Guidelines and methodologies for the development and management of science and technology policies for development.

United Na t i o n S . E conomic Coomission tor Africa

Guidelines and Methodologies for the Development and Management of Science and Technologl( Policies for Development

enc:e and Techi dogy for DeYeIopIftent

In NrIca

UNITED NATIONS

ECONOMIC COMMISSION FOR AFRICA

GUIDELINES AND METHODOLOGIES

FOR THE

PLANNING AND MANAGEMENT

OF

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,-::S(,~:"q:::~:,lM1llI~l7j·Ifj __ S-

FOR DEVELOPMENT

••••••••••••••••••••••••••••••

NRD,I 5TS 1l000STDI1(a)/92

tJNITED :NATIONS

ECONOMIC COMMISSION FOR AFRICA

GUIDELINES AND METHODOLOGIES

FOR THE PLANNING AND MANAGFMENT

OF SCIENCE AND TECHNOLOGY POUCIES FORDEVELOPMENT

SCIENCE AND TECHNOLOGY SECTION NATURALRESOURCESDMSION

DECDtBER 1992

N"RDfST5fIGCE5TD /1(a)I 92

TABLE OF

CONTENTS

Executive summary •••.••.••••••••.•.••.•.•••••••••••••••....•..••..4.

1. INTRODUCTION AND BACKGROUND 1.1 Objectives 5 1.2 Terms of Reference .••...•...6

1.3 Comments on the Terms of Reference •.••••••••..•.••..•..•...•. 6

1.4 Methodology ...••...••....••... 7

1.5 The Four Components of Technology .•...7

1.6 Technological Dynamism and State Intervention ...•.• 8

1.7 The Two-Pronged strategy for the Development of S&T .•... 9

1.8 The Characteristic Features of S&T Policies in the West African SUb-Region 12 2. STEPS AND PROCEDURES FOR THE FORMULATION OF A NATIONAL S &T POLICY 2.1 Levels of Technology Policy • . . . • . • . . . 14

2.2 Types of Technology Policy Instruments ..•..•..•...•.•..•.•...16

2.3 Need for a National ^S&T policy .•...17

2.4 The Role of S&T in Socia-Economic Development ...•...• 18

2.5 Basic Objectives of S&T Policy 20 2.6 Basic Steps in the Formulation of National S&T Policy ..•..•.• 21

2.7 The Role of Stake-holders ...•...22

.2.B The Main Elements of an S&T Policy . . . • . . . • . . . 24

2.9 Strategies for the Development and Utilization of Indigenous S&:T . . • . . . 27

3. TRANSLATION OF S&T POLICY INTO S&T PLAN 3.1 Methodology for Translation of S&T Policy into S~T Plan 38 3.2 Modalities and Mechanisms for Involving Stakeholders 40 3.3 Integration of S &T Plan into the Socia-economic Development Plan •...•...•....•...•...•...41

4. METHODS OF MANAGING S&T POLICIES 4.1 Technology Forecasting and Assessment .•.•...44

4.2 Consensus Methodologies ...•...•...•45

4.3 The S&:T Focal Point •...••~ .•...•... 46

4.4 Impla~entationand Monitoring of S&T Policies : .•...46

5. EVALUATION OF PERFORMANCE OF NATIONAL S&T POLICY INSTITUTIONS AND POLICY INSTRUMENTS (AND FEEDBACK MECHANISMS) 5.1 The SkT Policy Institutions Concerned ...•...47

5.2 Criteria for Evaluation of S&T Institutions and Policy .Inst ruments 47 5.3 The Feedback Mechanisms ••..•...•.SO 6. CONCLUSION AND RECOMMENDATIONS •..•...•.... 50

. DECEMBER 1992

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LIST OF APPENDIX:

APPENDIX A:

APPENDIX B:

APPENDIX C:

APPENDIX D:

Research Tasks in Preparing National S &T

Policies or Plans •..•..•...•..•... 55 Technology Promotion Agents

and Technology Policy Instruments 56 Def init ions .••...•...••...•...•...•...•.• 59 Case Studies ...•.•...••...••...••... 61

LIST OF FIGURES FIG.l:

Fig.2:

Fig.3:

Fig.4:

2

The Make-Some-Buy-Sorne Strategy . . . . • . . . • • . 10 S&T Activities at Various Levels .•..••••....••••.•.•... 15 Commercialisation of Technology .•••..•...••••...•••28 Feedback Loops. . . . • • • • • . • • • . • . . . • . • . • . . . • • • . • . . . .. ..50

GUIDELINES AND METHOOOLOGJES FOR S&-T POUCIES

l ~ ~ ~_~ _

NRDISTSIIGCESTD I 1 (8)I 92

LIST OF ACR~

AAU •...•. Association of African Universities ADB •... African Development Bank

APCTT. • . . . .. Asian and Pacific Centre ferTransferof Technology APPERD ...•... Africa's Priority Programme for Economic Recovery

and Developnent

AReT ....•...•... African Regional Centre for Technology

CASTAFRlCA Conference of Ministers Responsible for the Application of Science and Technology to Develop- ment in Africa

ECOWAS ..••...•.•• Economic Community of West African States ECA ..•..•... Economic Commission for Africa

EEe European Economic Community

ESCAP ....•..•...•.. Economic and Social Council of Asia and Pacific FIIRO ...•..•.•.. Federal Institute of Industrial Research, Oshodi FAO ...•••...•.. Food and Agricultural Organisation

GOP ...•...•.. Gross Domestic Product

HRD Human Resources Development

IDOA ...• Industrial Development Decade for Africa IDRC ...•.. International Development Research Centre NIC ...•.•••... Newly Industrialising Country

