entrepreneurial and innovation for smes in libya
TRANSCRIPT
1
Entrepreneurial and innovation for SMEs in Libya
bull Dr Dia Eddin Sadek Abuhadrabull Advisor to Libya Enterprise
bull Deputy Board of Directors Alryada SME Fund
Investment and inclusive growth in the midst of crisis lessons learned
amp ways forward11 May 2016
Phoenicia HotelBeirut Lebanon
Small and Medium Enterprise and InnovationFactors hampering innovation activities in LibyaLibya Enterprisersquos partners in entrepreneurship and innovativeness
Small and Medium Enterprises important to EconomyInnovation ndash EntrepreneurialConstraints in the Innovation System Characteristics of innovation in developing countries
Small and Medium Enterprise and Innovation
Small and Medium Enterprise and Innovation in Libya
Outline
Conclusion and Recommendation for Innovation
Small and Medium Enterprise Innovation
Small and Medium Enterprise and InnovationFactors hampering innovation activities in LibyaLibya Enterprisersquos partners in entrepreneurship and innovativeness
Small and Medium Enterprises important to EconomyInnovation ndash EntrepreneurialConstraints in the Innovation System Characteristics of innovation in developing countries
Small and Medium Enterprise and Innovation
Small and Medium Enterprise and Innovation in Libya
Outline
Conclusion and Recommendation for Innovation
Small and Medium Enterprise Innovation
Small and Medium Enterprise Innovation
Employment and job creation- The SME is about 70-95 of the total number of companies in most countries- Employ between 50-60 of the total employment between 40-80 in the manufacturing sector and about 80-90 In the construction and contracting sector- Create the highest percentage of new job opportunities
Small and medium enterprises in most countries are -bull The main operator of laborbull The main provider of new jobsbull An important contributor to innovationbull A major contributor to export
a
Export production productivity- Contribute between 30-70 of the added value- Contribute between 15-50 of exports- Contribute between 25-35 of the industrys exports in the world
Innovation- Between 30-60 of small and medium enterprises can be described innovators and contribute to the dissemination of technology- Between 10-20 of small and medium enterprises based on technology- Works As a pioneer in the field of technology and the development of new markets and sectors of work
The importance of small and medium enterprises to create economic wealth
Technical
Economical
Social
constrains to technological innovation in the world
Economic sectorbull Access to finance the most important
economic constrain bull These Innovation are cost-effective and it is not
enough (universities research centers)bull Lack of information to introduce a new
technological innovation to market bull High costs of the equipment which is used in
the production or search
Social sector bull Poor communication between the institution
stakeholdersbull The user accepts a new idea in production
( they see it as a threat to their Jobs)bull The level of preparedness of the institution
staff to do the job and embracebull User concerns translated generally in the
quality of employment contracts applied by economic institutions
Technical sector bull High risk both on a commercial
or financial or technical level bull Risks are considered a technical
obstacles for the innovationbull A qualified technical workforce
is essential
In todays business Landscape entrepreneurs are required to think of
ways to produce new products service or processes for new purpose to the
customers
6
Innovation- Entrepreneurial bull What is Innovation - Entrepreneurialbull What is not Innovation bull Types of innovations bull Source of Innovationbull Degree of noveltybull Advantages of Innovationbull Objectives and effects of innovation bull Barriers to innovation bull Success of Innovation Proccess bull Innovation Systembull The National Innovation System
ndash industry universities and the governmentndash Roles of the three players
bull Constraints in the National Innovation System
bull Components for a strategy
7
Creativity to Entrepreneurship
8
entrepreneurs succeed by thinking and doing new things or old things in new ways
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Entrepreneurship = creativity + innovation
Invention is the use of creativity to create -something new
Invention
WHAT is innovation
Aninnovation
is the implementation of a new or significantly improved product (good or service) or process
a new marketing method or a new organisational method in business practices
workplace organisation or external relations
9
Characteristics of innovation in developing countries
bull Size and structure of markets and firms - SMEs Large firms (operate sub optimal production scale higher unit cost less efficiency) - Competitiveness (based on cheap labour exploitation of natural resources Not on efficiency differentiated products) leads to fewer RampD and innovation projects
bull Instability - wide difference in potential for innovation limits long term innovation activity
bull Informality - rely on informal practices lack of systematic application not favourable for innovation
bull Particular economic and innovation environments - prevalence of state-owned enterprises para-statal enterprises lack of competitiveness
discourage innovation Some state-owned enterprises technological leader - SampT policies in countries with less developed economic system more impact on innovation
than strategise of private enterprises - Innovation in agriculture sector high economic impact
bull Reduced innovation decision-making powers- externally controlled or multinational organization Technology transfer is a fundamental
sourceof innovation bull Weak innovation systems - fewer resources to innovation activities -
Government perform and finance RampD - low level of resources are devoted to RampD by businesses reduce innovation potential of enterprises - weak linkages (UniRampD InstBE) challenge capabilities to overcome technology related problems in BE
bull Characteristics of innovation - acquisition of embodied technology (equipment) Incremental changes organizational changes wwwuisunescoorg
10
11
Small and Medium Enterprise in Libya
Libya Enterprise
Business Center
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Technical
Economical
Social
constrains to technological innovation in the world
Economic sectorbull Access to finance the most important
economic constrain bull These Innovation are cost-effective and it is not
enough (universities research centers)bull Lack of information to introduce a new
technological innovation to market bull High costs of the equipment which is used in
the production or search
Social sector bull Poor communication between the institution
stakeholdersbull The user accepts a new idea in production
( they see it as a threat to their Jobs)bull The level of preparedness of the institution
staff to do the job and embracebull User concerns translated generally in the
quality of employment contracts applied by economic institutions
Technical sector bull High risk both on a commercial
or financial or technical level bull Risks are considered a technical
obstacles for the innovationbull A qualified technical workforce
is essential
In todays business Landscape entrepreneurs are required to think of
ways to produce new products service or processes for new purpose to the
customers
6
Innovation- Entrepreneurial bull What is Innovation - Entrepreneurialbull What is not Innovation bull Types of innovations bull Source of Innovationbull Degree of noveltybull Advantages of Innovationbull Objectives and effects of innovation bull Barriers to innovation bull Success of Innovation Proccess bull Innovation Systembull The National Innovation System
ndash industry universities and the governmentndash Roles of the three players
bull Constraints in the National Innovation System
bull Components for a strategy
7
Creativity to Entrepreneurship
8
entrepreneurs succeed by thinking and doing new things or old things in new ways
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Entrepreneurship = creativity + innovation
Invention is the use of creativity to create -something new
Invention
WHAT is innovation
Aninnovation
is the implementation of a new or significantly improved product (good or service) or process
a new marketing method or a new organisational method in business practices
workplace organisation or external relations
9
Characteristics of innovation in developing countries
