May 15-2008 ICSTI Conference Alexandria-Egypt Amir Wassef Egyptian Industry and Academic Research An Industry Perspective By Amir Wassef
May 15-2008ICSTI Conference Alexandria-Egypt Amir Wassef Egyptian Industry and Academic Research An Industry Perspective By Amir Wassef.
Dec 15, 2015
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May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Egyptian Industry and Academic Research
An Industry PerspectiveBy
Amir Wassef
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Development of Economies
Industries in Factor Based
Economy
Industries in Growth Based
Economy
Industries in Innovation Led
Economy
Industries In Wealth Based
Economy
TIME
VA
LUE
AD
DE
D
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Development of Economies
Factors Phase
Land Natural Resources Human Resources / Labor Capital
Characteristics:
Basic / Low tech industry
Low value added
Price sensitive Imported
Technology
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Development of Economies
Growth Phase (Investment Driven Growth) Economies of Scale and
Economies of Scope Aggregation and Clustering
of Industries Learning Curve Dynamics Improved Quality Improvement of basic factors
Characteristics
Applied Research in Products and Process Improvements
Lower Mobility Barriers of Labor and Researchers
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Development of Economies
Innovation Based Economy Knowledge Based value
added Close ties across the
Supply Chain High degree of Clustering,
Consolidation, and Vertical Integration
High circulation of Information
Characteristics:
Capitalizes on Innovation and Revolutionary Products and Materials
State of the Art R&D Activity
Close ties between industries and Academia
Stable IPR Environment
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Industry Distribution
Industries in Factor Based
Economy
Industries in Growth Based
Economy
Industries in Innovation Led
Economy
Industries In Wealth Based
Economy
TIME
VA
LUE
AD
DE
D
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Classification according to Generic Strategy
Economies of Scale
Differentiated Industries
Focused Industries
Porter Classification by Generic Strategy
Low Cost&
Focused
Differentiated&
Focused
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Classification according to Generic Strategy
Commodity Producers with Economies of Scale
Characteristics: Stable production lines, limited flexibility, little innovation in core products
High switching costs Price sensitive
Research activities
Centered on piecewise improvements in materials, products and processes.
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Classification according to Generic Strategy
Differentiated Industry Characteristics:
Competitive strategy based on increased value added and customer value
Flexible production environment
Lower production volumes Higher profit margins
Research needs: Innovative
applications in materials, know-how and Processes.
Advanced Features rather than Revolutionary / Innovative products
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Classification according to Generic Strategy
Niche Industries Characteristics: Based
on specialized skills Special materials Narrow scope of
application ,usually small market size, high value added, commands premium prices, high profit margins.
Research Needs : Very innovative
applications Narrow
specialization and skills
R & D costs spread over limited production quantities
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Industry Evolution
Cost Leadership
Differentiated
Marketer
CaretakerHi Volume / Continuous Flow
Innovator
Reorganizer
1
42
3
Differentiated and C
ost Leader
Low R& D
Product R& D
Process&
Manuf.R& D
MaterialsProcesse
sRevolutio
nary Products
R& D
2-3 Transition thru Supply Chain efficiency
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Issues Characterizing Industry’s Cooperation with Academia
Fragmentation No clear market leaders No significant market share for any
particular firm Fragmented and diversified markets
(Diverse market needs) Low entry barriers Absence of Economies of Scale Lack of Standards
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Issues Characterizing Industry’s Cooperation with Academia
No appreciable Clustering of Industries, thus reduced economies of scope (Same product or technology used across a wider spectrum of products and industries)
Weak links between Academia and Industry
Intellectual Property Rights procedures need improvement (Patents, Trademarks, Copyrights etc…)
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Issues Characterizing Industry’s Cooperation with Academia
Limitation of Finance by Industry in Academic R&D.
Several Industry Modernization Programs (IMP) support research activities
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Industry and Research Institutions Joint Plan: Overcoming Fragmentation
Clustering Consolidation Vertical Integration and industry
growth: Forward and Backward increase entry barriers
Promoting Standardization
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Industry and Research Institutions Joint Plan: Sustaining Transition between
Factor Economy and Growth Economy: Improving Technological Content Continuous Product improvements Process improvements Materials Improvements Investing in the Learning Curve Innovation Management
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Industry and Research Institutions Joint Plan: IPR Processes and Procedures :Find
suitable model and formula Contractual relationships between
Industry and Academia (Model contracts , best practices applied elsewhere)
Increase Rate of Diffusion of proprietary knowledge: (Academia might have solutions to problems Industry did not know they had!)
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Industry and Research Institutions Joint Plan:
Lobby for improved Government policies vis-à-vis R&D:
Research Funding The IMP research and Development
Support Incentives for Industry to use Own funds Subsidies and Government Support Offering Grants for government supported
research programs (Ex : A National program to reduce reliance on imports)
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Industry and Research Institutions Joint Plan:
Research Institutions need to adapt to a Paradigm Shift : Lack of Economies of Scale in
research: Work with different industries to reduce fragmentation and improve Standardization-
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Industry and Research Institutions Joint Plan:
Research Institutions need to adapt to a Paradigm Shift : Research Institutions need Broad
Problem Solving skills in view of Industry Fragmentation and Differentiation strategies
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Critical Factor ! Standardization
Standards are Know How Standards are Best Practices Standards enhance Quality Standards Preserve the Knowledge
base of Industry Standards promote Consolidation
and Defragmentation of industry
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Proposal: Bibliotheca Alexandrina with ICSTI support
BiblAlex establishes a Standards Dissemination Library to serve Industry
Concentrate on Electronic Dissemination
Capitalize on Support available to Developing Economies ( ex. ISO)
May 15-2008ICSTI Conference Alexandria-Egypt Amir
Wassef
Thank you
Amir [email protected], Economic Committee,Board of Trustees of Borg el Arab
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