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May 15-2008ICSTI Conference Alexandria-Egypt Amir Wassef Egyptian Industry and Academic Research An Industry Perspective By Amir Wassef.

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Presentation on theme: "May 15-2008ICSTI Conference Alexandria-Egypt Amir Wassef Egyptian Industry and Academic Research An Industry Perspective By Amir Wassef."— Presentation transcript:

1 May ICSTI Conference Alexandria-Egypt Amir Wassef Egyptian Industry and Academic Research An Industry Perspective By Amir Wassef

2 ICSTI Conference Alexandria-Egypt Amir Wassef May Development of Economies

3 ICSTI Conference Alexandria-Egypt Amir Wassef May Development of Economies Factors Phase Land Natural Resources Human Resources / Labor Capital Characteristics: Basic / Low tech industry Low value added Price sensitive Imported Technology

4 ICSTI Conference Alexandria-Egypt Amir Wassef May Development of Economies Growth Phase (Investment Driven Growth) Economies of Scale and Economies of Scope Aggregation and Clustering of Industries Learning Curve Dynamics Improved Quality Improvement of basic factors Characteristics Applied Research in Products and Process Improvements Lower Mobility Barriers of Labor and Researchers

5 ICSTI Conference Alexandria-Egypt Amir Wassef May Development of Economies Innovation Based Economy Knowledge Based value added Close ties across the Supply Chain High degree of Clustering, Consolidation, and Vertical Integration High circulation of Information Characteristics: Capitalizes on Innovation and Revolutionary Products and Materials State of the Art R&D Activity Close ties between industries and Academia Stable IPR Environment

6 ICSTI Conference Alexandria-Egypt Amir Wassef May Industry Distribution

7 ICSTI Conference Alexandria-Egypt Amir Wassef May Classification according to Generic Strategy

8 ICSTI Conference Alexandria-Egypt Amir Wassef May Classification according to Generic Strategy Commodity Producers with Economies of Scale Characteristics: Stable production lines, limited flexibility, little innovation in core products High switching costs Price sensitive Research activities Centered on piecewise improvements in materials, products and processes.

9 ICSTI Conference Alexandria-Egypt Amir Wassef May Classification according to Generic Strategy Differentiated Industry Characteristics: Competitive strategy based on increased value added and customer value Flexible production environment Lower production volumes Higher profit margins Research needs: Innovative applications in materials, know- how and Processes. Advanced Features rather than Revolutionary / Innovative products

10 ICSTI Conference Alexandria-Egypt Amir Wassef May Classification according to Generic Strategy Niche Industries Characteristics: Based on specialized skills Special materials Narrow scope of application,usually small market size, high value added, commands premium prices, high profit margins. Research Needs : Very innovative applications Narrow specialization and skills R & D costs spread over limited production quantities

11 ICSTI Conference Alexandria-Egypt Amir Wassef May Industry Evolution 2-3 Transition thru Supply Chain efficiency

12 ICSTI Conference Alexandria-Egypt Amir Wassef May Issues Characterizing Industry’s Cooperation with Academia Fragmentation No clear market leaders No significant market share for any particular firm Fragmented and diversified markets (Diverse market needs) Low entry barriers Absence of Economies of Scale Lack of Standards

13 ICSTI Conference Alexandria-Egypt Amir Wassef May Issues Characterizing Industry’s Cooperation with Academia No appreciable Clustering of Industries, thus reduced economies of scope (Same product or technology used across a wider spectrum of products and industries) Weak links between Academia and Industry Intellectual Property Rights procedures need improvement (Patents, Trademarks, Copyrights etc…)

14 ICSTI Conference Alexandria-Egypt Amir Wassef May Issues Characterizing Industry’s Cooperation with Academia Limitation of Finance by Industry in Academic R&D. Several Industry Modernization Programs (IMP) support research activities

15 ICSTI Conference Alexandria-Egypt Amir Wassef May Industry and Research Institutions Joint Plan: Overcoming Fragmentation Clustering Consolidation Vertical Integration and industry growth: Forward and Backward increase entry barriers Promoting Standardization

16 ICSTI Conference Alexandria-Egypt Amir Wassef May Industry and Research Institutions Joint Plan: Sustaining Transition between Factor Economy and Growth Economy: Improving Technological Content Continuous Product improvements Process improvements Materials Improvements Investing in the Learning Curve Innovation Management

17 ICSTI Conference Alexandria-Egypt Amir Wassef May Industry and Research Institutions Joint Plan: IPR Processes and Procedures :Find suitable model and formula Contractual relationships between Industry and Academia (Model contracts, best practices applied elsewhere) Increase Rate of Diffusion of proprietary knowledge: (Academia might have solutions to problems Industry did not know they had!)

18 ICSTI Conference Alexandria-Egypt Amir Wassef May Industry and Research Institutions Joint Plan: Lobby for improved Government policies vis-à-vis R&D: Research Funding The IMP research and Development Support Incentives for Industry to use Own funds Subsidies and Government Support Offering Grants for government supported research programs (Ex : A National program to reduce reliance on imports)

19 ICSTI Conference Alexandria-Egypt Amir Wassef May Industry and Research Institutions Joint Plan: Research Institutions need to adapt to a Paradigm Shift : Lack of Economies of Scale in research: Work with different industries to reduce fragmentation and improve Standardization-

20 ICSTI Conference Alexandria-Egypt Amir Wassef May Industry and Research Institutions Joint Plan: Research Institutions need to adapt to a Paradigm Shift : Research Institutions need Broad Problem Solving skills in view of Industry Fragmentation and Differentiation strategies

21 ICSTI Conference Alexandria-Egypt Amir Wassef May Critical Factor ! Standardization Standards are Know How Standards are Best Practices Standards enhance Quality Standards Preserve the Knowledge base of Industry Standards promote Consolidation and Defragmentation of industry

22 ICSTI Conference Alexandria-Egypt Amir Wassef May Proposal: Bibliotheca Alexandrina with ICSTI support BiblAlex establishes a Standards Dissemination Library to serve Industry Concentrate on Electronic Dissemination Capitalize on Support available to Developing Economies ( ex. ISO)

23 May ICSTI Conference Alexandria-Egypt Amir Wassef Thank you Amir Wassef Chairman, Economic Committee, Board of Trustees of Borg el Arab


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