Presented by: MANOTHONG VONGLOKHAM Department of Technology and Innovation (DTI) Innovation System Diagnosis and STI Strategy Development in LAO PDR

1. Country Development Direction & Goals 2. STI Policies and Strategies 3. NIS Diagnosis and Solutions for Lao PDR 4. Issue and Challenge Contents

Country Development Direction & Goals (NSEDP VII)  Rapid growth, stability and sustainability  Comprehensive basic infrastructure, especially in the rural area, connecting to the region and global  Improving governance efficiency, transparency, and solving all obstacles  Achieving MDGs with a quality  International integration  and openness trade

Country Development Goals:  Ensure continuation of national economic growth with security, peace and stability, and ensure GDP growth rate of at least 8 % annually and GDP per capital to be at least USD 1,700.  Achieve the MDGs by 2015, and adopt appropriate technology and skills, and create favorable conditions for graduating the country from LDC by 2020  Ensure sustainability of development by emphasizing economic development with, cultural and social progress, preserving natural resources and protecting the environment.  Ensure political stability, peace and an orderly society.

STI Policies and Strategies

There are some STI legislation have been promulgated for promote and apply technology to across sector such as law on intellectual property, law on standards, law on metrology, law on Science and Technology, law on bio safety and Etc. There are some legislation being drafted as : Law on e - commerce, technology transfer decree, STI fund management decree and high technology decree …….

STI Policies and Strategies(cont.) The Strategy consist of 6 Action Plans: (1)Dissemination, create awareness on STI, (2)Improvement of the organization, systematization of management mechanism on STI’s activities, (3) HRD development (4) Apply R&D in priority area and sectors (IT, Biotech, Renewable and new material, Machinery and automation technology) (5) Provide ST services for society and people in remote areas, and (6) Cooperation with international.

Diagnosis of IS and Solutions for Lao

STEPI, APCTT and Lao DIT Cooperation on Innovation System of Lao PDR  Duration: End of April 2015  Implementing Organization: - DTI, MOST, LAO PDR - STEPI and APCTT  Methodology approach: - 3C/3A  Stakeholders: - Government Institutions - R&D and HRD - Industry  Diagnosis process - Review of Domestic Policies -- - Site visit and interview - Analysis (3C/3A)

Review of Domestic Policies Overarching goals: Achieve MDGs ASEAN Community Main challenges: Weak economic base (increased competition) Global economic crises (impacted export sector) Pressure from neighboring countries for material resources

List of Stakeholders Visited Industry Dao-Heuang Group– ETL Nam Theun 2 Power Co. – Pharmaceutical Factory No. 2 Lao National Chamber of Commerce & Industry Lao Organic Product Association University/Research Institutes National University of Laos Agriculture & Forestry Research Institute National Institute of Public Health Water Resource & Environment Research Institute Ministries Science & Technology– Planning & Investment Mines & Energy– Industry & Commerce Education & Sports Government Institutions R&D and HRD Industry

 Diagnosis of Innovation system of Lao

3C/3A Diagnosis: Bottlenecks & Constraints Government Intervention Industry Weak production chain Resource-dependent (Unsustainable) Tech import dependent Lack of management skills R&D/Universities Low R&D capacity Limited HRD capacity Domestic Market Low market demand Weak infrastructure Lack of finance market Global Environment High competitiveness IP regime pressures ODA expectations Goal: Rapid, Sustainable Economic Growth Action Plan: Priorities and Programs

NSEDP MPI Industry Platform (Cluster of related industries) Priority Setting Alternatives Driving Mechanism Strategic Program: STI infrastructure, HRD, governance, & financing MIC MOST Industrial priorities in agriculture, automotive parts, garments, construction & wood products HRD Steering Committee MESMEM Industrialization Bottleneck: Lack of scale, coherence, and relevance CORE CAPACITY BUILDING General education starting with primary education Technological priorities for ICT, new materials, biotech, & renewable energy 1. Action Planning Rationale Action Plan

2. Proposed Priorities and Programs 14 Action Plan

15 3. Programs  Driving mechanism to coordinate various stakeholders to build capacities to achieve specific technologies and skills necessary for the platform industry of green vehicles and green energy  Especially national programs which can accommodate international consortia to develop and transfer necessary local capacities  STI Infrastructure to provide R&D, to develop capacities and bridge missing capabilities and to enable domestic firms to bring overseas technology (from global power utility providers) and integrate them with local technologies  Human Resource Development Program to serve as a framework to labor forecast demand and devise projects that align the education and training system to provide the necessary workforce and a mechanism for coordination, sharing of responsibilities, evaluation, monitoring and raising awareness

16 4. Others  Consortia of public private partnership with MNCs to develop technologies and skills are required to be holistically aligned with the inter-ministerial governance mechanism of Lao government, especially with the new education initiative led by MES.  For financing, various funding of ODA, MDB, ASEAN & bilateral financing and private investment (tourism & platform industries) can be mobilized, while seed funding for initial projects from Lao government is critical for continuity and autonomy.  A few of short-term milestones include identification of relevant domestic stakeholders of government, industry champions, and researches to create taskforce team, verification of the proposed project rationale, formulation of international advisory group, and Lao government initiated master planning.

Issue and Challenge

In Lao PDR, we can say that the technology and innovation exist is principle, but it is weak and fragmented. Innovation Linkages among the main actors of the system are weak. There are various bottlenecks of the system as a whole and in each group of organizations, in particular, which are hindering the contribution of this system in strengthening national innovation capability. Issue and Challenge

Challenge : The experience, skill and resource for the management and promotion on STI are insufficient There are absent of specific policies, and legislation on the management and promotion of technology and innovation; Lack of statistic database of STI Disseminate the knowledge, experiences and best practice on STI are limited Coordination mechanism among main sector is not well established and acted

 Universities/ research institutes are still young and limited on infrastructure development on STI.  Research activities and applied technology and innovation are limited not met the demand of society as well as industrial development.  Mechanism coordinate and cooperate between university/research institute and private are not strength.  Industries access to STI information are limited. Challenge (Cont) :

 Science, technology & innovation (STI) issues are recognized as main factors in contributing to socio - economic development, which has emphasized on promoting the research and development of STI to enhance competitiveness business sector and also the promotion of community’s innovation, for applying science in teaching and learning, and for the application of science &technology to business sector.  Lao government has focus on policies to promote the science, technology and innovation, to meet the actual demand of the country. Opportunity

 The government has devoted 1% of the total government’s investment budget to enhance research and development on science, technology, Innovation and social development.  The krabi Initiative was emphasized on promote and stimulate the ASEAN indigenous capacities for upgrade the products and services to meet international standards and also extend to the global markets. Opportunity(Cont)

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