While investing in R&D is essential for science and technology advancement, here’s how I think we need to approach this question better in Africa.

The situation at hand

African countries that have invested heavily in R&D over the years have continued to lag behind in high-tech products exports, accounting for only 0.3% of global exports (United Nations Conference on Trade and Development, 2015). This is partly due to difficulties in aligning science, technology and innovation policies with industrial development policies. One of the disadvantages of pursuing a highly centralised innovation system (i.e. one that is heavily biased towards R&D) is that it misdirects investment in knowledge accumulation which due to the complexity of technical artefacts requires a stronger focus on the accumulation of technological capabilities rather than on R&D (Bell and Pavitt, 1993). The strategy to focus heavily on R&D tends to benefit larger and mature firms and not smaller and less mature firms which benefit more from production and design engineering (Bell and Pavitt, 1993).

R&D statistics, an indicator most widely associated with developments in innovation, tend to be more appropriate in reflecting science and technology activities in industrialized countries but not in developing countries (Viotti, 2002). This is because “the process of technical change characteristic of these economies is largely shaped outside the realm of those institutions that are at the core of the innovation process” (Viotti, 2002, p. 655). This suggests that for African countries it may be more beneficial to try and understand how technical change and innovation are linked in the specific setting of each country and then devise appropriate strategies to harness this.

African countries need to appreciate some essential qualitative, and slightly more complex factors influencing successful innovation as opposed to a focus on just the quantitative factors common in a predominantly R&D-centered approach. It is important to appreciate the systemic nature of production which means that focusing on just one aspect in this system i.e R&D is likely to result in missed opportunities and low efficiencies.

How we should respond: National Systems of Learning

African countries need to focus less on frontier science and technology R&D and look more towards effectively absorbing and making use of already existing industrial technologies. Successful industrial technical change in developing countries involves not only the acquisition of industrial technological assets, knowledge and skills from industrialized countries but the concurrent diffusion and incremental improvement of these to fit a particular setting (Bell and Pavitt, 1993).

In order to avoid preoccupation with innovation ‘stricto sensu’ (Viotti, 2002), i.e a view of innovation as an independent stage of creation that comes before diffusion, the priority for developing countries should be on incremental innovation intertwined with diffusion, a process Viotti (2002) refers to as learning. In the national systems of learning framework, learning is described as “… the process of technical change achieved by diffusion (in the perspective of technology absorption) and incremental innovation. In other words, learning is the absorption of already-existing techniques, i.e., the absorption of innovations produced elsewhere, and the generation of improvements in the vicinity of acquired techniques” (Viotti, 2002, p. 658).

Learning can take place as part of the regular production processes of firms or more directly as a result of efforts at acquiring desired technologies, methods referred to by Martin Bell as “doing-based learning (and) non-doing-based learning” (Viotti, 2002, p. 660) respectively. For instance, it is noted that “incremental innovations characterised efficiency improvements in Korea’s steel industry, eventually moving to the international technology frontier” (D'Costa, 1998 and Gallagher, 2006, cited in Ockwell and Byrne, 2015, p. 3) whilst Brazil was able to achieve a leading role in transport-related biofuels through the adaptive innovation of the steam engine (Ockwell and Byrne, 2015). Much closer to home, Sudan is noted to have adapted techniques that improved its water-efficiency to suit environmental demands (Ockwell and Byrne, 2015) whilst Kenya is renowned for having adapted solar photovoltaics (PV) technologies over several decades through markets driven by the private sector, donors and NGOs amongst other actors (Ockwell and Byrne, 2015). These are examples that show that both ‘doing-based learning’ and ‘non-doing-based learning’ can be viable innovation strategies if applied correctly in a given context.