OAU ..•..•.•.•..••.. Organisation of Africa Dnity R&D Research and Development

SMI .•..•....•....•. Small and Medium Scale Industries S&T ...•....•..•.... Science and Technology

UNCTAD .•....•... United Nations Conference on Trade and Development UNDP ...•...• United Nations Development Programme

UNESCO ...•...•. United Nations Educational, Scientific and Cul- tural Organisation

UNIDO ..•... , United Nations Industrial Development Organisation UNPAAERD ...•... United Nations Programme of Action for African

Recovery and Development

USA United States of America

WHO .••.•.•...•.. World Health Organisation

WIPO ...•... World Intellectual Property Organisation

LPA Lagos Plan of Action, 1980

IsIe International Standard Industrial Classification ISM .•..••...•... Interpretive Structural Modelling

sITe ...•... Standard International Trade Classification.

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EXECUTIVE SUMMARY

The development of S &T is a slow and expensive process which requires the interaction of several institutions supported by appropri- ate policy instruments designed to facilitate the S &: T development and acquisition processes. The State, therefore, has a key role to olav in creating the enabling climate and establishing the institutional and legal framework and incentives - a comprehensive S&T policy - which should address the priority sectors and measures consistent with the overall aocro-uccncrmc plan or goals. In view of the complexity of the development process and, in particular, the pervasive role of S&T, it is essential that steps and procedures for the formulation and implementationof S&:T policies be established and followed. This report attempts to outline these procedures. Also, guidel inesand methodologies for the planning and management of S~T are presented.

The material presented in this report does not exhaust the multiplicity of these methodologies, guidelines, etc. Only those considered to be simple and appropriate to the African situation, characterised by a poor science culture and S&T infrastructures, lack of recognition of S&:T as an important strategic variable for rapidsocio- economic development, among others. are considered in this report.

It is crucial that a two-pronged strategy be adopted: the control

of imported technology through the establishment of policy instruments to screen technologyagreements; and selectivedevelopmentofendogenous S&T capacity. Various tools tor management of S&T such as technology assessmQnt and forecasting and consensus methodologies, especially interactive management processes, are also presented. The need for integration of S&T considerations into socia-economic planning isgiven special emphasis.

Various strategies, mechanisms and modalities for the development and utilization of indigenous technology are also presented, with emphasis on efficient user-oriented S&:T information syst.em, utilization and diffusion of indigenous technology, development of the engineering design and consultancy services, etc. The report concludes with the presentation of case studies in the appendix.

GUtDELINES AND M£nlOOOLOGlES FOR S.t: T POLlCII:::S

NRDISTS I IGCESTDI1(8)I 92

1. INTRODUCTION AND BACKGROUND

The need to conserve scarce resources always necessitates the ordering of priorities. In the area of development and application of science and technology (S&T), there is the additional need to formulate not onlyexpress S&.T policies but also strategies to monitor, direct and manage technological change. But the speedof technological change, the pervasiveness and knowledge intensity of new and emerging technologies have all conspired to vastly complicate the process of initiating and formulating appropriate policies to harness science and technology. for national development. But this does not mean that poor countries especially those in Africa should not study the problems and begin to seriously tackle the task of S &. T policy formulation, implementation and management.

The speed of technological change is not the only reason why many African countries are finding itdifficult to formulate national science andtechnology policies. Probably the most important reason is the lack of awareness at all levels in the African society of the importance of policies and strategies in the S&T arena. The poor science culture in Africa makes understanding and appreciation of the role of S&.T in socio- economic development di.f fLcu lt . There are other reasons why many countries in Africa have no explicit 9&T policies. These include the lack of advocates or a clearly identifiable constituency for S&T, the non-obvious nature of the effect of lack of S&:T policies and the instability of the political systems being operated in many African countries.

I t is noteworthy, howQver, that in even some of the countries in the West African sub-region where there appears to be some official commitment to the formulation of national S&T policy, this has not often been matchedwith the allocation of adequate resources to the deveLopment;

and application of S&T policies. In some cases the focal points responsible for S&Tmatters lac~ the legal powers to enforce the few regulations or policies they made. But the most aeri.cus problem is the lackof knowledge on the part of technocrats which would enable them offer advice on policies and strategies for S&:.T policy formulation and implementation. It is hoped that this report will contribute to laying the foundation to attack this complex activity.

1.1 Objectives

The main objective of this report is to provide guidelines and procedures for the planning and formulation of national science and

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technology policies. Another objective is to formulate guidelines for the management of technological change. This will assist in the harmonisation of policies within the African region. It is emphasised that every effort must be made to proceed gingerly and methodically in handling S&T policy issues, always avoiding the dangers of pursuing overly grandiose plans or overplanning. In this connection, it may be remarked that one of the constraints in the implementation of the Lagos Plan of Action, 1980 CLPA) is the unforeseen global environment. It is hoped that by starting with the formulation of a few critical policies and ensuring their efficacy^I confi.dence will be built and policy makers will gradually begin to appreciate the need for such policies on a wider

scale.

1.2 Terms of reference

The terms of reference of this report are to:

(a) Elaborate steps and procedures for the formulation of a national science and technology policy, e.g. through consultations with stake-holders, through a national conference and other means and indicate the elements that make the science and technology policy.

(b) Indicate how such policies could be translated into national science and technology plane, and integrate them in national socia-economic development plan.

(c) Propose methods of managing these policies e.g. through their implementation with the help of appropriate national science and technology coordinating bodies like Commissions for Science and Technology, or Ministries for Science and Technology in charge of executing projects.

