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THE POWER OF INNOVATION
When we think of high-performance
economies, we tend to think of the US, Japan, Taiwan and some EU
countries. But it’s a remarkable fact that of the top 100 world
economies (in terms of revenues) more than half belong to companies
– not countries. Sony’s corporate economy is bigger than
Pakistan’s and GM’s is bigger than Denmark’s –
to offer just two examples. At a conference entitled “Arab
Science, Technology and Innovation Policy: A Parliamentary Perspective,”
held in Cairo and sponsored in part by UNESCO last December, the
vital link between creative thinking, research, technology and an
economy’s ability to grow was clearly outlined. AmCham members
have a big stake in Egypt’s technological development, which
is why I’d like to highlight one of the conference talks, given
by Dr. Tarek Khalil, president of the International Association
for Management of Technology at the University of Miami.
Most managers know that two heads are better than one, and that
encouraging staff to think out of the box can bring profitable results
to their business. Likewise, industrial activities benefit from
the best equipment available in their field. But the strategies
that transform technology into “wealth creation” –
not just finance, but knowledge, overall quality of life and of
the environment – are not limited to the R&D budgets of
individual companies, however important these may be. The nation
as enterprise must also foster technological and scientific development,
facilitate interaction between universities, industries and government,
invest in modernization and formulate policies supporting technology
transfer.
It’s worth noting that in 1991, for the first time ever, companies
in the US spent more money on computing and communications than
the combined expenditures on industrial, mining, farm and construction
equipment. Clearly, information technology plays a defining role
in a nation’s ability to compete. Egypt’s Ministry of
Communications & Information Technology has made rapid progress
in this department, and Egypt is seeing the results. One of them,
by the way, may not have been planned but is nevertheless significant
in these days of political change; the Internet enables people to
share information, ideas and opinions, and develop agendas for action.
It’s incredible that in the age of the “information super
highway” more than 80 percent of the world’s population
do not have access to telephones. But thanks to the cooperation
of government with the private sector, Egyptians are better connected
than ever and our IT industry is a promising growth sector. This
is a prime example of how technological development impacts an economy.
In fact, there’s a direct correlation between national R&D
expenditures as a percentage of GDP, and per capita income. Japan
invests 3.2 percent of GDP, the US, 2.6 percent. But Arab countries
– rich and poor alike – invest very little in R&D
and therefore have lagged behind in the production of new patents
on inventions and produce just one percent of the world’s scientific
papers. These are good indications of the value a country places
on innovation, and it reveals our weakness.
The point is, you can’t just buy technology. It must be fully
absorbed, developed and eventually produced locally. A look at the
concentration of researchers in various fields shows that in our
region, 44 percent are involved in the agricultural sector, while
only 8.5 percent work in industry and 8 percent in science.
Technology and its integration into business and society have to
be planned and managed, and this means developing a strategic approach.
As Dr. Khalil points out, technology is an expression of human creativity,
and innovations are the most influential means of improving competitiveness.
But the working environment, on both a corporate and national level
can either promote or impede innovation. An enabling environment
is one where creative thinking is appreciated and rewarded, and
a standard feature of education. The open exchange of information,
as opposed to censorship and information hoarding, are also obvious
features of a creative environment.
Changes in Egypt’s education system are long overdue. But cultural
attitudes towards independent thinking must also be re-examined
– and addressed. The media could get a lot more involved in
promoting science and technology, and government support should
be a top priority. Innovative thinking and technological development
improve competitiveness but there’s an even greater reason
to invest in their advancement. In the words of Nobel prize-winning
chemist Ahmed Zuweil, “science was and still is the core of
progress for humanity and the continuity of civilization.”
Thinking long-term means thinking creatively. Likewise, our future
relies on our ability to visualize – and create – a better
Egypt.
TAHER HELMY
President, AmCham Egypt
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