Strengthening the learning system

It is important that the learning system is strengthened to support technical change through technological learning as there is a tendency particularly in developing countries for there to be “little resemblance to the technology adoption process represented in conventional innovation—diffusion models” (Bell and Pavitt, 1993). Technical change is defined as the process by which a new technology is introduced into the production capacities of firms and economies, whilst technological learning/technological accumulation “…refers to any process by which the resources for generating and managing technical change (technological capabilities) are increased or strengthened” (Bell and Pavitt, 1993, p. 163). When technological learning takes place, technological capabilities are enhanced, referred to as knowledge, skills, experience, institutional structures and linkages within, between and outside firms. (Bell and Pavitt, 1993) This enables technical change to take place, which is combined with a firm’s existing production capacity, referred to as fixed capital, labour skills, know-how, product specifications and organisation procedure, resulting in improved industrial output (Bell and Pavitt, 1993).

Developing the knowledge and skills of human resources

It is important for African countries to develop the required knowledge and skills in human resources to achieve system rebalancing. Governments of Europe and the United States of America are widely renowned for historically and continuously investing in the knowledge and skills development of human resources during frontier events in science and technology development and in response to the need to catch-up to countries further afield (Freeman, 1995). This is a key component of a science, technology and innovation strategy.

Firm-centered strategies and tacit knowledge

The nature of most of the key technological capabilities required to enable technical change in industrial processes is that they are embodied in the individuals and institutions that have the most experience in a given area of industrial expertise (Bell and Pavitt, 1993). These are person and institution embodied sets of knowledge that are impossible to codify in guidelines and therefore must be observed through routine in order to be understood (Bell and Pavitt, 1993; Cowan et al., 2000).This means that the process of technological learning that countries and industries wishing to acquire this embodied expertise will require the movement of both artefacts and key experts to recipient firms in order train and impart unique knowledge and mastery of industrial processes through face-to-face interactions (Bell and Pavitt, 1993). A firm-cantered strategy is therefore appropriate to harness the potential of tacit knowledge.

University-Industry linkage

It is also important to facilitate strong links between industry and formal science and education institutions such as universities of which the growth and innovation of firms benefits greatly (Freeman, 1995). China is reputed to have in place some of the most effective “use-driven policies” (Fu and Zhang, 2011) that link universities to industries, producing solutions that are ready to be implemented. Universities can also be effective in setting-up or incubating enterprises especially in industries with poor absorptive capacities and underdeveloped intermediaries (Fu and Zhang, 2011). African governments must explore partnership opportunities with universities in which universities facilitate “…the diffusion of frontier technology and the creation of new country or firm level innovation outcomes” (Fu and Zhang, 2011, p. 340).

Long-term, patient capital

One of the key challenges facing firms looking to invest in the development of technologies and innovations is the uncertainty that characterises the likely outcomes of such investments. This uncertainty causes investors to be sceptical about committing financial resources to innovative activities, further limiting the chances an innovation has to be successful (Mazzucato, 2013). What this means for African governments is that they must take on the challenge to create an enabling environment for different types of finance to take the risk of funding firm innovations in Africa. In an environment where access to appropriate and affordable innovation finance is enabled, the likelihood of firms engaging in innovative activities successfully can be increased.

What are your thoughts?

These are a few thoughts about Africa’s approach to the science, tech and innovation question. What are yours? e-mail me on zenzo@khulanidevelopment.org and let’s have a conversation

Should Africa focus on heavy R&D or incremental innovation?

The situation at hand

How we should respond: National Systems of Learning

Strengthening the learning system

Developing the knowledge and skills of human resources

Firm-centered strategies and tacit knowledge

University-Industry linkage

Long-term, patient capital

What are your thoughts?

Further reading:

Let’s talk

Contact

Should Africa focus on heavy R&D or incremental innovation?

The situation at hand

How we should respond: National Systems of Learning

Strengthening the learning system

Developing the knowledge and skills of human resources

Firm-centered strategies and tacit knowledge

University-Industry linkage

Long-term, patient capital

What are your thoughts?

Further reading:

3 ideas to better include rural youths in #COP26 conversations

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Let’s talk

Contact