(d) Indicate the main elements for the criteria to evaluate the performance of national science technology policy institutions and how to feedback the results to improve the policies.

1.3 Comments on the Terms of Reference

It is generally accepted that basic science is the basis of technology. The changes in the development of S&.T which have been taking place over the past two decades, however^I have clearly demonstrated that today the dividing line between science and technology is very thin. It is often assumed that basic science has no immediate use and that it is

6 GUIDELINES AND METHODOLOGIES FOR S& T POLICIES

NRDISTS IIOCESTDJ1(II)I 02

pursued for its own sake in order to expand the stock of man's knowledge about the universe and thereby discover theories and explain phenomena.

Basic science in some disciplines such as biotechnology, a product of the closer relationship between technology and science" have immediate applications and uses. Science and technology aid each other. Theyhave become symbiotic and interdependent. It 1B, therefore, reasonable to consider science together with technology as one variable in the development process.

1 . 4 Methodology

The methodology followed in preparing this report is, first the study of relevant reports on technology policies produced by several regional and international bodies such as the ECA, OAU, APCTT, UNESCO, etc. Secondly, the desk research was supplemented with interviews conducted with goverrunent officials 1n a few African countries. These interviews provided some insight to the problems of formulating and implementing national S&T policies. It was clear from the literature that many of the African countries common problems in the subject area under study.

Specific documents which this report relied heavily on include the LPA, the reports of the Technology Atlas Project prepared by the Asian and Pacific Centre tor the Transfer of Technology (ESCAP, 1989) and various conference reports prepared by UNCTAo.l lDRe and UNESCO. These are listed in the References annexed to this report.

1.5 The Four Components of Technology

Technology is traditionally used as a tool to extract and process natural resources and, to relieve drudgery. But this role is changing.

The changing role of S

«

T in development is seen in the various definitions of the word put forward by writers and analysts. Some consider technology as consisting of machinery and equipment or techniques. RecentlyI and considering the rapid advances being made in knowledge-intensive technologies sucha's micro-electronics, computers, andbiotechnology, technology is consideredby manywriters as knowlf';!dge required to produce goods and services. This Knowledge may be embodied in equipment or machines like the computer or even some telephones which are now "intelligent", or in humans as skills and abilities. The knowledge, on the other hand, may be implicitly contained in documents and organizational systems. Hence technology may also be defined as

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knowledge embodied in human beings or machines required to produce and market goods and services.

A useful definition of technology is that technology isproductive knowledge required to transfonn materials into goode andservices, create new or improved products, provide better and efficient services and generate further knowledge for production of goods and services.

It is seen from the above that all technologies are embodied in one form or the other. They may be embodied in persons (person-embodied) in the form of a variety of skills and education; in physical facilities (facilities-embodied) such as R&D laboratories, equipment, machinery, factories, etc; in documents such as Designs and information (document- embodied). Technology may also be embodied in institutions. This type of (institution-embodied) techno-logy includes organizational fonns, management and marketing. In summary, therefore, the four main components of technology are:

(i) (ii) (iii)

(iv)

facilities-embodied technology person-embodied technology document-embodied technology institution-embodied technology

The above disaggregation of technology focuses attention more sharply on the promotion agents and policy instruments required to be established or strengthened in order to ensure that technology contributes effectively to national socia-economic development.

1.6 Technological Dynamism and State Intervention

The ability to absorb, efficiently use new technologies, adapt them to local conditions, improve upon them and ultimately create new knowledge may be tenned technological dynamism. It is this technological dynamism which enabled resource-poor countries like Korea and Japan to invest scarce resources efficiently to enter the world' sexport; markets, and make manufacturing .Lead for sustained economic development and transformation. Experience shows that this dynamism is due to heavy functional intervention (i.e strengthening market forces without favouring particular activities or firms over others) by the state.

Policy interventions include incentive structures, the development of skills and support for technology development institutions, flow of S&:T information and inter-industry cooperation. Selective intervention favouring particular industries or firms were also used. {UNCTAD, 1991} .

8 OUIDELINES ANDMETIlODOLOOIES FOR S&.T POUCIES

NIDIsrs.IGCESTOI t(a)I 92

In pursuing a strategy to ensure technological dynamism in particular sectors or firms, i t is important to strengthen the appropriate technologicci'l promotion agents, fannulate and execute appropriate policy'~ea~uresand to finance the chosen strategy. This calls for state intervention, which is generally required in national development and acquisition of technology.

Development of S&:T is a slow and expensive process which requires the interaction of several institutions supported by appropriate policy instrumentsdesigned to facilitate the S &.T development and acquisition processes. -The obvious rationale is thatthe development of S&Trequires the interaction of several bodies supportQd by the appropriate policy instruments'andalso that in the developing countries, state institutions (e.g. educational and R&D bodies involved in the development of S&T) receive financial support mainly from governmental resources. There are however other reasons why state intervention is called for in national technology-led development efforts. They are summarised as follows

(ESCAP, 1989 ):

(i) The private sector in developing countries is reluctant and unable to devote adequate resources to S ~ T development activities.

(ii) The imperfect international technology market tendto frustrate the acquisition of technology.

(iii)The development of human resources, technological infrastructure or technological information'is expensive but a prerequisite to national development.

(iv) Macro-economic policies made by governments affect the national climate for the development of technology.

(v) The profit motive and the structure of African eccncmtes , which tend to encourage commercial activities, need to be redirected and restructured.

(vi) There is the need for efficient use of national resources:

financial, human and natural.

