Role of Universities in Developing Countries Ulrich Schmoch ulrich.schmoch@isi.fraunhofer.de Fraunhofer ISI Institute Systems and Innovation Research
Background of the presentation Participation in a multi country study on the role of universities in developing countries UniDev project: Lead by the University of Lund, Sweden Project commissioned by SIDA (Swedish development agency) Detailed documentation of activities on http://developinguniversities.blogsome.com Ulrich Schmoch, Fraunhofer ISI 2
Different types of developing countries Least developed countries Less developed countries Catch-up countries (Newly industrialised countries Countries with capitalist background Countries with communist/socialist background => Different strategies necessary Ulrich Schmoch, Fraunhofer ISI 3
Traditional concepts of competitive advantage Advanced industrialised countries strong in capital and technology Strengths of developing countries: raw materials, cheap labour force Ulrich Schmoch, Fraunhofer ISI 4
Traditional concepts of economic development of less advanced countries Improved production of agrarian goods Improved yield of raw material Substitution of import goods Diversification of export goods Export of cheap lowtech goods Ulrich Schmoch, Fraunhofer ISI 5
Terms of trade 16 15 14 13 Index 12 11 Less/least dpd ctrs Catch-up ctrs Advanced ctrs 1 9 8 198 1985 199 1995 2 25 Year Source: UNCTAD statistics Ulrich Schmoch, Fraunhofer ISI 6
Observation of the last decades Growing number of catch-up countries: Mexico, Brazil, Turkey, Egypt, South Africa, Taiwan, India, China, South Korea, Singapore, Poland, Romania etc. Ulrich Schmoch, Fraunhofer ISI 7
Pattern of industrialization, the German example in the 19s century Acquisition of base funds through raw material export etc. Systematic imitation of advanced technology (in the UK) in small segments Entrance in world market with cheap technology-based products Reaching the technological break-even point Development of own new hightech products Enlargement of the technology segments Ulrich Schmoch, Fraunhofer ISI 8
Similar strategies of other countries Japan South Korea Taiwan China etc. Literature on "Flying geese" phenomenon Japan Ulrich Schmoch, Fraunhofer ISI 9
The technology option Generating start income by agrarian goods, raw materials, and lowtech goods Long-term investment in knowledge Entrance in hightech fields Typical development of standard indicators Growth of publications Growth of international patents with substantial delay Ulrich Schmoch, Fraunhofer ISI 1
Different stages, different strategies Seven examples for illustrating different levels of development in terms of SCI publications and international patents (PCT) The examples show that the technology option is not appropriate for all countries Ulrich Schmoch, Fraunhofer ISI 11
1 st example: South Korea 3 6 25 5 2 4 15 3 1 2 5 1 9 91 92 93 94 95 96 97 98 99 1 2 3 4 5 Year Ulrich Schmoch, Fraunhofer ISI 12
2 nd example: Brazil 18 4 16 35 14 12 3 25 1 8 6 4 2 15 1 2 5 9 91 92 93 94 95 96 97 98 99 1 2 3 4 5 Year Ulrich Schmoch, Fraunhofer ISI 13
3 rd example: Egypt 35 35 3 3 25 25 2 15 2 15 1 1 5 5 9 91 92 93 94 95 96 97 98 99 1 2 3 4 5 Year Ulrich Schmoch, Fraunhofer ISI 14
4 th example: Malaysia 18 1 16 9 14 12 8 7 1 8 6 5 4 6 3 4 2 2 1 9 91 92 93 94 95 96 97 98 99 1 2 3 4 5 Year Ulrich Schmoch, Fraunhofer ISI 15
5 th example: Kenya 7 12 6 1 5 8 4 3 6 4 2 1 2 9 91 92 93 94 95 96 97 98 99 1 2 3 4 5 Year Ulrich Schmoch, Fraunhofer ISI 16
6 th example: Uruguay 5 14 45 4 35 12 1 3 25 2 8 6 15 4 1 5 2 9 91 92 93 94 95 96 97 98 99 1 2 3 4 5 Year Ulrich Schmoch, Fraunhofer ISI 17
7 th example: Niger 8 2 7 6 5 4 3 1 2 1 9 91 92 93 94 95 96 97 98 99 1 2 3 4 5 Year Ulrich Schmoch, Fraunhofer ISI 18
The investment in knowledge Shift of universities from pure basic fields and focus on social sciences and humanities to Applied fields in the natural sciences and engineering Problems of brain drain to advanced countries Problems of match between supply and demand for skilled labor force Nevertheless, investment in higher education necessary pre-requisite for further development Ulrich Schmoch, Fraunhofer ISI 19
The traditional basic needs option Basic needs option still favored by the development aid of advanced countries This option aims at - Medical care - Basic food supply - Water supply - Energy supply Advice by "experts" from advanced countries Ulrich Schmoch, Fraunhofer ISI 2
The enhanced university option, 1 st and 2 nd mission Change of orientation of teaching (1 st mission) Orientation of research on urgent domestic problems - Food, agriculture - Health - Energy - Water - etc. Ulrich Schmoch, Fraunhofer ISI 21
The enhanced university option, 3 rd mission University activities in - Legal advice - Medical care - Regional planning - Policy advice (in economics, nation building, e.g., integration of minorities etc.) Advice by domestic experts with knowledge of the specific features of their country and the possibility of long-term monitoring of the effects of specific measures Ulrich Schmoch, Fraunhofer ISI 22
Problem of late catch-up countries Competition with other catch-up countries, in particular China, in the low-wage sector Example: South Africa in competition with China in textiles Good source: Raphael Kaplinsky: Globalization, poverty and inequality, 25. Ulrich Schmoch, Fraunhofer ISI 23
Conclusions Universities have an important role for developing countries Universities should orient their 1 st and 2 nd mission activities on the needs of their country Even for less developed countries the research activities can be important For more advanced countries, the engagement in hightech is a realistic option A pre-requisite for the new university role is the dedicated support by the government Ulrich Schmoch, Fraunhofer ISI 24