bull Size and structure of markets and firms - SMEs Large firms (operate sub optimal production scale higher unit cost less efficiency) - Competitiveness (based on cheap labour exploitation of natural resources Not on efficiency differentiated products) leads to fewer RampD and innovation projects
bull Instability - wide difference in potential for innovation limits long term innovation activity
bull Informality - rely on informal practices lack of systematic application not favourable for innovation
bull Particular economic and innovation environments - prevalence of state-owned enterprises para-statal enterprises lack of competitiveness
discourage innovation Some state-owned enterprises technological leader - SampT policies in countries with less developed economic system more impact on innovation
than strategise of private enterprises - Innovation in agriculture sector high economic impact
bull Reduced innovation decision-making powers- externally controlled or multinational organization Technology transfer is a fundamental
sourceof innovation bull Weak innovation systems - fewer resources to innovation activities -
Government perform and finance RampD - low level of resources are devoted to RampD by businesses reduce innovation potential of enterprises - weak linkages (UniRampD InstBE) challenge capabilities to overcome technology related problems in BE
bull Characteristics of innovation - acquisition of embodied technology (equipment) Incremental changes organizational changes wwwuisunescoorg
10
11
Small and Medium Enterprise in Libya
Libya Enterprise
Business Center
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
In todays business Landscape entrepreneurs are required to think of
ways to produce new products service or processes for new purpose to the
customers
6
Innovation- Entrepreneurial bull What is Innovation - Entrepreneurialbull What is not Innovation bull Types of innovations bull Source of Innovationbull Degree of noveltybull Advantages of Innovationbull Objectives and effects of innovation bull Barriers to innovation bull Success of Innovation Proccess bull Innovation Systembull The National Innovation System
ndash industry universities and the governmentndash Roles of the three players
bull Constraints in the National Innovation System
bull Components for a strategy
7
Creativity to Entrepreneurship
8
entrepreneurs succeed by thinking and doing new things or old things in new ways
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Entrepreneurship = creativity + innovation
Invention is the use of creativity to create -something new
Invention
WHAT is innovation
Aninnovation
is the implementation of a new or significantly improved product (good or service) or process
a new marketing method or a new organisational method in business practices
workplace organisation or external relations
9
Characteristics of innovation in developing countries
bull Size and structure of markets and firms - SMEs Large firms (operate sub optimal production scale higher unit cost less efficiency) - Competitiveness (based on cheap labour exploitation of natural resources Not on efficiency differentiated products) leads to fewer RampD and innovation projects
bull Instability - wide difference in potential for innovation limits long term innovation activity
bull Informality - rely on informal practices lack of systematic application not favourable for innovation
bull Particular economic and innovation environments - prevalence of state-owned enterprises para-statal enterprises lack of competitiveness
discourage innovation Some state-owned enterprises technological leader - SampT policies in countries with less developed economic system more impact on innovation
than strategise of private enterprises - Innovation in agriculture sector high economic impact
bull Reduced innovation decision-making powers- externally controlled or multinational organization Technology transfer is a fundamental
sourceof innovation bull Weak innovation systems - fewer resources to innovation activities -
Government perform and finance RampD - low level of resources are devoted to RampD by businesses reduce innovation potential of enterprises - weak linkages (UniRampD InstBE) challenge capabilities to overcome technology related problems in BE
bull Characteristics of innovation - acquisition of embodied technology (equipment) Incremental changes organizational changes wwwuisunescoorg
10
11
Small and Medium Enterprise in Libya
Libya Enterprise
Business Center
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Innovation- Entrepreneurial bull What is Innovation - Entrepreneurialbull What is not Innovation bull Types of innovations bull Source of Innovationbull Degree of noveltybull Advantages of Innovationbull Objectives and effects of innovation bull Barriers to innovation bull Success of Innovation Proccess bull Innovation Systembull The National Innovation System
ndash industry universities and the governmentndash Roles of the three players
bull Constraints in the National Innovation System
bull Components for a strategy
7
Creativity to Entrepreneurship
8
entrepreneurs succeed by thinking and doing new things or old things in new ways
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Entrepreneurship = creativity + innovation
Invention is the use of creativity to create -something new
Invention
WHAT is innovation
Aninnovation
is the implementation of a new or significantly improved product (good or service) or process
a new marketing method or a new organisational method in business practices
workplace organisation or external relations
9
Characteristics of innovation in developing countries
bull Size and structure of markets and firms - SMEs Large firms (operate sub optimal production scale higher unit cost less efficiency) - Competitiveness (based on cheap labour exploitation of natural resources Not on efficiency differentiated products) leads to fewer RampD and innovation projects
bull Instability - wide difference in potential for innovation limits long term innovation activity
bull Informality - rely on informal practices lack of systematic application not favourable for innovation
bull Particular economic and innovation environments - prevalence of state-owned enterprises para-statal enterprises lack of competitiveness
discourage innovation Some state-owned enterprises technological leader - SampT policies in countries with less developed economic system more impact on innovation
than strategise of private enterprises - Innovation in agriculture sector high economic impact
bull Reduced innovation decision-making powers- externally controlled or multinational organization Technology transfer is a fundamental
sourceof innovation bull Weak innovation systems - fewer resources to innovation activities -
Government perform and finance RampD - low level of resources are devoted to RampD by businesses reduce innovation potential of enterprises - weak linkages (UniRampD InstBE) challenge capabilities to overcome technology related problems in BE
bull Characteristics of innovation - acquisition of embodied technology (equipment) Incremental changes organizational changes wwwuisunescoorg
10
11
Small and Medium Enterprise in Libya
Libya Enterprise
Business Center
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Creativity to Entrepreneurship
8
entrepreneurs succeed by thinking and doing new things or old things in new ways
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Entrepreneurship = creativity + innovation
Invention is the use of creativity to create -something new
Invention
WHAT is innovation
Aninnovation
is the implementation of a new or significantly improved product (good or service) or process
a new marketing method or a new organisational method in business practices
workplace organisation or external relations
9
Characteristics of innovation in developing countries
bull Size and structure of markets and firms - SMEs Large firms (operate sub optimal production scale higher unit cost less efficiency) - Competitiveness (based on cheap labour exploitation of natural resources Not on efficiency differentiated products) leads to fewer RampD and innovation projects
bull Instability - wide difference in potential for innovation limits long term innovation activity
bull Informality - rely on informal practices lack of systematic application not favourable for innovation
bull Particular economic and innovation environments - prevalence of state-owned enterprises para-statal enterprises lack of competitiveness
discourage innovation Some state-owned enterprises technological leader - SampT policies in countries with less developed economic system more impact on innovation
