trends in technology transfer in nigeria

TRENDS IN TECHNOLOGY TRANSFER IN NIGERIA

David A. Okongwu

OUTLINE1. INTRODUCTION: Clarifications/Definitions What? How? Where? &

When?

2. TRENDS IN NIGERIAs TECHNOLOGY TRANSFER EFFORTS 2.1 1914 -1960 2.2 1960 -1981 2.3 1981 1999 2.4 2000 date

3. Overall Assessment of Technology Transfer Activities

4. Suggestions on What Must Be Done, by Who? , How? What Role for NOTAP? FMST? The STATE?

Trends in Technology Transfer in Nigeria 15 Dec, 2015, Minna, Niger State

1. INTRODUCTION: Clarifications/Definitions What? How?

Where? & When?a) Technologyb) Technology Transferc) Technology Transfer Optionsd) Key Pillars For Credible

Technology Transfere) Nigeria: 1914 -1960; 1960 -

1981; 1981 1999;2000 date



Where? & When?TECHNOLOGY: Though variously defined, it is now accepted as being much more

than machinery/machines/tools/artifacts and the like. In our current context we take it in the most general sense simply as Applicable Knowledge, or as per Galbraith the systematic application of scientific and other organized knowledge to practical tasks.

TECHNOLGY TRANSFER: Occurs in 3 Broad Folds, namely Geographical i.e. From one country to another, a.k.a. Horizontal R&D- based, i.e. From Laboratory to the Market place, Vertical Sectorial i.e. From one economic sector to another.

We are concerned with i) and ii). Type I (from country A to country B) Transfer of Technology has been the major

focus of attention in developing countries (in contrast to developed countries) mainly because it is cheaper in the short term, and our R&D systems are yet to take root.

Type II (R&D-based) Technology Transfer is globally the main focus, the hot area, of Technology Transfer activities, especially in developed economies.



Where? & When?WHY IS TECHNOLOGY TRANSFER IMPORTANT?

First, the transfer or diffusion of technology is a prerequisite for humankind progress and development, implicit in the thermodynamics of economic growth of states, nations and empires. But more relevant and important for us is that today, more than at any other time in the history of humans, as globalization seeks to virtually flatten the globe, the Transfer of Technology remains the only option for developing nations to quickly: develop their economies, create wealth, eradicate poverty, advance the socioeconomic well-being of the populace, eliminate social strife, create a happy society, and become a competitive and serious part of humanity. But it has to be purposely and passionately executed.



Where? & When?MAJOR MODES OF TECHNOLOGY

TRANSFER: 1) Importation of Capital goods,

Plants/Machinery, Processes, etc., 2) FDI. 3) Transnational flow of experts (Returning

Graduates/Diasporas, Foreign experts, Itinerant experts and philanthropists)

4) Foreign training and On-the-job Training. 5) Study Tours, Trade Fairs, Conferences, and

Industrial Visits. 6) Purchase of Patents, Know-Hows, Designs. 7) Internet, Journals, Magazines, Books, etc. 8) Industrial Espionage 9) Imitation & Copy Technology 10) Technology Promotion Agencies and

Technology Receptor Centers 11) Technology-based Knowledge industry

Unis, Polys, Tech & Craft Schs 12) R&D Commercialization, via TBIs, Industrial

Estates, Industrial Parks, Trends in Technology Transfer in Nigeria 15 Dec, 2015, Minna, Niger State


Where? & When? KEY PILLARS FOR CREDIBLE TECHNOLOGY

TRANSFER 1) Political Commitment/Political Will (must see

development as essentially technology-based) 2) Cultural Environment (innovative, ennobling and

technology-inducing, public spiritedness, nationalism)

3) Human Capital/Technological Capability (expertise, Entrepreneurialism)

4) Infrastructures and Technological Support structures (power, comm. TT agencies, R&D,etc)

5) IPR (awareness, support/exploitation, knowledge as capital/asset, strong IP culture)

