OFFICIAL USE Date of Submission to Coordination Unit: A. GENERAL INFORMATION 1. Activity Name National Center for Innovation, Higher Council for Science and Technology 2. Requestor Information Name: Ministry of Planning & International Cooperation Title: Minister Organization and Address: Ministry of Planning & International Cooperation, P.O.Box 555 Amman 11118 Jordan Telephone:+962 6 4644466/ 4649023 Email:[email protected]3. Recipient Entity Name: Dr. Fawwaz ElKarmi Title: Assistant Secretary General Organization and Address: Higher Council for Science and Technology, P.O.Box 36 Al Jubeha Amman 11941 Jordan Telephone:+ +96265345274 Email: [email protected]4. ISASC Representative Name: Hildegard Gacek Title: Managing Director SEMED European Bank for Reconstruction and Development, One Exchange Square, EC2A 2JN London, UK Telephone: +96265635039 Email: [email protected]5. Type of Execution (check the applicable box) √ Type Endorsements Justification √ Country-Execution Attach written endorsement from designated ISA Joint Country/ISA- Execution Attach written endorsement from designated ISA OFFICIAL USE April 14,
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Date of Submission to Coordination Unit:
A. GENERAL INFORMATION
1. Activity NameNational Center for Innovation, Higher Council for Science and Technology
2. Requestor Information Name: Ministry of Planning & International Cooperation Title: Minister
Organization and Address: Ministry of Planning & International Cooperation, P.O.Box 555 Amman 11118 Jordan
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6. Geographic Focusx Individual country (name of country):Jordan
Regional or multiple countries (list countries):NA
7. Amount Requested (USD) Amount Requested for direct Project Activities:(of which Amount Requested for direct ISA-Executed Project Activities):
2,220,320
Amount Requested for ISA Indirect Costs:1 170,120Total Amount Requested: 2,390,440
8. Expected Project Start, Closing and Final Disbursement DatesStart Date: 01/June/2015 Closing
Date:31/October/2020 End Disbursement
Date:31/ December /2020
9. Pillar(s) to which Activity RespondsPillar Primary
(One only)Secondary(All that apply)
Pillar Primary(One only)
Secondary(All that apply)
Investing in Sustainable Growth. This could include such topics as innovation and technology policy, enhancing the business environment (including for small and medium-sized enterprises as well as for local and foreign investment promotion), competition policy, private sector development strategies, access to finance, addressing urban congestion and energy intensity.
√ Enhancing Economic Governance. This could include areas such as transparency, anti-corruption and accountability policies, asset recovery, public financial management and oversight, public sector audit and evaluation, integrity, procurement reform, regulatory quality and administrative simplification, investor and consumer protection, access to economic data and information, management of environmental and social impacts, capacity building for local government and decentralization, support for the Open Government Partnership, creation of new and innovative government agencies related to new transitional reforms, reform of public service delivery in the social and infrastructure sectors, and sound banking systems.
x
Inclusive Development and Job Creation. This could include support of policies for integrating lagging regions, skills and labor market policies, increasing youth employability, enhancing female labor force participation, integrating people with disabilities, vocational training, pension reform, improving job conditions and regulations, financial inclusion, promoting equitable fiscal policies and social safety net reform.
x Competitiveness and Integration. This could include such topics as logistics, behind-the-border regulatory convergence, trade strategy and negotiations, planning and facilitation of cross-border infrastructure, and promoting and facilitating infrastructure projects, particularly in the areas of urban infrastructure, transport, trade facilitation and private sector development.
1 ISA indirect costs are for grant preparation, administration, management (implementation support/supervision) including staff time, travel, consultant costs, etc.
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B. STRATEGIC CONTEXT
10. Country and Sector Issues Jordan has an active innovation ecosystem with a multitude of stakeholders, both public and private, including government ministries and agencies, donor-funded programmes, scientific and research bodies, universities, regional and local incubators, technology-related programmes and entrepreneurs. Jordan’s ranking in the World Economic Forum’s Global Competitiveness Index and the Global Innovation Index is 64 out of 141 and 143 economies, respectively. This is the highest ranking of a SEMED2 country: Morocco 72, Tunisia 87 and Egypt 119. Amman is the 10th best place to start a technology company (according to a report from Bloomberg) and Jordan has been highlighted as a regional start-up hub.
While Jordan fairs reasonably favorably compared to the other countries in the region, it still faces medium-sized knowledge economy gaps. Jordan has a Knowledge Economy Index3 score of 4.95, above the SEMED average of 4.22, but below the average score of 5.66 in the EBRD region and significantly below the Central Europe and Baltics average score of 7.75. Additionally, in the WEF report referred to above, inefficient government bureaucracy is identified as the 6th most problematic factor in doing business in the country, with restrictive labour regulations, corruption, tax (regulations and rates) and access to finance preceding it. Reflecting this sentiment, a key priority for Jordan identified in EBRD’s 2014 Transition Report, Innovation in Transition, is to further enhance the business environment, which is hampered by different layers of government bureaucracy, ineffective programmes targeting innovation and weak governance.
As a country with limited natural resources, Jordan’s economic growth is highly dependent upon its ability to increase the value-added of existing products and services industries and effectively develop and utilize its human capital. Under its National Innovation Strategy, Jordan has identified key industries on which to focus. In this context, innovation also comes about from the adoption of new technologies, products or services that may have already been developed elsewhere, customizing and improving them to better serve the needs of the local market. As noted in EBRD’s 2014 Transition Report, the speed at which firms adopt new and existing technologies can explain up to a quarter of the differences in national income levels.
As for human capital, Jordan is known for its relatively young population with almost 40 percent of the population below the age of 20. However Jordan is characterized by a substantial skills mis-match resulting from the education system’s insufficient capacity to equip young people with the know-how and skills required by employers. This results in large ‘youth’ inclusion gaps with youth unemployment at over 31% and one in five people not engaged in education, employment or training.