than strategise of private enterprises - Innovation in agriculture sector high economic impact
bull Reduced innovation decision-making powers- externally controlled or multinational organization Technology transfer is a fundamental
sourceof innovation bull Weak innovation systems - fewer resources to innovation activities -
Government perform and finance RampD - low level of resources are devoted to RampD by businesses reduce innovation potential of enterprises - weak linkages (UniRampD InstBE) challenge capabilities to overcome technology related problems in BE
bull Characteristics of innovation - acquisition of embodied technology (equipment) Incremental changes organizational changes wwwuisunescoorg
10
11
Small and Medium Enterprise in Libya
Libya Enterprise
Business Center
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
WHAT is innovation
Aninnovation
is the implementation of a new or significantly improved product (good or service) or process
a new marketing method or a new organisational method in business practices
workplace organisation or external relations
9
Characteristics of innovation in developing countries
bull Size and structure of markets and firms - SMEs Large firms (operate sub optimal production scale higher unit cost less efficiency) - Competitiveness (based on cheap labour exploitation of natural resources Not on efficiency differentiated products) leads to fewer RampD and innovation projects
bull Instability - wide difference in potential for innovation limits long term innovation activity
bull Informality - rely on informal practices lack of systematic application not favourable for innovation
bull Particular economic and innovation environments - prevalence of state-owned enterprises para-statal enterprises lack of competitiveness
discourage innovation Some state-owned enterprises technological leader - SampT policies in countries with less developed economic system more impact on innovation
than strategise of private enterprises - Innovation in agriculture sector high economic impact
bull Reduced innovation decision-making powers- externally controlled or multinational organization Technology transfer is a fundamental
sourceof innovation bull Weak innovation systems - fewer resources to innovation activities -
Government perform and finance RampD - low level of resources are devoted to RampD by businesses reduce innovation potential of enterprises - weak linkages (UniRampD InstBE) challenge capabilities to overcome technology related problems in BE
bull Characteristics of innovation - acquisition of embodied technology (equipment) Incremental changes organizational changes wwwuisunescoorg
10
11
Small and Medium Enterprise in Libya
Libya Enterprise
Business Center
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Characteristics of innovation in developing countries
bull Size and structure of markets and firms - SMEs Large firms (operate sub optimal production scale higher unit cost less efficiency) - Competitiveness (based on cheap labour exploitation of natural resources Not on efficiency differentiated products) leads to fewer RampD and innovation projects
bull Instability - wide difference in potential for innovation limits long term innovation activity
bull Informality - rely on informal practices lack of systematic application not favourable for innovation
bull Particular economic and innovation environments - prevalence of state-owned enterprises para-statal enterprises lack of competitiveness
discourage innovation Some state-owned enterprises technological leader - SampT policies in countries with less developed economic system more impact on innovation
than strategise of private enterprises - Innovation in agriculture sector high economic impact
bull Reduced innovation decision-making powers- externally controlled or multinational organization Technology transfer is a fundamental
sourceof innovation bull Weak innovation systems - fewer resources to innovation activities -
Government perform and finance RampD - low level of resources are devoted to RampD by businesses reduce innovation potential of enterprises - weak linkages (UniRampD InstBE) challenge capabilities to overcome technology related problems in BE
bull Characteristics of innovation - acquisition of embodied technology (equipment) Incremental changes organizational changes wwwuisunescoorg
10
11
Small and Medium Enterprise in Libya
Libya Enterprise
Business Center
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
11
Small and Medium Enterprise in Libya
Libya Enterprise
Business Center
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
SME - LIBYAbull 1960 Agriculture Bank bull Demolish of the private sector ( Green book Laws 87197541978)bull 1980 Development Bank bull 1984 Government ndash Public sector companies lack of true economy vision
========= bull 1989 Industrial Organization Law bull 2000 Production amp Transfer fundbull 2002 Rural bank
========= bull 2006 Employment Fund - First Incubator Committee bull 2009 SME development department created under NEDB bull 2010 - Incubator for start-up companies in ICT
ndash independent SME Authority established under ministry of Economy ndash Establish different incubators and business centers ndash cooperation partnership with Singapore
=========bull 2012 Libya Enterprise bull 2013 Establish five SME Fund gtgtgt
12
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
SME LIBYA
bull the domestic situation prevents Libyan business of ndash access to experts ndash technology ndash know-how and resources
bull the exact size of the SME sector is unknown bull While 180000 private enterprises are officially registered
with the Libyan tax authorities what is more bull senior Libyan government officials believe- informal sector
ndash where it is inefficient risky and difficult to achieve scale
bull Most small enterprises have conducted their business outside the formal economy to avoid taxation and other fiscal and regulatory considerations 13
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
There arebull 5 Incubator( ICT Women Agriculture people in Need )bull 4 Business centers in University of (Tripoli Benghazi Sabah
Misrata=========
bull 5 Business Centers under establishment ( Alzawia Zentan Toubrek Derna and Ajdabia)
bull Conducting feasibility studies for Marine Technology Clusterbull Conducting the Entrepreneurship Training Program
- Training Courses for Qualifying of Entrepreneurship and Business Development Instructors
- Training Courses for SMErsquos Financing=========
bull Conferences ( Entrepreneurship ndash government )bull Established a five regional funds
Libya Enterprise On-going Tasks
14
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Libya Enterprisersquos strategic goal
Creating favourable conditions for the development of innovative
enterprises15
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Libyan SMEs - SWOT Analysis
Strengths Weaknesses Libyarsquos strategic location Young generation Educated young people Financial resources Historical aspects Natural resources Social stability
Lack of entrepreneurship culture Poor SMEs business environment Not enough access for SMEs finance Weak education system output for SMEs Lack of innovation support system Lack of experience Weak women contribution Poor SMErsquos infrastructure Investment infrastructure gtgtgt
Opportunities Threats Social development (increase of
women participation) Regional development
International Investment Interests
Instability of legislation amp administration
Negative attitude towards entrepreneurship Foreign competition
Libyan SMErsquos SWOT Analysis
16
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Challenges faced by small and medium enterprises in Libya
Access to financebull Banks are reluctant to lend to
these institutionsbull The institutions are weak to
provide the required documents to get loans
bull Limited lending due to lack of good accounting systems
bull Investment infrastructure
bull Weak knowledge of planning and management
bull Limited use of modern technologies (Internet and information systems)
bull Avoiding the riskbull Challenges in procuriment
pf raw materials
Business Management The start of the projectbull Few institutions that provide
financing for new projectsbull Government actions required
to complete the license to build the project
Government bureaucracybull The difficulty of the establishment
of SME bull The difficulty in obtaining the
information to create projectsbull The challenges posed by legislation
