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THE WORLD BANK1818 H Street, NW
Washington, DC 20433 USA
Telephone: 202 473-1000
Internet: www.worldbank.org
E-mail: [email protected]
ISBN 0-8213-5837-5
THE WORLD BANK
Vinod K. GoelEkaterina KoryukinMohini BhatiaPriyanka Agarwal
W O R L D B A N K W O R K I N G P A P E R N O . 3 2
Inn
ovation System
sN
O.
32 Innovation Systems
World Bank Support of Science andTechnology Development
Innovation Systems is part of the World Bank Working Paper
series. These papers are published to communicate the
results of the Bank’s ongoing research and to stimulate public
discussion.
The World Bank has gained significant experience and has an
important role to play in supporting innovation systems proj-
ects. This paper reviews the innovation systems support proj-
ects financed by the Bank during 1990-2003, together with a
few successful earlier examples, covering some 51 projects
involving over US$4.2 billion in Bank support.
The Bank’s role typically has been to facilitate and augment
reform efforts around the world and to play the role of an hon-
est broker between the productive and S&T sectors, facilitat-
ing the reform process by bringing together relevant partners.
This enhances the effectiveness of the design and delivery of
services and the sustainability of these activities. The Bank’s
involvement also encourages difficult measures to be taken,
including the raising of institutional accountability. Prudent
market texts are applied to the various available interventions
and fiscal discipline is imposed on institutions that are in the
process of restructuring. Drawing on its experience, the Bank
can provide the long-term support, advice, and leverage need-
ed during the restructuring phase for institutions that seek to
attain greater fiscal independence and to enhance the quality
of their services and their contribution to the national econo-
my.
World Bank Working Papers are available individually or by
subscription, both in print and online.
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Vinod K. GoelEkaterina KoryukinMohini BhatiaPriyanka Agarwal
W O R L D B A N K W O R K I N G P A P E R N O . 3 2
Innovation SystemsWorld Bank Support of Science and Technology Development
THE WORLD BANK
Washington, D.C.
Copyright © 2004The International Bank for Reconstruction and Development / The World Bank1818 H Street, N.W. Washington, D.C. 20433, U.S.A. All rights reserved Manufactured in the United States of America First printing: April 2004
printed on recycled paper
1 2 3 4 06 05 04
World Bank Working Papers are published to communicate the results of the Bank's work to thedevelopment community with the least possible delay. The typescript of this paper therefore hasnot been prepared in accordance with the procedures appropriate to journal printed texts, and theWorld Bank accepts no responsibility for errors. Some sources cited in this paper may be informaldocuments that are not readily available.
The findings, interpretations, and conclusions expressed in this paper are entirely those of theauthor(s) and do not necessarily reflect the views of the Board of Executive Directors of the WorldBank or the governments they represent. The World Bank cannot guarantee the accuracy of thedata included in this work. The boundaries, colors, denominations, and other information shownon any map in this work do not imply on the part of the World Bank any judgment of the legal sta-tus of any territory or the endorsement or acceptance of such boundaries.
The material in this publication is copyrighted. The World Bank encourages dissemination of itswork and normally will grant permission for use.
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Copyright Clearance Center, Inc.222 Rosewood DriveDanvers, MA 01923, U.S.A.Tel: 978-750-8400 • Fax: 978-750-4470.
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All other queries on rights and licenses should be addressed to the World Bank at the addressabove, or faxed to 202-522-2422.
ISBN: 0-8213-5837-5eISBN: 0-8213-5838-3ISSN: 1726-5878
Vinod K. Goel is a Senior Consultant on Technology Development for the Private and FinancialSector Development Unit of the Europe and Central Asia Region at the World Bank. EkaterinaKoryukin is a Projects Officer at the same unit. Mohini Bhatia is a Consultant. Priyanka Agarwalwas a Summer Intern (2003).