6) Market (ready access for products/services) 7) Finance/High R&D Intensity (venture capital,

grants, etc) 8) National Passion*

Note: (1 - 8) All linked up to ensure robust and effective transfer of technology

Relate to the analogy of a cook pot with stands (support ) and fire (passion)



Where? & When?For a quick apprehension of Nigerias Technology Transfer experience over time, it is expedient to visualize four epochs, namely: (a) Colonial: 1914 -1960 (b) 1960 1981, (c) 1981 1999, and (d) 2000 date.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS

2.1 1914 -1960 2.1.1 Major Technology Transfer Activities2.1.2 Appraisement2.1.3 Missing Pillars, Missing Links

2.2 1960 -1981 2.2.1 Major Technology Transfer Activities2.2.2 Appraisement2.2.3 Notable Success Stories2.2.4 Missing Pillars, Missing Links

2.3 1981 1999 2.3.1 Major Technology Transfer Activities2.3.2 Appraisement2.3.3 Notable Success Stories2.3.4 Missing Pillars, Missing Links

2.4 2000 date 2.4.1 Major Technology Transfer Activities2.4.2 Appraisement2.4.3 Notable Success Stories2.4.4 Missing Pillars, Missing Links



Transfer of Technology before and during the colonial era was unorganized and informal. It proceeded between communities and societies mainly through the activities of itinerant craftsmen; good examples were the Awka blacksmiths, Benin, Ife and Nok bronze smiths who passed their skills and technologies to various specialized societies (cartels). Then there were of course many acknowledged medicine men that traded their knowledge across communities. The ranges of their circuits were invariably short, on account of poor communication networks, their tools of trade were crude, and their technologies were shrouded in secrecy as a means of securing protection. The transfer of their technologies therefore was very restricted and unprogressive and could neither be sustained nor could the technologies evolve beyond the rudimentary.

2.1 1914 19602.1.1 MAJOR TECHNOLOGY TRANSFER ISSUES and ACTIVITIES



During the colonial era some transfer of technology, though not a policy of the colonial masters, was evident from the activities of some multinational companies, notably Lever Brothers, UAC, and Paterson Zochonis (PZ), who, operating as trading outposts for the sourcing of raw materials for the sustenance of European economies, established some manufacturing and primary industries in the 1940s and 1950s. The interest of the colonial government was not on development but purely on administering the colony and extracting raw materials, the so-called cash crops. There was very little research activity, though the colonial administration established 1899 in the then Department of Agriculture, a Federal Department of Agricultural Research which was later (1963) renamed the National Cereals Research Institute (NCRI), located at Moor Plantation, Ibadan and is now in Badeggi with many sub-stations. The Yaba Higher College was set up in 1932 (to train some professions, notably pharmacy), converted to Yaba Technical Institute 1947, (later Yaba College of Technology in 1969) and the University College Ibadan in 1948. There were also the Colleges of Science and Technology in Zaria, Enugu and Ibadan, and the Federal Emergency Science School Onikan, Lagos.

2.1 1914 19602.1.1 MAJOR TECHNOLOGY TRANSFER ISSUES and ACTIVITIES


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.1.2 TECHNOLOGY TRANSFER APPRAISEMENT

Clearly there was very little Inflow or Transfer of foreign Technology during this epoch. Technology transfer infrastructures were virtually absent and there was no public policy or strategy to encourage Transfer of Technology. Thus any efforts at technology transfer activities were incoherent and undirected and therefore any transfer of technology could only had come about by chance. There was little room for major Transfer of Technology.

Nonetheless through on-the-job training programs, and through crafts and technical schools, there was transfer of technologies of small-scale processing of palm oil, groundnuts, rubber and cocoa in support of colonials export market.

2.1.3 MISSING PILLARS, MISSING LINKS ? No Political commitment by colonial government. All Pillars are absent. No efforts or attempt to link any structure/policy relevant to

technology. Trends in Technology Transfer in Nigeria 15 Dec, 2015, Minna, Niger State

2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.2 1960 -1981 2.2.1 MAJOR TECHNOLOGY TRANSFER ISSUES AND ACTIVITIES

This was an era, soon after independence, of great enthusiasm for development. It was marked by National Economic Development Plans: 1955-1962, 1962-1968(1970), 1970-1974(1975), and 1975-1980(1981).

