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Promoting Economic Development
     by Research & Innovation

              Prof. Khemaies ZAYANI


Director of Programs and Structures of Research Valorization,
Ministry of Higher Education and Scientific Research-Tunisia



                 November	
  26,	
  2012	
  :	
  Murcia-­‐Spain	
  
“If a man empties his purse into his head, no one can take it from
him. An investment in knowledge always pays the highest return”.
                                    Benjamin Franklin (1706-1790)


 Natural resources can help economic development but are not
  sine a qua non condition for inducing technological
  breakthrough.


 The secret of the development lies in the momentum given to
  research and innovation. According to Schumpeter, economic
  development revolves around innovation, entrepreneurship and
  market.
Global Competitiviness Index (GCI): Source : World Economic Forum, 2012
     Country          Rank in 2012        Rank in 2011        Trend
Switzerland                1                     1
Singapour                  2                     2
Finlande                   3                     4
Sweeden                    4                     3
Netherlands                5                     7
Germany                    6                     6
USA                        7                     5
United Kingdom             8                    10
Hong Kong SAR              9                    11
Japan                     10                     9
France                    21                    18
                                          32/109 in 2010
Tunisia                     n/c
                                          40/142 in 2011
  High 5,51 < GCI < 7,0                Very High 5,51 < GCI < 7,0
12 Pillars of Competitiviness (Source : World Economic Forum, 2012)
                    Global Competitiveness Index

 Basic requirements                  Efficiency                 Innovation and
      subindex                   enhancers subindex              sophistication
                               Pillar 5. Higher education       factors subindex
                                         and training
Pillar 1. Institutions
                               Pillar 6. Goods market
Pillar 2. Infrastructure                efficiency          Pillar 11. Business
                                                                      sophistication
Pillar 3. Macroeconomic        Pillar 7. Labor market
          environment                    efficiency         Pillar 12. Innovation
                               Pillar 8. Financial market
Pillar 4. Health and primary
                                         development
          education
                               Pillar 9. Technological
                                         readiness
                               Pillar 10. Market size




          Key for                       Key for                        Key for
    Factor-driven                efficiency-driven             Innovation-driven
        economies                      economies                      economies
Tunisia at glance
 1. General informations
Area = 163 610 km2                          Population = 10 430 200 inhabitants

GDP = 4376 US$ per capita (2009 )           Life expectancy = 75.24 years

Birth rate = 17.4 per 1000 persons (2011)   Literacy = 74.3%


2. Higher Education and Scientific Research HESR (2010-2011)
193 public high institutes, faculties and
                                            16486 faculty members
engineering school
42 private high institutes                  35 research centers
346876 students enrolled in public          15054 students enrolled in private
institutions (61.2% female)                 institutions,
Enrollment rate of students = 36.9%,        6.1% of GDP to HESR
2032 foreign students from 61               83215 new students in university in
nationalities,                              2010 versus 86035 graduates
National System of Research and Innovation (SNRI)
1. Main challenges
  Redirect the national economy to growth regime based on
   knowledge and expertise,
  Improve the competitiveness of industry to alleviate harsh
   international competition resulting from globalization,
  Accelerate the pace of start-ups’ creation to improve the
   growth of the national economy and provide enough jobs for
   youth, particularly higher education graduates,
  Search of positioning in niche markets with high added value,
  Increase the attractiveness of foreign direct investment (FDI).
               Policy of Modernisation and decentralization
                      of industrial sector + innovation
National System of Research and Innovation (SNRI)
  2.  Policy and outlines
  Guiding scientific research towards national priorities,
  Stimulate innovation and technological development,
  Generate innovative projects resulting from valorization of
   research results,
  Foster scientific and technological positioning of the country,
  Set up a basic advanced infrastructure for the benefit of R&D
   sector,
  Develop a high level scientific and technical expertise,
  Increase investment for R&D activities.
Researchers are encouraged to cluster within laboratories or units.
To acquire critical weight and more competitiveness, research
structures are encouraged to merge into consortia.
At the end of 2010: Number labs = 147 and Number of
research units = 609