Library of Congress Cataloging-in-Publication Data has been requested.
iii
TABLE OF CONTENTS
AcknowledgmentsAbbreviationsExecutive Summary
1. Introduction
2. Background
3. The Four Pillars of the Knowledge EconomyPolicy and Institutional Framework
Innovation Systems
Financing R&D Development and Its Use by Industry
Education and Lifelong Learning
Information Infrastructure (ICT/e-Development)
4. Monitoring and Evaluation
5. Lessons
AnnexesAnnex A. Knowledge Economy Project Menu
Annex B. Bank Innovation Support and Science and Technology Projects (1980–2003)
Background Papers and Materials
LIST OF BOXES
1 Bank Innovation Support and Science and Technology Projects (1980–2003)
2 The Four Pillars of the Knowledge Economy
3 Policy Reforms to support Innovations Agenda
4 India
5 Korea
6 Turkey
7 China
8 Chile
9 Mexico
10 IPR Case Study, National Chemical Laboratory, India
LIST OF FIGURES
1 Investment in Knowledge
2 R&D Expenditures by Source of Financing
3 Investment in Venture Capital
v
vi
1
5
7
13
13
14
22
27
28
31
33
37
39
45
95
8
14
15
15
17
19
20
23
24
29
10
22
25
v
ACKNOWLEDGMENTS
T his paper was prepared by a team comprising Vinod K. Goel, Ekaterina Koryukin and MohiniBhatia. Priyanka Agarwal and Mohini Bhatia carried out the desk research during Fall 2003.
Some of the findings came out of the project preparatory work done for the Croatia—Science andTechnology Project. A menu for Knowledge Economy operations, included as Annex A, was devel-oped by the team to streamline the design of Knowledge Economy projects in the Europe andCentral Asia Region. The project database (Annex B) was compiled using data in Image Bank.
Special thanks are given to Anil Sood (Vice President, SFRVP, and Acting Director, ECSPF),and Sector Managers (ECSPF) who supported the team in the preparation and completion of thispaper. The team is grateful to Dr. R. A. Mashelkar (Council of Scientific and Industrial Research,India), Dr. Sanjaya Lall (Oxford University, UK), Melvin Goldman (Cornell University, formerBank staff) and Lauritz Holm-Nielsen (Lead Education Specialist, the World Bank) who were peerreviewers for this paper.
vii
ABBREVIATIONS
CSIR Council for Scientific and Industrial Research, IndiaECU European Customs UnionEU European UnionFDI Foreign Direct InvestmentHR Human ResourcesICT Information and Communication TechnologiesIFC International Finance CorporationIPR Intellectual Property RightsISO International Standards OrganizationIT Information TechnologyITP Industrial Technology ProjectKE Knowledge-based EconomyM&E Monitoring and EvaluationMAM Marmara Research Center (Turkey)MIS Management Information SystemsMSI Millennium Science InitiativeMSTQ Metrology, Standards, Testing, and QualityNGO Non-governmental OrganizationPAL Programmatic Adjustment LoanR&D Research and DevelopmentRDI Research and Development InstitutionS&T Science and TechnologySMEs Small and Medium-Size EnterprisesSTP Science and Technology ProjectTDF Technology Development FinancingTI Technology InstitutionTSS Technology Support ServicesTTGV Technology Development Foundation of TurkeyUME National Metrology Institute (Turkey)VC Venture CapitalVCC Venture Capital CompanyVCF Venture Capital FundWTO World Trade Organization
The capacity of a society to produce, select, adapt, and commercialize knowledge is critical fortrade, competitiveness, and for the sustained growth of the economy. The World Bank’sWorld Development Report 1999 states:
Today’s most technologically advanced economies are truly knowledge-based, . . . creating millions ofknowledge-related jobs in an array of disciplines that have emerged overnight. . . . the need for devel-oping countries to increase their capacity to use knowledge cannot be overstated.