This epoch witnessed the plans to establish and the establishment of many major industrial projects by government, of which mention should be made of:

Petroleum Refining: Port Harcourt (I) Port Harcourt (II), Warri and Kaduna; Automotive assembly plants: Volkswagen (Lagos), Peugeot (Kaduna), Leyland (Ibadan), Steyr

(Bauchi), Mercedes Benz, ANAMCO(Enugu), National Truck (Kano), Cement plants: Nkalagu, Ewekoro, Sagamu, Sokoto, Ukpilla, Calabar, Yandev, Ashaka, Electric Power plants: Jebba, Shiroro, Egbin, Sapele, Ughelli, Afam. Fertilizer plants: Onne, Kaduna, Iron and Steel: Rolling Mill at Enugu(Nigersteel), Rolling Mills at Jos, Oshogbo and Katsina, 1

million ton/annum Direct Reduction Steel plant at Aladja, Integrated Steel plant at Ajaokuta, as well as large numbers of private sector investments the Breweries, and in consumer goods industries, following the promulgation of the Nigerian Enterprises Promotion Decree of 1972.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.2 1960 -1981 2.2.1 MAJOR TECHNOLOGY TRANSFER ISSUES AND

ACTIVITIES

The period was also an era of massive importation of wide range of machineries, equipment, technologies, building/construction materials and assorted consumer goods at huge costs to the nation.(Recall the famous cement armada at the wharf).

There was national enthusiasm to develop. The first set of national S&T policies and programs were initiated during this period. This included the Agricultural, Industrial, Medical, and Natural Science Research Councils under the Nigerian Council for Science and Technology (NCST), later replaced by the National Science and Technology Development Agency (NSTDA), supervising over twenty (20No.) research institutes.

As part of the industrial policy, many Industrial Development Centers (IDCs), and Industrial Estates were established in major cities of the country, and the Nigerian Industrial Development Bank (NIDB) was set up.

Massive human resource development for these industries was put in place to assure the operations of these plants. Many Nigerians were sent abroad for technical, engineering and managerial training in West Germany (for the Aladja Steel plant), in Russia (for the Ajaokuta Steel plant), as well as to other countries supplying the various industrial plants.



There was some considerable inflow of technologies, some key infrastructures. Unfortunately however, they were not properly linked and no clearly articulated national strategy for ensuring the transfer of technology. Most critical is the fact that Nigerians were not involved in the planning, design and installation of each of these plants. Most of the plants were on turnkey, or on BOT basis. Most of the industries, including the IDCs and nearly all the industrial estates have all gone comatose. Only very few have survived and these survivors are virtually dependent on foreign technology transferors for their operational activities even at the present time.

This period has been described as the Laissez-faire Technology Transfer era. And not surprisingly there was actually not much internalization of technology and therefore little technology transfer.

However it must be noted that there were some very sound research programs of world class standard at this time in some universities as well as in PRODA and FIIRO, notably in Chemistry (natural products), Physics (atmospherics), Biochemistry (malting of grains), Agriculture and Medicine. Some of these R&D programs led to massive utilization of our local raw materials in industry.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.2.3 NOTABLE SUCCESS STORIESMention must be made of at least two: Successful Malting of Sorghum and maize (corn) at FIIRO and PRODA;

this led to the replacement of imported barley malt with sorghum malt in the Brewery industry, following Govt ban on the importation of Barley. (Read up about the FEMOS beer that demonstrated the good quality of Sorghum for beer brewing in Nigeria, especially the politics that followed the initial import ban of barley). The breakthrough and adoption of sorghum for brewing in Nigeria is a study in itself; and highlights some issues in the international politics of Foreign Investments and their subsidiaries.

