Meeting with the Supreme Committee for Vision 2040 - UNCTAD's Science, Technology and Innovation Policy Review in Oman
Excellencies,
Ladies and Gentlemen,
It is a great pleasure to be with you this morning. As Secretary-General of UNCTAD, I welcome this opportunity to contribute to the discussions that will lead to the development of Oman's Vision 2040.
In UNCTAD, we support the ambition of the Vision 2040 process to develop a broad consensus in Omani society, as the best way to ensure the inclusiveness and long-term relevance of its outcome.
We believe that any undertaking of such a high-level and strategic importance must consider the full spectrum of current social and economic issues through an evidence-based process. But today, I would like to focus particularly on the importance of science, technology and innovation for economic development and your Vision 2040.
On the request of the Government of Oman, UNCTAD has conducted an analysis of the national science, technology and innovation policy environment. In this process, UNCTAD has developed an excellent working relationship with our partner institution: The Research Council of Oman.
And we are keen to continue our cooperation in any follow-up that may ensue.
The outcome of the policy review is rather detailed. There are more than fifty specific policy recommendations. Nevertheless, I would like to take this opportunity to focus on some of the issues that we think are of primary importance for your Vision 2040 process.
An economy that is innovative will produce economic opportunity. Innovation means new ideas, new ways of doing things, and also new processes and new ways of organizing production or accessing markets.
The key notion is that innovation increases productivity, accelerates diversification and, by consequence, fosters prosperity. Productivity growth is a necessary condition to enable higher incomes, improve living conditions for the population and the availability of more resources to attend to the social and political goals of any society.
In the short term, the economy of Oman may continue growing without technology and innovation, by increasing outputs in its main sectors, which can generate greater export revenues. However, in order to diversify its economy and place itself in a long-term path of sustained economic growth, Oman will need to identify, adapt and absorb technology to innovate and better use its natural, human, and financial resources.
Questions may arise about which technologies or sectors to choose. And while the choice may be debated, there are several issues to take into account before deciding whether or not to "pick winners" as a matter of strategic policy-- as expressed in Vision 2040.
An important issue is that we are seeing the replacement of the high-tech or low-tech dichotomy with the distinction of innovative and non- innovative.
The failure to innovate among high-tech firms or sectors can lead to devastating changes. Just to mention one example. Kodak's failures to innovate in photography technology transform the company into a marginal player, after being the market leader for many decades. From a development perspective, technologies without innovation represent unfulfilled potential. Research and development outcomes that remain in the laboratories are inconsequential.
Technologies need to be translated into commercial products and services that generate incomes, exports and decent employment.
We consider that there is a great need for the development strategy of this country to emphasize the establishment of an effective national innovation system that takes high-level priority for Vision 2040. In this context, we strongly recommend considering the adoption of a national strategy on innovation and the implementation of a set of well-articulated innovation policy instruments.
The national innovation system of Oman is already operational today. However, its strength and effectiveness can and should be increased through greater outreach, interaction and programme activity of its stakeholders and constituents.
We see the fragmentation of STI policy as one of the main challenges facing Oman. That is why we recommend the promulgation of a National Innovation System Strategy and the development of coordination mechanisms to support it.
In so doing we suggest the Omani authorities to consider that national innovation systems are not necessarily formal organizations. Rather, they consist of linkages and networks among stakeholders who cooperate in order to realize innovation potential. The balance between formal and informal management and coordination mechanisms that a particular national innovation environment requires is a matter of assessing the actual conditions and resources and often, of policy experimentation.
There are several reasons why we focus on promoting innovation system policy frameworks:
First, tacit knowledge, collaboration and experiential learning play an important role in innovation. It is essential that firms and entrepreneurs receive support in establishing linkages and cooperation with academia and research institutions.
Second, providing support for geographic clustering of research institutions, firms and supporting bodies fosters the interaction and exchange of knowledge, which nurtures the innovation process.
Our approach does not mean that national development policy should not prioritize among sectors or technologies. What we suggest is that such choices should not displace the need to invest in establishing a national innovation system and a full-fledged strategy.
In fact, the absence of a systemic approach to innovation policy will also reduce the chances of success among the chosen sectors.
These and other issues have been highlighted in the STI Policy Review. And it is encouraging that the discussion on policies to foster innovation has focused on: (1) human capacity development, (2) intellectual property and, (3) economic diversification.
Before concluding, I wish to mention that it is not always easy to incorporate STI issues in national development plans. It is therefore primordial that the Government:
Engages the media in promoting local success stories.
Challenges the government administration to find opportunities to express their creativity and sense of social entrepreneurship.
Expresses at all levels, from the capital of Muscat down to the smallest villages, that science, technology and innovation have a critical role to play for everyone and in all aspects of their lives.
I hope that our work and policy recommendations can be of help for your deliberations as you build your Vision 2040.
I would like to conclude here, but not without reassuring you that UNCTAD is ready to provide further follow-up and policy advice as our cooperation develops.
Thank you very much.