1.7 The Two-Prong~dStrategy for the Development of S&T

Anystrategy for the deve l opment; of S&tTmust recognise the follOWing facts: that most of the technology required for the development of the African region are frgely available and may be purchased or acquired

DECEMBER 1992 9

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MAKE BUY

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GUIDELINES AND METHOOOLOGlES FOR S &. T POLlClES

NRDISTS! IGCESTDII(I) / 92

t.hrough trainingj no country has the resources to develop all the technologies it requires for deveLopment.r and that a nation can not develop without creating the autonomous capacity for the endogenous development and application of technology for socia-economic develop- ment.

It follows from the above tha.t a Viable strategy will involve the control of importation of foreign technology and the selective development of endogenous technology. This is variously referred to as the Two-Pronged Strategy or the Make-Some-BuY-Some Strategy (see 'Fig.

1) .

The basic steps are:

(a) Assessment of a country's needs and capabilities based on its S &. T et.at.e-ot'-t.he-art; and national resource endowment (human, material and Iriat Lt.ut.Lona Ll r and integration of the required S &T component into socia-economic planning.

(b) The contro l of imported technology whichwill LnvoIvethe design of policy instruments to screen technology agreements and, in particular to:

Search and Select imported technology

Negotiate, bargain and acquire the technology Adapt the technology

Assimilate and diffuse the technology.

(c) The selective development. of endogenous sc ience and techno logical capacity whichinvolves the following activities:

-Assessment of S&T needs and their prioritisation -Innovation at the firm level {including develop- ment of indigenous S&T and introduction of new products and processes, diffusion etc.}

-Conduct of R&D and Commercialisation of R&D results

-S&T activities in priority sectors (including Design and Manufacturing, Engineering Services, Diffusion of indigenous technologies, etc.)

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NRDjSTS / IGCESTD /1 (8)j92

-provision of adequate S&T services (including information, standardisation and certification, quality control. development financing, etc.) All the above are important, especially in the process of initiating and sustaining technological dynamism.

1.

e

The Characteristic Features of S&:.T Policies in the Afr lean Regicm Many of the Member States of the African region have acquired some experience in their attempts to formulate explicit S &:. T po l i.c i.ea. But these are characterised by:

(i) Oral statementEI which are rarely reduced int.o written policy measu:res.

(ii) Incoherent policymeasures in natLonaI development plans or official sccto-eccncmrc docwnents which are rarely implemented.

(iii) Lack of adequate programmes to popularise S&:Tand, therefore, create t.he awareness among policy makers and

S &:. T personnel of the importance of S&:.T policies.

(iv) The absence of a effective policy instruments designed to implement the few official policies on development of S&T.

(v) Therapid changes in Ministerial responsibility for S&T policy matters.

(vi) The absence of active involvement of the Heads of state or Heads of GovernmentJ in most Member Statesl in general S & T policy matters.

(vii) The feeling of helplessness among the official staff in many S&T focal points.

2. STEPS AND PROCEDURES FOR THE: FO~MULATION OF A NATIONAL S & T POLICY Before we come to outline the steps and procedures for the formulation of national S&T policies, it is necessary to consider some preliminary issues.

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It is assumed that the question of initiating S&T policies will be seriously consid@red even in situations where there is no eXpress political support for it. 8&.T policies should also be initiated in small states with modest S&.T infrastructures. The reason is that S&T has become an important strategic variable in national socia-economic development which should not be left to market forces.

The starting point is to designate an existing institution (with responsibility for research, education, industry or planning) as an S&.T focal point or designate an individual in a Ministry responsible for planning or industry as an 8&Tdesk officer. The crucial issue, however, is the commitment of the individual officials to the advocacy of S~T

policy issues.

Thus the most important matter to consider, before entrusting the initiation of S&.T policy to an institution or any official, especially in states without the necessary political commitment to S&T, is the capability and willingness of the officers to engage in further research to inform themselves on S&T problems and also act as advocates for the S&Tsector. The need for S&Tadvocates iscrucialandextremely important in even the large countries in the region with extensive S&T infrastructures. S&Tmatters cut across several sectors and, generally^I do not receive the same (if any) attention as other subject matters in Ministries dealing primarily with non-S&T matters.

The need to conduct policy research or some diagnostic studies to clearly identify the peculiar or specific S&T needs and problems and, more importantly^I demonstrate with concrete results the value of technology policy as a tool for influencingbehaviour is also important.

For, any step taken in the formulation of an 8&T policy must be based on research and adequate information. This can not be over-emphasised.

It is not, however~ being advocated that a total solution based on extensive research must always be applied to S&T problems. A partial solution is a good beginning in that it offers opportunities for learning.

The above suggestions are intended to enable officials with little or no experience to proceed with policy formulation in a much more realistic manner. For~ there is no doubt that the much needed political support will be forthcoming prov tded the benefits derivable from systematic application of 8&T to socio-economic problems are clearly demonstrated. It is again emphasised that many attempts at S&T policy formulation and implementation failed simply because it was not understood and supported by bureaucrats and leaders in the productive sectors. Also, some of the practitioners and advocates of S&T policy did not possess enough knowledge about theS&.Tmethodologies. Hence there

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is the need to be well informed and also to proceed with caution.

2.1 Levels of Technology Policy

It is important to recognise, at the outset, that there arevarious levels of S&T policies. At the lowest level an S~T policy may be formulated with the intention of influencing the behaviour of an individual. For example, an incentive maybe built in the educational policy to encourage students to study science through the provision of generous allowances to enable them purchase books and materials. Such a policywill affect the behaviour of the individual but not necessarily that of the institutions engaged in the training of S&T personnel.

