NACETEM

R&D AND THE CHALLENGE OF

WEALTH CREATION IN NIGERIA

Willie O. Siyanbola, Ph.D (Sussex), FMSN, FSESN

Director General/Chief Executive

National Centre for Technology Management (NACETEM),

Federal Ministry of Science & Technology (FMST),
Obafemi Awolowo University, Ile-Ife, Nigeria

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Acknowledgments

The HMST

The PS

The DPPRA

Others

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PRESENTATION OUTLINE

Preamble

R&D: definition, types and categorisation

Wealth Creation

How and when is wealth created from R&D?

How is it done elsewhere/Nigeria?

Challenges of R&D in Nigeria

Recipe for R&D-based wealth creation in Nigeria

Concluding Remarks

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Preamble

In today’s increasingly knowledge-driven world, Science and
Technology (S&T) are the inseparable twin keys to progress and
industrial growth

Global experiences have shown that the conduct of Scientific R&D

does not robotically translate into development.

For them to have any economic impact, R&D activities have to

exist within a strong NIS,

be creative, innovative and entrepreneurial

be connected with existing needs & demand

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EVOLUTION OF R&D

R&D is a post Second World War phenomenon, and absorbs a
sizeable proportion of corporate and public funds in the developed
countries

It is largely carried out by researchers in higher educational

institutions (HEIs), research institutes (public and private), and
industrial firms.

Traditionally, universities fulfil the dual purposes of

teaching/manpower development and research geared towards the
discovery of new knowledge while research institutes engage in
R&D activities geared towards new products/processes and/or
application of new knowledge.

Additional social demand of transferring technology to the

business sector has been added in recent years.
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R&D definition

R&D refers to creative work
undertaken on a systematic basis
in order to increase the stock of
knowledge, including knowledge of
man, culture and society, and the
use of this stock of knowledge to
devise new applications
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CATEGORIES OF RESEARCH

Pure Basic Applied Experimental

Research Research Development

CHARACTERISTICS

Specific Systematic
Experimental work based
Application
NATURE &theoretical on existing
conceived knowledge

Acquisition New Mat’ls

Knowledge
of New Product
GOAL Advancement
Knowledge services

New
processes,
TARGET systems
& services
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WHY R&D?
Countries that have heavily invested in R&D
have reaped substantial economic benefits...
South China India South Nigeria
Korea Africa
Population in millions (2007 est.) 48.0 1329.1 1164.7 49.2 147.7
R&D Expenditure as % GDP (2000-
2005) 2.6 1.4 0.8 0.8 0.20*
Researchers in R&D per million
people (1990-2005) 3187 708 119 307 125.9*
Royalties and Licence Fees in
USD per person (2005) 38.2 0.1 - 0.9 ?
Patents to residents per million
people (2000-2005) 1113 16 1 - ?
Source: Human Development Report, 2007 /2008/2009
* - NACETEM /NEPAD STI Indicator Survey

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WHY R&D?

Developing nations can no longer compete based only on
their natural resource endowments and locational
advantages.

For a nation to withstand competition in this era of

globalisation there is need for such to identify its niche areas
and build on it by the application of scientific methods (e.g.
Brazil: SUGARCANE; Malaysia: OIL PALM, Ethiopia: Cut
flower)

What kind of R&D do we need? High-tech? Low-tech?

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WHEN IS R&D PROFITABLE?

No economic gains from R&D unless the outputs (including
patents) are exploited

Translation to innovation occurs through entrepreneurial

activities that take care of marketing

When R&D is demand driven and solves real life problems

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Models for the relationship between R&D & the

Market
Model A

Phase 1 Phase 2 Phase 3

Model B

Phase 1 Phase 2 Phase 3

Model C

Phase 1 Phase 2 Phase 3

Phase 1 – Pure Research

Phase 2 – Technological Development Source: Goldemberg, 1998
Phase 3 – Production and Marketing © NACETEM 2010
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Model for the relationship among Research,

Development and Diffusion

a = Research and Development;

e

b = Commercialisation;
DEVELOPMENT

c = Publication, etc;
a b

d = Research, Development and d
DIFFUSION
Diffusion, RESEARCH c

e = the National Innovation System

(NIS), the domain in which all
activities take place

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WEALTH CREATION

Wealth is the abundance of
valuable resources or
material possessions or the
control of such assets

Every man or woman should

have the opportunity to
prosper to the limit of their
ability - Ralph
Halpern (British business
executive)*

* From Microsoft Encarta, 2008

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Some thoughts about wealth!

“Wealth is the accumulation of possibilities.” – Anon.