and lawsbull Few institutions that can provide
financing for new projectsbull Government actions required to
complete the license to build the project
The challenges of the new century
bull Rapid technological developmentbull Information revolutionbull Global communicationbull Global tradebull Global qualitybull Global pollution reduction
R amp D and innovationbull Lack of spending on R amp D
and innovation activitiesbull Labor-intensive and do not
use the technology
Labor marketbull Non-compliance with the
requirements of the labor lawbull Libyans prefer to work in the
public sector rather than the private sector
bull Libyan skilled labor
Career Levelbull The low performance
of administrative staffbull Weakness in the transfer of
expertise and benefit from the experiences of developed countries
bull The absence of advantagesbull Lack of awareness
Hidden tradeCompanies registered in the name Libby real operator entrant competing for small and medium enterprises in the market
Foreign marketsbull The vulnerability of small and
medium enterprises possibilities limit their ability to take advantage of foreign markets
bull Lack of support for them to export their products
Access to skilled laborbull The difficulty in obtaining
skilled labor impair their ability to pay high salaries as well as the weakness of its ability to provide job security
The competitionbull Inability to compete with the
big companiesbull Inability to compete with
foreign companies entering the local market
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Factors hampering innovation activities in Libya
Knowledge factorsbull Innovation potential (RampD design etc)
insufficientbull Lack of qualified personnel Within the
enterprise In the labour marketbull Lack of information on technology marketsbull Deficiencies in the availability of external
servicesbull Difficulty in finding co-operation partners for
Product or process development Marketing partnerships
bull Organisational rigidities within the enterprise Attitude of personnel managers towards change Managerial structure of enterprise
bull Inability to devote staff to innovation activity due to production requirements
Institutional factorsbull Lack of infrastructurebull Weakness of property rightsbull Legislation regulations standards taxationbull Intellectual Property Rights (IPR)
Cost factorsbull Excessive perceived risksbull Cost too highbull Lack of funds within the enterprisebull Lack of finance from sources outside the
enterprise Venture capital Public sources of funding
Market factorsbull Uncertain demand for innovative goods or
servicesbull Potential market dominated by established
enterprises
Other reasons for not innovatingbull No need to innovate due to earlier
innovationsbull No need because of lack of demand for
innovationsbull individual behavior
18
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Libya Enterprisersquos partners in entrepreneurship and innovativeness development
Social-economic institutions and organisations i e Consulting Board ndash discussion forum on present and future actions toward the
SMEs and business environment organisations Ministries ndash policiesrsquo implementation as well as expertise on strategic
documents and legal acts projects such as Ministry of Economy (MoE) Ministry of Higher Education (MoHE) Ministry of Industry (MoI) Ministry of Planning (MoP)
Government Institutions National Planning Council (NPC) Industrial Research centre (IRC) National Board for Technical and Vocational Education (NBTVE) Libyan Authority for Research Science and Technology (LARST) National Economic Development Board ( NEDB)
19
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
National Planning Council (NPC)Established a national committee
ldquoNational Strategy for Science Technology and Innovation ldquo
The final strategy was submitted to the National Planning Council (NPC) on March 2014
20
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Ministry of Industry (MoI)Industrial Research Center (IRC)(IRC) was established in 1953 in order to providendash professional services to industries governments institutions and
individuals ndash It was also aimed at being one of the driving engines of the industrial
sector growth in Libya by introducing technology to the industrial institutions and developing its export capacity
ndash Providing special industrial consultancies ndash supporting new industrial start ups (SME) and promoting capital
investment in local industriesndash Hosts most major Industry laboratories concern with Industryndash four main Laboratory are accredit by DAP in 2010 for most of their testsndash IPR office for Registration of the industrial patient in Libya and
conducting all the procedures for the registration such as patent applications and fees
bull MoI established a SME department to deal with SME sector and the innovation system ( but nothing done yet)
21
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Ministry of Higher Education (MHE)
the related authorities to Innovation
1 The universities Authority
2 Libyan Authority for Research Science and Technology (LARST)
3 National Board for Technical and Vocational Education (NBTVE)
22
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
National Board for Technical amp Vocational Education (NBTVE)
aims to promote and disseminate the culture of entrepreneurship and private sector among the students in the Libyan NBTVE system bull the first round started in
2012-2013
Established The Libyan entrepreneurship Award with the British council support ndash EU funded project
23
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
In spite of the presence of a 33 Research Center in all scientific fields the Libyan scientific research until the year 2012 has suffered from
ndash lack of vision and ndash absence of national policy and strategy for science technology ndash absence of national policy and strategy for
innovation ndash lack of clear objectives and priorities and ndash lack of indicators
bull A weak relationship between scientific research centers higher education institutions and the business sector
bull knowledge production in Libya such as patents number of publications articles scientific technology licensing fees and royalties very low and even non-existent 24
Libyan Authority for Research Science and Technology
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Established a national committee for building the Libyan national innovation system in December 2012The significant results (outlines not implemented)1) Libyan national innovation system frame work2) Libyan national innovation policy 3) national science technology and innovation strategy 4) Libyan innovation prize 5) Libyan entrepreneurship prize 6) science amp technology parks 7) Libyan university and research centers prize 8) Libyan indicators of science technology and innovation
toolbox 25
Libyan Authority for Research Science and Technology
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
bull Libyan innovation prize started its first round in the academic year 2013-2014 ( BSC and MSC )
26
Libyan Authority for Research Science and Technology
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
27
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Canada-Libya Education and Innovation Centre
bull a memorandum of understanding (MOU) was signed between the Royal College and the Libyan Ministry of Health
bull To establish the Canada-Libya Education and Innovation Centre
bull The goal of this MOU is restoring and modernizing the health education system in Libya through bull collaboratively working towards a self-sustainable and
independent health education system bull designing needs-based education programs andbull curricula for the standardization of knowledge and healthcare
delivery bull fast-tracking programs for capacity building and developing
educational standards processes and competencies into formalized credentialing licensing and accreditation programs
28
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Conclusionbull SME Law without any tax or insurance to small businesses
advantagesbull Small enterprise sector is the most important sector in
responding to the crisis of unemployment in Libya in the next phase which requires the government support this sector
bull The main obstacles to entrepreneurs is obtaining funding bull One of the problem facing the SME the low performance of the
administrative staffbull There is weakness in the transfer of expertise and the experiences