  The typology of these research structures was as following :

                   Labs                                      Research Units
                                                              Law, Economy
                          Law, Economy                              &
   Basic Science
                                &           Basic Science      Management    Humanities &
       29%
                                                                  10%        Social Science
                           Management           18%
                              10%                                                13%


                           Humanities &
                           Social Science
                                4%


                                                                               Engineering
                          Engineering                                             10%
                             8%             Life Science &
Life Science &                              Biotechnology
Biotechnology                                    49%
     49%
0	
  
                   500	
  
                             1000	
  
                                        1500	
  
                                                     2000	
  
                                                                       2500	
  
                                                                                  3000	
  
                                                                                             3500	
  
1967	
                                                                                                                                                 4000	
  
1968	
  
1969	
  
1970	
  
1971	
  
1972	
  
1973	
  
1974	
  
1975	
  
1976	
  
1977	
  
1978	
  
1979	
  
1980	
  
1981	
  
1982	
  
1983	
  
1984	
  
1985	
  
1986	
  
1987	
  
1988	
  
1989	
  
                                                   1967



1990	
  
1991	
  
1992	
  
1993	
  
1994	
  
                                                                1987




1995	
  
1996	
  
1997	
  
1998	
  
1999	
  
2000	
  
                                                                                                                                                                                   Basic outcomes of Tunisian Research




2001	
  
2002	
  
                                                                                             2007




2003	
  
2004	
  
2005	
  
2006	
  
2007	
  
2008	
  
2009	
  
2010	
  
                                                                                                        30515 Tunisian publications in the Web of Science (Ref: Thomson Reuters)




2011	
  
Citations / article




                         0
                             5
                                      10
                                              15
                                                         20
                                                                        25

           Agronomy
         Biology and
        Biochemestry
           Chemistry

    Clinical medecine

    Computer Science

Economy and Busienss

         Engineering
     Environnement /
         Ecology
           Geoscience

         Immunology
                                                       Particularly
                                                       high impacts




     Materials science

         Mathematics

        Microbiology
Genetic and Molecular
       biology
                                                                      22+




    Neuroscience and
                                            12+




         behavior
   Pharmacology and
        Toxicology
     Physical Sciences
    Animal and Plant
        sciences
         Psychiatry /
         Psychology
        Social Studies
                                                                             Impact of Tunisian Research (Ref: Thomson Reuters)




        Space science
Tunisian publications are cited in more than 110 000 indexed
publications in the Web of Science (Ref: Thomson Reuters)
          Which countries cite these publications?
                        Spain 3.8%

       USA 13.3%                         France 13.1%


     Italy 4.3%         Tunisia               Japan 2.3%



      England 4.3%                         China 4.6%


                        Turkey 2.2%


        International recognition of Tunisian Research
 Innovation:
   The concept of innovation is often defined in
   compliance with Oslo Manual (2005) :	
  

“Innovation is the implementation of a product (good or
service), a new or a significantly improved process, a new
marketing method, a new organizational method in business
practices, the organization workplace or external relations”.

There is a certain amalgam in the public mind between
innovation and novelty or the assertion "for first time in
Tunisia". Even though this definition of novelty restricts the
added value to local market, it can be adopted temporarily
as it helps support the companies’ strengthening.
Instruments for funding innovation
                               APII, BANKS
                                & SICAR
                                                FOPRODI
                                                                              MESRS
                   MIT
                                                                   VRR
                                   RICTIC

        MESRS                                                                         BMN
                                                                         PIRD
                               PRF

      SAGES -                                                             PMN
       BMN               IN’Tech                                                        BMN


                                                                         ITP - MAN
    Ikdem                                                                               BMN
  Management         Seed Funds
PHENICIA - ACP
                                                                          ITP -
                                                                         Creation
                               Service                                                  APII
                               checks
            APII                                                    Patents
                                                                                MESRS
                                         PNRI                                   - MIT
                                                   Rechearchers’
                         MIT                         Mobility
                                                                     MESRS

  (Source: Projet Assistance technique pour l’étude, l’évaluation et l’optimisation
  des instruments financiers d’incitation à l’innovation et la création d’entreprise,
  Projet No2010/256944, Programme ENPI)
Instruments for funding innovation
A large panoply of instruments to fund innovation. One counts
14 instruments operated by 5 institutions. They can be split into
3 layers: 	
  
Individualized support (one to none): Directed to a single recipient.
Their objectives and eligibility criteria go beyond the framework of
innovation (PMN, ITP, FOPRODI, DRIC, Service checks).	
  