“Wealth comes from knowing what others do not know.”
– Aristotle Onasis

“Learning useful facts is the great road to wealth.” - M.R.
Kopmeyer

“If you are not as wealthy as you like, there is something
you don’t know.” – David Wood

“Knowledge is capital, the rest is money” – Philip
Emeagwali
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VALUE CHAIN TRANSFORMATION

DEVELOPING ECONOMIES

EMERGING ECONOMIES

DEVELOPED ECONOMIES
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NATIONAL WEALTH: WHERE WE ARE

Country Human Per Capita % population % population

Development GDP (PPP below $1/day below $2/day
Index rank USD)
Singapore 23 49,704 - -
South Korea 26 24,801 - -
Chile 44 13,880 <2 2.4
Malaysia 66 13,518 <2 7.8
South Africa 129 9,757 26.2 42.9
China 92 5,383 64.4 36.3
Nigeria 158 1,969 70.2 83.9

Source: Human Development Report 2009

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OPTIONS FOR KNOWLEDGE-BASED
Outright sale
WEALTH CREATION
Licensing
PATENTS
Joint Ventureship

IP Self Exploitation
(Incubators,
Science Park)
R&D
(Inventions, Outright Sale
COPYRIGHTS
Universities Innovations)
and Licensing
Research
Institutes OTHERS
Talents &
Creativity
Incubation
(Spin Offs)
DIRECT
COMMERCIALI-
ZATION Spin Outs

Existing Firms

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THE SPIN-OUT OPTION: THE CASE
OF MIT & CHALMERS

In the US, Stanford University and the

Massachusetts Institute of Technology (MIT)
have incubated large numbers of spin-out firms.
For example, the number of companies spinning
out of MIT increased from 156 to 636 within two
decades.

In Sweden, Chalmers University of Technology

has created 240 companies from R&D products
within 30 years.

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The Incubation Option: The Case of MIT

“If the companies founded by MIT graduates and faculty formed
an independent nation, the revenues produced by the companies
would make that nation the 24th largest economy in the world.
The 4,000 MIT-related companies employ 1.1 million people and
have annual world sales of $232 billion during 1994. That is
roughly equal to a gross domestic product of $116 billion, which
is a little less than the GDP of South Africa and more than the
GDP of Thailand.” (MIT - The Impact of Innovation,1997)

“The 25,800 currently active companies founded by MIT alumni

employ about 3.3 million people and generate annual world sales
of $2 trillion, producing the equivalent of the eleventh-largest
economy in the world.” (Roberts and Easley, 2009)
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STATUS OF R&D IN NIGERIA

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Resources Deficiency
Resources available for R&D are too thin and are
spread on numerous researches running
concurrently.
For instance, in OAU, records show that grants were
allocated to about 46 research projects between 1998
and 2002, and 87 research projects between 2003 and
the first quarter of 2007. Unfortunately, most of the
projects are either surveys, impact analyses,
appraisals, evaluation studies or analytical studies,
while only about 1% is innovative and/or
interdisciplinary (Akinsola, 2007)

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QUALITY: GLOBAL COMPETITIVENESS RATINGS
Global Country Research Quality of Available
Competitiveness Training Scientific Scientist &
Ranking Institutions Engineers
3 Singapore 5.5 5.6 5.2
19 South Korea 4.6 5 4.9
24 Malaysia 4.9 4.7 4.7
29 China 4.4 4.4 4.6
30 Chile 4.6 3.9 4.9
45 South Africa 4.6 4.7 3.1
49 India 4.7 4.9 5.6
56 Brazil 4.8 4.2 4.2
99 Nigeria 3.9 2.9 4.5
114 Ghana 3.4 3.7 3.6
Average 4.5
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SOURCE: Global Competitiveness Ranking 2009
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QUALITY: WORLD RANKING OF UNIVERSITIES, 2010
6 Nigerian universities (4 in 2007) ranked among top 100 in Africa!
AFRICAN RANK UNIVERSITY COUNTRY WORLD RANK
1 UNIVERSITY OF CAPE TOWN SA 340
2 STELLENBOSCH UNIVERSITY SA 538
3 UNIVERSITY OF PRETORIA SA 539
4 UNIVERSITY OF THE WITWATERSRAND SA 808
5 UNIVERSITY OF KWAZULU NATAL SA 904
6 RHODES UNIVERSITY SA 1,024
7 UNIVERSITY OF THE WESTERN CAPE SA 1124
8 UNIVERSITY OF SOUTH AFRICA SA 1219
9 UNIVERSITY OF JOHANNESBURG SA 1422
10 UNIVERSITY OF CAPE TOWN SA 340
61 (44)* OBAFEMI AWOLOWO UNIVERSITY NGA 5756 (5834)*
66 UNIVERSITY OF JOS NGA 5882
68 (96)* UNIVERSITY OF LAGOS NGA 5936 (7601)*
77 (79)* UNIVERSITY OF BENIN NGA 6324 (7318)*
79 (65)* UNIVERSITY OF IBADAN NGA 6425 (6809)*
99 UNIVERSITY OF NIGERIA, NSUKKA NGA 7170
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* (2007 RANKING) SOURCE: http://www.webometrics.info/top100_continent.asp?cont=africa; 2010
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R&D Productivity in Nigeria (2004 -2008): Publications*
Output Total Per Per Per Capita
Capita Annum per annum
Articles in Local Journals 1093 3.99 218.60 0.80
Local Conference Papers 882 3.22 176.40 0.64
Articles in Foreign Journals 862 3.15 172.40 0.63
International Conference Papers 313 1.14 62.60 0.23
Books/Chapter in books 216 0.79 43.20 0.16
Total 3366 12.28 673.20 2.46

