1. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 1 CAPACITY AND CAPABILITY FOR INDUSTRIAL DEVELOPMENT Paper Presented at the INDUSTRIALIZATION CONFERENCE November 22, 2006 KICC, NAIROBI by HARRY L. KAANE School of Engineering, Moi University

2. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 2 INDUSTRIALIZATION IN THE CONTEXT OF VISION 2030 (Social & Economic Development) Goal: Economic growth Indicator: GDP Intervention: GDP growth rate > 10% for 25 yrs Objective: Wealth creation and growth What is wealth? How is it produced? Natural resources: Sustainable use Inputs for production: Primary industries Production Infrastructure: Facilities and Equipment Consumer products: Marketing strategy

3. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 3 THE TRILEMMA ECONOMY ENERGY ENVIRONMENT Integrated management of the 3-Es

4. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 4 INDUSTRIAL REVOLUTION AND EVOLUTION PRE-REQUISITES FOR IR&E –EXPLOSION IN HUMAN POPULATION AND AGRICULTURAL PRODUCTION –THREAT OF POPULATION GROWTH EXCEEDING AGRICULTURAL GROWTH –HARMONY, PEACE AND TRANQUILITY IN SOCIETY –INSATAIBLE SEARCH FOR KNOWLEDGE – ADVANCES IN S&T –PLENTY OF CHEAP ENERGY GOOD COMMUNICATION AND TRANSPORTATION MECHANIZATION BECAME POSIBLE

5. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 5 INDUSTRIAL REVOLUTION AND EVOLUTION DRIVERS OF INDUSTRIAL EVOLUTIONS –THE STEAM ENGINE – ENERGY –ATOMIC/NUCLEAR POWER – ENERGY –TRANSITOR – DATA PROCESSING / COMPUTER –COMPUTER – INFORMATION & COMMUNICATION –COMPUTER – AUTOMATION / CIM –COMPUTER – E-COMMERCE –…… –KNOWLEDGE – INTEGRATION OF PLANNING, PRODUCTION, AND SALES IN A GLOBAL VILLAGE - NO BARRIERS – WTO!

6. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 6 TECHNOLOGY IS MAN MADE WEALTH TECHNOLOGY IS LIVE: – IT IS BORN, – GROWS FAIRLY RAPIDLY, AND – DIES SLOWLY TECHNLOGY HAS FOUR COMPONENTS: –PLANT MACHINERY EQUIPMENT INCLUDING SOFTWARE –HUMAN –INFORMATION –ORGANIZATION STRUCTURES

7. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 7 INDUSTRIALIZATION PROCESS VALUE ADDING INDUSTRY & COMMERCE NATURAL RESOURCES CONSUMER PRODUCTS MARKETS EMBODIED TECHNOLOGIES IDEAS Education and Training Primary Engineering R&D DISEMBODIED TECHNOLOGIES IMP DMD GOODS

8. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 8 WAY FORWARD: BUILDING CAPACITY FOR STI STI AGRICULTURE INDUSTRY & COMMERCE NATURAL RESOURCES TRANSPORT & COMMUNICATION ENERGY ICT EDUCATION &TRAINING HEALTH GOVERNANCE PLANNING FINANCE

9. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 9 INTERVENTIONS - i ESTABLISH A NATIONAL INNOVATION SYSTEM STRENGTHEN SECTORAL STI AGENCIES IN SELECTED KEY SECTORS (RIs) ESTABLISH MULTI-SECTOR/DISCIPLINE AGENCIES AT THE NCST ESTABLISH A TECHNOLOGY FORECASTING AGENCY GIVE PRIORITY TO TECHNOLOGY TRANSFER

10. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 10 INTERVENTIONS -ii ENCOURAGE IMPORTATION OF DISEMBODIED TECHNOLOGIES STRENGTHEN RTOs AND INDUSTRY PARTNERSHIPS STRENGTHEN STI IN EDUCATION AND TRAINING BUILD ENGINEERING CAPACITY IN KENYA ESTABLISH A DEDICATED FUND TO STI ( 3-5% OF VAT)

11. NOVEMBER 22, 2006INDUSTRIALIZATION DAY, KICC, NAIROBI 11 THE END THANK YOU FOR YOUR ATTENTION