The Innovation Policy Regime in Ghana: Lessons to the Policy Makers George Owusu Essegbey CSIR-STEPRI, Accra

Introduction Policy regime => a number of policies (around innovation) The Ghana Shared Growth and Development Agenda (GSGDA II – ) => structural transformation of Ghana’s economy with STI driving national development. Ghana’s Industrial Policy – Emphasis on Technology and Innovation (as a ‘Component’ with thematic areas) National STI Policy – underscores connections with all sectors of the economy e.g. agric, industry and services, Ghana Export Promotion Strategy ( ), Other policies/ laws – e.g. Private Sector Development Strategy, Local Content Law, 2013, METASIP, Trade Policy, the CSIR Act, The key challenge – the implementation of the relevant policies and laws. DILIC Survey – public policies are crucial.

The importance of government policies for formal and informal firms 500 respondents; 1 = insignificant, 5 = crucial, average values Total Informal FormalDiff. Provide fiscal subsidies * Duty-free exports Impose higher duties for imported products Develop high tech industrial development zone Lower corporate taxes * Provide cheaper interest loans * Government procurement Open the economy to foreign competitors and increase competition Gov. funding schemes, e.g. the Micro, Small and Medium Enterprise (MSME) Project of the Ministry of Trade and Industry Government funding scheme, e.g. The Venture Capital Trust Fund

The implementation of government policies for formal firms and informal firms 500 respondents; 1 = insignificant, 5 = crucial, average values Total Informal FormalDiff. Provide fiscal subsidies Duty-free exports Impose higher duties for imported products Develop high tech industrial development zone Lower corporate taxes Provide cheaper interest loans Government procurement Open the economy to foreign competitors and increase competition Gov. funding schemes, e.g. the Micro, Small and Medium Enterprise (MSME) Project of the Ministry of Trade and Industry Government funding scheme, e.g. The Venture Capital Trust Fund

GLOBAL COMPETITIVENESS INDEX : THE CASE OF GHANA DescriptionGhanaNigeria Rank (out of 144 countries) Score (1-7) Rank (out of 144 countries) Score (1-7) Overall (bottom 25%!) Basic requirement (60%) Institutions Infrastructure Macroeconomic environment Health and primary education Efficiency enhancers (35%) Higher education and training Goods market efficiency Labour market efficiency Financial market development Technological readiness Market size Innovation and sophistication factors (5%) Business sophistication Innovation

Conclusion The main lesson to policy makers in Ghana => policy implementation is weak. Firms operating in Ghana see a disconnect between policy goals and objectives and policy actions on the ground. Ghana’s competitiveness is at stake. There is need for radical improvement. The key to such radical improvement is to ensure effective implementation of public policies especially as relating to innovation.

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