R&D Output (per capita) Nigeria (Kerala) India Kenya Ghana

(’09) (‘02) (‘02) (‘02)
Articles in foreign journals 3.15 2.21 1.53 2.24
Articles in local journals 3.99 4.90 1.02 2.09
* Based on a sample of 274 researchers in 10 leading universities in Nigeria
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R&D Productivity in Nigeria (2004 -2007):
Patents
Years LOCAL PATENTS
(NON CONVENTIONAL)
No. of Applications Filed No. of Applications Granted
2004 88 40
2005 81 64
2006 95 87
2007 84 33
Total 348 224

Source: Compiled by NOTAP, 2008

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The Patent Option: Famous Examples from
Nigeria

The yam pounder patented in
Great Britain by Prof.
Makanjuola of Agric Eng.
Dept, O.A.U.

•NIPRISAN /NICOSAN
Patented by Nigerian
Institute of Pharmaceutical
Research & Development,
Abuja. U.S. Patent
#5,800,819 - September 1,
1998.
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Ranking of Barriers to Tangible R&D
Limitation % researchers
Lack of funding for research 87
Inadequate supply of electricity 82
Lack of R&D facilities 76
Obsolete facilities 67
Lack of exposure to modern lab skills 55
Inadequate water supply 54
Lack of quality research assistance 50
Inadequate access to recent journals/library materials 45
Lack of exposure to conferences 43
Inadequate time for R&D 29
Poor attitude to collaboration among researchers 29
Lack of research drive 24
* Based on a sample of researchers in 10 leading universities
27 in Nigeria Source: NACETEM, 2009a © NACETEM 2010
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Characteristics of R&D Collaboration in Nigeria
Stakeholders % of Researchers
Local Research Agency 40.8
Industry 29.2
International Research Agency 17.5
University within Nigeria 6.8
University outside Nigeria 4.9
Local Financial Institutions 2.7
World Bank 2.3
NGOs 2.3
State Government 1.5

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Researchers’ R&D Support from the Private Sector
Multinationals Foreign owned Firms Indigenous Firms

45
40
35
% researchers

30
25
20
15
10
5
0
Sponsorship Travel S&T grants Provision of Staff Others
of W/shop fellowship R&D Exchange
and facilities Programmes
Conferences

29 Source: NACETEM, 2009a © NACETEM 2010

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OBSTACLES TO INNOVATION IN NIGERIA
Lack of skilled personnel 22.4

Long approval process within firm 23.1

Weak customer demands 28.7

Lack of information on technology 28.7

Legal restrictions 29.4

Domestic conditions 46.2

Lack of financing 52.4

High Cost of innovation 59.4

0 10 20 30 40 50 60 70
% of innovative firms

Source: NACETEM, 2009b

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Recipe for R&D-based Wealth Creation

Strong and Virile NIS

Individual re-orientation

Institutional re-arrangement

Functional Government-University/Research
Institutes-Industry Linkage through Networking:
the GIKI model

Technology Transfer

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THE NIS: What is it?

The NIS is

“the network of institutions in the public and private sectors whose
activities and interactions initiate, import, modify and diffuse new
technologies.” (Freeman, 1987)

“a constitution of elements and the relationships located within or

rooted inside the borders of a nation state, which interact in the
production, diffusion and use of new and economically useful
knowledge.” (Ilori, 2006)

“integrated system of economic and institutional agents directly

promoting the generation and use of innovation in a national
economy” (Adeoti, 2002)

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Structure of Interactions among elements of the NIS
Finance

Policy
Instruments

Government

Venture Fund Venture Fund

Policy
Instruments

Policy
Policy
Instruments
Instruments

Brokerage, Interface,
Brokerage,
Bridging Institutions
Interface,
Education Bridging Industrial
Institutions
and
Research Production

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Adapted from Tiffin,1997
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R&D AND THE NIS: VISION 7-POINT
AGENDA
20-2020
WHEN AND HOW NEEDS
MDGs

CAN WEALTH BE
CREATED?