Enhancing this capacity is becoming a prerequisite for improving productivity and increasing thewelfare of society. The knowledge economy (KE) can be defined through analysis of four character-istic areas (the “four pillars” of the knowledge economy): (a) the policy and institutional framework;(b) an innovation system; (c) education and lifelong learning; and (d) information technologyinfrastructure and electronic development (“e-development”).
The World Bank experience in promoting knowledge-based economies is dominated by projectsfocused on innovation systems support including science industrial technology development. Theeducation and e-development aspects in relation to a knowledge-based economy are less explored.Through its knowledge economy policy and institutional framework the Bank has supported manyKE programs, both in the form of investment projects that have made provisions for specific compo-nents and through adjustment operations that have included reforms of a general nature, the lattertypically to enhance competitiveness, to ease information exchange, or to provide economic incen-tives for private sector participation in technology ventures.
This paper concentrates on innovation systems support projects financed by the Bank during1990–2003, together with a few successful earlier examples. It reviews some 51 projects involvingover US$4.2 billion in Bank support, with individual projects ranging from US$3 million toUS$300 million, mean project size has been about US$58 million.
The Bank has gained significant experience and has an important role to play in supportinginnovation systems projects. Examples of successful programs include those undertaken in theRepublic of Korea, India, Indonesia, Turkey, Brazil, and Chile. The Bank’s role typically has been to
EXECUTIVE SUMMARY
1
facilitate and augment reform efforts through its experiences around the world and play the roleof an “honest broker” between the productive and S&T sectors in institutional reforms. On theinstitution-building side, the Bank contributes in its capacity as a facilitator of the reform process inbringing together relevant partners for each of the institutions that would advise and participate inbuilding institutional capabilities. This enhances the effectiveness of the design and delivery of ser-vices and the sustainability of these activities for the future. The Bank’s involvement also encouragesthat difficult measures are taken; including, for example, the raising of institutional accountability.Prudent market tests are applied to the various available interventions and fiscal discipline is imposedon institutions that are in the process of restructuring. Drawing on its experience in other countriesthe Bank can provide the long-term support, advice, and leverage needed during the restructuringphase for institutions that seek to attain greater fiscal independence and that seek to enhance thequality of their services and their contribution to the national economy.
Innovation Systems SupportThe ultimate objective of a well-functioning innovation system is to serve the needs of the economyby achieving better integration of the science and technology (S&T) infrastructure with productionneeds, by increasing private sector participation in technology development, and by developingstronger linkages between industry, universities, and research institutions. Innovation system projectsnormally focus on building:
� an environment conducive to business development (putting in place, for example, keynational policies, an intellectual property rights (IPR) regime, an appropriate quality andstandards system, and a metrology system);
� a framework for the generation of new ideas (through tax incentives, IPR protection, andcompetitive research programs), support in determining the feasibility of research outputsand their subsequent commercialization (technology financing programs, IPR support), andsupport for the establishment of new businesses (venture capital, start-up funds); and
� enterprise-level support to establish new KE-based companies, to carry out research anddevelopment (R&D) activities, and to generate and sustain revenues (incubators, technologycenters, technoparks).
Measurements, standards, testing, and quality systems (MSTQ). A weak MSTQ system can impedeindustry’s ability to compete effectively. Upgrading the framework for MSTQ thus often is a necessaryfirst step in improving the innovation system (as well as being essential for World Trade Organizationcompliance and accession to the European Union). Many traditional S&T projects contain some com-ponents of MSTQ support; for example, setting up or upgrading institutes dealing with MSTQ, suchas metrology organizations, standards institutions, and quality and accreditation councils. Bank pro-jects also pay special attention to separating the private and public aspects of MSTQ by privatizing(or setting up as private) income-generating entities such as testing laboratories and certificationbodies and by centralizing functions of a public-good nature, such as national metrology institutes andnational standards offices (and thus minimizing the conflicts of interest that arise where regulations aredeveloped by the same entities that provide accreditation and certification). For example, the TurkeyIndustrial Technology Project upgraded the National Metrology Institute that will serve more than80 percent of Turkish industry metrology needs, and the Indonesia Industrial Technology Devel-opment Project upgraded the National Metrology Center to provide better services to small andmedium-size enterprises.
