From Armenia to Zambia, Most of World Embracing Innovation

It may not be getting much attention from the White House or Congress, but encouraging innovation and technology-based economic development through coordinated national strategies and initiatives is very much on the legislative agenda of many other countries around the world. Recent highlights from the past few weeks include (all dollar figures are for U.S. equivalencies):

Armenia

A Nov. 26 press statement by the Arminfo News Agency reports the Armenian Ministry of Trade and Economic Development is working on enabling legislation to authorize several programs to support the financing of "commercial directions for science." The main emphasis of the draft - to be considered by the legislature this year and included in the FY 2006 budget request - is to support research in key technologies such as physics, radio physics and biotechnology; create a technology transfer system; and establish scientific technoparks.

Brazil

Last month, the Senate approved legislation authorizing incentives to encourage research and innovation through public-private partnerships, reports Gazeta Mercantil Online. The legislation, however, did not specify what incentives were approved. Once he has signed the bill, President Luiz Inacio Lula da Silva will have 120 days to submit details for the fiscal incentives his administration would like to implement to stimulate the development of cooperative projects between domestic companies, public entities devoted to scientific and technological research, and private nonprofit organizations.

China

The Chinese government is planning to set up a venture capital fund of 1 billion yuan ($122 million) a year to support Chinese fledging companies, according to the SinoCast China Business Daily News. China's Ministry of Finance will be responsible for providing capital for the fund, while the Ministry of Information Industry will allocate the fund. The Daily News reports the government has strongly supported investments in the domestic chip industry recently because China must import a great deal of expensive chip products to satisfy the increasing demands in computer markets and other sectors.

Republic of Korea

As part of the steps in building a knowledge-based industrial network between companies and universities, the Ministry of Commerce, Industry and Energy (MOCIE) will create cluster complexes within eight cities by 2008, the Korea Times recently reported. Under the plan, MOCIE will set up public research and development centers at each cluster corresponding to the unique characteristics of each region. The ministry expects the complexes to create 37,000 new jobs and $116.1 billion in exports by 2008, with the complexes housing medical equipment firms, optical product makers, high-end digital and electronics outfits, and a state-of-the-art machinery industry. The goal is to make "Korean versions of the Silicon Valley," according to the Times.

Pakistan

The Pakistani government recently announced the creation of three separate funds totaling $275 million to promote small business enterprises. Dr. Salman Shah, advisor to the Prime Minister of Finance, said the government has adopted a five-point economic strategy with small and medium enterprises as the focus of industrial development geared toward agriculture, industry, telecommunications and information technology services. The funds include an Asian Development Bank $75 million credit guarantee fund, Government of Pakistan $100 million business development fund, and a $100 million fund for technology, marketing information and innovation.

Singapore

To create 15 world-class biotech companies by 2010, the Singapore Economic Development Board (EDB) is focusing on attracting investors and talent through tax breaks, grants and other financial incentives, according to Voice of America News (VOA). In 2003, EDB opened Biopolis, a $300 million high-tech complex of research buildings with the capacity for 2,000 scientists. VOA reports at least six of world's largest pharma companies have opened facilities in the nation. However, venture capitalists and other investors are still wary about investing in this industry, potentially due to competition from India and its lower R&D costs, VOA states. To promote the industry, biotech companies have created BioSingapore, a networking association that offers investment propositions in which investors may see a return more quickly.

Taiwan

Bouyed by expectations of at least 6 percent growth for the Taiwanese economy in 2004, President Chen Shui-ban announced that genome-based biotechnological research will play a crucial role in advancing Taiwan in the field of life sciences research for the 21st Century, reports Asia Pulse. The opening of the Genomics Research Center will provide a technological platform for Taiwan's biotechnology industry, Chen said, and will help in developing Taiwan into the Asia-Pacific hub for biotech venture investment and research and development operations. The country has set a goal of attracting $4.54 billion in foreign investment in five years and launching 500 biotech firms by 2013.

In addition, the Department of Industrial Technology recently approved matching funding for 28 research and development programs proposed by small businesses. In accordance with the approved funds, small businesses expect to hire an additional 13,000 researchers in the field of innovation, which could be helpful in raising technological standards and industrial competitiveness and producing industrial upgrades.

Wales

Economic Development Minister Andrew Davies launched a new 10-year development strategy developed by the North Wales Economic Forum to improve the competitiveness and productivity of businesses, reports the Liverpool Daily Post. Objectives for the strategy include increasing the number of new companies in the region; boosting the number of high-growth start-ups; improving the competitiveness and productivity of existing firms; developing a world-class innovation support structure; and raising worker skills, particularly in the knowledge and technology sectors.

Zambia

Stressing the need for innovation in today's competitive marketplace, World Bank country representative Ohene Nyanin introduced an initiative to promote innovations into development for the African country of Zambia. According to the Times of Zambia, the initiative "Together, Turning Ideas into Action," will enable different development agencies and the private sector to interact with small and large non-governmental organizations, small and medium enterprises, faith-based organizations, academia, and the government to generate innovative development ideas. Similar efforts are being launched in Malawi and Zimbabwe.