Incentives for collaborative research: these instruments are intended
to encourage R&D and the reconciliation between Research and
Industry (VRR, PFR and PNRI).	
  

Financial support of own funds: Oriented to support innovative
enterprises’ creation by funding certain stages of innovation process.
Provision of own funds or consolidation of the financial structure of
“young shoot” through bank credit. 	
  
Research Valorisation        Bridge between academia and industry


 Until now, 84 were funded by VRR projects with a total budget
 of 8.8 Millions of Dinars

 The research preceding valorization is collaborative and
 intended to promote technology transfer and patents’ licenses
 from labs to industry. It is also targeted to leveraging the
 available expertise to meet national needs as well as promoting
 the development of prototypes within research structures.

 Industrials are requested to contribute up to 10% of the project
 cost. The subsidy provided by the government is not capped.

 The funding agreement is subjected to the favorable opinion of
 a panel of experts who evaluate the submission.
Importance of the funded VRR projects
             according to the disciplines
                Water &         Biotechnology
              Environment          10.70%
                13.10%
                                         Humanities
                                           1.20%
      TIC
     13.10%




                                                Agriculture &
                                                  Fisheries
                                                    25%
       Health &
       Pharmacy
        16.70%
                                   Industry &
                                     Energy
                                     20.20%


The relatively small number of submitted VRR projects
may be ascribed to the following reasons:
 Absence of valorization cells within research
  structures

 Scarcity of valorization experts within research
  structures (engineers, lawyers, etc.)	
  

  Weakness of partnership between research and small
  and medium companies	
  

  Lack of valorization culture amongst researchers	
  

  Reluctance of researchers to leverage their own
  research results,
Intellectuel property




The current legislation is not stimulating as it provides
authors with 25-50% of the patent's dividends, after
deduction of all costs.
The disproportionality between publications and patent
numbers is attributable to:
 Scientific articles are recognized in the career evolution
  of researchers but patents, particularly those filed in
  Tunisia, are less so
 Net patents revenues are small: Researchers perceive
  only 25-50% of the patent income after deduction of all
  gross outlays	
  
 Absence of specialized intellectual property office close to
  the major research poles, to help patenting and
  marketing operations
 Culture of intellectual property is not widespread and
  only few researchers are abreast of relevant mechanisms
  and regulations
To alleviate these cons, the following
                   measures are undertaken :




Training on Intellectual                   Repeal of binding
Property with WIPO &                    regulation & proposal of
      INNORPI                             a more incentive one


           Link and interface structures: BUTT, CRT
         (within technopoles) & 42 Business incubators
        Ph.D Fellowship in companies =MOBIDOC, etc.
Technopoles as a lever of development
The main objectives of technopoles are:
 Strengthen the synergy between the triptych research,
  training and industry, promoting thereby generation of new
  projects
 Encourage the establishment of firms engaged in high
  technology and services and polarize economic projects based
  on research and development

 Provide the region with a conducive environment for carrying
  R&D activities oriented towards advanced industrial fields
  that are attractive of foreign direct investment	
  
 Improve the competitive capacity of Tunisian companies	
  
  Promote the entrepreneurial spirit and encourage the
  establishment and incubation of start-ups
 Stimulate job creation, particularly for higher education
  graduates
 Foster scientific research in fields related to national priorities
  and economic needs	
  

 Develop highly qualified human resources capable to manage
  innovative projects

 Promote partnership between public and private sectors	
  
 Right now, there is one functional technopopole (El Ghazala)
 and six ongoing (Sidi Thabet, Borj Cedria, Bizerte, Sousse &
 Monastir, Sfax).