of developed and emerging countries which have adopted and developed an SME strategic vision
bull The government should introduce and offer a wide range of initiatives and incentives for small and medium-sized companies such as increasing access to financing consulting and advisory services for SME 29
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
bull Establishing National Strategy for SMErsquosbull Innovation Strategybull Youth Entrepreneurship Strategybull Women Entrepreneurship Strategy
bull passing of Legislations for implementing the SMErsquos Programmebull Knowledge amp Technology Business Parksbull Creation of a National Alliance for SMErsquos Funding and Technical
Supportbull Launching of SMErsquos Marketing Campaignbull Starting of Building PPP bull Adapting the Curriculum of innovation and Entrepreneurship
Education
Recommendation for governemnt
30
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Innovation amp Entrepreneurship Education
Invest
Motivate
Innovate
Higher Education
High School
Grade School
31GIZ (2009) Libya ndash Building the Future with Youth Challenges for Education and Employability recommended
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Recommendation - SMEbull Encourage banks to provide loans and support needed to finance
working capital and the development of equipment and capital assets or the expansion of existing projects
bull Training Small entrepreneurs Staff on different soft skill coursesbull Issuing periodic bulletins to shed light on the successful experiences
in small projects and guiding young people to choose how their small businesses
bull Organizing specialized exhibitions to promote and market products for small projects and dissemination of marketing information necessary to help them market their products inside and outside Libya
bull Engaging young people - as much as possible given the leadership and management of small projects leading to training on management and increase their expertise and raise productivity
bull Need to work on early detection of obstacles to the success of small businesses and to overcome these obstacles and barriers
32
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
bull Conducting awareness of the importance of innovation activity on all the small and medium enterprise levels
bull Activate and encourage cooperation between incubators and SMEs
bull The development of financing mechanisms to conduct studies and research
bull enhance links between scientific research and industrial sectorbull Maximum benefit from the support and accompaniment provided by
government programs and international organizationsbull Support from the central government and local and regional
administrationsbull Encourage Business and financing bodies and banks cooperation in
assisting for the availability of basic infrastructure for the establishment of the advanced productivity and industrial projects and the availability of centers for research and innovative capabilities and apprentice workers at the highest level 33
Recommendation - Innovation
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Thank You
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
35
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
نماء
Looking forward to your Supporthellip
36
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Creativity innovation and entrepreneurs
Creativity is thinking new things and innovation is doing new things
Creativity is the ability to develop new ideas and to discover new ways of looking at problems and opportunities
Innovation is the ability to apply creative solutions to those problems and opportunities in order to enhance peoplersquos lives or to enrich society
Researchers believe that entrepreneurs succeed by thinking and doing new things or old things in new ways
Entrepreneurship = creativity + innovation
37
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Creativity innovation and entrepreneurs
Entrepreneurship is the result of a disciplined systematic process of applying creativity and innovation to needs and opportunities in the marketplace
New ideas are much more than just random disjointed tinkerings with a new gadget
Entrepreneurs are those who marry their creative ideas with the purposeful action and structure of a business
38
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Innovation
Schumpeter (1934) was first to point out the importance of new value created by entrepreneurs
More recently Carland Hoy Boulton and Carland (1984) extended and specified Schumpeterrsquos idea saying that entrepreneurs
introduce new goods introduce new services introduce new methods of production open new markets open new sources of supply re-organise industry
39
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Innovation
bull For statistical purposes the definition of innovation is taken from the Oslo Manual (OECDEurostat 2005) wwwoecdorgstioslomanual
bull An innovation is the implementation of a new or significantly improved
product (good or service) or process a new marketing method or a new organizational method in business practices workplace organization or external relations (OECDEurostat 2005 para 146)
bull A common feature of an innovation is that it must have been implemented A
new or improved product is implemented when it is introduced on the market New processes marketing methods or organizational methods are implemented when they are brought into actual use in the firmrsquos operations (OECDEurostat 2005 para 150)
40
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
What is Innovation
bull adoption of these ideas within the organizations ( Zeltman et al 1973 Damanpour 19991) and
bull successful applications of the resulting novelties (Pries and Janzsen 1995)
bull A process of turning opportunities into new ideas (Drucker 1993 Tidd et al 1997) such that they provide value to the organization
bull ldquo hellip finding ways to deliver new or better goods or servicesrdquo ( Kinicki and Williams 2003) 41
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
What is not Innovation Innovation vs Inventionbull Invention is a detailed design or model of a process or product that
can be distinguished as noval compared to existing ones Innovation is the actual use of a nontrivial change and improvement in a process product or system that is novel to the institution developing the change
bull Invention is the conversion of cash into ideas Innovation is the conversion of ideas into cash
bull For invention to become an innovation the organization needs to be introduced to the invention and invention should add value to the organization in some way
Innovation(Commercialize
d)
Invention(Not
commercialized)42
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
There are four distinct types of innovation these are as follows
Invention - described as the creation of a new product service or process
Extension - the expansion of a product service or process
Duplication - defined as replication of an already existing product service or process
Synthesis - the combination of existing concepts and factors into a new formulation
Types of innovation
43
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Types of innovation according to its content
There are different classification for types of innovation within literature
bull Technical-Non technicalbull Product- Process-Market- Organization-Resource
TechnicalProductProcess
Resource
Non Technical MarketOrganization
44
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Types of innovations
bull Product innovation Introduction of change in end productservice or their quality This includes significant improvements in technical specifications components and materials incorporated software user friendliness or other functional characteristics
bull Process innovation Introduction of change in productsservices delivery methods This includes significant changes in techniques equipment andor software
bull Resource Innovation Change in sources of raw material supplybull Marketing innovation Opening of a new market involving
significant changes in product design or packaging product placement product promotion or pricing
bull Organisational innovationChange in characteristics of organization structure in the firmrsquos business practices workplace organisation or external relations
45
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Source of Innovation
bull Unexpected events
bull New-knowledge concept
bull Changes of demographics
bull Process needs
46
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Degree of novelty