In efforts to alleviate unemployment challenges, the government of Jordan has undertaken a number of measures to seek to support further development of the Jordanian economy through enhancing its competitiveness and the ability to create new opportunities through innovation. The Government has also recognized the valuable asset provided by its relatively young population, and has considered education, scientific research, cultural innovation and entrepreneurship as priorities within its 2006–2015 Jordan National Agenda.
The development of a robust and effective innovation system, including the right skills mix to enable businesses to adopt/adapt new technologies to enhance productivity and growth, the
2 SEMED is the Southern and Eastern Mediterranean region of the EBRD, comprising Egypt, Jordan, Morocco and Tunisia.3 The World Bank’s Knowledge Economy Index assesses four key components of a knowledge economy: Economic Incentives and Institutional regime, Innovation and technological adaptation, Education, training and Human Resources, and Information Infrastructure. The figures are taken from the 2012 Rankings. http://siteresources.worldbank.org/INTUNIKAM/Resources/2012.pdf
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right government policies to enable larger companies and SMEs to introduce/adapt new technologies, access to finance for innovative companies (be they existing businesses moving up the value-added chain or start-ups), is essential for the growth of the economy. It is not about replicating Silicon Valley, but for many countries, including Jordan, it is more important to enable technology absorption and adaptation and put in place the right policies and programmes which will allow business to significantly improve or introduces new processes (including organizational management), products and services in the productive economy.
In response to the National Agenda, the Higher Council for Science and Technology prepared the National Policy and Strategy for Science Technology and Innovation 2013-2017 (National Innovation Strategy) in collaboration with the Ministry of Planning and International Cooperation and with the support of the World Bank and Korea Development Agency. It notes key sectors in the Jordanian economy for driving innovation:
Priority sectors are: • Medical services and pharmaceuticals• Information technology and telecommunications • Education and occupational mentoring services• Architecture and engineering services• Banking and financial services• Clean technology
Priority sectors were identified with reference to the following factors: • Contribution of the sector to the GDP• The number of job opportunities created• The total number of jobs in the sector – required educational qualifications • Tradability (total exports and imports of the sector divided by the turnover of this sector)• Pioneering projects entrepreneurship• Influence of and on other sectors
Additionally to further encourage growth through innovation, the Government reactivated the National Council for Competitiveness and Innovation (NCCI) in the beginning of 2014, comprised of government, private sector and academia representatives, among other things, address the challenges inhibiting the growth of the knowledge economy and the ability to innovate. The Council is chaired by the Prime Minister, with the membership of nine ministers and Secretary Generals and twenty-seven non-ministerial members (represented in Annex 2). A central goal is to launch a vigorous multi-year government initiative to make Jordan, within 3-5 years, the region’s most innovative economy, so as to dramatically lift the country’s growth and jobs-creation capacity.
Jordan’s innovation system is highly fragmented and comprises a complex network of organizations (Annex 1 identifies existing innovation system stakeholders including government entities, organisations and projects). It suffers from a fragmented administration, unclear channels and linkages, limited cooperation and coordination, and inefficient financial management and its complexity presents a barrier to those whom seek its support. The large network of organizations, institutions, programmes and initiatives offering different or overlapping forms of assistance and support presents a barrier to the effectiveness of the innovation system.
The National Innovation Strategy identifies these additional structural challenges, some of which have started to be addressed through various programmes:
1. Legislative and legal factors • Scarcity of legislative and legal articles facilitating and streamlining innovation
activities. • Scarcity or lack of legal articles related to the status of the researcher (the
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creative/innovative researcher law).
2. Human and institutional (organizational) factors• The absence of proper structures of transfer and distribution of innovation
(evaluation structures, technical and innovation centers, innovation and industrial creativity dissemination networks, etc.).
• Weak relationship between universities (and vocational training institutions) and industrial companies.
• Weak career guidance, with little or no involvement of the private sector, to inform education choices by young people
• Lack of sufficiently specialized scientific and technological highly qualified experts. • Lack of freedom of movement of researchers.• Brain drain. • Lack of marketing of the output of the scientific research.• Lack of agencies that provide financial support for innovation (banks, agencies,
funds, institutions, venture capital companies, etc.).• Very few incentives are currently available to encourage collaboration between
academia and industry
3. The financial factors• Weak mobilization of public capital. • The lack of a dynamic financial and tax system encouraging research/development
and innovation (low allocations for financing of research which has not reached 1% of the GDP).
• The current financial system does not adequately service innovation requirements, particularly in relation to seed and venture capital, business start-up and early phase growth.
• Low research/development and innovation budgets in industrial companies (they have weak contributions in the total allocations of research/development and innovation compared to those of industrialized states which are estimated at 60%).
Access to capital presents a major barrier to entrepreneurs, innovators, start-ups and companies seeking to develop new products and services and to successfully commercialese their inventions.
These factors result in the following:• Brain drain and a few scientists come back to Jordan.• Low level of technology based on the number of registered patents. • Low number of companies established as a result of registered patents.• Expenditure on research and development does not exceed 0.05 % of the GDP
(whereas many countries target 3%, and the EU average in 2012 was 2.06%).• Low scientific and technological output of research centers concerning periodicals,
bulletins and scientific publications.• The majority of university researchers are theoretical ones and their results are not
playing any commercial role.• Small number of technology incubators.• Few or absence of specialized bodies concerned with evaluating research results
(technological agencies, finance funds, risk capital companies, technical centers, etc.).
• Lack of awareness or knowledge of the number of innovation-based programs that are available.
• There are few national companies working overseas (such as Ireland and Luxemburg).
