the role of STI policies in sustainable development of MICs: implications for the post development agenda Michael Lim Policy Review Section Science, Technology and ICT Branch UNCTAD-DTL Minsk Regional Conference on the middle–income countries perspective on sustainable development in CIS, Eastern and Southern Europe 16 May 2013

2 Outline STI and innovation capacity National and global challanges MICs and middle-income trap Current development agenda Post-2015 development agenda Conclusions

3 Innovative Capabilities and Income (from UNCTAD LDCR 2007)

4 Why STI is important Building strong STI capabilities, accessing foreign technologies and building strong national systems of innovation are important for: -economic growth -social welfare -environmental challenges (sustainability) -economic development

5 STI applications: many -improving productivity -increasing value added -diversifying production -mitigating/adapting to climate change -developing and diffusing new energy sources -building infrastructure -conserving water in agriculture -improving public services (health, education) -addressing disease epidemics -organizing mega-cities (smart urban planning, sustainable cities) -early warning systems for natural disasters (tsunamis, hurricanes) -adapting buildings for earthquake prone zones -slowing desertification etc.

6 National and global challenges International competitiveness Growth and employment (inclusive growth) Natural resource sustainability (sustainable development) Food security – food crises, malnutrition, starvation Climate change Energy security – fossil fuels and RETs Water security Natural resource depletion Malthusian trap?

MICs: Middle Income trap? Cannot compete on low cost production Must compete based on innovation Must build STI base, innovation capabilities, access technologies Diversify into more skill- and knowledge-intensive production activities, increase value added Requires STI policy action as part of development policy agenda 7

Current MDGs inadequate STI central to achieving many MDGs or development goals Eg. poverty (jobs-production nexus), hunger (agriculture-food-income nexus) BUT…MDGs barely mention STI 8

Post 2015 development agenda implications STI must be fully integrated into DA Include technological learning, innovation capacity, access to technologies Structural economic change also important in DA, as well as social development and sustainability Science, technology and innovation must be harnessed for sustainable development Process of development and specific goals both important 9

10 Conclusion Many development challenges; STI badly needed in solutions Innovation capacity key for MICs to escape middle-income trap STI must be better integrated into post-2015 DA Need discussion on how best to achieve this Processes of developemnt important – also, how to specify goals

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