Creating opportunities for bright people, the way forward - WIPO expert

Interview with Dr. Wunsch-Vincent of WIPO

Sri Lanka is moving up in the rankings of the Global Innovation Index helped by government and private sector initiatives and recognition of the importance of an innovation system.

The island, however, still lags behind some of its more dynamic neighbours in South Asia. The scientific community plays a key role in making innovation a strategic priority.

Visiting Sri Lanka recently to take part in this initiative was Dr. Sacha Wunsch-Vincent, Senior Economic Officer at the Office of the Chief Economist of the World Intellectual Property Organization (WIPO) in Geneva and in charge of the Global Innovation Index.

In this interview, Wunsch-Vincent, who earlier was an economist at the OECD Directorate for Science, Technology, and Industry, discusses how well-designed policies and initiatives can help the country use its creative talent to drive economic growth.

Excerpts:

Question: What was agreed during your talks in Colombo? Is there a blue print for future action?

Answer: The deliberations were impressive both in terms of high-level attendance with Ministers and the quality of the discussions. The blueprint has three components:

First, Sri Lanka - through COSTI (Coordinating Secretariat for Science, Technology and Innovation) - will formulate ten follow-up innovation policy actions which respond to some of the issues raise at the meeting. It was agreed that having clear policies which are executed and monitored closely is key.

Second, Sri Lanka will work with WIPO in the context of the IP Hub Project to align the use of intellectual property to domestic innovation policy needs.

Third, Sri Lanka will work with WIPO to further improve the quantitative monitoring of domestic innovation via the Global Innovation Index, and via the Sri Lanka Innovation Index.

Q: The Sri Lankan government has given a 300% tax rebate for private sector R&D. But anecdotal evidence suggests this is underused. Do you know why?

A: The Sri Lankan government is right in prioritizing private sector research. Ultimately, the private sector is the driver of innovation. Giving R&D tax credits as indicated is a potentially powerful tool to incentivize firms to conduct research. It also helps connect firms, scientists, research institutes and entrepreneurs to form a sound innovation system.

That said, monetary incentives as such are often not enough to spur firms to conduct R&D and innovation. Often firms first need to develop the skills and the mindset to be active in this field. It takes more than a financial incentive to develop the innovation capacity and culture of firms. This is something that we observe in most developing and developed countries in the world alike.

Q: Many Sri Lankan scientists/engineers have excelled abroad and own patents or work for some of the world's top R&D outfits. How can Sri Lanka tap this resource?

A: It is true that some of the brightest minds one meets in Boston, Geneva, London, Paris or elsewhere are from Sri Lanka. Our patent data at WIPO also shows that this important number of Sri Lankans abroad are quite active in filing patents, mostly in the US and Europe but also now in Australia or China.

Ensuring that top talent remains in Sri Lanka or that Sri Lankans abroad are mobilized to 'give back' to the country is important. Creating opportunities for bright people at home and outside of government, either in start-ups or in successful private firms, is the way forward.

Let me give an example: I met many female chemical engineers during my visit to Sri Lanka, who - instead of working in research in private firms - were working for bureaucracies outside their field of research.

This is a true loss. For example, countries such as Germany struggle to produce enough chemical engineers, in particular women, to satisfy the high demand. The best PhDs and MBAs students should be incentivized to work in the private sector and in their R&D or innovation labs, also incentivized via university-corporate R&D partnerships.

Another important activity which worked in other countries is to involve the diaspora in the domestic innovation policy formulation and the domestic innovation system.

This usually happens by associating top researchers abroad to local R&D or innovation projects, e.g. via 2-3 week teaching or research assignments, or by asking them to head a particular research effort while dividing their time between their foreign and local assignments, as is the case with SLINTEC (Sri Lanka Institute of Nanotechnology).

You could also try bringing top scientists and innovators who reside abroad together for a networking meeting in Sri Lanka, a move that has been successful in other countries. I understand that this type of foreign inventor meeting is foreseen in Sri Lanka soon, an important step in an excellent direction.

Q: Does Sri Lanka have the necessary infrastructure/market opportunities to be effective in new science and technology initiatives like nano and bio-technology? What opportunities do you see in 'traditional' sectors such as tea, rubber and coconut?

