Thursday 6 December 2012

OVERVIEW OF FOREIGN TECHNOLOGY TRANSFER EFFORTS IN NIGERIA (2000-2010): NOTAP’S PERSPECTIVE:


OVERVIEW OF FOREIGN TECHNOLOGY TRANSFER EFFORTS IN NIGERIA (2000-2010): NOTAP’S PERSPECTIVE:
By

Mr. Isaac M Nwaedozie
(Chief Technology Officer)
National Office for Technology Acquisition and Promotion (NOTAP)
(Federal Ministry of Science and Technology)
Federal Republic of Nigeria
Email:iscdz@yahoo.com

Being Paper Presented at an International Workshop on 



“SCIENCE  AND TECHNOLOGY DIPLOMACY FOR DEVELOPING COUNTRIES” ORGANISED BY CENTRE FOR SCIENCE AND TECHNOLOGY OF THE NON-ALLIED AND OTHER DEVEOPING COUNTRIES (NAM S&T CENTRE) TEHRAN-IRAN, 13-16 MAY, 2012,


 OUTLINE:
 Abstract
Introduction
Establishment of NOTAP’s/ Mandate
NOTAP Technology Transfer Efforts
Challenges
Observations
Recommendations
Conclusions
References


ABSTRACT
     Technology Transfer (TT) became the policy of the Nigeria state in 1983 with the establishment of the National Office for Industrial Property (NOIP) by Decree No 70 of 1979.Subsequently, amended by Decree 82 of 1992 leading to the change of name to National Office for Technology Acquisition and Promotion (NOTAP). In today’s knowledge based economy and globalized business environment ,absorption of new technology has become a vital component for companies to survive through maintaining their competitive position in the market place and for a nation state, technology capability is used as a tool to measure and equate national competitiveness. Ideas and knowledge are increasingly becoming an important factor in international trade relations as codified in the Trade Related Aspects of Intellectual Property (TRIPS) under the World Trade Organization (WTO) of which more than 60% of the developing countries are members. The rate of technology transfer is a function of many factors which varies from country to country. Nigeria’s attempt at developing the national economy in the 1970s, when crude oil was discovered focused on the establishment of infrastructure and industries utilizing assortment of foreign  technologies and these technologies many were  unsuitable and outdated. Technology Transfer is achieved  through the execution of project agreements between Nigerians and their foreign counterparts. These agreements are evaluated  in order to achieve equity, airplay and to be in conformity with the national socio-economic objectives. Approvals are based on net sales or lump sum as stipulated in the official  Guidelines implemented by NOTAP. Over dependence on foreign technologies for industrial production in Nigeria over many years is throwing a serious challenge to Nigeria’s development efforts. This paper would highlight the mandate of NOTAP in facilitation technology transfer in the last ten years. It would also note the prospects, achievements, and challenges to technology transfer and make recommendations as lessons for other developing countries.  

INTRODUCTION
Technology Transfer is the flow of applicable knowledge, skill, capability, expertise, equipment or facilities from one location to another within a specific time frame, it is closely linked to the process of industrialization.
In order words, it is a complicated process involving a matrix of cultural, socio-economic, environmental, IPRs, infrastructural, political, diplomatic  and other related factors.
There are two main dimensions of Technology Transfer Process:
Vertical :Countries of an unequal technological pedestal,(Nigeria and UK/USA/Germany/Japan)
Horizontal: Countries of equal technological pedestal (Nigeria and Ghana, Kenya)
Sectoral :From firm to firm within the country)
What is common in Nigeria is vertical patterns of technology transfer process.TT differs from Technology Acquisition(TA). In TT, the choice  and cost of technology is determined by the transferor
Major Stakeholders in TT Process:
Primary Stakeholder: The State which provides the enabling environment.
Organized Private Sector(OPS): They control the factors of production . 