In order to overcome these challenges, an integrated innovation system is needed. While the NCCI is a high level strategic body, it lacks sufficient support for facilitating the coordination and monitoring of the effectiveness of all the various programmes, initiatives, and active stakeholders in Jordan’s innovation system at the implementation level. Therefore, a key
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component of the National Innovation Strategy is the establishment of a National Center for Innovation (NCI). The NCI will be administratively attached to the Higher Council for Science and Technology headquartered in Amman.
11. Alignment with Transition Fund ObjectiveThe objective of the Transition Fund as provided on the Operations Manual (Section 2, Para. 7) is, “to improve the lives of citizens in transition countries, and to support the transformation currently underway in several countries in the region (the “Transition Countries”) by providing grants for technical cooperation to strengthen governance and public institutions, and foster sustainable and inclusive economic growth by advancing country-led policy and institutional reforms.”
The proposed technical assistance project is in alignment with the Transition Fund objective and three of its four pillars. The heart of the project lies in advancing the lives of Jordanians in ways that support creativity and innovation, helping to create an innovation-led environment and working towards improving access to finance and employability (particularly of young labour market entrants including graduates).
The National Center for Innovation (NCI) will be established as the main portal to Jordan's innovation ecosystem and serve its stakeholders by means of an integrated, technology-empowered services platform, becoming a global leader in the use of technology in national innovation practices to enhance the development of an innovation-based society towards a sustainable national economy for Jordan. The NCI’s scope of work will be directed towards seven functional objectives that align with the Transition Fund’s objectives. The NCI will (1) streamline and manage new innovation funding models, realigning the Higher Council for Science and Technology’s (HCST) funds to better encourage innovation and introduce systems and tools that strengthen all funds’ processes and governance while creating a central intelligence point for innovation finance in Jordan. In order to (2) brand Jordan’s innovation and put value on excellence, the NCI will establish standards for excellence and systematically monitor achievement against them, awarding and licensing excellence in Jordan’s innovation ecosystem with brands that are legible internationally. The NCI will (3) catalyze collaboration and commercialization of innovation by encouraging researcher mobility within research institutions and into industry through fellowship programs, matchmaking platforms, and events. In an effort to broaden the innovation landscape, the NCI will (4) empower untapped innovators by creating platforms and mechanisms to channel and drive involvement by youth and the Jordanian diaspora in Jordan’s innovation policy and practice. It will also (5) activate policy instruments by crafting Craft specific policies that expand existing banks’ development finance facilities into the innovation finance space and create tax incentives for R&D and innovation. To monitor and evaluation innovation, the NCI will (6) lead by setting standards, creating the definitive STI database in Jordan, together with the requisite standardizations, that will enable better matching among stakeholders. Finally, the NCI will (7) optimize innovation resources across Jordan by creating platforms and administering mechanisms that enable innovation stakeholders to better share and optimize equipment and assets.
12. Alignment with Country’s National StrategyThe National Agenda states that the scientific research and innovation system is highly fragmented which leads to confusion among those seeking support for research and development and other newly formed initiatives. Therefore, there is a growing need to streamline the current system by removing overlapping or duplicative programmes and initiatives, reducing the number of organizations involved in the system. It is believed that a more streamlined system would also contribute to improved communication and coordination between stakeholders.
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The Jordanian Government and the HCST wish to leverage existing institutional capacity and invested human and financial capital. Working towards this end, formation of the NCI connects the National Innovation Strategy with the royal vision for enhancing the role of scientific research and development in the economic and social development process where comprehensive national development goes in line with the scientific and technological progress.
The National Innovation Strategy sets out a framework for harnessing innovation by commercializing knowledge and technology from academic or research centers, enhancing linkages between business, including SMEs, and academia and such research centers, promoting investment in the private-sector, and creating the right business environment to encourage more private sector spending on research and development. The Strategy supports the Jordanian Government’s collective intention to create a private-sector led environment for not only new job opportunities, but also increased productivity and global competitiveness impacting medium and long-term micro and macro level change.
The establishment of the NCI will help support the following national priorities as outlined in the National Agenda of Jordan (2006-2015):
Commercialize potential outputs of research and development through forging new relationships with the private sector.
Modernize the education system. Encourage a culture of innovation and entrepreneurial spirit.
The Higher Council for Science and Technology identifies in the National Strategy and Policy for Science Technology and Innovation 2013-2017 (the “National Innovation Strategy”), the following approach to be taken by establishing the NCI:
Adopt innovation as a prime mover for creating entrepreneurial projects and investment opportunities.
Participate in achieving excellence in education, training and skills enhancement of youth and adults.
Accumulate knowledge-based creative capabilities through reform in primary, secondary and tertiary education.
Enhance cooperation between the industry and research centers to standardize capabilities, and skills relevant to companies, university laboratories and institutions.
Encourage technological research in priority sectors to develop new products and services that meet market demands and encourage adoption and adaption of technologies that already exist elsewhere, but are new to the country.
Enhance the business environment, including incentives to increase private sector spending on R&D, access to finance and business incubators, to support the foundation of innovative companies.
C. PROJECT DESCRIPTION
13. Project Objective
PROJECT OVERALL OBJECTIVE
The overall objective of the Project is to enhance and improve Jordan’s innovation system, enabling innovation-led, inclusive productivity growth. The project will seek to improve co-ordination amongst the many stakeholders in Jordan’s innovation system, reduce government bureaucracy and enable government decision-makers to take decisions based on verified data and quantitative and qualitative analyses of existing programmes and initiatives by establishing the National Center for Innovation (NCI).
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14. Project Components
ACTIVITY 1: PREPARATION OF A MAPPING STUDY
The EBRD engaged OHK Consultants in December 2015 to carry out a mapping study for establishing the NCI as a national hub for all matters related to innovation in Jordan, for both the public and private sectors.
