

  • Lack of affordable financing

  • Lack of highly skilled workers

  • Importation of basic goods & services

  • Limited indigenous technology base

  • Low levels of entrepreneurship


World technology clusters

World Technology Clusters


Exports comparison the major difference is level of commitment to industrialization

EXPORTS COMPARISON(The major difference is level of commitment to industrialization)


Value addition

VALUE ADDITION

  • The state of our economies require, as a matter of priority, that we focus on value-addition.

  • This requires addressing several necessary conditions (e.g. TT, infrastructure, skills).

  • The guiding principle is the concept of the “Product Value Chain” which must be understood and adhered to.


Promoting competitiveness investment in value addition and technology transfer

FACILITATORS

ARE

SALES PERSONNEL

LOCAL MARKETS

FINANCE

MICROFINANCE, BANKS, ETC.

RESEARCH (e.g. NARO)

C

O

N

S

U

M

E

R

PRIMARY PRODUCT

FARMER/FARM

H

A

R

V

E

S

T

MARKET

LOGISTICS

VALUE ADDED PRODUCTS

TRAINING

&

EXTENSION SERVICES

RESEARCH (FOOD SCIENTISTS)

FARM INPUTS (SEED, FERTILISERS ETC.

TECHNOLOGY (FARM IMPLEMENTS)

EXPORT MARKET

TECHNOLOGY FOR AGROPROCESSING (Add Value)

Facilitators

Are

EPB; AGOA, etc.

The Product Value Chain

Post harvest loss


Timelines for technology development

Modern Photography

Modern Photography

Pin Hole Camera

Pin Hole Camera

35 mm Camera

35 mm Camera

Digital Cameras

(Kodak DCS-100)

Digital Cameras

(Kodak DCS-100)

1727 107 yrs 1834 157 yrs 1991

1727 107 yrs 1834 157 yrs 1991

Timelines for Technology development

  • Photography

Modern Photography

Modern Photography

Modern Photography

Modern Photography

Modern Photography

Pin Hole Camera

35 mm Camera

Digital Cameras

(Kodak DCS-100)

1727 107 yrs 1834 157 yrs 1991


Timelines for technology development1

Vacuum tube diode1904

43 yrs

Transistor1947

Timelines for Technology development

  • Transistor was invented in 1947 and commercialized in 1953 (6 years later)


Consideration for effective tt

Consideration for effective TT

  • Operability of the technology in the intended environment

  • Infrastructure to sustain the technology

  • Availability of skills to work the technology

  • Sustainable supply of suitable raw materials

  • Intellectual property rights

  • Policies and other political, social and cultural issues


Key players

Key Players

POLITICAL CLASS

  • Stability

  • Policy development

  • Resources allocation

PRIVATE SECTOR

TECHNOCRATS

Collaboration

  • Implement policy

  • Offer technical services

  • Develop enterprises

  • Promote products

  • Effect industrialization


Collaboration between institutions

R & D Institutions

E

N

T

R

E

P

R

E

N

E

U

R

S

H

I

P

T

E

C

H

N

O

L

OG

Y

SKILLS

IMPROVEMENT

COLLABORATION IN RESEARCH

Processes

R&D

Skills

Incubation

Innovations

Products

University and

Higher learning

Institutions

Technical and Tertiary Institutions

MANPOWER AND ADVISORY SERVICES

MANPOWER

Industry

(Private Sector)

Collaboration between Institutions


Way forward

WAY FORWARD

  • Invest in R&D and support R&D institutions

  • Establish science and technology academies

  • Reverse the brain drain

  • Invest in infrastructure that supports competitiveness

  • Establish TT regimes; create business incubators

  • Create a sustainable indigenous technology base

  • Joint trade missions

  • INVEST IN VALUE ADDITON; TECH TRANSFER; and WORK TOGETHER!


Promoting competitiveness investment in value addition and technology transfer

Thank you !


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