The issue of technology transfer became the policy of the state in Nigeria in 1983 following the promulgation of Decree NO 70  of 1979  which established the National Office for Industrial Property(NOIP) and amended by Decree 83 of 1983 leading the change of name to National Office for Technology Acquisition and Promotion(NOTAP) inline  with the international obligations ,hence it changes its regulatory roles to developmental and promotional while endangering technology transfer and contributing  to national economic development

PRE NOTAP TECHNOLOGY TRANSFER ERA IN NIGERIA
Nigeria’s attempt at developing the national economy in the 70’s, when crude oil was discovered, focused mainly on the establishment of infrastructures and industries utilizing assortment of technologies. These technologies, many of which were unsuitable, outdated and obsolete and were sold at prices determined, in the majority of cases by the whims and caprices of the advanced countries under unfair contractual terms and conditions.
Nigerians lack the skill to negotiate technology transfer agreements for rapid development and therefore signed and executed technology agreements, which did not favour national interest
Such agreements contained monopoly pricing and restrictive business practices, ranging from export restrictions, discriminatory royalty rates, coercive packaging, and tie-in-clause, dealing with capital equipment, raw materials and components tied to the strings of the technology suppliers. 

Contracts were excessively long and sometimes of indefinite duration.  In addition, details of technology to be acquired were in most cases not properly stipulated in the agreement, products quantity, quality and standards were not clearly stated.  While guarantees, warranties and infringement penalties were not clearly defined in most contracts.
In most contracts, Research and Development wee non-existent while little or no attention was paid to the training of Nigerians staff, except statements of general nature, which were never implemented.  With time, it emerge that the indiscriminate import of technologies into Nigeria had resulted in high level financial out flow (capital fright), had led to haphazard patterns of development, had accentuated dependence on foreign inputs and had inhibited indigenous skill acquisition and development.
 That was the imperfect situation which characterizes the import of foreign technology into most African countries particularly, Nigeria.

ESTERBLISHMENT OF NOTAP

NOTAP formerly NOIP: Decree No 70 of 1979 .As a corporate body with a legal identity to implement the Acquisition, Promotion and Development of technology and at the same time correct certain imperfections in the acquisition of foreign technologies into the country.
In line with globalization and liberalization of the world economy, NOTAP has shifted its emphasis from regulatory and control to promotional and development roles. 
The new areas of focus are aimed at attracting foreign technologies and investment as well as emphasizing local manpower development with a view to strengthening local technological capabilities.

NOTAP MANDATES:
Encouragement of a more efficient process for the identification and selection of foreign technology
Development of the  negotiating skills of Nigerians with a view to ensuring the   acquisition of the best contractual terms and conditions by Nigerian parties entering into any contract or agreement for  transfer of foreign technology
Provision of a more efficient process for the adaptation of imported technology

Registration of all contracts or agreements having effects in Nigeria, on the date of the coming into force of this Decree, and of all contracts and agreements hereafter entered into, for transfer of foreign technology to Nigerian parties.

Monitoring on a continuous basis of the execution of any contract or agreement registered in  pursuant to the Decree No 70 of 1979.
Commercialization of R&D Results and Inventions
Promotion of locally generated technologies
Dissemination of technology information.

NOTAP’S VISION:

To “launch Nigeria into the realm of industrialized and developed nations by enhancing the level of industrial  and technological development through the development of indigenous technology capacity, commercialization of R&D inventions, and development of efficient process for the acquisition of foreign technology and promotion of intellectual property rights”.

NOTAP’S MISSION
To “ensure the acceleration of Nigeria’s drive towards a rapid technological revolution by an efficient assimilation/absorption of foreign technology and a concerted development of indigenous technological capability through a proactive commercialization and promotion of locally motivated technologies”

NOTAP CORE PROGRAMS:
Evaluation  and  Registration of Technology Transfer Agreements
Monitoring of Technology Transfer Agreements/Contracts
Promotion of and Dissemination of Technology Information in patent Documents
Patent agency
Commercialization of locally motivated R&D Results and Inventions
Localization of project Investment profiles
Collaborative efforts/linkages with private and public section institutions
Quarterly Publication of Technical Newsletters
Creating Intellectual property Right Awareness  nationwide
Patent extermination on R&D results from both public funded projects and private initiatives.
Establishment of technology data bank for researchers. 
Promotion of strong research-industry linkage. 

NOTAP TECHNOLOGY TRANSFER EFFORTS:
Evaluation of foreign technology transfer Agreements based on;
Legal
Economic
Technology Content
Approvals are based on net sales or lump sum and it ranges between 1-5% within the first three (3) years. 