The purpose of the mapping study was to set the priorities of the NCI based on international best practice for effective national coordinating advisory bodies in the context of the Jordanian innovation landscape. The mapping study assisted in identifying and articulating the Centre’s overall objective, main tasks, detailed responsibilities, accountabilities, and procedures, as well as staff requirements (including job descriptions) and any necessary training in the light of NCI’s key responsibilities as follows:
help ensure that national and international administrative, financial and technical services that nurture and support innovation (government, private sector and IFI initiatives etc.), are complementary rather than duplicative and help eliminate inefficiencies in funding and support to the private sector;
create economies of scale in bringing together and effectively coordinating stakeholder activities (government ministries and agencies, donor-funded programmes, scientific and research bodies, universities, regional and local incubators, training providers, technology-related programmes, start-ups and entrepreneurs);
improve the direct engagement between the private sector and public sector innovation stakeholders, such as businesses, industrial companies, start-ups, financiers, educational institutions and research centres;
via a new IT platform collect innovation related information and provide vital national statistics on the impact of innovation initiatives for monitoring progress and articulating areas of success and those that need improvement, enabling the GoJ to further assess measures for enhancing the development of an innovation based society.
Specific tasks included:
based on international best practice, fully map out Jordanian’s innovation sector; review the NCI mandate, governance framework, key units’ terms of reference, detailed
tasks, responsibilities, and procedures, identify and set out staff and IT system requirements, and the need for consultancy support;
based on international best practice, explore different funding models that will focus on the financial sustainability of the Centre beyond the initial 4 year period. Develop a longer term strategic plan (after year 4) for the Centre;
review and revise the proposed results framework for the Project; develop a 4 year Project work plan and budget defining annual priority, areas for
intervention and, if necessary, amendments to the NCI mandate that will ensure the Project remains focused on tangible deliverables;
develop a detailed annual action plan covering all NCI activities and the Project budget for year 1.
.ACTIVITY 2: ESTABLISHMENT OF THE NCI
The NCI is to be established through a HCST decree, with the proposed organizational structure and mandate reflected and endorsed in the form of relevant regulations and bylaws. In addition to finalizing the legal basis for the NCI, this activity also includes equipping the NCI and providing its Amman office infrastructure, including procurement of the software and tools recommended in the mapping study, necessary software licenses, laptop and desktop computers
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for staff, and the procurement of cloud and SaaS services as needed to support the NCI’s IT infrastructure.
In parallel, this activity includes the establishment of key processes and studies to support the NCI’s operations, including:
System Design and Operational Document Drafting: Designing the day-to-day operational manuals for NCI staff to follow, as well as the design for M&E processes, and drafting internal documentation such as action planning and budgeting.
Creation of Stakeholder Steering Committee: Facilitation of internal auditing through an NCI steering committee and periodic reporting from the executive team to the committee.
Creation of Regulatory Reform Advisory: The creation of key innovation reform proposals to be championed by the NCI
ACTIVITY 3: RECRUITMENT OF THE NCI STAFF
This activity entails the recruiting and retention of human resources that are essential to the functioning of the NCI as a service provider. In line with the recommendations of the Mapping Study which proposed an organizational structure for the first four years of the NCI’s operation (inspired by the structures found in high-growth, early-stage startups and focused on key technical and business personnel), key, early-stage hires (within the first two years) should include:
NCI Director Admin and Communication Manager Technical Manager BD and Production Manager Marketing Manager
Additionally, the NCI should be supported through secondments from the HCST to balance capacity needs with limited resources. This will include:
ACTIVITY 4: CAPACITY BUILDING PROGRAM FOR THE NEWLY RECRUITED STAFF
The newly recruited staff will require training on administration of the major operational systems of the NCI, including the IT Platform and marketing and customer service systems. A training program will be designed for each system, including:
drafting of operational manuals creation of training materials delivery of “train the trainer” content for key NCI staff who will become custodians of these
systems and the trainers within the NCI
Based on the above program, a pilot training session that covers the NCI’s operational systems will be conducted for key staff, instituting a culture of learning within the NCI.
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ACTIVITY 5: CREATION OF THE IT PLATFORM
This activity encompasses the heart of the NCI’s operation, and covers the development of the IT Platform as a host to key innovation services and products, as well as the referral and M&E functions envisioned for the NCI. The development process will entail the following:
Formalization of Shortlist: Taking the priority functions proposed in the Mapping Study and revising the shortlist
Determining User Requirements: Conducting potential user research and establishing use cases
Stakeholder Vetting: Testing product concepts and pricing structures for innovation products hosted on the platform
Platform Specifications: Creating detailed business and functional requirements documentation that can be used as the specific terms of reference for software development
Coding of IT Platform: Designing system architecture and conducting system development and coding to realize the proposed products and use cases.
Content and Usability Testing of IT Platform: Authoring of site content and copy and conducting of usability testing
Launching of Platform: Operating the platform publicly, and optimizing performance for new users.
ACTIVITY 6: MARKETING THE NCI
This activity entails the design and implementation of marketing for the NCI’s innovation platform as a service product. The marketing strategy should entail early-stage awareness raising and marketing of the NCI as an institution, and encompass outreach to key stakeholders and MOUs to formalize partnerships that will be needed to operate the NCI to its full potential. Additionally, the marketing should serve the NCI’s innovation products and services through the marketing and “sales” (which is to say, acquisition of users) of the NCI’s innovation services through awards, branding efforts, publicity events, and management of key user accounts. This activity entails:
Conducting of market research that further quantifies the insights of the mapping study Creation of an integrated marketing plan for the NCI Development of branding and marketing copy Design and publication of marketing collateral Executing against the marketing plan, including the conducting of an annual “Innovation
Jordan” event Mobilization of sales capacities through the establishment of a pipeline of paying users and
the contracting of early accounts.
