NACETEMR&D AND THE CHALLENGE OF WEALTH CREATION IN NIGERIAWillie O. Siyanbola, Ph.D (Sussex), FMSN, FSESN Director General/Chief Executive

National Centre for Technology Management (NACETEM), Federal Ministry of Science & Technology (FMST), Obafemi Awolowo University, Ile-Ife, Nigeria

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NACETEMAcknowledgments The HMST The PS The DPPRA Others

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NACETEMPRESENTATION OUTLINEPreamble R&D: definition, types and categorisation Wealth Creation How and when is wealth created from R&D? How is it done elsewhere/Nigeria? Challenges of R&D in Nigeria Recipe for R&D-based wealth creation in Nigeria Concluding Remarks

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NACETEMPreambleIn todays increasingly knowledge-driven world, Science and Technology (S&T) are the inseparable twin keys to progress and industrial growth Global experiences have shown that the conduct of Scientific R&D does not robotically translate into development. For them to have any economic impact, R&D activities have to exist within a strong NIS, be creative, innovative and entrepreneurial be connected with existing needs & demand

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NACETEMEVOLUTION OF R&DR&D is a post Second World War phenomenon, and absorbs a sizeable proportion of corporate and public funds in the developed countries It is largely carried out by researchers in higher educational institutions (HEIs), research institutes (public and private), and industrial firms. Traditionally, universities fulfil the dual purposes of teaching/manpower development and research geared towards the discovery of new knowledge while research institutes engage in R&D activities geared towards new products/processes and/or application of new knowledge. Additional social demand of transferring technology to the business sector has been added in recent years. NACETEM 2010

NACETEMR&D definition

R&D refers to creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications NACETEM 2010

NACETEMCATEGORIES OF RESEARCHPure Basic Research CHARACTERISTICS Experimental &theoretical Specific Application conceivedSystematic work based on existing knowledge

Applied Research

Experimental Development

NATURE

GOAL

Knowledge Advancement

Acquisition of New Knowledge

New Matls Product services

TARGET NACETEM 2010

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NACETEMWHY R&D?Countries that have heavily invested in R&D have reaped substantial economic benefits...South Korea Population in millions (2007 est.) R&D Expenditure as % GDP (20002005) Researchers in R&D per million people (1990-2005) Royalties and Licence Fees in USD per person (2005) Patents to residents per million people (2000-2005) 48.0 2.6 3187 38.2 1113 China India South Africa 49.2 0.8 307 0.9 Nigeria 147.7 0.20* 125.9* ? ? 1329.1 1164.7 1.4 708 0.1 16 0.8 119 1

Source: Human Development Report, 2007 /2008/2009 * - NACETEM /NEPAD STI Indicator Survey NACETEM 2010

NACETEMWHY R&D?Developing nations can no longer compete based only on their natural resource endowments and locational advantages. For a nation to withstand competition in this era of globalisation there is need for such to identify its niche areas and build on it by the application of scientific methods (e.g. Brazil: SUGARCANE; Malaysia: OIL PALM, Ethiopia: Cut flower) What kind of R&D do we need? High-tech? Low-tech? NACETEM 2010

NACETEMWHEN IS R&D PROFITABLE?No economic gains from R&D unless the outputs (including patents) are exploited Translation to innovation occurs through entrepreneurial activities that take care of marketing When R&D is demand driven and solves real life problems

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NACETEMModels for the relationship between R&D & the MarketModel A Phase 1 Phase 2 Phase 3

Model B

Phase 1

Phase 2

Phase 3

Model C Phase 1 Phase 2 Phase 3

Phase 1 Pure Research Phase 2 Technological Development Phase 3 Production and Marketing

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Source: Goldemberg, 1998

NACETEMModel for the relationship among Research, Development and Diffusiona = Research and Development; b = Commercialisation; c = Publication, etc; d = Research, Development and Diffusion, e = the National Innovation System (NIS), the domain in which all activities take placeDEVELOPMENT

e

aRESEARCH

b d cDIFFUSION

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NACETEMWEALTH CREATIONWealth is the abundance of valuable resources or material possessions or the control of such assets Every man or woman should have the opportunity to prosper to the limit of their ability - Ralph Halpern (British business executive)** From Microsoft Encarta, 200813 NACETEM 2010

NACETEMSome thoughts about wealth!Wealth is the accumulation of possibilities. Anon. Wealth comes from knowing what others do not know. Aristotle Onasis Learning useful facts is the great road to wealth. - M.R. Kopmeyer If you are not as wealthy as you like, there is something you dont know. David Wood Knowledge is capital, the rest is money Philip Emeagwali NACETEM 2010

NACETEMVALUE CHAIN TRANSFORMATION

DEVELOPING ECONOMIES EMERGING ECONOMIES DEVELOPED ECONOMIES15 NACETEM 2010

NACETEMNATIONAL WEALTH: WHERE WE ARECountry Human Per Capita % population Development GDP (PPP below $1/day Index rank USD) 23 26 44 66 129 92 158 49,704 24,801 13,880 13,518 9,757 5,383 1,969