MODES TT :
Importation of capital goods
Purchase of Intellectual Property (Patents, Trademarks, Know-How, Industrial Designs etc) 
Licensing
Joint Venture Partnership
Foreign Direct Investment Projects
Turnkey Projects arrangement
Franchising



TECHONOGY AGREEMENTS REGISTERED PER INDUSTRIAL SECTOR   (1999 – 2008)


COLLABORATION TYPES IN  TECHNOLOGY TRANSFER PROCESS:
Trademarks licenses
Patent license
Know-How license
Software license
Management services
Technical Assistance or Technical Services
Consultancy



IPRs TRADE: GLOBAL POLITICS OF SCIENCE  AND TECHNOLOGY
Ideas and knowledge are increasingly becoming an important factor in international trade relations as codified in the Trade Related Aspects of Intellectual Property (TRIPS) under the World Trade Organization (WTO) of which more than 60% of the developing countries are members.
Current developments in the global economy have brought about the ascendancy of Intellectual Property Rights(IPRs).
In the new global economy, wealth is generated through creating and harnessing the value of knowledge

IPRs TRADE AND TECHNOLOGY TRANSFER
Friendly IPRs system facilitates technology transfer, enhances domestic R&D capacities and competences, Internationalize domestic enterprises, enhances GDP of Nations and above all encourages Foreign Direct Investments (FDIs).

It creates a veritable opportunity for the acquisition of foreign technical skills and its domestication in the local environment as well as adding value to raw materials thereby enhances national competitiveness.

Most foreign companies operating in Nigeria either in the manufacturing or banking sector uses foreign IPs in its operation and these IPs have to be registered  and approved by NOTAP  in order to be implemented in Nigeria. These IP registration come in through Registration of Patent License, Trademark  License, Know-How License, see figure below

In addition to the existing NOTAP Mandate, NOTAP was given an additional mandate through a Ministerial directive in 1998 to embark on the Commercialization of locally motivated technologies through the commercialization of research and development findings, inventions and innovations in all the Research Institutes, Universities, Polytechnics and Private Laboratories and Workshop.

TECHNOLOGY INFLOW BY SOURCES
The inflow of technology into Nigeria reflects its political history with Europe; principally the United Kingdom and Western Europe. It shows the post colonial economic link between Nigeria and Europe (Okongwu.2007)

1983-1992:UK/WEuro(70%),ASIA(17%), Others(13%)

2001-2006:UK/W Euro(59%),ASIA(31%)

2006-20011:UK/W Euro(51.83%),Asia(38.53%)




The indications are that the upsurge from Asia(mainly from India, China) will continue and the inflow from Europe will gradually  diminish to secondary importance.
This would especially so as India’s software industry has come of age and Indian companies have taken over the concessions of most strategic industries in Nigeria while the Chinese are providing major infrastructure in rail works and power sector ,see chat 4A,4B

    

COST OF TECHNOLOGY TRANSFER: NOTAP’s VIEWPOINT

Okongwu D.A(2006):The total cost of all technology inflows (royalties and other fees) excluding those for petroleum and gas technology  during the 17 years period(1990-2006) was computed to be over N400billion($3billion), $0.17billion per year .

GMD NNPC(2001):TT in Petroleum  and Gas Sector in 2001 is estimated to be $5.5billion
2000-2006:$2.72billion.
  

  





(C)  ESTABLISHED  30  IPTTOs IN 5 YEARS
    It is a mechanism established to facilitate partnership activities in the region where the tertiary/Research Institutions are located and beyond, with a view to improving regional economic potential. 