Developmental goals are S&T
much more easily achieved
when S&T knowledge is
created and deployed
within the context of the
NIS
GLOBAL, REGIONAL, NATIONAL &
GRASSROOTS DEVELOPMENT

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Individual Re-orientation

Changes in

Mindset

Ideology

Orientation

Value system

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Institutional Re-arrangement
 SWOT Assessment
 R&D agenda

 Setting Priority Areas/Targets

 Niche Areas
 R&D Councils

 Collaborative/Interdisciplinary/Market-focused R&D

 Harness Resources
 Central Labs (for example OAU CSL)

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Affiliation of Researchers using OAU CSL
Affiliation %
Obafemi Awolowo University, Ile-Ife 50.0
University of Ibadan 9.1
LAUTECH, Ogbomoso 9.1
Bayero University, Kano 4.5
FUT, Owerri 9.1
University of Ilorin 9.1
University of Agriculture, Makurdi 4.5
National Institute for Fresh Water Fisheries Research, Maiduguri 4.5

Source: based on a 2008 assessment study by NACETEM

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Plasma Spectrophotometer
Some modern
equipment at the
OAU CSL

Nuclear Magnetic Resonator

Liquid Nitrogen Generator

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NACETEM Intra-African Research
cooperation with other
African Scientists

Prof P. Rasoanivo

Cape town
Dr. G. Matsabisa
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Functional Government-
University/Research Institutes-Industry
Linkage through Networking: the GIKI
model

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TTO
GIKI MODEL
Model for Automating
Interactions
among
Government,
Industry &
Knowledge Knowledge Management Platform (KMP)
Institutions
IPTTO

Source: Awoleye & Siyanbola, 2007

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Triple Helix Universities and
R&D institutions
Strategy
•IP Policy
•R&D Policy
•TTO
•SWOT

Government IP Assets
Industry
•Economic Development (SME
Policies, market creation •Research Funds
•National IP Infrastructure •Research Collaborations
•Enforcement
•Licensing
•IP Strategy
•Marketing
•R&D Enhancement
•IP Education
•Commercialization of R&D

•Research Funds Adapted from WIPO,

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Technology
Transfer OPEN
Model MARKET
SCIENCE
PARK
TECHNOLOGY
INCUBATOR

R&D

IDEA/PROBLEM
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CONCLUDING REMARKS

R&D activities need to be properly managed at all
levels before they can lead to wealth

Major ways of doing this are:

Creating a strong and virile NIS

Individual re-orientation

Institutional re-arrangement

Functional Government-University/Research Institutes-Industry
Linkage through Networking: the GIKI model

Technology Transfer

Individuals, Knowledge Institutions, Government and

the productive sector all have a critical role to play
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References
United Nations Development Programme (UNDP) (2009). Hunan Development Report
2005: International Cooperation at a crossroads – Aid, trade and security in an
unequal world. UNDP, NY.
Tiffin, S. (1997) Building Science and Technology Innovation Systems in Africa, Paper
delivered at the First Regional Workshop on The Restructuring of National Science and
Technology Systems in Africa, Regional Programme for Technology Management
(REPTEM), Lagos, May 12-16, 1997.
UN Millennium Project (2005). Innovation: Applying Knowledge in Development. Task Force
on Science, Technology, and Innovation.
Organisation for Economic Cooperation and Development (OECD) (2002). Frascati Manual:
Proposed Standard Practice For Surveys On Research And Experimental Development.
OECD, Paris
Goldemberg, Jose (1998). A guest essay: What is the role of science in developing
countries? Chemistry International, 20(6) pp. 168-170.
BankBoston, (1997). MIT: The Impact of Innovation. Boston, MA
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References
NACETEM (2009a). Assessment of R&D Productivity in Nigerian Universities and Research Institutes
NACETEM (2009b). Assessment of Innovation Capability in the Manufacturing Sector in Nigeria
Ogada, T. (2009). Generation, Protection and Commercialisation of IP Assets
Microsoft Encarta (2008) Wealth. Microsoft Corporation.
Roberts, E. B and Essley, C. (2009). Entrepreneurial Impact: The Role of MIT- Executive Summary. Ewing
Marion Kauffman Foundation
World Economic Forum (WEF) (2008). The Global Competitiveness Report 2008-2009. Geneva:
World Economic Forum
Adeoti, J. (2002). Building technological capability in the less developed countries: the role of national
systems of innovation. Science and Public Policy, April 2002.
Freeman, C. (1987): Technology Policy and Economic Performance: Lessons from Japan. London Pinter
Publishers
Ilori, M. O. (2006). “From science to technology and innovation management”, Obafemi Awolowo
University Inaugural Lecture Series 184. Obafemi Awolowo University Press, Ile-Ife.

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THANK YOU
FOR YOUR
ATTENTION

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