The successful demonstration of the utility of Nigerian gypsum in the production of cement led to the utilization of local gypsum in the cement industry, following Govt ban on the use of imported gypsum.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.2.4 MISSING PILLARS, MISSING LINKS Political Will: acquisition of technology not yet a deliberate

national policy. Cultural environment: not technology-inducing, not ennobling IPR: little awareness, neither appreciated as innovation booster

nor as an asset. IDCs not linked to R&D output, nor provided adequate IPR and

technical support. Infrastructure and Technology support structures: still very

inadequate. Financial support: unavailable for commercialization of R&D

spin-offs; R&D intensity very low Human Capital: not equipped and empowered to adequately

capture inflowing technologies.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.3 1981 1999 2.3.1 MAJOR TECHNOLOGY TRANSFER ACTIVITIESA major policy initiative by the state to enhance the transfer of technology came at the beginning of this era, in

1981 with the introduction of Decree No.70 of 1979 which created the National Office for Industrial Property (NOIP), now renamed the National Office for Technology Acquisition and Promotion (NOTAP), as a public agency to register, monitor and regulate all technology transfer agreements/contracts between Nigerian companies and their foreign technology transferors mainly to ensure fair and equitable costs and contents/conditions in the agreements/contracts. The review and approval of all technology transfer agreements, and the monitoring of their implementation over time became a strong instrument for the acquisition of technology by the indigenous work force.

This period saw the completion of many strategic industries initiated in the 1960/81 era, notably: Iron and Steel: Rolling Mills at Oshogbo, Jos and Katsina (1982/83, Direct Reduction steel at Aladja (1982);

(Ajaokuta still uncompleted but now abandoned. Petrochemical: Eleme Petrochemical and Refineries at Warri, Kaduna and Port Harcourt; Aluminum smelter at Ikot Abasi; Electric power plants: Egbin, Sapele, Afam, Ughelli, Jebba, Shiroro; as well as massive importation of industrial goods and machineries, consumer items and the like.To further enhance technology transfer and development, the era also saw many changes in the structure and

content of the nations Science, Technology and Innovation system, such as the establishment of the Federal Ministry of Science and Technology, some specialized universities, [the universities of technology (FUTs), at Owerri, Makurdi, Maidugiri, Abeokuta, Bauchi, Minna and Akure; and the universities of Agriculture].

Many mission-oriented, subject matter research institutes, training institutes were also set up. For example, the RMRDC was set up to, among other things, promote small-scale plants for the exploitation of local raw materials; the National Metallurgical Development Centre (NMDC) Jos, to enhance the use of local raw materials for iron and steel; the Nigerian Metallurgical Training Institute (MTI) Onitsha, to train junior and middle level manpower for the steel industry. These were accompanied by many administrative and policy reversals, all in apparent efforts to enhance development.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.3.2 TECHNOLOGY TRANSFER APPRAISEMENT The technology transfer infrastructures and support structures still

remain fragile. The internalization of technology has not yet set in: most of the industries are in a dire strait, the power plants cannot be maintained and cannot sustain the industries, and the nation depends virtually on imports, as evidenced by the following:

Ajaokuta Integrated Steel plant has been abandoned after the expenditure of massive but as yet undisclosed billions of dollars.

None of the many industrial plants could be replicated or constructed, even by copy technology, by indigenous technical expertise, even in the Breweries.

Many of the basic industries have collapsed and been abandoned, notably Pulp and Paper, the Auto Assembly plants, Aluminum Smelter (Ikot Abasi), and the Textiles.

No electric power plant or petroleum refinery could be maintained/refurbished by indigenous experts

Clearly Technology Transfer did not fare well as desired, and the nation geared up to head back to the drawing board as it were.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.3.3 SUCCESS STORIES

The intervention of NOTAP in technology transfer agreements/contracts, with monitoring visits to ensure compliance led to more equitable and fairer technology transfer conditions: (a) Substantial foreign exchange savings to the economy through the

reduction of very highly overpriced technology fees, hitherto known to be sometimes overpriced by as much as up to 100%,

(b) More Local Value Addition (LVA) through increase in local content, such as in Cement production (gypsum), Breakfast Cereals/Baby Foods (Soya beans, sorghum, maize) as well as

(c) Management succession for top positions by indigenous staff, though the Nigerian staff is yet to be given opportunity to prove his technological expertise.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.3.4 MISSING PILLARS, MISSING LINKS

Political Will on the acquisition technology not fully accepted as state policy.