 OBJECTIVES:
To boost technology, innovations and  refocus R&D projects in the Institutions 
To facilitate patenting  of inventions emanating from the institutions
To establish business linkages between  R&D institutions and  industry 
To create technology-based SMEs from high-tech start-ups and spin-offs’ 

(D) PATENT AGENCY:
BETWEEN  1999-2011
SUBMITTED: 358 PATENT APPLICATIONS
FILED               114
PENDING         270
GRANTED         77

OTHERS:
Increased IPR Awareness   in both Sec and   Tertiary institutions in Nigeria 

Establishment  of Patent Information and Documentation Centre (PIDC)

Enhanced Technology Transfer Negotiation  skill of Nigerian entrepreneurs/transferees

CHALLENGES
Absence of Technology Transfer Policy in NEEDS Document:
Weak science and engineering infrastructure
Weak innovation systems and culture
Poor investment in R&D  activities
Low awareness of IP role in Technology development  and trade
Unstable socio-economic system
etc





  RECOMMENDATIONS
National Technology Transfer Policy
Science and technology education  at all levels
Massive strategic investment in R&Ds
Improved IP awareness in National System of Innovations(NSIs)
National and International R&D collaborations/partnerships
Provision of basic sustainable infrastructure eg energy, transportation, communication etc
Good Governance

CONCLUSIONS
Technology capacity and capability are strong dominant integrals in the formulation of global power equation. 
Non-Aligned and other Developing Countries  including Nigeria have not significantly invested in the generation of scientific knowledge that would  sustainably drive national development
In this present era of globalization and liberalization of  in the world economy, nations must be able to harness her ideas, inventions, innovations and creative works towards technological advancement and global competitiveness(UM Bindir,2012)

CHALLENGES IN DEVELOPING A UNIVERSITY BASED SCIENCE PARK:


CHALLENGES IN DEVELOPING A UNIVERSITY  BASED SCIENCE PARK:  

 BY
 Engr. U.B. Bindir (PhD) & Mr  I. M. Nwaedozie 
National Office for Technology Acquisition and Promotion (NOTAP)
(Federal Ministry of Science and Technology)
PMB 5074 Wuse Post Office
Abuja- Nigeria 


BEING PAPER PRESENTED AT THE WORKSHOP ON STRENTHENING CAPACITIES  OF UNIVERSITIES  IN SCIENCE POLICY AND INNOVATION MANEAGEMENT AT THE UNIVERSITY OF IFE-OSUN STATE,1-4 DECEMBER,2009


OUTLINE:
Introduction/conceptual Definitions
(2) Global Evolution of STPs.
(3) Functions of a University Science Parks
(4) Challenges
(5) Prospects
(6) Recommendations.
(7) Conclusions.
 (8) References.

(1) INTRODUCTION:

Science  Parks (SP) are  development model that has been used by developed nations in order to stimulate and sustain  industrialization. It is common in USA, UK, China, Japan etc. They offer perfect breeding ground for businesses and institutions required in the contemporary knowledge economy. 
However, they contribute to economic development and competitiveness of regions and cities by offering new business opportunities and adding value to mature companies, fostering entrepreneurship, incubating new innovative companies, generating knowledge-based jobs, providing attractive spaces for the emerging knowledge workers and enhancing synergy between universities  or local authorities and companies.
FMST(2006) proposed six(6) prospective science parks in Nigeria  and non is university based. Universities and Research Institutions are centers of technological innovative activities in developing and emerging economies. Nigerian universities have capacity and capability to establish SPs.  

1.1 CONCEPTUAL DEFINITIONS AND FRAMEWORK:
Various names have been used  for Science Park such as Technology Park, Innovation Centre, Science City or Science Town, Technopole.   The  names/terms describe  an economic application of  high  technology to industry, irrespective of slight differences that  may exist among  different  names. 
 Located at the Science Park Complex are the followings:
Research Facilities,
Laboratories,
Business Incubators
Training/manpower development centre, 
Business exchange and services facilities
Most science parks focus on information technology (electronic & computers), telecommunication, biotechnology and New materials. They are linked to centres of technological excellence usually universities or research institutes.
According to the International Association of Science Parks (IASP) , a Science Parks is an organization  managed by specialized professionals ,whose main aim is to increase the wealth of its immediate community and its country at large by promoting  the culture  of innovation and the competitiveness of its business and knowledge- based institutions. 
The ultimate objectives are to  stimulate and manage the flow of knowledge and technology  amongst Universities ,R&D   institutions, companies and markets, facilitates  the creation and growth of innovation-based companies through incubation and spin-off processes and provide other value –added services together with high quality space and facilities.