The second level of SlcT policy is at the institutional orenterprise level. In this case a policy may be designed to, say, encourage R&D institutions to link upwith the productive sector in the conduct of R&D.

Such a policy will affectthe behaviourof firms who wish totake advantage of this facility which may include tax incentives for participating firms or increased funding for the research institutions.

At the third level - the sectorial level - an S&T policy may be designed to influence activities in a particular sector of the national economy. A policy designed to modernise a particular sector, through the provision of credit lines for purchase of, say, equipment, is a case in point.

There isyet another S&.Tpolicy level - the national. At this level a comprehensive S&T policy may be designed to guide the development of national technological capacity and its application to the solution of socio-economic problems. Such a policy will, in addition to those at the above three levels, include policies concerning international or regional cooperation, priorities in key sectors of the economy, the institutional framework, etc. In short, the national S&T policy is a comprehensive statement of the country's vision and strategies designed to contribute to the attainment of the national Bocio-economic objectives. It is, therefore, not intended to be implemented within a few years but, rather, it is designed to guide the formulation of short and medium-term micro-policies for efficient development of the entire S&T sector.

The fifth level of S&T policy is the regional or sub-regional S&T policy. A Bub-regional S&T policy for the African region is an example.

Regional policies have been established in Europe, Latin America and South East Asia. They are usually designed to harmonise national

1 4 GUIDELINES ANDMETHODOLOGIES FOR S ..rPOLICIES

NIIDI STS/IGCESm: 1(8)I 92

Parl1uenc ICabllullt National Planning

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FIG. 2 S&T ACTIVITIES AT VARIOUS LEVELS

15

NRDISTSIIOCESTD /1(Il)I92

policies, to foster cooperation in several S&T areas of common concern and also to pool resources and exploit complementaritles.

It is worth noting that an S&T policy may be designed to influence actions of a specific institution or may be designed to be functional in its effect. In other words, it may influence several sectors. Any S&T policy may be designed to influence institutions as well as individuals.

The S&T activities at various levels are shown in detail in Fig. 2.

2.2 Types of S&T Policy Instruments

A policy instrument is the main tool used to effect changes in or influence the conduct of S&T activities. There are two main types of S&T policy instruments: the Demand and Supply Side instruments. The Demand Side instruments affect the demand of productive enterprises and investing units. Examples are the-regulation of imported technology through the screening of technology agreements and restrictions on imports of consultancy and engineering design services. These instruments reduce the demand for certain types of technologies by imposing some restrictions on- the acquisition of those technologies or, at least, demanding certain requirements which may impose limitation on the enterprises' ability to freely acquire technology.

The Supply Side instruments affect the volume and range of availability of local and imported technology. Examples are policies concerning the provision of information services on imported technology to small-scale industries and R&D laboratories. This type of instrument may be designed to enable a particular agency of government to acquire the information and distribute same to the users.

It may also be pointed out that policy instruments may be explicit or implicit in their effect. An import duty imposed on a product may have an indirect effect on the development of indigenous technology to produce that product. On the other hand, a policy on tax deduction for firms which introduce quality control activities in their production units is likely to induce firms to engage in quality control activities.

There are also three categories of policy instruments: legal, fiscal and financial. These policy instruments generally influence all the four components of technology. A great advantage of these policy instruments is their contribution to the maintenance of technological dynamism and sustained economic development.

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2.3 Need for a National S &T Policy

A Policymay be defined. as an order primarily aimed at influencing the actions of individuals or groups in pre-determineddirections. S&:T policies generally relate to the development and application of science andtechnology to fulfil a pre-detennined socia-economic and other soc LaI goals ot a community. The concern of S&Tpolicy, therefore, includes the organisation of the means required for the production and use of S&T knowledge and the allocation of resources (UNESCO, 1979). This definition brings out clearly the basic objective of technology policy i.e. to use S&T to solve socio-economic problems. It follows that the objectives of a country's S&T policy must be derived from its socio- economic policies.

More specifically, S&T policy of a government consists of principles and methods, together with the legislative and executive prOV1Slons required to stimulate, mobilize and organise the country's scientific and technological potential, so as to implement the national development plan. Thus it is extremely important that S&T policies be integrated into the national socia-economic plans or, at least, must be designed to support the national socio-economic goals.

The components of S&T policy are:

-The socia-economic goals or objectives -The S&T policy objectives

-The sectorial policies andpolicy measures or strategiesj and

-The priority sectors

Unlike educational or investment policies, the need for an S'T policy is not obvious to many policy makers. The following summary

outlines the need for S&T policies:

(1) The private sector is generally unable to allocate any funds to the development of S &T capability.

( ii) The deve Lopment of science and techno] ogy does not appear to be an objective of Capital Markets. There ie, therefore, the need for explicit and planned policies.

Ciii)Resources are scarce hence there is the need to order national priorities to ensure effective use of human and material resources.

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NRDISTSJIGCESTD / 1 (8)I92

(iv) The determination of national priorities and the allocation of resources are functions which must necessarily be perfonned by the national government in collaboration with stake holders.

(v) To increase and mobilise the S&T potential of a country in the service of the objectives which its government pursues.

(vi) To allow for the lengthy periods of time required to train specialist staff to fully develop the capabilities within institutions to manage, assimilate and produce knowledgQ

(vii)To ensure that the infant S&T activities generate efficient capabilities to work toward selected goals.

(viii) To correct market imperfections in the technology generation and trade.

