Innovation, Competitiveness and Regional Integration
ASSESSING REGIONAL INTEGRATION IN AFRICA VII African Union
African Development Bank Group
Innovation, Competitiveness and Regional Integration
ASSESSING REGIONAL INTEGRATION IN AFRICA VII
To order copies of Assessing Regional Integration in Africa (ARIA VII): Innovation, Competitiveness and Regional Integration by the Economic Commission for Africa, please contact: Publications Economic Commission for Africa P.O. Box 3001 Addis Ababa, Ethiopia Tel: +251 11 544-9900 Fax: +251 11 551-4416 E-mail:
[email protected] Web: www.uneca.org © 2016 Economic Commission for Africa, African Union and African Development Bank Group Addis Ababa, Ethiopia All rights reserved First printing March 2016 Sales no.: E.16.II.K.1 ISBN: 978-92-1-125124-1 eISBN: 978-92-1-057903-2 Material in this publication may be freely quoted or reprinted. Acknowledgement is requested, together with a copy of the publication. Designed and printed in Addis Ababa, Ethiopia by the ECA Printing and Publishing Unit. ISO 14001:2004 certified Printed on CF (Chlorine Free Paper) The designations employed in this publication and the material presented in it do not imply the expression of any opinion whatsoever on the part of the African Development Bank, the African Union Commission or the Secretariat of the United Nations Economic Commission for Africa concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. ii
Table of Contents Acknowledgements vii Foreword ix Summary, Key Messages and Policy Recommendations Report structure Key messages Policy recommendations Chapter 1: Introduction
1 2 2 7 11
Chapter 2: Status of Regional Integration in Africa 13 Trade integration 13 Economic trends 25 Financial integration 25 Free movement of persons and the right of establishment 27 Infrastructure integration 28 Peace and security 40 References 41 Chapter 3: Regional Integration, Innovation and Competitiveness: A Theoretical Framework and Empirical Highlights 45 Conceptually linking regional integration, innovation and competitiveness 45 Revisiting innovation and competitiveness as concepts 48 Africa’s innovation and competitiveness performance 51 African countries need innovation-driven growth models 56 References 58 Chapter 4: Innovation and the Global Regulatory Regime for Intellectual Property 61 IP: Concepts and dilemmas 61 Overview of the global intellectual property regime 62 Preserving intellectual property policy space in key economic and social sectors 66 African initiatives for intellectual property rule-making 69 Conclusions and policy messages 77 Annex 4.1. Status of subscription by African countries to multilateral intellectual property treaties 78 References 80 Chapter 5: Africa’s Science, Technology and Innovation Policies—National, Regional and Continental 83 Concept and rationale 83 African experience of science, technology and innovation policies 85 STI policy performance—not so impressive 93 Science, technology and innovation key policy messages 96 Annex 5.1. Objectives, priorities and M&E frameworks of African national science, technology and innovation policies 98 References 103 iii
Chapter 6: Lessons from India and Association of Southeast Asian Nations 105 Indian case study 105 Association of Southeast Asian Nations case study 113 References 121 Notes 122
Boxes Box 2.1: Box 2.2. : Box 2.3.: Box 2.4.: Box 2.5.: Box 2.6.: Box 2.7.: Box 2.8.: Box 4.1.: Box 4.2.: Box 4.3.: Box 4.3.: Box 4.4.: Box 4.5.: Box 5.1.: Box 5.2.: Box 6.1.: Box 6.2.: Box 6.3.:
The Tripartite Free Trade Area Agreement Innovative approaches to financing infrastructure projects The Grand Ethiopian Renaissance Dam Cooperation to reduce roaming charges The United States Power Africa Initiative Mining in EAC The Africa Mining Vision Mintek’s role in R&D The Doha Declaration on the TRIPS Agreement and Public Health Traditional knowledge African Regional Intellectual Property Organization and Organization Africaine de la Propriété Intellectuelle African Regional Intellectual Property Organization and Organization Africaine de la Propriété Intellectuelle (continued) REC policies: COMESA and SADC Mercantilist patent filing Industrial research institutes Pan African Rinderpest Campaign Some frugal Indian innovations Harnessing traditional knowledge in pharmaceutical innovation India diaspora contributions to science, technology and innovation
14 30 34 35 37 38 39 40 71 72 73 74 75 76 88 90 108 111 112
Figures Figure 2.1. : Figure 2.2.: Figure 2.3. : Figure 2.4. : Figure 3.1.: Figure 3.2.: Figure 3.3.: iv
Intra-African exports as a share of GDP, including re-exports, 2013 Intra-African imports as a share of GDP, including re-exports, 2013 Intra-regional imports as a share of regional GDP, 2013 Intra-African outward direct investment flows, latest year ($ million) Global Innovation Index scores in 2014—top 10 and bottom 10 Country scores on Competitive Industrial Performance Index, 2013 Country scores of Global Competitiveness Index, 2014–2015
18 18 19 26 52 54 55
Figure 3.4.:
Comparative growth rates of selected country groupings (at constant 2005 prices and exchange rates) 56 Figure 3.5.: Growth of Africa’s exports, 1997–2014 56 Figure 5.1.: Science, technology, and innovation policies classified by coverage 84 Figure 5.2.: STI policies classified by jurisdiction 85 Figure 5.3.: STI policy adoption in 15 African countries since the Lagos Programme of Action 86 Figure 5.4.: Science, technology and innovation administration system in most countries 88 Figure 5.5.: Top 12 African countries by number of United States Patent and Trademark Office patents, 2001–2014 94 Figure 5.6.: Africa in global intellectual property performance Figure 5.7.: Indicative distribution of science, technology and innovation efforts to develop competitive domestic innovative capacities 97 Figure 6.1.: Growth in tertiary education enrolment ratio, 2000–2013 107 Figure 6.2.: Distribution of postgraduate enrolment by field, 2012 107 Figure 6.3.: R&D expenditure as a share of GDP (per cent) 109 Figure 6.4.: Key measures of R&D in India 109 Figure 6.6.: High-technology exports share of manufactured exports (per cent), 2012 119 Figure 6.7.: Royalties and licence fees, 2003 to 2013 ($ million) 120
Tables Table 2.1. : Table 2.2. : Table 2.3. : Table 2.4.: Table 2.5.: Table 2.6.: Table 2.7.: Table 3.1.: Table 3.2.: Table 4.1.: Table 4.2.: Table 5.1.: Table 5.2.: Table 5.3.: Table 5.4.: Table 6.1.: Table 6.2.: Table 6.3.: Table 6.4.:
Transport facilitation measures undertaken by regional economic communities 22 African banks in multiple African countries, 2013 26 Measures on free movement of persons by regional economic community 27 Growth rate of Africa’s road network 32 Improvement in Africa’s road density 32 Improvement in paved roads 32 Top investors in Africa’s infrastructure, 2013 36 Basic characterizations of innovation 49 Key linkages between competitiveness, innovation and sustainable economic growth— four groups of theories 50 The WIPO regime 65 Overview of intellectual property proposals involving African countries 70 Institutional arrangements and legal and regulatory frameworks of national science, technology and innovation policies in 15 African countries 87 STI financing arrangements and goals for 13 African countries96 90 Quacquarelli Symonds ranking of African universities in 2015–2016 94 Change in total factor productivity, 1995–2010 (per cent) 96 All-India growth of universities and colleges, 1947–2010 106 Evolution of India’s science, technology and innovation policy frameworks 108 Key measures of R&D in India 110 India’s intellectual property applications, 2012–2013 110 v
Table 6.6.: Table 6.7.: Table 6.8.: Table 6.9.:
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Overview of Association of Southeast Asian Nations’ main intellectual property cooperation initiatives Association of Southeast Asian Nations countries’ global knowledge economy rankings, 2000 and 2012 Association of Southeast Asian Nations’ tertiary education enrolment, 2003–2013 Selected intellectual property generation indicators in The Association of Southeast Asian Nations, 2007 and 2013
115 116 117 119
Acknowledgements
The seventh edition of Assessing Regional Integration in Africa is a joint publication of the Economic Commission for Africa (ECA), the African Union Commission (AUC) and the African Development Bank (AfDB). The report was prepared under the overall leadership of Carlos Lopes, ECA’s Executive Secretary, Nkosazana Dlamini Zuma, AUC’s Chairperson, and Akinwumi Adesina, AfDB’s President.
useful comments and suggestions: Batanai Chikwene, Monica Idinoba and Etim Offiong (AUC); Calvin Manduna, Gerald Ajumbo, Patrick Kanyimbo and Jean-Guy Afrika (AfDB); Laura Paez and Joy Kategekwa (UNCTAD); Umar Bindir (National Office for Technology Acquisition and Promotion, Nigeria); and Seydou Sacko (ECOWAS). Staff in various divisions and subregional offices of ECA also contributed comments and insights.
At ECA, the work was guided by Abdalla Hamdok, Deputy Executive Secretary and Chief Economist, Stephen Karingi, Director Regional Integration and Trade Division, and Fatima Denton, Director Special Initiatives Division.
Professor Francis Matambalya of Leipzig University served as general consultant. Haimanot Assefa, Eden Lakew and Hidat Mebratu provided administrative support.
The core team for the preparation of the report was led by David Luke, Coordinator African Trade Policy Centre at ECA in collaboration with Kasirim Nwuke, Chief, New Technologies and Innovations Section and included Joseph Atta Mensah, Giovanni Valensisi, William Davis, Simon Mevel, Jane Karonga, Robert Lisinge, Anthony Mehlwana, Daniel Tanoe, Isabelle Gebretensaye, Victor Konde, Mactar Seck, Louis Lubango, Tsega Belai, Fitun Solomon, Mahlet Girma, Rose Mwebaza, Charles Akong, Marit Kitaw, Maja Reinholdsson and Hanife Cakici. Background papers were received from Mia Mikic and Teemu Puutio (UNESCAP), Nirmalya Syam and Viviana Tellez (South Centre, Geneva), Gayatri Kanth (Consultant, Geneva) and Sari Laaksonen (Consultant, Helsinki). The following served as peer reviewers and provided
Staff of the ECA Publications Section, in particular Charles Ndungu, Teshome Yohannes, Ferdos Issa, Henock Legesse and Robel Tsegaye provided useful logistics and oversight support in the translation, printing, distribution and lay out of the report. Isabel Chaves de Oliveira quality-controlled the French translation. Bruce Ross-Larson and his team from Communications Development Incorporated, in Washington, D.C., provided infographics and professionally edited the report. Finally, Harun Salah and his team from Prime Production Limited, London, Uk, translated the report from English into French.
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