2 b4 5 18 june 14.00 15.30 ezzine

Integrated capabilities Integrated capabilities accumulation:accumulation:

A Gerschenkronian catching-up A Gerschenkronian catching-up strategystrategy

Jelel EzzineJelel Ezzine

University of Tunis El-Manar (UTM), University of Tunis El-Manar (UTM), TunisiaTunisia

jelel.ezzine@enit.rnu.tnjelel.ezzine@enit.rnu.tn

EducationEducation is a social is a social process; education is process; education is growth; educationgrowth; education

is not a preparation for lifeis not a preparation for life

but but is life itselfis life itself.. John DeweyJohn Dewey

18 June, 2009 jelel.ezzine@enit.rnu.tn 3

OutlineOutline

1. Introduction2. Gerschenkron and catch up – extending the framework3. Integrated capabilities accumulation – the fundamental

role of learning• Technological and capacity competitiveness – Fagerberg 2005 • Social and physical technologies – Nelson 2008 • Learning as the most important process – Lundvall 2007 • The proposed three fundamental capabilities

4. Reverse engineering Gerschenkron catch up – Low Cost space technology

5. Conclusion

18 June, 2009 jelel.ezzine@enit.rnu.tn 4

Introduction (1:2)

► We do know that:We do know that: developing countries are in dire developing countries are in dire needneed for for applicable catch-upapplicable catch-up strategies that will allow them to strategies that will allow them to converge to the developed world, and hence secure a converge to the developed world, and hence secure a better futurebetter future for their citizens (Juma and Clark, 2002), for their citizens (Juma and Clark, 2002),

► We also do know:We also do know: “the futility of the search of any ‘magic bullet’ driving industrialization. The process of accumulation of technological and organizational capabilities does not play a crucial role - …- but such process has to be matched, first, by a congruent ‘political economy’ offering incentive structures conductive to ‘learning-base’ …, and, second, by a congruent macroeconomic management.” Cimoli et al. (2008)

18 June, 2009 jelel.ezzine@enit.rnu.tn 5

Introduction (2:2)

► We still proposeWe still propose a “generic” catch-up strategy a “generic” catch-up strategy called “Integrated Capabilities Accumulation” built built around triad:around triad:

an extended version of the Gerschenkronian framework, a generalization of the latest findings regarding needed

capabilities, a “Low Cost” pilot project, targeting a frontier

technological niche.

18 June, 2009 jelel.ezzine@enit.rnu.tn 6

Gerschenkron and catch up:extending the framework

► O'Brien, 1998:O'Brien, 1998: The The key insightkey insight from Gerschenkron’s thesis from Gerschenkron’s thesis is of a is of a systemicsystemic nature, which is the necessity to nature, which is the necessity to integrateintegrate and simultaneously and simultaneously coordinatecoordinate all all componentscomponents of the of the

targeted targeted economiceconomic activity. activity.

““industrializationindustrialization process begins only if the process begins only if the industrializationindustrialization can can proceed, as it were, along a broad front, starting simultaneously proceed, as it were, along a broad front, starting simultaneously

along many lines of along many lines of economiceconomic activities.” activities.”

““Fruits of Fruits of industrialindustrial progress in certain lines are received as progress in certain lines are received as external economies by other branches of external economies by other branches of industryindustry whose progress whose progress

in turn accords benefit to the former.”in turn accords benefit to the former.”

18 June, 2009 jelel.ezzine@enit.rnu.tn 7

Gerschenkron and catch up:extending the framework

Higher Edu. Spin-Offs Ind. Niche R&D H. Edu.

Tightly coordinated and managed targeted pilot project

Gerschenkron

Extended Gerschenkron

18 June, 2009 jelel.ezzine@enit.rnu.tn 8

Integrated capabilities accumulation – Integrated capabilities accumulation – the fundamental role of learningthe fundamental role of learning

► Technological and capacity competitiveness – Technological and capacity competitiveness –

Fagerberg 2005Fagerberg 2005,,► Social and physical technologies – Nelson 2008Social and physical technologies – Nelson 2008,,► Learning as the most important process – Lundvall Learning as the most important process – Lundvall

20072007,,► The proposed three fundamental capabilities.The proposed three fundamental capabilities.