Intellectual property rights (IPR) regime. An effective IPR regime is essential for commercializingresearch outputs and for technology transfer, especially after other reforms in S&T take hold, as well asfor enhancing the competitiveness of industry. Many Bank projects have included IPR support in oneform or another, from setting up or upgrading national-level patent offices to setting up individual
2 WORLD BANK WORKING PAPER
IPR units in universities or research and development institutions. Other projects have supported theneeds of research communities at the micro level or have trained patent agents, judges, and industrypersonnel. The Mexico Science and Technology Infrastructure Project, for example, supported thecreation of the Mexican Institute of Industrial Property, significantly reducing delays in the awardof patents, increasing enforcement activities, and increasing the frequency of inspections related tointellectual property violations. Chile’s Science for the Knowledge Economy Project also aims tostrengthen intellectual property rights regime, with an emphasis on patents. Similarly, the TurkeyIndustrial Technology Project has strengthened the Turkish Patent Institute to improve the IPRservices.
Research and Development Institutions (RDIs). The R&D sector in most developing countries typi-cally comprises a number of public institutions and a good academic base. These tend to be public-and inward-focused, however, and largely disconnected from the needs of industry. Most Bank S&Tprojects thus aim to strengthen and reorient public research and development institutes to serve theeconomy while preserving their public good nature. The objective of such effort is ultimately to makea shift in thinking so that Research and Development transforms into Research for Development,where “R” becomes socially meaningful when it leads to “D” and when output is inducted intosocioeconomic system. Many projects have supported building a framework and appropriate incen-tives to encourage cooperation between the research community and industry, by, for example,enhancing the incentives for applied research, improving the marketing and commercialization func-tions of RDIs, introducing competitive research programs, promoting joint projects with industry,universities, and other R&D organizations, and introducing a strategic approach to the commercial-ization of R&D outputs. Traditional support to RDIs includes the upgrading of physical infrastruc-ture, the improvement of management information systems, and the modernization of managementand human resources functions and other business processes. Successful examples include the severalnational R&D laboratories of the Council for Scientific and Industrial Research (CSIR) in India andthe network of R&D institutes at the Marmara Research Center (MAM) in Turkey. Restructuringof both of these institutions increased the share of their contractual research that serves industryand consequently greater usage and adaptation of the R&D by the industry, and many other posi-tive spill-over effects for the economies of these countries. CSIR doubled its income from appliedresearch and MAM increased the proportion of its research that supports industry to around 49 per-cent in 2003. Building up on the project accomplishments, India was able to attract large researchcontracts from outside of the country (for example, the largest General Electric’s R&D center outsideof the United States is located in India and employs about 2,000 people). Increase in applied researchin India also gave boost to the development of the biotechnology sector resulting in India now hold-ing a prominent place worldwide (the United States leading) in the biotechnology development area.
Upgrading innovation capabilities of enterprises. In addition to providing the infrastructure that enablesthe development of new ideas, it is important to provide a framework that also encourages the estab-lishment and nurturing of the knowledge-based companies that can bring these new ideas to com-mercialization. In this regard, Bank projects have: (a) helped finance the development of new ideasthrough technology financing institutions, technology financing programs, including the venturecapital; (b) set up and helped develop knowledge-based companies through incubator programs andtechnology and R&D centers; and (c) helped existing companies to upgrade their capabilities and thequality of their services and products through the acquisition and adaptation of new technologies, byfunding matching loan/grant schemes and outreach programs.