2.4 The Role of S&T in Socia-Economic Development

In all societies technology, as stated earlier, is used as a tool to extract and process natural resources and to relieve drudgery. These traditional roles havepersisted in the minds of analysts for some time.

In fact, traditional economists have fora long time held that the factors of production are land, labour and capital. Scientific or technical knowledge was acknowledged earlier on by bot.h Karl Marx and Adam smith as playing some role in the development process. But this knOWledgewas assumed to be incorporated in machines or human skills used in the transformation of natural resources into useful products. In the 1960s economists established that a significant proportion of increases in economic growth in many countries could not be attributed to increases in the traditional factors of production. The remainder was designated as the residual factor (i.e. improvements in the quality of labour and capital). Gradually this residual factor is now recognisedbyeconomists as due to technological change. Clearly, the role of technology is much more than that of a transformer of natural resources into goods and services.

Increasingly, and with the full realisation that knowledge is central to the development and application of technology, economistsnow focus attention on accumulation of intellectual and knowledge capital instead of only physical wealth as the determinant of economic growth.

But the relationship between economic growth and S&T capability is not simple, for successful exploitation of intellectual and knowledge capital depends crucially on a complex of other factors such as

t8 GUIDELINES AND METHOOOLOGIES FOR. S&.T POLICIES

organisat ion, management, marketing, factors including social consensus, conditions, labour laws, etc.

NRDISTS / (OCESrDII(ll)I 92

incentives and institutional factory discipline, pcLLt.Lca l

Again, the acquisition of technology also depends on improved technological climate (i.e. the setting in Which technology based activities are carried out). For, the same technology used in transforming resources intogoodsandservicesmayproduce better results in a more supportive technology climate than a less supportive climate.

The technology climate is, therefore, the enabling environment which may enhance or hinder technological activities.

The world of today is very different from the world When the steam engine was invented. The emergence of new technologies such as informatics, communications, new materials and biotechnology have radically altered the traditional function of technology in development.

These technologies are generic. Their main attributes are that they are knowledge intensive {high intellectual capital}, are pervasive (a wide range of uses in production activities) and are characterised by a perceived descending cost. Their knowledge intensity and pervasiveness make the development of capability in most of those generic technologies expensive.

SOIne of the other important aspects of the role Which technology plays in the development of modern society are:

First, organizational innovations such as just-in-time (JIT) or zero inventory, Flexible Manufacturing Systems (FMS) and the blending of conventional and computer technology coupledwithmulti-skilledstaff have significantly reduced wastage of materials, costs and labour, and thereby threaten to erode the comparative advantage of low wages and natural resource based products. It is now normal in some textile industries, for computer aided designs (CAD) of products to be transmitted to a computer in a distant factory which specializes in the production of garments using conventional techniques. CAD\CAM also features in engineering and artistic designs.

Secondly, modern technology has accelerated the substitution of natural commoditiesbymoreefficientman-madesubstitutes. For example, optical fibre is now replacing copper win~ in conununication systems.

Comparative advantage can nowbe created and not necessarily inherited.

Thirdly, theconvergenceofcommunicationand computer technologies has also created new services and conduits for trade in services such as banking, videotext, electronic transfers, etc.

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Fourthly, imitation, copying and production of counterfeit goods are now greatly facilitated by the new technologies.

These changes have also profoundly affected the composition of GDP

and competitiveness in international trade. It is the above changes, among others, which have resulted in falling commodity prices, increased reliance on automation and replacement of cheap labour in many areas of productive activity. Thus it is now firmly established that differences in the level of technology and innovative capabilities are fundamental factors in explaining the differences among countries in both the levels and trends in exports, imports and national income. It is therefore difficult to develop without acquisition of significant S&T capability.

2.5 Basic Objectives of S&T Policy

The primary functions of a policy are to bring about an enabling behaviour, regulate behaviourand inhibit behaviour in predeterminedand desirable directions. The basic objectives of a national S&T policy are many. They include the following:

(1) Develop the capacity for endogenous and self-reliant socio- economic develo:gment.

(1i) Develop autonomous decision making capacity in matters concerning S&T.

(iii) Establish relative priorities of S&.T programmes and projects.

(iv) Support the effective implementation of the socio-economic policies or plan, especially the growth sectors in the plan.

(v) Determine and select the S&T objectives consistent with national development plans.

(vi) Justify choices of S&T objectives and evaluate them.

(vii) Gather, organise and deploy the resources required to pursue the selected objectives.

(viii) Monitor and evaluate the results obtained in applying the policy.

• I

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The Socia-economic Objectives

Some of the important socia-economic sectors which must be addressed by S & T policies are:

-Satisfaction of basic social needs (food, water, clothing, housing, etc.)

-Development of Agriculture, Forestry and Pisheries -Promotion of Industrial Development

-Promotion of Rational Use of Energy -Transport and Communications , -Urban and Rural Planning -Protection of the Environment -Health

-Social Development and Services

-Exploration and Exploitation of Natural Resources -General Advancement of Knowledge

-Civilian Applications of Space -Defence

2.6 Basic Steps in the Formulation of National S & T Policy Political commitment to S &T Development

The need forpolitical commitment to S&.T-baseddevelopment can not be over-emphasised. This must be provided by the country's leadership at the highest political level. Japan, has a wide S&T infrastructure and probably the most comprehensive in the world. But the S &:T Agency - the apex body- is und~r th~ office of the Prime Minister. In Koreal

the President presides over the Technology Promotion Conference, organised quarterly, for the promotion of technology. This conference is attended by Cabinet Ministers, and leaders of industry and R&D institutions. In India, the Prime Minister presides over the Indian Council for Scientific and Industrial Research. While in Pakistan, the Prime Minister heads the National Commission on S &:T (HAN-CHOL,1986).