(2) GLOBAL EVOLUTION OF SCIENCE AND TECHNOLOGY PARKS:
  The first Science & Technology Parks (STIPs) in the world was the Stanford University Science Park-in the United States of America, built in 1951, which has developed to be the famous Silicon Valley. Subsequently, the Cambridge University and the Oxford University Science and Technology Parks in the UK were established in the 60’s.
 Today, there are over 1,000 Science and Technology parks  all over the world, more than 180 in the USA, 280 in the America,480 in Europe, about 380 in the Asian –Pacific region in which more than 54 in China,26 in Japan, more than 30 in  Australia and New Zealand,53 in Russia and none in Africa,Guoqing,FU (2007).
 The history of Science & Technology  Parks (STPs) for instance in China can be traced back to May 1988 .it has quickened investment steps on capital construction and establish cities, promote the development of technology industries, drive local economic development immensely and adjust  & optimize the national economic structure.

(3)Functions of a  University based Science Parks:
Promotion of research and development by the university in partnership with industry, assisting in the growth of new ventures and promoting economic development.
Facilitating the creation and growth if innovation-based companies through incubation and venturing.
Stimulating and managing the flow of knowledge and technology amongst universities, R&D institutions, companies and markets.

Promotion of an environment where knowledge-based enterprises can develop close interactions with a particular centre of knowledge creation for mutual benefits. 
Adding value to “Regional” Academic Outputs and Inputs.
Improving R& D Benchmarking, Planning and Outputs.
Encouraging  export activities and thus make significant contribution to GDP.
Creating employment  opportunities through the formation of spin-off companies (SMEs).

(4) CHALLENGES OF A UNIVERSITY BASED SPs IN NIGERIA
Development challenges differ from country to country or region to region. In developed and developing economies the challenges vary  in nature and complexity. In this context, an overview of challenges for a university based science park in a developing economy  such as Nigeria would be highlighted. Some of these  may include among others.

4.1: POOR QUALITY OF SCIENTIFIC R&D OUTPUTS:
 Out of 25,000 science and technology research outputs from Nigeria Universities and Research Institutions collated by NOTAP in 2006, less than 1% is adjudged to be  viable  for commercialization. Patents generation-one of the indices of measuring quality research outputs are ridiculous low from  our innovation institutions(NOTAP-WIPO,2006)


(4.2)LACK OF INTELLECTUAL PROPERTY(IP) & INNOVATION POLICIES:

Absence of an  Intellectual Property and innovation policies in Nigeria’s tertiary institutions hinders stimulation of  entrepreneurialism among researchers and students. In an effort to bridge the gap, NOTAP in collaboration with WIPO has established 27 IPTTOs between 2006-2008 within the tertiary institutions in Nigeria. This initiative has has improved University/ Research Institutes linkage with the industry and also improving patent culture and inventiveness in  Institutions where they exist.




4.3 :POOR STATE OF CRITICAL DEVELOPMENT INFRASTRUCTURE:

Most universities in developing economies do not at present have adequate infrastructure that can sustain science parks development and its operations. Some of these infrastructures include constant power supply (electricity), water supply, science and engineering laboratories & complexes, ICT facilities amongst others. 
 The national demand for electricity in Nigeria  is more than 10,000MW while total supply is  less than 3,500MW.This has increased the cost of business in Nigeria  and had led to relocation of many multinational corporations out of the countries where business environment is not favourable for profitable  investment.

4.4:  Weak engineering sector :
 The  engineering sector of the economy is poorly developed. The  Iron & steel ,machine tools, Rolling Mills, foundry shops, aluminum industries, petrochemicals, solid minerals  are operating at a very low capacity utilization and this poses critical challenges to industrialization initiatives including  public or private science parks.

4.5: University weak  linkage with Industry and Society :
The weak linkage  string between the universities and the industry may constitute a barrier in the development of science parks. University on its own cannot do it alone. There should  be a synergy between the university authority and the Organized Private Sector (OPS) organizations for a long term development initiatives such as science park development to evolve and be sustainable.