15. Key Indicators Linked to Objectives
The Mapping Study has substantially revised and restructured the initially proposed results indicators for the NCI.The NCI’s organizational objectives provide coherence among its parts (units) and guide coordination and integration of the staff tasks and resources, wherein the underlying basic assumption is that the NCI feeds into an overall set of strategic objectives which feed themselves into a national goal (or impact, per the above value chain). Extensive metrics used in most mature innovation ecosystems emphasize a country-wide perspective that guides long-term national policymaking. In this view, indicators act in unison to identify norms and trends that result from the "the way things are or were" in the innovation ecosystem, and not the way they should be. In addition, they do not provide means of control, which in the case of NCI would be a
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strong institutional commitment to its organizational objectives. In other words, the countrywide innovation indicators try to be “all things to all stakeholders” and do not address one organization’s need to measure its own contribution to the innovation ecosystem of a country. In the NCI’s short, medium and long terms, it is the organizational perspective rather than the national perspective that is more important to the NCI’s sustainability.The below indicators, which now form the revised results matrix of the Project, reflect this shift in emphasis.Fund-Level Pillar ObjectiveOutput 5.1.1: Documents produced and endorsed
1. NCI Mapping Study (defining key responsibilities, tasks, procedures, targets/KPIs and activities, draft 4 year budget, need for consultancy support etc.).
2. Annual NCI reports on recommendations to enhance the development of an innovation based society.
Output 5.1.2: Decrees issued or structures established
4. Establish the National Innovation Center through HCST Decree
Project Development Objectives
1. Build the Capacities of NCI’s People1.1. Hire the Right People into the Right Position – hired and seconded staff according to
the workplan2. Fill the Gaps in NCI Capacity – for all of these, the indicator takes the form of hiring the
Project Management Consultant and other consultants to undertake these tasks as consultant deliverables, taking the form of reports, progress updates, manuals and marketing copy, and, in the case of the IT Platform, a design specifications (IT Company Terms of Reference).2.1. Conduct Studies and Reports2.2. Support NCI System Design and Operational Document Drafting2.3. Ongoing Support to NCI Implementation Activities2.4. Design the Proprietary IT System2.5. Support Staff Training and Standards2.6. Establish Marketing Mechanisms & Collateral2.7. Support Legal and Regulatory Activities2.8. Produce Marketing Collateral2.9. Conduct NCI Internal Auditing
3. Train the NCI Staff3.1. Conduct Staff Training – successful completion of training among NCI staff
4. Establish the NCI4.1. Equip the NCI – procurement according to agency asset list
5. Develop and Deliver Non-platform Based Innovation Products and Services – for both of these objectives, progress is measured by the NCI staff running these services with consultant support5.1. Introduce Regulatory and Policy Services5.2. Develop Sector Skills Councils
6. Develop and Run IT Platform Based Innovation Products and Services6.1. Develop the Proprietary IT System – hiring of IT development company to develop,
test, and deliver platform. Measured by:6.1.1.Design Report submitted6.1.2.Coding Report submitted6.1.3.Platform Alpha Version delivered6.1.4. Platform Documentation submitted
6.2. Operate the Proprietary IT Platform – success measured by the successful launch of
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Platform Beta Version6.3. Advance the Proprietary IT Platform – evaluation of performance and
recommendations for improvement. Measured by:6.3.1.Submission of Summary Platform Performance Report6.3.2. Submission of Summary IT Company Terms of Reference Report 2.0
7. Conduct On-going Innovation Marketing Across All Stakeholders7.1. General Stakeholder Outreach Activities – creation of sales pipeline for NCI services.
Measured by:7.1.1.Summary findings report submission7.1.2.Marketing campaign event held7.1.3.Number of MoUs signed
7.2. Report on the State of Innovation in Jordan – publication of State of Innovation in Jordan Report
8. Deliver NCI’s Innovation Products and Services8.1. Run Annual Sales Event to Market NCI’s Innovation Products and Services – success
measured in:8.1.1.Generation of the Innovation Jordan Event Completion Report8.1.2.Number of MoUs signed
8.2. Secure Key Accounts for NCI Platform-based Products and Services – success measured in
8.2.1.Number of sales contracts8.2.2.Platform user growth rates
9. Ensure IT Platform Customer Success9.1. Establish, Run, and Report on Customer Support Desk Activities – success measured
through support desk quarterly reports9.2. Conduct New Accounts Customer Support – success measured through on-boarding
sessions and training courses conducted10. Become a Self-sustaining Service Provider
10.1. Implement the Sustainability Plan (Sales and Financial) – conducting maintenance of pricing and financing models, with sustainability measured by startup metrics of financial profitability
10.2. Retain Key Accounts – measured by customer retention rates10.3. Enhance Growth – drafting of sales plan reports that track user acquisition and
growth in customer value10.4.Raise Funding from Partnerships and Sponsorships – drafting of funders’ plan reports
that track incoming funds, size of donations, and contact retention.