In Philippines, recognition of S & T was enshrined in the 1937 Constitution. The Philippines' National Science and Technology Authority (NCTA) has the responsibility for formulating national S&T planl to be implemented with the approval of the President by all government agencies. It is interesting to note that in 1986 the Brazilian President said that (UNCTAD, 1989):

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"The future world will be divided between those nations that dominate technology and those that are cultural slaves."

He further and confidently added that Brazil would be in the former category. This is the vision of the President of Brazil for Brazil.

With firm political commitment and acceptance of technology as an important strategic variable for rapid economic development, it is possible to mobilise the resources of theState for S&:Tpolicy formulation with full cooperation of the various planning and other bodies. There are three main phases in the formulation of national S&T policies (Hoffman, K., et al; 1990). The activitiesin all the phases are conducted by the S&T focal point in cooperation with the appropriate S&;T

institutions and the state planning body.

The three phases of S«T policy formulation are:

(L) (i1) (iii)

The preparatory phase The formulation phase

The implementation and review phase

2.6.1 The ~reparatory Phase

The preparatory phase involves the collection and analysis of data and information on the present economic and technological conditions to determine needs and areas of technological relevance. The specific supporting research activities are: Economic mapping, Technology mapping and analysis of implications of development objectives (see AppendixA) • This must be followed with a clear specification of national development objectives and strategies.

2.6.2 The Formulation Phase

This phase involves the identification and prioritization of areas for policy intervention, the 8&T programmes, projects and the specification and design of appropriate policy instruments. The specific research activities needed in this phases are: selection of areas of policy intervention, and identification of policies and policy

instruments.

2.6.3 The Implementation Phase

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During this phase, policies are implemented, monitored and appropriately modified as a result of feedback. There are, therefore, three steps in the implementation of S&:Tpolicies. There are also areas for research to support this phase. These are: Establishment of policy instrunents, Monitoring and feedback and Modifications of policies and introduction of newpolicies.

It'is clear from the above that the core themes in technology policy formulation are: Strategy - long term vision or goal; Selectivity of

progr~~es and policy instruments - using appropriate criteriai and continuous research. The research tasks are listed in Appendix A.

2.7 The Role of Stakeholders

Stakeholders are those whose behaviour can be expected to be significantly affectedbyapolicy. They need tounderstand therationale behind the policy and, more importantly, what behaviour is expected of them. It is, therefore, important to involve stakeholders in the formulation, implementation, monitoringandcontinuingevaluation of S&T policies through workshops, lectures, seminars, etc. The stakeholders in S&Tpolicy making process must include a wider group of operators and target groups since the aim of involving them is to build up consensus and cooperation. The stakeholders include:

(i) Policy makers, analysts and managers (Economic Planners, Finance Ministry officials, project managers, etc.)

(ii) Implementors of S&T policies (officials of the appropriate technology promotion agents, development banks, etc.) (iii) The taraet group most likely to be affected by the particular

policy (public and private enterprises, officials of technology Dromotion agents, etc.)

(iv) Other groups (professional associations, industry groups, trade unions, academic institutions, community leaders, non- governmental organisations, etc.)

The stakeholders have a crucial role to play in:

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(i)

(ii) (ii i )

determination of priorities.

determination of the S&T needs and technological areas of relevance

commercialisation of R&D results

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(iv) (V)

(vii)

Monitoring and Evaluation of S&T policies.

Initiation of new or improved policies.

selection and acquisition of technology.

2.8 The Main Elements of an S & T Policy

A national S&T policy consists essentiallyof the institutional and legal framework established for the development and application of technology to the solution of socia-economic problems together with the policies and measures for policy imp1ernentation. The basic elements of anS&Tpolicyof a country depends on the socio-economic factors, resource endowments, specific constraints, opportunitiesandpotentials, as well as global and sectorial development objectives. Specifically, the following are the main elements of a national S&T policy:

(a) The socia-economic goals and objectives

(b) The broad organisation and structure of national machinery for S&T policy making and the supporting promotion agents for implementa- tion of S&T policies

(c) Establishment and/or strengthening of the promotionagents for each of the four components of technology (for efficient planning, coordination, management and promotion of R&D and S&T activities) .

(d) Establishment and/or strengthening of policy instruments and measures for each of the four components of technology^I including:

-Allocationofmaterialand financial resources to promoteS&:T

activities (which shall include provision of risk capital) . -Guidel ines for technology acquisition including regulation, negotiation and choice of foreign technology, products and services.

-Human resources development (including promotion of S&T in curricula at all three levels: upgrading & utilisation of

indigenous skills; and matching of supply to demand

-Development of S&T infrastructure and support services (including engineering design and consultancy services,

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standards and quality control, S&T information, services, popularisation of S&T, etc.)

-Linkagesbetween S&:Tdevelopment institutions andthevarious sectors of the economy (including commercialisation and diffusion of indigenous technologi~s)

(e) EstablishmQnt of relative priority sectors and assessing, monitoring and promoting the productivity, relevance, quality and effectiveness of national S&T activities.

to International-Cooperation lincluding efficient sourcingof foreign technology and effective use of foreign aid and technical assistance) .