Culture of innovation, nationalism, public spiritedness yet to kick in. IPR regime still weak. Infrastructure & Technological Support Structure very weak NOTAP mandate not linked to importation of wide range of machineries.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.4 2000 2015 2.4.1 MAJOR TECHNOLOGY TRANSFER ACTIVITIES

As the 20th Century drew to a close (remember all the magic economic targets of Year 2000 for all Nigerians), Technology Transfer became a major issue of discourse nationally, especially in the light of our economic regression vis--vis the economies of Korea, Malaysia, India who though were at about same economic level with Nigeria in 1960s, but have become industrialized, and joined the league of emerging nations with highly developed and globally competitive economies. Nigerias economic failures were generally attributed to technology transfer failures; even though politics is known to be the culprit.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.4 2000 2015 2.4.1 MAJOR TECHNOLOGY TRANSFER ACTIVITIES

A number of policies, programs, agencies and actions were taken to invigorate Technology Transfer strategies, prominent among which were the following:NOTAP had its mandate expanded to include Commercialization of innovation and R&D results, Promotion of IPR culture among researchers, inventors and the populace, Strengthening research-industry linkage, Establishing Technology Transfer Offices (TTO) at innovation generating institutions Unis,

Polys, RIs, More TBIs were established, and a supervising Board (NBTI) put in place. SMEDAN was set up to enhance the development of SMEs. The entry into High Technology sector by Nigeria with major activities and engagements: Space projects through NARSDA and NIGCOMSAT, leading to Africas first satellite. ICT facilitated through NITDA, Galaxy Backbone and NCC Biotechnology, coordinated by NABDA



The period saw many Technology Transfer activities which resulted, for example in the establishment of many IPTTOs in innovation generating institutions, the entry into space activities by Nigeria to launch Africas first satellite, and the astronomical growth in mobile telephony and massive internet penetration. But these notwithstanding, we have a climate of unearned affluence, and deceitful comfort in an environment of severe socioeconomic poverty. Technology still appears to be far from taking root. Skilled artisans and craftsmen have disappeared. We are neither able to design and build, nor even maintain our power plants, oil installations, industrial plants, transportation infrastructures, and the like; apparently because Nigerians have not been challenged to bring out their best in order to test the credibility of transferred or acquired technology.


2. TRENDS IN NIGERIAS TECHNOLOGY TRANSFER EFFORTS2.4.3 NOTABLE SUCCESS STORIES

There has been some success stories, notable among which are: The launching of Africas first satellite IPR awareness is coming into the science and technology culture. 10% Cassava flour bread was approved by Government, after FIIRO had shown suitability of

cassava- based bread, pointing the way to commercial wheat/cassava baked products. NIGCOMSAT recently won a bid to Carrier Spectrum Management (CSM) and In-Orbit

Testing (ToT) Service for Belintersat-1, a Satellite owned by the Republic of Belarus which was launched recently, January, 15 2016.

2.4.4 MISSING PILLARS, MISSING LINKS Political Will: Not yet definite and unequivocal R&D intensity: Very low Infrastructure: Weak and crumbling Cultural environment: Not Technology-promoting, rather technology-inhibiting Market: Anti-domestic production, with preference for foreign goods

3 OVERALL ASSESSMENT OF TECHNOLOGY TRANSFER EFFORTS

Thus, we see the following trends in Technology Transfer efforts in Nigeria:A) 1914 1960 Very little inflow or transfer of foreign technology; technology transfer

infrastructures were virtually absent and there was no public policy or strategy to encourage it

B) 1960-1981 Some considerable inflow of technologies, some key infrastructures, however they were not properly linked and no clearly articulated national strategy to ensure the transfer,

C) 1980 -1999 Technology transfer infrastructure and support structures still fragile . The internalization of technology not yet set in, industries and plants could not be maintained; the nation continued to depend on import.