D. IMPLEMENTATION
16. Partnership Arrangements The NCI’s innovation products and services will focus on different aspects of the innovation value chain. As products, however, they engage with stakeholders as users and customers rather than traditional partners. The sponsorship of the NCI through the Higher Council for Science and Technology will engage in arrangements at made at many levels across four aggregated partner structures:
1. Connecting activities of governmental entities is vital to monitoring national investments being made in the innovation economy. The NCI will provide through its portal productivity tools and services that allow governmental entities to better conduct their own internal innovation or innovation promotion activities, and by doing so on the NCI’s technical infrastructure, allow it to aggregate data on innovation across Jordan. These governmental entities include (but not limited to):
Ministry of Planning and International Cooperation, Ministry of Education, Ministry
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of Industry and Trade Jordan Enterprise Development Corporation Jordan Vocational Training Corporation National Council for Competitiveness and innovation Targeted Governorates iPark and Queen Rania Center for Entrepreneurship
2. Transferring applied research and technology to the private sector to advance market diversification enhance competitiveness and promote innovations at the industry and firm level, requires developing a knowledge and resource bridge that will be built by the NCI through its matchmaking functions on its IT Platform. Such centers of research advancement whose use of the NCI is instrumental are:
Royal Scientific Society Hamdi Mango Center for Scientific Research (Jordan University) National Center for Research and Development (HCST) Pharmaceutical Research Center (Jordan University) Jordan Scientific Research Support Fund (Mutah University)
3. The private-sector’s role in adopting innovation at the industry and firm level and embracing a new business climate built on continuous change either in anticipation of market shifts or in response to the dynamics of the local, regional and international markets requires nurturing technical cooperation and collaboration to support this process. The NCI will court national, regional, and international private-sector organizations as users of its IT platform services:
Chambers of Commerce and Industry SME Association and other industry-specific business associations Financial service organizations working in Jordan – GroFin Nomou Fund, Bedaya
Angel Investment Network, Development and Employment Fund, Oasis500 Banks, private equity, venture capital, incubators Private research institutions Multinational research centers4. Tying together activities stemming from bi-lateral and multi-lateral programs with
existing or new activities arising from public or private sectors ensures the efficacy of the program, helps to maximize the value of the donor program, reduces duplication and the supplanting of existing organic programs:
USAID – Jordan Competitiveness Program World bank/ Jordan Competitiveness and Investment EU –Support to Research, Technological Development in Jordan Phase II World Bank Group’s Country Partnership Strategy (post 2015) JICA-Japan International Cooperation Agency World Intellectual Property Organization Education for Employment (e4e)
The value added to building an innovation-based economy based on mobilizing stakeholders as customers and users of the NCI’s IT Platform are: 1) the ability to conduct national monitoring and evaluation through the aggregation of data that comes from use of the platform, using the “pull” of value generating services rather than the “push” of compulsory surveys, 2) the creation of tangible value for stakeholders allows the NCI to share in that value and generate revenue, allowing it to be financially sustainable, and 3) the functioning of the NCI as the country's most valuable brand of innovation, nourished by the platform's appeal and empowered by harnessing the country’s leading institutions and partnering with peers from around the world.
17. Coordination with Country-led Mechanism/Donor Implemented Activities Embedded in NCI’s organizational structure and functionality is its ability to provide a technical infrastructure (and sizable user base) for all country-led mechanisms and donor implemented
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activities working towards advancing innovation strategies and programs. The NCI’s marketing efforts will focus on the relevant institutions responsible for country-led mechanisms and donor implemented activities, and actively explore avenues for hosting of these activities on the IT Platform.
18. Institutional and Implementation ArrangementsThe project will be institutionally sponsored by the Higher Council for Science and Technology. Currently the HCST is focused on scientific and technology innovation in the public sector, as opposed to commercial, MSME or individual innovations or identifying and taking stock of the technology needs and activities of the private sector. It has been the primary counterpart agency, together with the Ministry of Planning & International Cooperation in the development of the Jordanian Innovation Strategy.The NCI will function as a secretariat to the NCCI entrusted with administrative duties and overseeing and monitoring performance of the innovation system. The NCI will be established by decree and will report to the Board of the HCST and to His Royal Highness Prince El-Hassan Bin Talal. A Steering Committee will be established which will be made up of the HCST, EBRD, the Ministry of Planning and other innovation-related stakeholders. The key activities of the Steering Group will include setting and approving the detailed strategic vision, mission and key objectives of the NCI, approving the governance and management structures, developing a business plan and monitoring the performance of the Center once it is up and running.The HCST and EBRD, as ISA, will enter into an agreement to enable the implementation of Phase I in May 2015 and Phase 2 from November 2015. The MENA Transition Fund funds will be administered by the EBRD in accordance with applicable policies and rules of the EBRD, the Operations Manual of the TF and this project application.
EBRD will work closely with the HCST during the inception phase (a) to fully map out the NCI tasks, responsibilities, procedures, staff requirements and need for consultancy support and (b) develop the first of four Annual Actions Plans covering all NCI activities. EBRD will be represented on the steering committee.Early consultancy assignments (procurement support for IT platform, NCI mapping study etc.) are likely to reflect standard EBRD technical cooperation operations (individual grant agreements for each assignment with EBRD issuing payments to consultants upon the clients’ approval of services). A major grant agreement should then cover all other budget lines (individual disbursements to client on a needs basis based on projections and against proof of all earlier contracts, payments etc. for every follow-up disbursement request). The Jordanian government will directly enter into agreements with staff, consultants and contractors. Consultants and goods are to be procured in accordance with EBRD’s Procurement Policies and Rules. The selection and engagement of NCI staff will be conducted in accordance with recognised good human resources practice including, without limitation, selection organised by the steering committee, publications of job advertisements or the engagement of an employment agency. Selection of employees shall be done exclusively on the basis of qualifications and experience relevant for the given positionRisks: The Mapping Study has set out an extensive and complex vision for the NCI that is predicated on the proper design and operation of an IT Platform, and all of the concomitant organizational competencies needed to run such an operation. This entails risks in the form of: 1) a gap between strategy and implementation, whereby the service-oriented logic is not carried forward into key staff hires, 2) a lack in continuity between the “big moves” of the Mapping Study and the guiding priorities of the NCI management, and 3) the failure to translate the business logic of the IT Platform into detailed technical specifications for IT development, with the result that the platform is designed in isolation from the NCI business model and fails to deliver viable innovation services.Mitigating Actions: The Mapping Study outlined a Project Management Consultancy support role that will provide the strategic continuity needed to mitigate this risk. The role, active during the critical first two years of the NCI’s operation, entails 1) strategic consulting support in the form of NCI operational and system design, as well as design and setup of the M&E structure and
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indicators; 2) operational support directed towards hiring and recruitment of staff, implementation of marketing, the operation of the platform, and communication programs; 3) the drafting of detailed Platform technical specifications in full dialogue with the NCI’s strategy by OHK as the innovation mapping consultant; 4) oversight of the year-long development process in a technical management role, ensuring that the development is proceeding according to the specifications and identifying any potential issues or deviations so that they can be mitigated immediately and not result in delays; 5) testing and verification to ensure that the Platform performs according to the specifications, is free of bugs or discontinuities, and is properly transferred under the operational and physical control of the NCI; and 6) support workstreams in parallel to the development of the Platform that will ensure its long-term operability and self-sustainability including critical functions like the development of operational manuals and training modules for NCI staff to operate the Platform and creation of strategic marketing planning to assist the NCI in driving a user base to the Platform from the start, avoiding the all-too-common phenomenon of Platforms sitting unused.