2.8.1 The Institutional Framework

The institutional framework consists of the technology promotion agents established. tor the promotion, monitoring and evaluation of the

policies set up under the overall S&T policy framework to establish relative priorities, costs and time fr~e of the S &T programmes and projGcts; and to allocate material and financial resources to promote S&.T activities. The following are some of the typical promotion agents for each of the four technology components (see also Appendix B for a detailed list) :

1. Typical Promotion Agents for Facilities-embodied Technology Technology Forecasting and Assessment Groups; R &. D Laboratories and Design Engineering Centres; Qual ity Control and Standardization Agencies, etc.

2. Typical Promotion Agents for Person-embodied Technology

Primary, Secondary and Higher Education Ins~itutionSi

Museums, Technology Parka or Technology Fairs; Library and Documentation Services.

3. Typical Promotion Agents for Document-embodied Technology

Computer and communication Services; National Statistical Organization; Industry Associations; Technology Information Services; Technology Forecasting and Assessment Groups.

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4. Typical Promotion Agents for Institution-embodied Technology Venture Capital Banks: Industry Associations; Development Banks: Think Tanks; Consulting Firms; Government Policy Making Bodies; Financial Institutions.

The action of promotion or regulation by the above agents include:

(1)

(ii) (iii) (iv)

(v)

Allocation of resources;

Contribution in development (e.g. education and training, regulation, etc.);

Providingsupport services (e.g. infonnation, standards, certification, etc.):

Acting as intermediaries (linking producers and consumers, investors and entrepre neura, researchers andmanufacturers, etc.);

and

Conditioningtheclimate <through incentives, commitments, public support, etc.)

2.8.2 Policy Instruments

The following are some of the typical policy instruments used to influence theactionsof technologypromotion agents, firms, individuals and other bodies. (see also Appendix B for details) :

Policy Instruments for facility-embodied technology:

Investment Policy; Agricultural po l.i.c i.esr Exploitation of Natural Resources; Export Promotion Policies; Prototype Development; Tax deduction for R&D expenses.

Policy Instruments for person-embodied technology:

Educational Policy; Foreign training; Use of foreign manpower:

Industrial training; Salarystructureand incentives; popularization of

S &T by the media.

Policy Instruments for document-embodied technology~

Intellectual PropertyLawsi Copyright laws; Informatics and Information PoliCYj Royalty Payments; Engineering Design Consultancy &.

Intellectual Property Licensing Agreements.

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Policy Instruments for institution-embodied technology:

Preferential interest ratesi BusinessAssociationsj Development Banks;

~echnologyDevelopment Agencies; Government Procurement PolicYi Direct Foreign Investment.

2.9 The Strategies for the Development and Utilization of Indigenous S&T.

An important element in the make-some-buy-some strategy is the

pursuit of strategies for the development and utilization of indigenous technology, some of these strategies are considered hereunder.

2.9.1 Linkage between RkD and Industry

In manyAfrican countrles S&;Tpolicies in the past have emphasised the supply side of S&: T (creation of facilities for educatIcn , training and R&.D)1 but neglected the demand side (linkages with the economy and society). Effective linkage between R&D institutions and industry are vital at all stages of technology generation. This aspect of technology development1s extremelyweak inAfrica simplybecausecommercialisation has not purposefully been planned and implemented. Also there does not appear to be sufficient commitment on the part of researchers to technology generation and commercialisation activities. In designing strategies for commercialisation of indigenous technologies, it is important to note first, that there are serious managerial problems in R&D institutes in Africa. These problems include, lack of management capacity, meagre resources, lack of competition and incentives for creativity^I failure to introduce an interdisciplinary approach, lack of team spirit in research, failure to build credibility and, more fundamentally, failure to establishearly andadequate links betweenthe research and intended beneficiaries. Secondly, the learning process can markedly be improved by encouraging nationals to take up the challenge of technology generation and utilization. An underBtanding of this process is, thereforel essential. (see Fig. 3)

The process of commercialisation consists of several steps. The important steps are:

-technical verification and comparative product testing -market analysis and market testing

-product process engineering study -commercial prototype development

-pre-feasibility and feasibility studies

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(

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Figure 3: Commercialization of Technology

EXP~AL

R & D ) I

( -Ti~~~;;~-;~ciI)

---

I

I

[~~J [ Od I GN ] _{- 1 - -}

[PRE-FFisIBILITY]

[TECHNIc! DRAWING]

I

I

( TEeHOOLOOY-niVEWPMOO'

---,---'--'

I I

PROTOTYPE

TFCHtIJIOOY DELIVERY AND MARKETING [.

Adapted from Ran ChoL It. 1986

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NRCISTSII~TDI1 (a) I<n.

-equity and/or loan syndication

-market development and product improvement -development of management and financial systems -R&D for further development of the process orproduct.

Obviously, R&D personnel are not equipped to undertake all of the

above activities. Some other institutions such as venture capital and

marketingbodies, are needed to assistintheprocess of commercialisation.

For effective application of the technology, th~re is the need to complete the total innovation chain which consists of:

-basic research -applied research

-design and development -prototype fabrication -upscallng

-extension

-awareness building -production engineering -design and consultancy, and -production and services

It is not sufficient to simply assign the above functions to S&T promotion agents (public ^and private), specific modalities and

mechanisms should be adopted to effect linkages between R&Dbodies and

industry. Based on experience in Asia, Latin America and other parts of the worldl the following are viable modalities and mechanisms for linking R&D to users, i.e. industry (Han-Choll K. 1986):

(a) Modalities

-Contract research (fully or partially funded by government)

-Joint research (in large scale priority R&D projects)

-Tripartite research (designed to bring research efforts of universities, industry and government together)

-Assistance for project feasibility studies, engineering consultancy and design services

(b) Mechanisms

-Representation of industry on boards of R&D

DECEMBER 1992