bull Diffusionbull New to the firmbull New to the marketbull New to the worldbull Disruptive innovations
raquo For more information see
47
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Innovation Characteristics Strategic AdvantagesNovelty Offering something no one has done
beforeComplexity Keeping entry barriers high
RobustnessImproving the basic model by extending its life and reducing overall cost
Radical Nature Carrying competitiveness into a new dimension
Continuous Incremental Innovation
Continuous improvement inperformance
Advantages of Innovation
However the effect of innovation on competitiveness is dependent on the ldquonature of the marketrdquo and ldquoclient
characteristicsrdquo
Tidd et al (1997)
48
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Objectives and effects of innovation
Competition demand and marketsbull Replace products being phased outbull Increase range of goods and servicesbull Develop environment-friendly productsbull Increase or maintain market sharebull Enter new marketsbull Increase visibility or exposure for productsbull Reduced time to respond to customer needs
Workplace organisationbull Improve communication and interaction
among different business activitiesbull Increase sharing or transferring of knowledge
with other organisationsbull Increase the ability to adapt to different client
demandsbull Develop stronger relationships with
customersbull Improve working conditions
Production and deliverybull Improve quality of goods and servicesbull Improve flexibility of production or service
provisionbull Increase capacity of production or service
provisionbull Reduce unit labour costsbull Reduce consumption of materials and energybull Reduce product design costsbull Achieve industry technical standardsbull Reduce production lead timesbull Reduce operating costs for service provisionbull Increase efficiency or speed of supplying
andor delivering goods or servicesbull Improve IT capabilities
Other requirementsbull Reduce environmental impacts or improve
health and safetybull Meet regulatory
49
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Barriers to innovation
bull Organization does not encourage innovationbull Insufficient sourcesbull Traditional management behaviorbull Also can be derived from individual behavior
ndash Fear of tryingndash Fear of making mistakesndash Improper motivationndash Fear of changendash Fear of failurendash Self-image block
50
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Success of Innovation Proccess
Fundemantal components of innovation success
Technical Resources
Organizational Capabilities
Good communication environment
Strong customer orientation
Good technical supportDynamic open
minded supportive management
Flexible structureRisk taking ability Strategic Integration
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Innovation Systems
bull A systems approach is implicit in Innovation Policy and the Oslo Manual bull Actors
ndash Governments education health and research institutions business foreign institutions hellip
bull Activitiesndash RampD invention diffusion of technologies and practices design HR
development hellipbull Linkages
ndash Contracts collaborations co-publication grants monitoring hellipbull Outcomes ndash short term
ndash Jobs growth inclusion greater equity hellipbull Impacts ndash longer term
ndash Wellbeing culture change global influence and leverage hellip
bull The activity of innovation is dynamic complex non-linear and global 52
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
The National Innovation System
ndash Business does not stand alone government and universities are integral part of innovation system
ndash Research and development (RampD) is investment spent both to develop new ideas and science and to transform them into commercial innovations
ndash ldquoThe national innovation system essentially consists of three sectors
industry universities and the government with each sector interacting with the others while at the same time playing its own role
53
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Roles of the three playersbull Universities
ndash undertake basic science and technology research ndash educate scientists and technologists needed by business and government
bull Governments ndash design IPR system for business and universities ndash commission science research ndash finance universities subsidise business RampD
bull Business ndash conduct RampD to develop commercial products ndash launch innovative products ndash start up new firms to exploit new science 54
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Framework conditions - 1
bull Longer termndash Education
bull results of reform take decadesbull Long term commitment from successive governments
ndash Culture bull May influence research industrial products or tradebull Willingness to take risk and be entrepreneurs
ndash Healthbull Sick people are not as productive as healthy people
ndash Wealth distributionbull People with resources make markets and have a stake in the society
55
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Framework conditions - 2
bull Shorter termndash Business
bull Regulation and goals venture capital markets spin-offs hellipndash Trade
bull Regulation and goalsbull What about knowledge transfer and capacity building
ndash Intellectual propertybull Strong IP What about open innovation
ndash Physical infrastructurebull Roads ports transportation and telecommunications systems
ndash Social infrastructurebull Openness to collaboration social networks trust mobility collective problem
solvinghellip
56
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Components for a strategy - 1
bull Innovation activitiesndash Technology and practicesndash Open user and demand-driven
innovationndash Supply-driven innovation
bull International engagementndash Big sciencendash International co-operation and
development ndash Global challenges
bull Public Sector Next57
bull Marketsndash Brand recognitionndash Lead marketndash Competitive engagementndash Financial services
bull Peoplendash Labour force
bull Both highly skilled and notndash Demographics and demand
for innovationndash Migration
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Components for a strategy - 2
bull Public Institutionsndash Infrastructurendash Procurementndash Priority settingndash Standard settingndash Public finance
bull Development banks trade support hellip
ndash Government departmentsbull Including granting councilsbull Knowledge and technology transfer
ndash Educationbull All levelsbull Training and life-long learningbull Research ndash HQP production
ndash HealthbullNutritionbullWellnessbullDisease control
ndash Monitoring and evaluationbull Policy learning and change
58
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
First period 1969 - 1984bull The majority of private sector companies are very small in size each of which employ less
than 20 workersbull Private sector development stopped after Gaddafi regime on power as a society governed
by a socialist statebull Law No 87 of 1975 on the organization of operations by commercial entities from
commercial activities is limited to be the only state-owned companiesbull In 1978 Gaddafis second volume of The Green Book which declared opposition of
business practiced by the private sector activities wages rents are all considered forms of exploitation issued
bull After the issuance of this book it has been approved laws aimed at the abolition of the ownership of the private sector in the field of industry
bull Law No 4 of 1978 determine the property and by which confiscation of all private property with the exception of private property for home and one for the purposes of personal use or to a piece of land to build a house for private use
bull Law issued in 1983 invalidated trade between individuals but led instead to systematize trade through popular markets
bull Law No 4 of 1984 also canceled all kinds of professional activities and special craft activities
bull These measures mainly have led to the closure of any formal activity continued for the private sector in the economy With control of the public sector on economic activity all Libyans were forced to move to work in the public sector
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Second period 1984 - 2004
bull There were not any organization or party honorable and follow-up activities which was founded in that period (small and medium enterprises) and that is why most activities did not success for several reasons including -