19. Monitoring and Evaluation of ResultsThe Mapping Study defined the Monitoring and Evaluation (M&E) Framework on the basis of the functioning of the IT platform: “data harvested for purposes of M&E when the NCI-staff and/or stakeholders use the platform to process activities of innovation and/or benefit from the Platform’s offerings, with an aim to achieve certain results that fall under a stakeholder’s innovation related policy, plan and/or program.” As such, an indicator is implicitly integrated into the data structure of the Platform, and users would enable its measurement as part of “doing business” and without additional resources.
This approach means that the IT Platform M&E Framework, when used as a survey medium, employs a sample size that is effectively the population of its user base, and as more users are added, a better economy-wide sample with wider coverage is achieved. Strategically speaking, instead of focusing its efforts on conducting “manual” surveys repeatedly over the four year period of this project and beyond in a costly effort with inconsistent results, the NCI can and should focus on marketing the platform and increasing the user base.
The impacts of the NCI, therefore, are to be measured through several different perspectives:
1. Jordan National Innovation Indicators Framework (National Perspective) – A holistic, national perspective innovation indicators framework that evaluates Jordan’s innovation, along the lines of other national innovation indices and frameworks found in developed countries and mature innovation ecosystems. The framework represents a full-fledged framework of extensive indicator definitions and measurements and can run in the hundreds of indicators, such as those seen in well-published guidelines like the Oslo Manual (2005) or the Frascati Manual (2015).
2. NCI’s IT Platform M&E Framework (NCI Organizational Perspective) – A proprietary measurement system that is focused on the NCI products and services and represents an organizational perspective on the NCI’s own performance and contributions to stakeholders. The indicators are closely tied to the IT platform design, and are collected at minimal cost since it is entered mostly by the users of the platform on an ongoing basis.
3. Non-product/service Data collected by the NCI (National and/or Organizational) – Data the NCI collects outside of its normal product and service offerings because it deems it is important for its own purposes or critical for national monitoring and evaluation purposes. The indicators here are not closely tied to the IT platform products and services, but are preferably part of its design for data management purposes. The data
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here are collected at cost since a special effort and resources would be dedicated to source and enter the data.
E. PROJECT BUDGETING AND FINANCING
For the updated four-year budget, please see the annexed Four-Year Budget.
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For the updated Results Framework, see the annexed document.
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Annex 1
Organization/ project Organization/ project• National Council for Competitiveness and Innovation • Royal Scientific Society (RSS); Ministries
• Higher Council for Science and Technology (HCST) • Ministry of Planning and International Cooperation (MoPIC);
Relevant bodies within the HCST include:• Ministry of Higher Education and Scientific Research (MHESR) ;
• National Center for Human Resources Development (NCHRD)• Ministry of Information and Communication Technology (MICT);
• National Center for Research and Development• Ministry of Energy and Mineral Resources (including Renewable Energy
• National Center for Diabetes, Endocrine and Inherited Diseases (NCDID) Fund) (MEMR);• National Fund for Enterprise Support (NAFES) • Ministry of Health;• Industrial Research and Development Fund (IRDF) • Ministry of Environment;• iPark • Ministry of Finance;HCST-affiliated research centres include: • Ministry of Industry and Trade;
• National Center for Human Resources Development (NCHRD);• Ministry of Agriculture (including National Center for Agricultural Research
• National Center for Research and Development; and Extension; NCARE).• National Center for Diabetes, Endocrine and Inherited Diseases (NCDID) • Ministry of Education (MoE);• Support to Research and Technology Development (STRD), an EU-funded
• Ministry of Information and Communication Technology (MICT);• Ministry of Energy and Mineral Resources (including Renewable Energy
• Innovation service providers Fund) (MEMR);• Technical advisory centres (university based); • Ministry of Health;• El Hassan Science City (EHSC)—incorporating PSUT, RSS and EHBP; • Ministry of Environment;• Scientific Research Support Fund (SRSF) • Ministry of Finance;• Industry and professional associations • Ministry of Industry and Trade;
• Jordan Chamber of Commerce;• Ministry of Agriculture (including National Center for Agricultural Research
• Jordan Chamber of Industry; and Extension; NCARE).• Information Technology Association of Jordan (Int@j); Incubating Institutions / Technology Parks • Jordan Engineers Association (JEA); • iPark• Jordan Medical Association • El Hassan Business Park• Business Development Centre (BDC) • Robotics and Intelligent Automation• Bedaya Angel Network Innovation Centre (RIAIC, JUST)• Queen Rania Centre for Entrepreneurship (QRCE) • JIC University of Jordan - Agro-Industry• Intellectual Property Commercialisation Office (IPCO) Business Incubator• Jordan Innovation Centres Network (JIC) • Al Urdonia Lil Ebda - • Jordan Technology Transfer Offices Network (JTTON) • Information Technology Association of Jordan (Int@j)Private endowment & donor agencies: • Jordan Enterprise Development Corporation (JEDCO)
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• Swiss Corporation for Development and Cooperation (SDC) • Jordan Chamber of Commerce• German Agency for Technical Cooperation (GIZ) – primarily water projects • Jordan Chamber of IndustryInternational funding E.g.: • Jordan Engineers Association• USAID – Jordan • Oasis 500• EU – including the SRTD • Jordan Industrial Estates Corporation
• JICA – supporting NAFES.Network offices within the Jordan TechnologyTransfer Offices Network:
Intellectual Property Commercialisation Office (IPCO) at El Hassan Business Park.