 These projects are burdensome and request huge investments
 into the intangible. Their usufruct is not immediate as they
 require long time for implementation.
Mobility of researchers
 Researchers eager to valorize their findings can take
 advantage of full-time mobility to create their own companies.
 They may also request part-time mobility to contribute to the
 implementation of innovative projects either in public or in
 private companies.

  Mobility is intended to upgrade the productive sector by
 leveraging highly qualified human resources. Nevertheless,
 the regulation in force is rather binding since it requires
 researchers to fulfill all their teaching and research duties
 without any incitation in return.



            Need to repeal the ongoing decree and
            propose a more challenging regulation
Things are moving now !


 Because of the current transitional phase, things are
 moving and some strategies may be adjusted
 according to new policies.


  A national consultation will be organized by the
 Ministry of Higher Education and Scientific Research
 to draw new priorities and foster R&D to serve as a
 lever for economic and social development of the
 country.
THANKS
FOR YOUR KIND ATTENTION

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Promoting economic development by research & innovation in tunisia

  • 1. Promoting Economic Development by Research & Innovation Prof. Khemaies ZAYANI Director of Programs and Structures of Research Valorization, Ministry of Higher Education and Scientific Research-Tunisia November  26,  2012  :  Murcia-­‐Spain  
  • 2. “If a man empties his purse into his head, no one can take it from him. An investment in knowledge always pays the highest return”. Benjamin Franklin (1706-1790)  Natural resources can help economic development but are not sine a qua non condition for inducing technological breakthrough.  The secret of the development lies in the momentum given to research and innovation. According to Schumpeter, economic development revolves around innovation, entrepreneurship and market.
  • 3. Global Competitiviness Index (GCI): Source : World Economic Forum, 2012 Country Rank in 2012 Rank in 2011 Trend Switzerland 1 1 Singapour 2 2 Finlande 3 4 Sweeden 4 3 Netherlands 5 7 Germany 6 6 USA 7 5 United Kingdom 8 10 Hong Kong SAR 9 11 Japan 10 9 France 21 18 32/109 in 2010 Tunisia n/c 40/142 in 2011 High 5,51 < GCI < 7,0 Very High 5,51 < GCI < 7,0
  • 4. 12 Pillars of Competitiviness (Source : World Economic Forum, 2012) Global Competitiveness Index Basic requirements Efficiency Innovation and subindex enhancers subindex sophistication Pillar 5. Higher education factors subindex and training Pillar 1. Institutions Pillar 6. Goods market Pillar 2. Infrastructure efficiency Pillar 11. Business sophistication Pillar 3. Macroeconomic Pillar 7. Labor market environment efficiency Pillar 12. Innovation Pillar 8. Financial market Pillar 4. Health and primary development education Pillar 9. Technological readiness Pillar 10. Market size Key for Key for Key for Factor-driven efficiency-driven Innovation-driven economies economies economies
  • 5. Tunisia at glance 1. General informations Area = 163 610 km2 Population = 10 430 200 inhabitants GDP = 4376 US$ per capita (2009 ) Life expectancy = 75.24 years Birth rate = 17.4 per 1000 persons (2011) Literacy = 74.3% 2. Higher Education and Scientific Research HESR (2010-2011) 193 public high institutes, faculties and 16486 faculty members engineering school 42 private high institutes 35 research centers 346876 students enrolled in public 15054 students enrolled in private institutions (61.2% female) institutions, Enrollment rate of students = 36.9%, 6.1% of GDP to HESR 2032 foreign students from 61 83215 new students in university in nationalities, 2010 versus 86035 graduates
  • 6. National System of Research and Innovation (SNRI) 1. Main challenges   Redirect the national economy to growth regime based on knowledge and expertise,   Improve the competitiveness of industry to alleviate harsh international competition resulting from globalization,   Accelerate the pace of start-ups’ creation to improve the growth of the national economy and provide enough jobs for youth, particularly higher education graduates,   Search of positioning in niche markets with high added value,   Increase the attractiveness of foreign direct investment (FDI). Policy of Modernisation and decentralization of industrial sector + innovation