4.6: DECLINE IN PARLIAMENTARY FUNDING :
The decline in the parliamentary funding of universities in recent time has forced most university authorities in Nigeria to keep in view some development projects and investments in  R&D research programme.
 Science park development programme requires massive and consistent funding long term from the promoters which principally should be government  during the early life of the programme.
 Absence of take-off grant constitutes a big challenge while considering decisions on science park establishment and development by the universities .
Table  2:   2009 Federal Government Budget per Sector(Total $21 billion)


4.7:  Ethical  Re-orientation:
Changing the traditions/mindsets/attitudes of the university researchers to conform to the requirements of the present knowledge society may hinder qualitative innovative research activities that will lead to the generation and transfer of knowledge from the university laboratories to science park complex for incubation and mass production.

Most faculty officers stick to the tradition of focusing on basic  rather than applied research activities will led to product or process innovations and its commercialization.

4.8 :Global Economic Meltdown:
 The global economic meltdown has also made access to international development fund  a difficult undertaking. Foreign direct investments on the decline in Africa and is shifting to product based economies such as Japan,China,Taiwa,south korea etc.

4.9 Policy Inconsistency:
The periodical change of leadership in the universities most times result to changes development priorities and  methodologies.  Establishment of the university science park program may not be a priority.

4.10: Lack of incentives:
 Lack of  incentives  to encourage innovative research and development activities in the universities.

5.0: Prospect for a  University based STPs in Nigeria:
Robust National System of Innovation:
There are 95 Universities in Nigeria comprising of 27 federal, 34 states and 34 private universities all conducting research to solve problems confronting man on earth (NUC, 2009).More than 60% of these institutions have science and engineering faculties producing young and intelligent  scientists and engineers annually.
 More so , there are a total of 65 Research Institutions in Nigeria  with 20 under S&T, 29 in Agriculture,2  in Health,5 in  Industry,3 in  Power & Steel,4 in  Solid Minerals,2 in  Education. 
There are 46 plytechnics,89 monotechnics,8 colleges of education (technical ) and 138 technical colleges (MBTE,2000).







6: Recommendations;
Universities should put in place  Intellectual Property(IP)  and Innovation policies;
Engage in market/industry driven(Target Research)
Massive and consistent government financial support
University authority should  introduce robust incentives to encourage faculty officers undertake market driven research activities(in biotechnology, nanotechnology, new materials, ICT, Space sciences etc.
Develop strong linkages with local/international academic institutions and   industries;
Engage Public Private Partnership(PPP);
Improve science and engineering infrastructural facilities:
Build significant capacity and capabilities:

7: Conclusions:
There are more than 1,000 Science and Technology Industrial Parks all over the world. Science Parks provide a platform for the efficient linkage of science and business. It contributes significantly to the GDP of economies where it is well developed and operational, for instance, The People Republic of China , South Korea, Italy ,Germany. Israel, USA,UK etc.
  It enables the dynamic evolutions of desired technologies and commercialization of innovations. SPs can steer the development of a dedicated technology businesses and fast tract the development of incubators and SMEs as well adding value to regional/national academic outputs and inputs.
The base industries such as iron & Steel, petroleum & petrochemicals, sugar industry, pulp & paper and numerous research and academic institutions coupled with natural endowment provide enough impetus for SPs evolution in Nigeria. However, it takes about 10-15 years for science park to achieve maturity and make positive imparts on the  economy.

 Consistent policy and  investment in Science, Technology and Innovation(STI) programs could reposition Nigerian towards achieving its 7-point agenda and vision 20: 2020 .

8:Major References:
(i) FMST(2007):The Development of viable science parks in Nigeria
(ii)    Bindir U.B. (2007):National Workshop on Development of Science Parks in Nigeria,13-16 July 2009,Abuja,Nigeria.
 (iii)  Guoqing FU (2007):Development and planning design of science and Technology Parks.
 (iv)  Ekpiwhre G(2007) :Preface  of the Development of Science parks in Nigeria.
 (v)   I.M(2007):Report of the First international Training Workshop on Planning, Building and Management of Science  Parks in shanghai-Poeples Republic of China .
 (vi) Nwaedozie I.M (2009): NOTAP in-house Seminar -Evolution  and SWOT analysis of the emerging science and Technology Parks (STPs) in Nigeria. 
 (Vii) Anie-Osuagwu C.M. (2006):Managing Innovation Spin-off firms(2001-2004).A case study of University of Manchester Science Parks,UK.
(6)     International Association of science Parks(IASP),2009.