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

2. Introduction Policy regime => a number of policies (around innovation) The Ghana Shared Growth and Development Agenda (GSGDA II – 2014-2017) => 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 (2012-2016), 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.

3. The importance of government policies for formal and informal firms 500 respondents; 1 = insignificant, 5 = crucial, average values Total Informal FormalDiff. Provide fiscal subsidies3.94 3.930.01* Duty-free exports3.71 3.65 3.82-0.17 Impose higher duties for imported products3.37 3.38 3.350.04 Develop high tech industrial development zone3.53 3.55 3.480.07 Lower corporate taxes3.79 3.73 3.91-0.18* Provide cheaper interest loans4.17 4.20 4.110.09* Government procurement3.57 3.56-0.00 Open the economy to foreign competitors and increase competition2.22 2.26 2.150.11 Gov. funding schemes, e.g. the Micro, Small and Medium Enterprise (MSME) Project of the Ministry of Trade and Industry 3.78 3.84 3.660.19 Government funding scheme, e.g. The Venture Capital Trust Fund3.75 3.78 3.690.09

4. The implementation of government policies for formal firms and informal firms 500 respondents; 1 = insignificant, 5 = crucial, average values Total Informal FormalDiff. Provide fiscal subsidies1.86 1.92 1.740.18 Duty-free exports1.78 1.770.01 Impose higher duties for imported products1.86 1.85 1.87-0.02 Develop high tech industrial development zone1.77 1.85 1.640.22 Lower corporate taxes1.79 1.82 1.730.09 Provide cheaper interest loans1.88 1.91 1.830.08 Government procurement1.88 1.89 1.870.01 Open the economy to foreign competitors and increase competition1.93 1.98 1.860.12 Gov. funding schemes, e.g. the Micro, Small and Medium Enterprise (MSME) Project of the Ministry of Trade and Industry 2.02 2.12 1.850.27 Government funding scheme, e.g. The Venture Capital Trust Fund1.99 2.07 1.860.22

5. GLOBAL COMPETITIVENESS INDEX 2014-15: THE CASE OF GHANA DescriptionGhanaNigeria Rank (out of 144 countries) Score (1-7) Rank (out of 144 countries) Score (1-7) Overall (bottom 25%!)1113.71273.4 Basic requirement (60%)1233.71403.2 - Institutions693.91293.0 - Infrastructure1083.01342.1 - Macroeconomic environment1333.4764.6 - Health and primary education1214.51433.0 Efficiency enhancers (35%)893.8823.9 - Higher education and training1063.51242.9 - Goods market efficiency674.3874.2 - Labour market efficiency983.9404.5 - Financial market development624.1674.1 - Technological readiness1003.11043.0 - Market size693.7334.7 Innovation and sophistication factors (5%) 683.61142.8 Business sophistication703.9873.8 Innovation633.3873.8

6. 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.

7. End of Slides THANK YOU FOR YOUR ATTENTION