A: First let me say that Sri Lanka has important potential in high-tech initiatives such as the above. I have visited SLINTEC and was impressed by the infrastructure and related opportunities.

That said, countries of the scale of Sri Lanka often need to focus on developing core competencies and innovation niches to succeed. This often entails leveraging existing domestic strengths, 'domestic riches' as I call them. Traditional sectors should not be neglected in that respect. They need to be scaled up with a focus on innovation, value-addition and proper branding where possible.

I am convinced that this is an important and still rather untapped opportunity for Sri Lanka. I gave coconut oil as an example during the various discussions. This is a high value and expensive product in Europe, for instance, used in fine cooking with woks. The question is how Sri Lanka can secure a higher share of the value-addition process, to increase the cut it gets from the high price paid for this product by European consumers, for example. Coconut milk, as a drink, is another example - a rather trendy, healthy and expensive product in Europe.

Q: Attitude seems to be a key constraint in encouraging innovation in Sri Lanka, with a preference for 'traditional' professions/qualifications such as medicine and engineering. From your experience, how have other countries overcome such constraints?

A: This is an argument that I have heard several times in Sri Lanka and in other countries. The focus on trying to make young people either medical doctors, engineers or government officials often does not help in obtaining creative and entrepreneurial, risk-taking individuals needed for dynamic innovation systems.

This needs a change in cultural attitude in countries and often also a change in the educational system. In other countries I have seen innovation prizes being successfully introduced at the primary or secondary level, or activities and classes which instill the value of innovation and entrepreneurial activity.

Placing emphasis on developing the correct business administration skills, including finance and marketing, also matters.

Q: How can the presence of foreign multinational corporations in Sri Lanka help government and private sector R&D initiatives?

A: This component is critical to the development of any sound innovation system, openness to trade, foreign direct investment and the absorption of foreign technology.

In most countries I know, foreign MNCs play a critical role in the diffusion of technology, and developing the innovation capacity of domestic firms. Again Sri Lanka has much potential in this regard, as foreign direct investment and the presence of foreign MNCs is still incipient, both in traditional and in new sectors.

Q: SLINTEC is undoubtedly a success story. But won't so much resources and attention given to a new outfit risk neglecting existing research institutes such as the Tea Research Institute and the Rubber Research Institute?

A: I agree. SLINTEC is an important and impressive initiative which should continue to receive high-level attention and its excellent management. At the same time, not all eggs should be put in one basket.

One should also avoid putting too much expectations and pressure on one initiative alone. One risks disappointment later.

In addition, more attention needs to be given to research institutes in traditional sectors as outlined above. It is not only about financial resources. It is also about developing innovation attitudes, skills and making these sectors and research institutes strategic innovation priorities, and involving not only the right individuals and scientists but also management, business and marketing executives in these sectors. Imagine putting a few brilliant MBAs on the business case of increasing the value-addition and branding in the Sri Lankan coconut sector!

Finally these are not necessarily competing priorities, nanotech versus tea or rubber. They are complementary, and often resources come from the private sector.

Q: Innovation has become a buzzword today but it is not something new. Why is there so much emphasis on it? Government and bureaucratic involvement can be counter-productive (although there's a need for co-ordination and avoiding duplication)?

A: Yes, that is an issue that we see in many countries. There is a danger that multiple government actions and policies are unable to kick-start dynamic organic innovation systems, and that they rather add layers of bureaucracy without incentivizing private actors to innovate. Finding the right approach is not easy. Rather, governments today, need to walk a careful balance between providing strategic support and overcoming market failures, while avoiding becoming the sole actor and 'orchestrator' of innovation. It is clearly firms which should be in the driving seat of innovation.

In terms of policies, the correct execution, coordination and evaluation of innovation policies is challenging in all countries. This is an area of priority for Sri Lanka now.

Overall, given the strong innovation capacities and the bright Sri Lankan minds, there is a historic chance for innovation and economic growth to take-off in Sri Lanka. Our visits confirmed this optimistic view and we at WIPO look forward to support Sri Lanka in this important endeavour.