Bank support for firm-level technology development typically has focused on technology financ-ing institutions and programs. Financing provided through such projects is typically low-interest,and in some cases is made in the form of grants. The financial instruments employed by Bank-supported technology financing entities include loans (no-interest, low-interest, commercial inter-est, and conditional), grants (usually matching grants), equity participation (sometimes through
INNOVATION SYSTEMS 3
venture capital programs), royalties, and guarantees. Examples of technology financing programsincluded the Technology Development Financing program, the Technology Support Services pro-gram, and Venture Capital schemes supported by the Industrial Technology Project in Turkey;R&D Programs and venture capital schemes supported by the Industrial Technology DevelopmentProject in India, and earlier programs in the Republic of Korea.
Monitoring and evaluation (M&E). Public support for technology sector is justified in large part by itspublic-good nature. As a consequence it is difficult to measure its value in the conventional terms ofnet present value or financial rate of return. That said, it is imperative that investments in this area bemonitored for their ability to achieve the desired impact. The approach in many cases has been to carryout empirical analysis of benefits to the economy (growth of new businesses and exports, market shareheld by R&D companies, growth in R&D expenditure and foreign direct investment, and other indi-cators measuring spill-over effects); and to monitor project-specific performance indicators such asnumber of patents, number of joint with the industry projects, self-sufficiency ratios, and percent ofR&D projects commercialized.
Lessons. Technology projects normally include a spectrum of interventions that are complementaryand holistic in nature. On the supply side, the projects reorient public research and developmentinstitutes toward industry, build up a functioning measurements, testing, standards and quality sys-tem to improve product competitiveness, and protect industry with an effective intellectual propertyrights regime. On the demand side, they support the use by industry of new technology, throughtechnoparks, technology centers, and incubators, and provide financial support, through technologyfinancing programs, venture capital, and start-up funds, for example. Technology projects as a resulttypically are complex, contain multiple components of complementary character, and must be runover the long term, frequently within a series of projects. The composition of S&T projects isunique for each country and may combine elements from any of these areas.
Given the nature of technology development, and the newness in many countries of develop-ment activities, project design must include an appropriate degree of flexibility. For example,unallocated funds could be reassigned to priority activities that are performing well, pilot initiativesshould be considered to determine the viability of different project components, and annualbusiness plans should be periodically reviewed and updated.
Private sector participation is important in the restructuring process for its ability to improveefficiency, management capability, and governance; to embrace stakeholder participation; and todeliver cost effectiveness in overall design and delivery. Bank programs also have welcomed cofi-nancing from the private sector and have found advisory boards with private sector representationto be particularly valuable in maintaining the business focus, such that delivers the maximum benefitfor the economy.
Finally, projects targeting the restructuring of the technology sector are typically labor- andresource-intensive and require strong championship within the government and institutions. This istrue for all Bank projects, but especially so for technology related ones given the difficult nature ofthe reforms and possible resistance within the R&D community, as well as the fact that innovationagenda may be put off the priority lists of busy governments struggling with budget deficits andother macro-economic difficulties. This also makes intensive supervision by experienced Bank staff,continuity and flexibility even more important if the projects are to achieve a lasting change in themindset of the host country institutions.
4 WORLD BANK WORKING PAPER
Innovation systems and science and technology (S&T) projects supported by the World Bankhave taken on many forms in the past several years. The Bank’s involvement in industrial tech-nology projects started in the 1970s, with Israel and Spain numbering among the first coun-
tries to receive support in the form of industrial technology development.1 This paper reviews thelessons learned in S&T projects that have been supported by the Bank, with an emphasis on theexamples of the past decade (1989–2003). Projects and their components were included in thisreview if their objectives included the use of scientific and technological knowledge to improvedevelopment. The review included 51 project, in an aggregate amount of over US$4.2 billion; thisdid not include agricultural research projects where the Bank supported a significant amount ofprojects world-wide. The amounts invested in individual projects ranged from US$3 million toUS$300 million, with a mean project size of about US$58 million.