bull Executive authority interested in the public sector companies particularly during the period of the siege
bull Lack of true economic visibility study for the majority of the projects that have been established
bull Flooding the market with one product causing the failure of such projects
bull Increased costs for the Machinery equipment and production supplies and spare parts and the difficulty of obtaining them sometimes
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Second period 1984 - 2004
bull Administrative and financial problems-bull The multiplicity of approvals required for the establishment of activity and difficult to obtainbull The absence of guidance programs for young people to define the advantages of small and
medium enterprisesbull The lack of a sponsor that would follow up and evaluate the continuous processing
administrative financial and technical errorsbull Failure to provide sufficient encouragement such as exemption from taxes and customs
duties and the reduction of interest on loans and banking facilitiesbull The difficulty in obtaining loans and occasional failure adequacy
bull Technical difficulties-bull The failure of the training centers and research institutions of its training and upgrading the
skills of workers of the SMEbull Failure to instruct the initiators to select the best projects and the technology usedbull The difficulty of marketing production due to limited human and financial potentialbull Despite these difficulties however it founded successful projects in various fields (industrial -
agricultural - animal and marine - different) services and wealth
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Third Period 2004- 2010bull 2007 a study was conducted Preliminary vision of the national workforce employment bull Formed a committee of experts and specialists in the field of small and medium enterprises
and the Committee concluded that the duties and responsibilities of the public sectors in terms of simplifying the procedures for obtaining loans and reduced the fees taxes and to conduct training courses for the entrepreneurs and the SME employees in addition to providing technical and financial support
bull Ministry of Manpower Training and Employment issued a decree No (50) for the year 2005 on the definition of economic activity Included (97) productive activity and (38) a service activity and (24) Activity craftsman
bull seminar for small and medium-sized enterprises in cooperation with the ILO and with the participation of the Arab Labor Organization during the period from 25-27 72005
bull Engage in Arab Project (Start your own good) supervised by the Arab Labor Organizationbull Participation in seminars and workshops organized by the regional and international
organizations on small and medium enterprisesbull Establish a business incubators bull 2009 Small and Medium Enterprise Development Department in The National Council for
Economic Development NEDBbull 2010 first incubator for start-up companies in the information and communications
technologybull 2010Small and Medium Enterprises Authority was established under the Ministry of
Economy - National Program for projects
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Fourth period 2011
bull 2012 Establish Libya Enterprise under the supervision of the Ministry of Economy currently runs 13 centers businessman and 8 Business Incubators (4 works - 4 has not started yet)
bull Decree 519 in 09032013 - converting Libya Enterprise to five regional investment Fund
bull There is no formal strategy for the development of small and medium enterprises
bull the Libya project Supervised by boards of directors chaired by Second Deputy Prime Minister and including ministers of Economy Planning Labour Industry and Finance
bull 2014 establish small and medium enterprises Policy Unit in The Ministry of Economy Its mission to create policies and monitoring and international relations
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
The GIZ report recommended 12
bull Introduce entrepreneurship education and start-up training in all educational institutions including subjects related to market analysis management skills and business plan writing
bull Develop practical entrepreneurial subjects as electives for secondary school and vocational centre students
bull Introduce entrepreneurship modules in bachelor and masters degree programmes at universities
bull Improve linkages between the education sector and the labour market
bull Improve the practical business and labour market orientation of teachers instructors and professors (through training professional development courses and company internships) 64
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
The GIZ report recommended 22
bull Modernise and transform the education system to include the development of ldquomethodological competenciesrdquo (eg foreign languages computer sciences administrative and communication skills data interpretation) and ldquoentrepreneurial competenciesrdquo such as problem-solving analytical thinking proactivity innovative thinking performance and achievement orientation
bull Improve co-operation between private sector companies and educational institutions through regular dialogue joint businesseducation projects internships programmes for students and graduates and teaming with entrepreneurs to assist in teaching practical businesses processes
bull Include private sector representation in the design and implementation of reforms in the vocational training system to ensure a future orientation towards the needs of the private and SME sectors 65
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Some Related References for Innovation Marasin R Dean J and Dawood N (2007) ldquoAPPLICATION OF VISUALISATION TOOLS INPROJECT MANAGEMENT IN CONSTRUCTION INDUSTRY INNOVATION AND CHALLENGESrdquo Computing in Civil Engineering 12(261) 91-102 Bossink BAG (2004) ldquoManaging Drivers of Innovation in Construction Networksrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 130(3) 337ndash345 Manley K McFallan S and Kajewski S (2009) ldquoRelationship between Construction Firm Strategies and Innovation Outcomesrdquo JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT 135(8) 764ndash771 Manley K (2005) ldquoBRITE Innovation Surveyrdquo IconNet Pty Ltd Dikmen I Birgonul MT and Artuk U S (2005) ldquoIntegrated framework to investigate value innovationsrdquo ASCE Journal of Management in Engineering 21(2005) 81-90 Dikmen I Birgonul M T and Artuk U S (2003) ldquoInnovation in construction Evidence from Turkeyrdquo Proceedings of the Joint Int Symposium of CIB Working Commissions W55W65 and W107 2(2003) 396-407
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
67
bull Acs Z and D Audretsch (1993) Small Firms and Entrepreneurship An EastndashWest Perspective Cambridge Cambridge University Press
bull Acs Z and D Storey (2004) lsquoIntroduction Entrepreneurship and Economic Developmentrsquo Regional Studies 38 (8) 871ndash7
bull Amsden A H (2001) The Rise of lsquothe Restrsquo Challenges to the West from Late-Industrialising Economies New York Oxford University Press
bull Aubert J-E (2004) lsquoPromoting Innovation in Developing Countries A Conceptual Frameworkrsquo Working Paper Washington DC World Bank Institute
bull Fagerberg J (2005) lsquoInnovation A Guide to the Literaturersquo In J Fagerberg D Cbull Mowery and R R Nelson (eds) The Oxford Handbook of Innovation Oxford Oxford
University Pressbull Fagerberg J D C Mowery and R R Nelson (eds) (2005) The Oxford Handbook of
Innovation Oxford Oxford University Pressbull Goedhuys M N Janz P Mohnen and J Mairesse (2008) lsquoMicro Evidence on
Innovation and Development (MEIDE) An Introductionrsquo European Journal of Development Research 20 167ndash71
bull Goedhuys M and L Sleuwaegen (2010) lsquoHigh-growth Entrepreneurial Firms in Africa A Quantile Regression Approachrsquo Small Business Economics Journal 34 31ndash51
bull Gries T and W A Naudeacute (2010) lsquoEntrepreneurship and Structural Economic TransformationrsquoSmall Business Economics Journal 34 (1) 13ndash29
bull Lazonick W (2008) lsquoEntrepreneurial Ventures and the Developmental State Lessons from the Advanced Economiesrsquo Discussion Paper 200801 UNU-WIDER Helsinki
References
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
68
bull Li D D J Feng and H Jiang (2006) lsquoInstitutional Entrepreneursrsquo American Economic Review 96 (2) 358ndash62
bull Mytelka L K (ed) (1999) Competition Innovation and Competitiveness in Developing Countries Paris OECD
