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Vision and Way Forward
Setting a Model for Investment and RDI in the ICT Sector in the Arab Region
Ibrahim Akoum
Andrea Renda
Expert Group Meeting on Investment, Research, Development and Innovation in the ICT Sector
Hammamet, Tunisia, 7-8 May 2013
ICT Sector’s Competitiveness
R&D
InvestmentInnovation
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Sustainable Competitive Advantage
National Strategies
Regional Strategy
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Regional ICT
Strategy
National ICT
Strategy
Competitive ICT Sector
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Regional & National
Competitiveness
ICT:
Stand-alone Sector
ICT: Enabling Sector
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National Model …
Best practices
Public-private partnership (PPP). ICT infrastructure. Institutional framework. Financial systems and modes.
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Caveat: Region’s SWOT
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Declare ICT as a strategic sector with public policy priority
Government commitment.
ICT strategy: Integral part of development plan.
WSIS, Tunis 2005
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Bottom-up, holistic, double ecosystem view of innovation
Double ecosystem view.
ICT and innovation are ecosystems. Synergy of all actors.
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Three-layer ICT innovation policy
Government as a partnership
Government as a facilitator
Government focus of infrastructure
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Enhance the legal and regulatory frameworks
Regional and national regulatory frameworks.
Liberalization but:1. no private sector monopoly.2. preserve all stakeholders’ interests.3. manage competition.
Challenges for the region: lack of adequate expertise in the embryonic and swiftly changing ICT industry.
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ICT Start-ups Funding
Government support
Private equity
Debt
International organizations’
support
Develop financing systems, modes, and sources of funding to promote investment
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Regional & national financing schemes.
Debt and equity through primary and secondary capital markets.
Encourage lending schemes in scope & scale.
Equity financing: seed funds, VC, & angel networks:
Arab Business Angels Network (ABAN) Lebanese Business Angels Network (LAB) Qatar Business Angels Network
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Ensure the deployment of physical infrastructure
Resilient energy networks. Good transport and logistics. High-speed broadband connectivity.
Requisites:
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Repeal the application of access policy in telecoms regulation to prioritize investment (Dynamic vs. static efficiency).
Spectrum policy designed to leave sufficient spectrum for wireless broadband applications.
Affordable access.
Recommendations:
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Invest in education and skills
Achieving ICT objectives require ICT human capital and technical skills.
Revamp education system.
Promote ICT-related vocational training.
Connect with ICT firms in developing countries.
Regional focus and cloud computing.
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Promote demand-side innovation policy
Best way to stimulate innovation in ICT is to demand innovative ICT solutions
i.e. e-government services and small business innovation research (SBIR) services …
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Leapfrog in technology, and harness the potential of the cloud
Developing countries can boost an advanced ICT ecosystem bypassing the lengthy transition of developed countries…
Partnering with emerging cloud giants to achieve solutions to fit the needs of local SMEs
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Smart specialization
choose the layers of the ICT ecosystem in which investment should be stimulated;
Innovation strategies must be based on local strengths ..
Bottom up policy …
Multi-level governance structure.
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Economies of scale, preferably at the regional level.
ICT is not purely a technical issue ..
Holistic approach which rests on regional collective efforts ..
Region does not encompass homogeneous countries ..
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Regional Model …
Identify ICT Priorities
Examine Comparative Advantage by Country
Formulate Resource-
Based Strategies
ICT Value Chain
Activities
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The Arab Region
Cannot afford a digital gap.
Can afford promoting ICTs.
Knowledge economy and ICTs constitute a necessary condition for development.
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Thank You
