This document discusses innovation systems and social capital in Maghreb countries. It begins by outlining four key questions around the need for innovation, performances and obstacles to innovation, success stories, and new research avenues focusing on social capital and local innovation systems. It then provides details on challenges facing Maghreb countries and the need for a new growth model based on innovation. Performance indicators on research and development spending, publications, patents, and technology-intensive exports are presented. Obstacles to innovation are examined through the lens of national innovation systems. Examples of successful innovators in Algeria and Tunisia are highlighted. The document concludes by discussing prospects for using social capital and local innovation systems approaches in future research and strengthening North-South

1. "LOCAL INNOVATION SYSTEMS, AND SOCIAL
CAPITAL : NEW RESEARCH AGENDA FOR THE
MAGHREB COUNTRIES"
Abdelkader Djeflat
University of Lille (France)
Chairman : the MAGHTECH Network

2. Four key questions are asked
– 1/ The need for innovation: the global
conditions and challenges
– 2/Performances and
– 3/ obstacles to innovation in MCs: the NSI
perspective
– 4/ Success stories and lessons to be learnt.
– 5/ New research avenues: social capital and
Local Innovation Systems

3. 1. Global conditions &
challenges

4. Major Challenges
• internal challenges
– Unemployment 20%
(graduates)
– Erratic growth,
– Increasing Poverty
– Brain drain
– Heavily resources-
based economies
• External challenges
– digital divide
– competition
– free trade zones
– External debts
– Crisis of foreign direct
investments etc.

5. Target to solve major economic
& social problems
• New growth regime needed
- Annual growth needed: 6% a 7%
– More diversified production
– Choc absorbing economies
– Higher total factor productivity
– Shifting from low wage based to
INNOVATION-based competitivity

6. 2. Performances and obstacles in
S&T

7. Performances in innovation
6353597342311Publicatio
ns (1995)
333178200Patents
1.920,3%0,31%0,3%R&D/GDP
S.KOR
EA
MORO
CCO
TUNISI
A
ALGE
RIA

8. R&D/GDP expenses
0
5
10
15
20
25
30
35
JAP ALL PORT TURK MAG
Série1

9. Publications
0
10
20
30
40
50
MARAB IND MAGH HOL
Série1

10. Patents
0
5000
10000
15000
20000
25000
ALG MAR TUN LIB MAG TURK SUIS
Série1

11. Exports of manufactured
products
Evo lu tio n o f GNI p e r cap ita in M o r o cco
2700
2800
2900
3000
3100
3200
3300
3400
3500
3600
1995 1996 1997 1998 1999 2000
Y ears
USDollars

12. Share of technology-intensive
exports
67%Malaysia
66%South Korea
20.7%Morocco
22.8%Tunisia
9%Algeria

13. 3. Obstacles

14. What are the obstacles?
• Weak Human capabilities : education,training
• Lack of Services: information, infrastructure
• Institutions : coordination
• Actors : rent-seekers, gatekeepers,
• Financing: venture capital
• Infrastructures
• Market and State failure :
• Culture and values : etc.

15. NSI: Standard framework
• nsi
SPHERE
EDUCATIO
NATIONorm
atiscientifique
echnical
FORMATI
ONifictraini
ng
SPHERE
INDUSTR
I
SHERE
RECHERCHE
&DEVEL
SYSTEME
NATIONAL
D’INNOV
A
EXTERIEUR

16. NSI AS OPEN SYSTEM
SFST
SRD
(2)
(1)
(3)
SNI
(II)
(b) (c)
(III)
(I)
SI
(a)

17. NSI AS COMPLEX SYSTEM
Ministry of
Technical Affairs
Organisation of
finance and
research
Ministry of
Education
System of
scientific and
technical
information
National
Scientific
Policy
National
Development
Policy
Universities
USER
Centre for industrial
research and public
research
Councils of research
institutes
National
Techniques
Centre for applied studies
Centre for technical studies
Pilot factories