bull Naudeacute W A (2010a) lsquoEntrepreneurship Developing Countries and Development Economics New Approaches and Insightsrsquo Small Business Economics Journal 34 (1) 1ndash12
bull Naudeacute W A (2010c) lsquoEntrepreneurship Global Development and the Policy Challengersquo Harvard College Economic Review 4 (2) forthcoming
bull Nelson R (ed) (1993) National Innovation Systems A Comparative Analysis Oxford Oxford University Press
bull OECDEUROSTAT (2005) Oslo Manual Guidelines for Collecting and Interpreting Innovation Data 3rd edn Paris OECD
bull Rooks G A Szirmai and A Sserwanga (2010) lsquoThe Interplay of Human and Social Capital in Entrepreneurship in Developing Countries The Case of Ugandarsquo In W A Naudeacute (ed) Entrepreneurship and Economic Development Basingstoke Palgrave Macmillan
bull UNU-INTECH (2005) lsquoMeasuring Innovation Making Innovation Surveys work for Developing Countriesrsquo Technology Policy Brief 4 (1) Maastricht UNU-MERIT
bull Van Dijk M P and H Sandee (2002) lsquoInnovation and Small Enterprise Developmentin Developing Countriesrsquo InM P van Dijk and H Sandee (eds) Innovation and Small Enterprises in the Third World Cheltenham Edward Elgar
References
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
69
bull Andersson Thomas Abdelkader Djeflat and Sara Johansson de Silva 2006 The innovation system and related policy issues in Morocco Research report International Organisation for Knowledge Economy and Enterprise Development (IKED) Malmouml Sweden
bull Aubert Jean-Eric 2005 Promoting Innovation in Developing Countries A Conceptual Framework Policy Research Working Paper 3534 World Bank Washington DC
bull Balzat M and Hanusch H (2004) Recent trends in the research on national innovation systems Journal of Evolutionary Economics Vol 14 pp 197-210
bull Eltaweel M (2011) Financing of small businesses in the Libyan economic environment Unpublished PhD thesis University of Gloucestershire UK
bull Intarakamnerd P Chairatana P and Tangchitiboon T (2002) National innovation system in less successful developing countries The case of Thailand Research Policy Vol 31 pp 1445-1457
bull Porter M and Yergin D (2006) National economic strategy an assessment of the competitiveness of Libya The Monitor Group Report Cambridge Energy Research Associates (CERA) UK
References
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Small and Medium Enterprise in Libya
bull The focus of the Libyan government ( after 2011) has been on securing the country and not so much on creating an encouraging business environment
ndash which must be the next main concern bull The improvement of the private sector has been more problematic than
anticipated that is because of the ndash underdeveloped financial system ndash insufficient infrastructure ndash ineffective public administration and ndash the lack of supply of educated employees and workers ndash One of the main problems faced by private companies is the uncertainty
created by different and shifting interpretations of the law in particular bull the legislation on taxation and bull Other related Law investment law PR IPRhellip
ndash All of these circumstances keep out foreign ventures70
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
Libya Enterprisebull launched in 2012 to
ndash promote entrepreneurial culture and ndash provides business support for start-ups in Libya
bull Libyarsquos enterprise mission is to ndash develop entrepreneurship and ndash innovation culture throughout Libya and ndash creating a supportive environment for small and medium enterprises
bull Libya Enterprise currently runs 13 entrepreneur centers and 8 business Incubators ndash Only 4 business incubator are working at the moment and the others some of
them in hold ( 4) and the rest did not starts)ndash Incubators and Enterprise centers are the central component of Libya
Enterprise due to their role in decreasing the failure rate of start-ups in their early stages and providing business support services
71
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
bull Well-equipped laboratories
bull extensive libraries
bull powerful computer systems
bull technology expertise
bull a well-educated workforce and experts from involved faculties
bull access to external funding sources
bull communitylocal government economic development agencies
bull other entrepreneurial support organizations
For entrepreneurs from outside of the University
72
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
bull Part-time job opportunities bull real-world examples for case studies or class
projects (like testing laboratories) bull opportunities to apply knowledge to real
business problems and bull an introduction to entrepreneurship early in
their professional careers
For students as would-be entrepreneurs
73
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
bull Opportunities to strengthen ties between the
educational institution and the local business
community
bull a system for bringing technological advances and
products to the market
bull an opportunity to fulfil and enhance the research
academic missions
For University staff
74
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-
LESSONS FOR LIBYAThe Libyan Government has to1 Effectiveness and commitment of the top management in the Libyan government to support
the SMEs is the first factor on the road to success in the development of SMEs 2 The successful public and private efforts to support SMEs is to establishing an effective
central committee engaged in policy making planning management and coordination 3 Strengthen the business infrastructure and enhance the capacities and capabilities of SMEs
to progress locally and internationally and become more competitive 4 offer wide range of initiatives and incentives for SMEs such as increasing access to financing
advisory and consultancy access to information and ICT adoption infrastructure access to markets training in management and planning networking and business linkages
5 should deliver incentives through a few non profit agencies and disassemble the bureaucratic procedures that may cause ineffectiveness in government initiatives and projects
6 should instill in the SMEs not to rely on government support only but they should seek to find their own pathway of growth by relying on strategies which allow them to access new markets expand their customer base and increase their incomes
7 should establish consultancy centers to provide expert services to SMEs and engage more experts in different areas Also the government should ensure that SMEs are able to access these incentives in an effective way
8 should support the entrepreneurship philosophy and encourage SMEs to find more opportunities that increase their chance to growth locally and globally 75
- Slide 1
- Slide 2
- Slide 3
- Slide 4
- Slide 5
- Slide 6
- Innovation- Entrepreneurial
- Creativity to Entrepreneurship
- WHAT is innovation
- Characteristics of innovation in developing countries
- Slide 11
- SME - LIBYA
- SME LIBYA
- Slide 14
- Libya Enterprisersquos strategic goal
- Slide 16
- Slide 17
- Factors hampering innovation activities in Libya
- Libya Enterprisersquos partners in entrepreneurship and innovative
- National Planning Council (NPC)
- Ministry of Industry (MoI) Industrial Research Center (IRC)
- Ministry of Higher Education (MHE)
- National Board for Technical amp Vocational Education (NBTVE)
- Slide 24
- Slide 25
- Slide 26
- Slide 27
- Canada-Libya Education and Innovation Centre
- Conclusion
- Slide 30
- GIZ (2009) Libya ndash Building the Future with Youth Challenges
- Recommendation - SME
- Recommendation - Innovation
- Slide 34
- Slide 35
- Slide 36
- Creativity innovation and entrepreneurs
- Creativity innovation and entrepreneurs (2)
- Innovation
- Innovation (2)
- What is Innovation
- What is not Innovation
- Types of innovation
- Types of innovation according to its content
- Types of innovations
- Source of Innovation
- Degree of novelty
- Slide 48
- Objectives and effects of innovation
- Barriers to innovation
- Success of Innovation Proccess
- Innovation Systems
- The National Innovation System
- Roles of the three players
- Framework conditions - 1
- Framework conditions - 2
- Components for a strategy - 1
- Components for a strategy - 2
- First period 1969 - 1984
- Second period 1984 - 2004
- Second period 1984 - 2004 (2)
- Third Period 2004- 2010
- Fourth period 2011
- The GIZ report recommended 12
- The GIZ report recommended 22
- Slide 66
- Slide 67
- Slide 68
- Slide 69
- Small and Medium Enterprise in Libya
- Libya Enterprise
- Slide 72
- Slide 73
- Slide 74
- LESSONS FOR LIBYA
-