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Kick-off training seminarBrussels, 4-6 November 2014

Innovation in the TCI:A Triple Helix Responsibility. Shonia Thomas-Been

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Map of Turks and Caicos

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Exclusive Economic Zone

EEZ 154,068 km2Shelf area 7,395 km2IFA 9,060 km2Coral reefs 2.5%

154,068 km2

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Basic Facts and Figures

Area• 193 square milesPopulation• Resident in 2012 - 31,458• Non-Belonger /Belonger Ratio– 57.5%/42.5%• Distribution according to skill level is estimated at: Unskilled/Manual -53%;

Semi-skilled- 12%; Skilled 20% and Professional 15%.Gross Domestic Product• GDP 2013 - US$545.4M - 1.32% growth (y-o-y)• GDP 2014 – US$570.6M – 4.62% projected growth• US Trade in Goods with TCI $225.8M in 2013 (imports) 10.6M (exports)

Balance – $215.2M

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Basic Facts Continued

Main Economic Sectors• Tourism Hotels and Restaurants 38.6% of GDP• Financial Services Intermediation 10% of GDP• Real Estate, Renting and Business Activities 9%• Agriculture and Fishing 0.5%

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Issue in Main Sectors

Tourism• New policies are required that would encourage tourism activity in MICE

(Meetings, Initiatives, Conventions and Exhibitions) tourism segment• Inadequate support for Research and Development. • Human Resources and Funding needed to recruit and retain highly skilled

and technical workers.• Ivory Tower syndrome regarding employment in Tourism and Hospitality

Sector.

Indigenous people that are academically inclined or the ‘educationally elite’ are not attracted to careers in tourism notwithstanding that it is

the mainstay of the country.

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Issues in Main Sectors

• Formal and Informal Training in Tourism and Hospitality is Imbalanced.

Need a complementary skills and exposure in culinary arts, frontline activity, support staff/mentorship for individuals, adequate job placement

in the market.

• Mixing up Responsible Tourism vs. Sustainable TourismPitting High Rise/High Volume against Low Density/High Spending Market. Can the two exist?

• A need for a strategic audit on the carrying capacity of all three areas of the environment is imminent (coral reefs, wetlands and the inland).

• Lopsided Development between and among islands.

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Issues in Main Sectors

Fishing• Overharvesting of Queen Conch depleting population.• Lobster stock very low.• Is pelagic fishing a viable diversification option?

Real Estate• Generally operates on best practices, world class industry

standards that are adaptive. Knowledge transfer inwards due to multiple international franchises within TCREA.

• Efficiency is inhibited due to the absence of TCI Government e-commerce services in the areas of land registry and land survey.

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Main Issues in Sectors

Financial Intermediation Services• Current regulatory environment is daunting. • Regaining customer and market trust amidst a climate of

failed banksand recently the receivership of an insurance company.

• Difficulty attracting, retaining and developing the talent needed for the future.

• Finding new ways to make money.• Remedial measures aimed at enhancing compliance may

be too costly

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Main Stakeholders in Innovation

• Government Agencies/ Department i.e. DeMA, Investment Unit

• National Trust• Chambers of Commerce• Traditional Tertiary Education Institutions• School for Field Studies• Financial Industry Association• Junior Achievers/Young Enterprise• Commercial Banks

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Main Stakeholders in Innovation

• National Parks and Environmental Advisory Committee ?

• Hotel and Tourism Association.• Taxi Drivers Associations.• Civic groups such as Rotary, Kiwansis, Girl Guide

Association, etc. • CTO – Caribbean Tourism Association.

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Situations with Main Stakeholders

• Little to no excess. Companies’ resources are devoted to day-to-day operation so that few remain for innovative prospects.

• Little to no free time exist for fresh thinking; therefore thinking time seemingly has little merit in the working environment.

• Intolerance for the time it may take to bring a BIG (i) to fruition. • General aversion toward risk.• Inconsistency. Persistent focus on innovation may be a problem.

One year in, one year out.• Financial institution may have available cash for lending, however

they place more emphasis or reducing risk when extending credit. There access to credit may be a main inhibitor of innovation

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Situations with Stakeholders

• Need to heighten the perception of entrepreneurship and innovation in the mindset of young people by incorporating it in some element of the school curriculum.

• Insufficient regulatory framework geared at promoting SMEs or innovation.

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Who should drive innovation in the TCI

• Governments, markets, or institutions of learning?

They should work together. A triple helix! There may not be a way around it!

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Opportunities for Innovation

The Innovation Proposition

TCI’s focus on innovation should depart from the usual science and technology orientation and should be ‘value driven’. It should be centred on traditional sectors where there is the greatest potential for immediate to mid-term impact. It can be based on local competencies; but not entirely. It should be directed towards addressing socio-economic issues relating to the environment and natural ‘life support’ systems (i.e. water, food, healthcare, energy, etc.).

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Opportunities for Innovation

Government’s Role – Set Guidelines for Policy Incentives• TCI Government can resist being seen as the prime funder of

innovation in the country; rather it should be proactive in highlighting the issues and problems to be solved through innovation.

• Implementation of a pro-innovation government policy that will focus on business framework conditions that are attractive to locals and FDI.

• Ensure that adequate intellectual property right legislation in place to protect the inventors’ ideas and the innovators during commercialisation.

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Opportunities for Innovation

• TCI Government/Tourist Board can articulate a vision of fostering ‘value innovation’ – those that are related directly to tourism. They can be designed based, geared at improving the quality of services, or the experience of visitors.

• TCI Government can focus on communicating the ideals and benefits of innovation. The Government can encourage clustering of like-minded people who would take on new projects and ventures and feed off or support each other by networking. The clusters can be centred on: product innovation, process innovation, resource innovation, customer/market innovation.

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Opportunities for Innovation

Private Sector’s RoleThe few businesses that are doing things well need to share knowledge. e.g. Beaches Turks and Caicos utilizing: automatic switch-off a/c; partial solar

energy, keycard light control systems, tap-installed aerators. This is expected to reduce energy costs by 20%.

Companies will only invest private resources in R&D if they consider the final market is1) interested and 2) large enough to recover the investment.

Educational Institutions Role Tertiary Education should be promoting socio-economic development through innovation and should establish reward systems to incentivize general curiosity and research.

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Opportunities for Innovation

Green Economy:Terrestrial Environment• Utilization, development and commercialization of alternative

medicines (bush medicines) through the harvesting and processing of natural flora and fauna such as aloe, moringa, neem.

Innovation in Pollution Management• There is need for innovations in waste management including

run-offs from building, that are laced with fertilizers and pesticides that can seep into the water table.

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Opportunities for Innovation

Reduction in Fossil Fuel Dependences• Innovations are needed to reduce the dependency of

fossil fuels.