18 June, 2009 jelel.ezzine@enit.rnu.tn 9

Integrated capabilities accumulation – Integrated capabilities accumulation – the fundamental role of learningthe fundamental role of learning

► Technological and capacity competitiveness – Technological and capacity competitiveness –

Fagerberg 2005Fagerberg 2005::1.1. Capacity competitivenessCapacity competitiveness

2.2. Technological competitivenessTechnological competitiveness► Social and physical technologies – Nelson 2008Social and physical technologies – Nelson 2008,,► Learning as the most important process – Lundvall Learning as the most important process – Lundvall

20072007,,► The proposed three fundamental capabilities.The proposed three fundamental capabilities.

18 June, 2009 jelel.ezzine@enit.rnu.tn 10

Integrated capabilities accumulation – Integrated capabilities accumulation – the fundamental role of learningthe fundamental role of learning

► Technological and capacity competitiveness – Technological and capacity competitiveness –

Fagerberg 2005Fagerberg 2005,,► Social and physical technologies – Nelson 2008Social and physical technologies – Nelson 2008::

1.1. Social technologiesSocial technologies

2.2. Physical technologiesPhysical technologies ► Learning as the most important process – Lundvall Learning as the most important process – Lundvall

20072007,,► The proposed three fundamental capabilities.The proposed three fundamental capabilities.

18 June, 2009 jelel.ezzine@enit.rnu.tn 11

Integrated capabilities accumulation – Integrated capabilities accumulation – the fundamental role of learningthe fundamental role of learning

► Technological and capacity competitiveness – Technological and capacity competitiveness –

Fagerberg 2005Fagerberg 2005,,► Social and physical technologies – Nelson 2008Social and physical technologies – Nelson 2008,,► Learning as the most important process – Lundvall Learning as the most important process – Lundvall

20072007::1.1. Intangible resourcesIntangible resources

2.2. Tangible resourcesTangible resources ► The proposed three fundamental capabilities.The proposed three fundamental capabilities.

18 June, 2009 jelel.ezzine@enit.rnu.tn 12

The proposed The proposed three fundamental capabilitiesthree fundamental capabilities

► Learning Capabilities (LC):Learning Capabilities (LC):

Lundvall (2007): “Lundvall (2007): “the the most fundamentalmost fundamental resource in the modern resource in the modern economy is economy is knowledgeknowledge and, accordingly, the and, accordingly, the most importantmost important process is process is learning..””

Lundvall and JohnsonLundvall and Johnson (1994): “… in an economy where the (1994): “… in an economy where the distribution of competence becomes more and more uneven and distribution of competence becomes more and more uneven and the the capability to learncapability to learn tends to become the tends to become the most important factormost important factor behind behind economic successeconomic success of of peoplepeople, , organizationorganization and and regionsregions.”.”

► Social Capabilities (SC),Social Capabilities (SC),► Physical Capabilities (PC), Physical Capabilities (PC),

18 June, 2009 jelel.ezzine@enit.rnu.tn 13

Reverse engineering Gerschenkron catch up Reverse engineering Gerschenkron catch up – Low Cost space technology– Low Cost space technology

► Key characteristics of the niche technology Key characteristics of the niche technology (in the making!):(in the making!):

Strategic and dynamic “Low Cost” technology,Strategic and dynamic “Low Cost” technology, High value added technology and large spectrum High value added technology and large spectrum

industries/services spillover,industries/services spillover, Requires highly skilled manpower,Requires highly skilled manpower, Motivating and inspiring pilot project,Motivating and inspiring pilot project, Bestows National and international visibility,Bestows National and international visibility,

Sufficiently available training infrastructure and know how,Sufficiently available training infrastructure and know how, Largely available potential manpower,Largely available potential manpower, Strong and enduring political back up,Strong and enduring political back up,

Etc.Etc.

The The skillskill a a studentstudent acquires in acquires in a craft, and the habit he a craft, and the habit he attainsattains, , correspondcorrespond to the to the qualityquality of instructionof instruction and and the habit of the the habit of the teacherteacher. . A. A. Ibnou KhaldounIbnou Khaldoun