• King Abdullah II Design and Development Bureau (KADDB)
Research TTOs • Jordan Enterprise Development Corporation(JEDCO)• University of Jordan • Yarmouk University• Jordan University for Science and Technology • Jarash Private University• Yarmouk University • Mu’tah University
• Mut’ah University• University of Jordan – E.g. Hamdi Mango Center for Scientific Research (HMCSR)
• Jerash University – National Centre for Agricultural Research and Extension Business TTOs • Jordan Enterprise Development Corporation • Amman Chamber of Industry • Jordan Industrial Estates Corporation • King Abdullah II Design &Development Bureau • Al Urdonia Lil Ebda
USAID’s Jordan Competitiveness Program:The Jordan Competitiveness Program (JCP), supports Jordanian private and public sector leaders to achieve competitiveness and job creation goals based on real growth drivers responding to market demand and capitalizing on existing factors. The program will specialize in growth drivers such as information and communications technology, by ramping up capacity in renewable energy, and improving standards for low-cost, high-quality medical services.4
European Union’s Support to Research and Technological Development and Innovation Initiatives in Jordan (SRTD II) program: The project aims to increase Jordan’s scientific and technological capacity by fostering research and innovation linked to private sector and by accelerating the Kingdom’s integration into the European Research Area. The Higher Council for Science and Technology (HCST) and Jordan Enterprise Development Corporation (JEDCO) are co-funding some of the activities implemented by the project.
The World Bank Group’s Country Partnership Strategy (CPS) for FY12-FY15: The strategy is designed to help lay the foundation for sustainable growth and job creation through a three-pronged approach:(i) strengthen fiscal management and increase
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accountability; (ii) strengthen the foundation for sustainable growth with a focus on competitiveness through supporting priority infrastructure, leveraging private sector investment, supporting improvements in the business environment, and supporting education and skills development; and (iii) enhance inclusion through social protection and local development by assisting the Government in better targeting its social assistance and subsidies to the poor and vulnerable, implementing the new Social Security Law and building local authorities while preserving local economic and social assets. 5
The Intellectual Property Commercialization Office (IPCO) The Intellectual Property Commercialization Office (IPCO) in El Hassan Business Park is a central Technology Transfer Office which works at enhancing the outreach between business and universities. IPCO’s goal has been to stimulate researchers and inventors in Jordanian universities and research centers to invest in their ideas by turning them into commercial projects that will ultimately benefit the national economy. To date, IPCO has received 75 research ideas and has transformed 15 into registered patents. The office has provided technical assistance in IP consultation, patent drafting and technology licensing to different organizations. The Hashemite Kingdom of Jordan has also initiated several investments in furthering the innovation system development including but not limited to:King Abdullah II Fund for Development: A key programmatic focus is Oasis500. Oasis500 is a dynamic initiative that aims a accelerating the development of entrepreneurial ideas in ICT, mobile, and digital media. It aspires to establish viable businesses in Jordan, and ultimately in the MENA region. Oasis500’s goal is to create 500 companies in the next 5 years. Its startups’ acceleration cycle gives entrepreneurs the chance to participate in a unique developmental program that starts with an intensive training boot camp. After that, selected entrepreneurs will be eligible for several stages of funding. These entrepreneurs will be trained and mentored in the Oasis500 offices by industry leaders both locally and internationally (especially from Silicon Valley). iPark and Queen Rania Center for Entrepreneurship:iPark specializes in enabling and accelerating the growth of start-up technology companies through incubation facilities, entrepreneurship programs in partnership with the Queen Rania Center for Entrepreneurship, commercialization and intellectual property services, and connection to finance through the Bedaya Business Angel Network.
5 “International Bank for Reconstruction and Development and International Finance Corporation Country Partnership Strategy for the Hashemite Kingdom of Jordan FY12-FY15”
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Annex 2Members of the National Council for Competitiveness and Innovation
Ministerial MembersMinister of Planning and International CooperationMinister of LabourMinister of Tourism and AntiquitiesMinister of TransportMinister of Communication and Information TechnologyMinister of Industry, Trade and SuppliesMinister of Higher Education and ResearchMinister of FinanceSocial Securities CorporationNon-Ministerial Members
SectorMember/ Representative
Business Sector
Jordan chamber of Industry
Jordan Forum Business and professional WomenCivil Society Organization JordanJordan Chamber of Commerce
Large -scale Industry SectorNuqul GroupSmall scale Industry SectorNational Stationary Industries
IT SectorIntaj
Extensya CompanyPharmaceutical SectorHikma PharmaceuticalHealth SectorPrivate Hospital AssociationTextile and Apparel SectorJordan textile and apparel export associationFinancial SectorBanking AssociationTransport SectorJordan National Shipping LinesRenewable Energy SectorQawar GroupTourism SectorJordan Hotel Association
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