  • 7. National System of Research and Innovation (SNRI) 2.  Policy and outlines  Guiding scientific research towards national priorities,  Stimulate innovation and technological development,  Generate innovative projects resulting from valorization of research results,  Foster scientific and technological positioning of the country,  Set up a basic advanced infrastructure for the benefit of R&D sector,  Develop a high level scientific and technical expertise,  Increase investment for R&D activities. Researchers are encouraged to cluster within laboratories or units. To acquire critical weight and more competitiveness, research structures are encouraged to merge into consortia.
  • 8. At the end of 2010: Number labs = 147 and Number of research units = 609 The typology of these research structures was as following : Labs Research Units Law, Economy Law, Economy & Basic Science & Basic Science Management Humanities & 29% 10% Social Science Management 18% 10% 13% Humanities & Social Science 4% Engineering Engineering 10% 8% Life Science & Life Science & Biotechnology Biotechnology 49% 49%
  • 9. 0   500   1000   1500   2000   2500   3000   3500   1967   4000   1968   1969   1970   1971   1972   1973   1974   1975   1976   1977   1978   1979   1980   1981   1982   1983   1984   1985   1986   1987   1988   1989   1967 1990   1991   1992   1993   1994   1987 1995   1996   1997   1998   1999   2000   Basic outcomes of Tunisian Research 2001   2002   2007 2003   2004   2005   2006   2007   2008   2009   2010   30515 Tunisian publications in the Web of Science (Ref: Thomson Reuters) 2011  
  • 10. Citations / article 0 5 10 15 20 25 Agronomy Biology and Biochemestry Chemistry Clinical medecine Computer Science Economy and Busienss Engineering Environnement / Ecology Geoscience Immunology Particularly high impacts Materials science Mathematics Microbiology Genetic and Molecular biology 22+ Neuroscience and 12+ behavior Pharmacology and Toxicology Physical Sciences Animal and Plant sciences Psychiatry / Psychology Social Studies Impact of Tunisian Research (Ref: Thomson Reuters) Space science
  • 11. Tunisian publications are cited in more than 110 000 indexed publications in the Web of Science (Ref: Thomson Reuters) Which countries cite these publications? Spain 3.8% USA 13.3% France 13.1% Italy 4.3% Tunisia Japan 2.3% England 4.3% China 4.6% Turkey 2.2% International recognition of Tunisian Research
  • 12.  Innovation: The concept of innovation is often defined in compliance with Oslo Manual (2005) :   “Innovation is the implementation of a product (good or service), a new or a significantly improved process, a new marketing method, a new organizational method in business practices, the organization workplace or external relations”. There is a certain amalgam in the public mind between innovation and novelty or the assertion "for first time in Tunisia". Even though this definition of novelty restricts the added value to local market, it can be adopted temporarily as it helps support the companies’ strengthening.
  • 13. Instruments for funding innovation APII, BANKS & SICAR FOPRODI MESRS MIT VRR RICTIC MESRS BMN PIRD PRF SAGES - PMN BMN IN’Tech BMN ITP - MAN Ikdem BMN Management Seed Funds PHENICIA - ACP ITP - Creation Service APII checks APII Patents MESRS PNRI - MIT Rechearchers’ MIT Mobility MESRS (Source: Projet Assistance technique pour l’étude, l’évaluation et l’optimisation des instruments financiers d’incitation à l’innovation et la création d’entreprise, Projet No2010/256944, Programme ENPI)
  • 14. Instruments for funding innovation A large panoply of instruments to fund innovation. One counts 14 instruments operated by 5 institutions. They can be split into 3 layers:   Individualized support (one to none): Directed to a single recipient. Their objectives and eligibility criteria go beyond the framework of innovation (PMN, ITP, FOPRODI, DRIC, Service checks).   Incentives for collaborative research: these instruments are intended to encourage R&D and the reconciliation between Research and Industry (VRR, PFR and PNRI).   Financial support of own funds: Oriented to support innovative enterprises’ creation by funding certain stages of innovation process. Provision of own funds or consolidation of the financial structure of “young shoot” through bank credit.  
