1. – A View from German Development Cooperation –
Policy Framework for Innovation and Entrepreneurship Support in the MENA-region
– A View from German Development Cooperation –
Ulrich Höcker (GTZ)
Casablanca/Morocco
02. February 2006

2. Needs in terms of new job creation for the coming decades in the MENA Region
Source: Worldbank (2004); EU Innovation Policy Trends (2005)

3. Changing nature of Competitiveness
Competitiveness traditionally based on
Capital and labour costs
Costs of inputs and infrastructure services
General business environment and ease of doing business (including macro stability, taxes, x rate, etc)
Superiority in technology or management
But it is increasingly being based on
Access to information e.g. market information and requirements
Greater value added in production now comes from knowledge
Speed and quality are new essentials
Innovation is a strategy of constant change

4. MENA specific challenges
“Weak or missing middle” problem: few SME have potential for growth & innovation
Entrepreneurship-gap: educational & economic environment provide little incentives
Inter-institutional linkage bottleneck: low degree of communication & interaction between private sector & knowledge-institutions
Innovation knowledge gap: little theoretical & practical experience with management of innovation processes

5. Scope of activities of German Development Cooperation
Policy
Level
Improving Business and Investment Climate
Formulation of SME-related policies
Market development for business services, dissemination of innovation-related instruments and tools
Innovation Services
Strengthening R&D/T collaboration between public research & higher educational institutions and the business sector
Technology
Transfer
Entrepreneurship Promotion
Supporting the creation and growth of innovative firms
Strengthening entrepreneurial skills

6. Lessons learnt
There is a need to develop social aspects of innovation - entrepreneurship and creative thinking
Systemic approach: simultaneous intervention at macro, meso & micro level
Governance matters: Innovation needs joint efforts of all relevant public and private stakeholders (science & education, innovation & technology, industrial development)

7. Lessons learnt (cont.)
Support of public-private dialogue forums to identify solutions to concrete enterprise problems and to improve the business environment
Fostering competitiveness by benchmarking and measuring innovation processes
R&D culture must be demand driven: Permanent needs analysis at industry level, subsequent development of relevant trainings/services
Transnational learning through intraregional dialogue and technology transfer

8. For further information:
Thank you!
For further information: