Presentation on theme: "Tamer Taha – Consultant, CMI/World Bank January 17 th 2011 - Cairo."— Presentation transcript:
Tamer Taha – Consultant, CMI/World Bank January 17 th 2011 - Cairo
MENA confronting various challenges specific to the region Demographic pressures Alarming level of unemployment Environmental degradation Brain drain Skills Mismatch Political instability New-social pact is needed → Knowledge-based Economy! 2 Opportunities → Young & Skilled workforce? → Green Growth? → Skilled Diaspora? → Intra-regional Integration? → Democratic shift?
Multi-partner platform since 2009 Network of Networks 5 Clusters & 17 programs KEIT: 3 programs -> Financing Innovation projects (IT1), ISI@MED (IT2) & KE for Growth & Emp. 3 SELM KEIT World Bank EIB ISESCO UNDP UDWE TL
Quality of the labor demanded > Educational System output 4 The Number of jobs created < New entrants in the labor market Integration??
6 MENA competitiveness is still concentrated in resource-based industries. Lack of incentives and financial tools to promote innovation (venture capitals, tax deduction for R&D activities for the private sector...). Entrepreneurship -> Informal Sector and/or Tendency to Emigration Cost is still seen as the competitive advantage of many of the current
7 Source: Taha T., CMI, 2010
Egypt has conducted many reforms making it easier to do business and attracting FDIs However, growth was not triggered by a Knowledge –based Competitiveness 8
Source: Derek Chen, WBI, 2011
12 FDI Major Public projects Existing SMEs climbing the ladder Start ups and micro enterprises Informal sector More Jobs – Less Equity Less Jobs – More Equity ANIMA, 2011
Call center function299 R&D center function211 Textile196 Consulting and services to companies136 Software (services)103 Electronic components (production)103 Agribusiness (production)77 Logistics platforms67 Automotive and aeronautics63 Green techs39 13 ANIMA, 2011
14 Unemployment rate per Educ. attainment
…But innovation system in Egypt still faces many challenges, notably for SME s: Institutional Financial Technical Product Innovation vs. Process Innovation 15
Egypt ranked 97 th worldwide in KEI
17 Actions on KE climate Develop ment of projects VISON Inter- ministe rial body
Growth was mainly driven from “rent” industries. KE is not only important for creating jobs, but also for saving existing ones in sectors with diminishing competitiveness There is a need to encourage these sectors to upgrade their value chain! Turkey: R&D are exempted from taxes KE is not only a set of isolated policies… but a VISION for inclusive development Coordination among different governmental sectors would help raise efficiency in the Egyptian innovation system. That vision needs a sequence of “Quick Wins” to start the new social contract in a trust-based society. 18