  • 15. Research Valorisation Bridge between academia and industry Until now, 84 were funded by VRR projects with a total budget of 8.8 Millions of Dinars The research preceding valorization is collaborative and intended to promote technology transfer and patents’ licenses from labs to industry. It is also targeted to leveraging the available expertise to meet national needs as well as promoting the development of prototypes within research structures. Industrials are requested to contribute up to 10% of the project cost. The subsidy provided by the government is not capped. The funding agreement is subjected to the favorable opinion of a panel of experts who evaluate the submission.
  • 16. Importance of the funded VRR projects according to the disciplines Water & Biotechnology Environment 10.70% 13.10% Humanities 1.20% TIC 13.10% Agriculture & Fisheries 25% Health & Pharmacy 16.70% Industry & Energy 20.20% The relatively small number of submitted VRR projects may be ascribed to the following reasons:
  • 17.  Absence of valorization cells within research structures  Scarcity of valorization experts within research structures (engineers, lawyers, etc.)     Weakness of partnership between research and small and medium companies     Lack of valorization culture amongst researchers     Reluctance of researchers to leverage their own research results,
  • 18. Intellectuel property The current legislation is not stimulating as it provides authors with 25-50% of the patent's dividends, after deduction of all costs.
  • 19. The disproportionality between publications and patent numbers is attributable to:  Scientific articles are recognized in the career evolution of researchers but patents, particularly those filed in Tunisia, are less so  Net patents revenues are small: Researchers perceive only 25-50% of the patent income after deduction of all gross outlays    Absence of specialized intellectual property office close to the major research poles, to help patenting and marketing operations  Culture of intellectual property is not widespread and only few researchers are abreast of relevant mechanisms and regulations
  • 20. To alleviate these cons, the following measures are undertaken : Training on Intellectual Repeal of binding Property with WIPO & regulation & proposal of INNORPI a more incentive one Link and interface structures: BUTT, CRT (within technopoles) & 42 Business incubators Ph.D Fellowship in companies =MOBIDOC, etc.
  • 21. Technopoles as a lever of development The main objectives of technopoles are:  Strengthen the synergy between the triptych research, training and industry, promoting thereby generation of new projects  Encourage the establishment of firms engaged in high technology and services and polarize economic projects based on research and development  Provide the region with a conducive environment for carrying R&D activities oriented towards advanced industrial fields that are attractive of foreign direct investment    Improve the competitive capacity of Tunisian companies     Promote the entrepreneurial spirit and encourage the establishment and incubation of start-ups
  • 22.  Stimulate job creation, particularly for higher education graduates  Foster scientific research in fields related to national priorities and economic needs    Develop highly qualified human resources capable to manage innovative projects  Promote partnership between public and private sectors   Right now, there is one functional technopopole (El Ghazala) and six ongoing (Sidi Thabet, Borj Cedria, Bizerte, Sousse & Monastir, Sfax). These projects are burdensome and request huge investments into the intangible. Their usufruct is not immediate as they require long time for implementation.
  • 23. Mobility of researchers  Researchers eager to valorize their findings can take advantage of full-time mobility to create their own companies. They may also request part-time mobility to contribute to the implementation of innovative projects either in public or in private companies.   Mobility is intended to upgrade the productive sector by leveraging highly qualified human resources. Nevertheless, the regulation in force is rather binding since it requires researchers to fulfill all their teaching and research duties without any incitation in return. Need to repeal the ongoing decree and propose a more challenging regulation
  • 24. Things are moving now !  Because of the current transitional phase, things are moving and some strategies may be adjusted according to new policies.   A national consultation will be organized by the Ministry of Higher Education and Scientific Research to draw new priorities and foster R&D to serve as a lever for economic and social development of the country.
  • 25. THANKS FOR YOUR KIND ATTENTION