Mr Chairman, Honourable Chief Guest, Dr. Pius Ng´wandu, Minister of Science, Technology & Higher EducationDistinguished Participants and Invitees to this Conference,Ladies and Gentlemen
I am honoured and pleased to be given this opportunity to address this distinguished audience at the opening of the Regional Conference on Innovation Systems and Innovative Clusters in Africa held here in the historic town of Bagamoyo. It’s not only because Sweden through Sida/Sarec is sponsoring this Conference and is supporting a well-established research cooperation with the University of Dar es Salaam in the field of engineering. It is also because Sweden for many years has supported Private Sector and Industrial Development in several African countries including Tanzania. Furthermore our own economic and industrial development in Sweden and Europe is increasingly dependent on research and development producing innovations that are then turned into marketable products and services. Innovations are important to us and to our continued economic development. It is therefore quite natural for Sweden to assist its cooperation development partners in Africa like Tanzania, Mozambique and Uganda in making financial resources available for research and Industrial Development. We are pleased to be associated with this Regional Conference and we are also pleased to be able to share with you some experiences we have gained over the years. I am particularly glad to note the presence of five Swedish participants in this Conference. They are: Mr. Tomas Kjellqvist from Sida/Sarec, Dr. Lennart Bångens from the Technical University of Chalmers in Gothenburg, Prof. Lena Trojer from the Technical University of Blekinge, Prof.. Samuel Henningsson who is a member of the Research Board of Sida/Sarec and Mr Erik von Bahr from the Swedish Agency for Innovation Systems – VINNOVA. This Agency – VINNOVA – is contributing to the Conference with lecturers and an expert on Innovation Systems for Sustainable Growth.
Concepts like “the new economy”, the “learning society”, the “information society” and the “knowledge-based economy” are commonly used to demonstrate that something more than capital and labour is needed for the economy to grow. We observe that in most of the successful economies the traditional determinants like capital and labour explain less and less of the variation of economic performance. Services are becoming more and more important in these economies. There are also disturbing trends, such as a tendency towards more divergence and less convergence in growth across countries, coupled with increasing income differences within countries. We also see crisis in international governance structures, most clearly manifested in failures in multilateral trade negotiations. It is difficult to assess the economic and social significance of these developments.
In spite of noted disappointments and mistaken perceptions, there is little doubt that in the future growth and prosperity of countries and regions will increasingly and crucially depend on the ability of their citizens, companies and institutions to generate, access and utilize knowledge and information.
There is a long list of factors or forces that influence development in the new economy; ICT, whose production and use constitutes a pervasive driving force for productivity growth across a widening range of economic activities. But ICT in itself cannot explain the ongoing changes and patterns in growth dynamics. Among other fundamental driving forces we take note of the intertwined influence of liberalisation, globalisation and technical progress. Intensified investment in human capital and learning processes represent another key factor, where the quantity of education appears to mean less and less while the quality of life-long learning – and the use of skills – increasingly appears to make a crucial difference.
The list does not end here. Management of natural resources and of the environment and of social development such as those associated with the age structure of the population matter for productivity and growth. However, the key importance of yet another factor is that of organizational change. The concern is not about organisation change in isolation, but as a crucial determinant for the way in which societies as well as organisations and individuals are able to meet with the opportunities and challenges represented by the other noted factors. The significance of adjustment with regard to the growing potential of continuous human interactions, which is related to communication, technological management, learning and innovation, has to be underlined. It is in this context that cluster concepts, cluster initiatives and cluster policies shall be looked at.
I am convinced that this Conference will lead to increased knowledge and awareness of Innovation Systems and Innovative Clusters and the importance of close cooperation between government institutions, the business sector and research in an African environment in order to promote a sustainable economic development. I am sure the Conference will identify important policy directions on how to achieve this at local, national and regional level. .
Before concluding I would like to make a general reflection not only based on African realities. An excellent research environment with strong research capacity and with perfect policies in place is not enough for commercialization of products and services if the entrepreneurial climate is not favourable.
How can the entrepreneurial climate then be improved? One tool which is the topic of this Conference is Clusters. More fundamental measures also need to be taken by Governments in order to encourage and actively support the development of an entrepreneurial or business sector. This development process has to involve Government Institutions, the Private Sector, Universities and other important stakeholders. In many countries due to historic reasons, it is somewhat of a cultural revolution that is needed.
Through its development cooperation programmes in various developing countries, Sweden is actively supporting these changes through for example Private Sector Development Programmes. In Tanzania, Sweden - partially together with other donors - is providing support to Business Environment Strengthening, Financial Sector Support, Trade Related Technical Support and Building Capacity in Quality Infrastructure.
Through “Gateway East Africa”, which is a partnership agreement between East African Business Council (EABC) and the International Council of Swedish Industry (NIR), private sector development is supported through commercial cooperation between companies in East Africa and Sweden.
Growing Sustainable Business Initiative (GSB) has grown out of the United Nations Global Compact policy dialogue. This is supported by the Swedish Government and aims to facilitate and increase investments and business activities in the Least Developed Countries through capacity development and growth of small and medium sized enterprises. Within this Initiative two major enterprises with strong Swedish connections – Ericsson and ABB – are presently and actively engaged in trying to develop suitable business models for expanded engagement in Tanzania. Development Cooperation and the global commitment to reach the Global Millennium Goals is something that concerns all of us including the business sector and large trans national companies.
Let me conclude by wishing you and the Conference every success.
Thank you for your attention