18. NSI AS COMPLEX AND OPEN SYSTEM
International sources of
technology supply
Donor Agencies
Government
Local large
scale
enterprises
with in-house
R&D
Small and
medium size
enterprises
(SMEs)
Private
consulting firms
Universities
R&D Centres

19. SFST
SRD
(2)
(1)
(3)
SNI
(II)
(b) (c)
(III)
(I)
SI
(a)
SFST
SRD
(2)
(1)
(3)
SNI
(II)
(b) (c)
(III)
(I)
SI
(a)
NOT CONNECTED WITH THE NSIs IN THE NORTH

20. SFST
SRD
(2)
(1)
(3)
SNI
(II)
(b) (c)
(III)
(I)
SI
(a)
SFST
SRD
(2)
(1)
(3)
SNI
(II)
(b) (c)
(III)
(I)
SI
(a)
WEAK ATTRACTION AND NEGOTIATING POWER

21. 4. Success stories:
individual cases
• Several success stories exist: it can be done
– Public : SAIDAL: pharmaceuticals in
Algeria
– Private : POULINA Group: various
activities in Tunisia
• MAGHTECH : knowledge network of university
researchers

22. Saidal (Public)
• Performances
• NEW Product (10 en
2001)
Domestic market share
from 15% to 40% within
5 years
• Price reduction of 5%
• Exports : 10Mns USD en
2001 to 10 countries
• Annual growth 30%
(2002)
• Position of Leader
internally
• Impact
• Imports reduction
• Certification ISO
9001/9002
• Employment creation
from 14000 jobs from
1998 to 2001
• Confidence to the local
industry that they can
innovate and compete

23. POULINA (Tunisia)
• Creation 1967
• Capital private
• Shareholders 3000
• Size 7000
• Annual growth 10%
• Innovation : Various : agro-food example:
exhaust pipes, electrical goods etc..
• Success in exporting to Europe and other LDCs

24. The MAGHTECH network
a knowlege network
• A network of university researchers and some
pratictionners (15% )
• Born in 1994 with a group of 30 researchers
• Currently 350 members in 7 countries
• 6 books published , 5 international conferences
• Consulting with various governments anf
international organisations
• Leading organised group in the sub-region in te
area of research on S&T

25. 5. What are the major prospects?
Current research questions
•Using the social capital tools to
enhance innovation,
•Looking at the local Innovation
systems approach

26. Conditions
• human capital and local capacity
• leadership : to mobilise knowledge
• social capital : vital to overcome bureaucracy and
mistrust end resistance to technical change
• Breaking the wall between intermediate
institutions
• Institutional networking
• Mobilising of pré-existant relationships and
creation of new relationships

27. Social capital
• The common ingredients in the three
experiences:
– Long-terme relationship (poulina/maghtech)
– Trust and confidence amongst the actors
– A great of informal relationships
– Sharing of values
– Code of conduct (norms)
– Referent power

28. Local Innovation Systems
(cappelin 2002)
Creativity
CustomerValueIdentity
InnovationAccessibilityReceptivity

29. Simultaneous Management
of LIS
1. Manage accessibility and technological capital
2. Manage receptivity and human capital
3. Building identity and institutional/organizational
proximity
4. Lever creativity and internal organizational
capital
5. Enhance entrepreneurship and innovation capital
6. Customers satisfaction
7. Financial performance and creation of value

30. New Agenda for North-South
Cooperation
¨Promoting Innovation
partnership at local level
-decentralised
innovation-based
cooperation
-strengthening
intermediate institutions
-mobilising tacit
knowledge
• Building proper NSI
and strengthening existing
ones
-education and training
-contribution to brain
gain
-helping with coping
with new property rights
protection (WTO)
-Funding of R&D

31. Social capital and north south
cooperation
Innovation has definitely to come into the egenda of
the various agreemenst and negociations (eg;
Barcelona agreemnt and the free trade zones
Magreb-Europe)
-promoting continuous flow of S&T
knowledge
-building trust between instituions &
organisations (SMEs, NGOs, Gov. )
-encouraging north-south networking,
-encouraging informal and social interractions
amongst actors ( entreprises, NGO, institutions
and individuals : visa issue)