D) 2000-2015 Technology Transfer efforts neither proven satisfactory nor successful. Technology inflows have not been internalized.There is apparent inability to design/build or maintain steel plants, refineries, power plants, bridges, dams, etc. This period also revealed the impact of the political cum socio-economic climate, the market demands, as well as technology support structures on commercialization of innovations. Virtually none of the attempts at commercialization of innovation during this period was successful. Recall for example Brown Sugar, AVR (by NOTAP), Shear Butter (by RMRDC), NICOSAN (by NIPRD/Xechem, Shetco); Compare this situation with the success of Sorghum malting for the Breweries in the 1980s.Need to carefully examine/study the parameter in the two eras as guide for future endeavors.


3 OVERALL ASSESSMENT OF TECHNOLOGY TRANSFER EFFORTS

Thus one can conclude that: The nation appears refractory to all the foreign technologies

purchased at huge costs.

Though the nation has a satellite in orbit, and there have been some rapid internet penetration into virtually every part of the country and an expansion of mobile telephony, the technical support is weak. There is a distressing and scandalous dearth of skilled artisans and craftsmen.

We now therefore need to seriously reflect and reassess our efforts so far, and retool as it were, for we must quickly grab the opportunities offered by technologies that abound globally to enable the nation jump into the fast rapidly moving global train. The change mantra in the air offers us an immense opportunity to do this.


4 REFLECTIONS ON WHAT MUST BE DONE

It is appropriate and relevant for us to pose the Question: Why is TechnologyTransfer yet to blossom in Nigeria? Two factors appear to be implicated here,Namely a) The Political Will of the state, and b) The pervading culture of the Nigerian people. With respect to these two, one can learn a lot from the background to the

phenomenal economic transformations experienced by many nations, notably Japan, China, Malaysia and South Korea.

Please note the following: Meiji Declaration of Japan in 1868: The 5th Article states, Knowledge shall be sought from every part of the world for the good of the Empire The Korean Miracle of 1962 2000, in which a backward, desolate and poor economy of 1960 transformed into an industrialized prosperous nation, through Government-led economic strategy. Chinas deliberate government-led policy of the HIDZs (the High Technology Industrial

Development Zones). And of course, The value system of the Nigerian nation, - which is absolutely fundamental. Writing in the TWAS Newsletter 1996, Professor Abdus Salam averred, It is a political decision on the part of those (principally from the South Hemisphere) who decide on

the destiny of developing humanity if they will take steps to let the Les Miserables create, master and utilize modern Science and Technology.



EXPECTATIONS FROM NOTAP, FMST, AND GOVERNMENT

NOTAP Take careful look at the objectives of monitoring of TT Agreements as in the

revised guidelines; Monitoring should be more technical, not simply a legal activity.

Support/Shape the directions of R&D Relate with RIs, TBIs and IDCs Forge stronger linkage with sister agencies, especially RMRDC Strengthen the IPTTOs in Unis, Polys and RIs Strengthen NOTAP SME interaction Have ear on the ground about research at Uni Labs and Industry Identify and encourage Innovation Clusters that abound in the country e.g

@UTC area Abuja, @Onitsha near Tarzan, @Ogbete Coal Camp Enugu, etc Publish monthly reports of new innovations, with a summary each year.



EXPECTATIONS FROM NOTAP, FMST, AND GOVERNMENT

FMST Maintain Closer Liaison with NOTAP Source and Build up Funding for Venture Capital for R&D

spin-offs and for Commercialization of major Innovations.

STATE i.e. PRESIDENCY Adopt the Meiji- type declaration on the acquisition of

Technology. Challenge the national spirit, by ensuring that some major

design, fabrication/construction of projects are awarded to credible indigenous Nigerians rather than foreign companies.


Thank youvery much

trends in technology transfer in nigeria

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