This paper first discusses the concept of the knowledge-based economy (KE) and its relationwith the S&T sector, and then identifies the main themes of KE projects, groups them by the fourpillars of the knowledge economy, and summarizes the key lessons learned. Since the Bank experi-ence is most substantial in the areas of innovation systems and related policy frameworks, thisreview focuses on industrial technology development and on building national innovation systems.It touches only briefly on the themes of education, and information and communications technol-ogy, with the aim only of providing the proper context for the main study. A List of Projects isincluded in Box 1, and brief descriptions of these projects in Annex B to this report.
CHAPTER 1
INTRODUCTION
5
1. The term “R&D” describes “Applied R&D” and the terms “R&D” and “Technology Development”are used interchangeably throughout this paper.
T he knowledge economy. The capacity of a society to produce, select, adapt, and commercial-ize knowledge is critical for trade, competitiveness, sustained economic growth, and qual-ity of life. The World Bank’s World Development Report 1999 states that:
Today’s most technologically advanced economies are truly knowledge-based, . . . creating millionsof knowledge-related jobs in an array of disciplines that have emerged overnight. . . . [T]he need fordeveloping countries to increase their capacity to use knowledge cannot be overstated.
Enhancing this capacity is becoming a prerequisite for improving productivity and the welfare ofsociety. The Organization for Economic Cooperation and Development (OECD) similarly hasconcluded that the “underlying long-term growth rates in OECD economies depend on maintain-ing and expanding the knowledge base.”
As the last few decades have shown, two strong simultaneous shifts in the global economy haveled to knowledge becoming a key factor of production. First, the Internet revolution has greatlyreduced the cost and increased the capacity of firms and organizations to store, process, manipu-late, and distribute information. Second, globalization has opened domestic industry to interna-tional competition, making the ability to compete in global markets vital for long-term success. Asinformation becomes more accessible and less expensive, and as globalization becomes an inte-grated part of competition, the skills and competencies relating to the selection and efficient use ofknowledge are becoming more critical.
A handful of the world’s richest countries produce the overwhelming majority of new scientificand technological knowledge, and it is these countries that derive the greatest benefit from its use(OECD 2003; see Figure 1). Most of the rest of the world’s nations are struggling, with varyingdegrees of success, to establish scientific and technological research systems able to invigorate theireconomies and provide solutions to their social needs. Unfortunately for developing countries,globalization and the information revolution favor the scientifically strong. Countries that want toimprove their knowledge base face a huge task to close the gap that separates them from scientifi-cally advanced countries.
CHAPTER 2
BACKGROUND
7
8 WORLD BANK WORKING PAPER
BOX 1: BANK: SCIENCE AND TECHNOLOGY PROJECTS (1989–2003)
Loan Amt.Fiscal Year Region Country Project US$ million
under prep ECA Croatia Science and Technology Project 38.0under prep ECA Turkey Knowledge and Innovation Project 100.0under prep ECA Russia Technology Commercialization Project 50.0under prep ECA Romania Knowledge Economy Project 50.0
2003 ECA Ukraine eDevelopment Project 5.02003 LAC Honduras Trade Facilitation and Productivity Enhancement 25.0
Project2003 LAC Chile Science for the Knowledge Economy Project 25.02003 AFR Congo Private Sector Development and Competitiveness 12.0
Project2003 SAR India Technical Engineering Education Quality 250.0
Improvement Project2002 MNA Yemen Higher Education Project 5.02002 EAP Indonesia Global Distance Learning Network Project 2.62002 MNA Egypt Higher Education Enhancement Project 50.02002 ECA Armenia Enterprise Incubator Project 5.02001 LAC Nicaragua Competitiveness Project 50.02001 LAC Venezuela Millennium Science Initiative 5.02000 LAC Chile Millennium Science Initiative 5.02000 ECA Turkey Industrial Technology Project 155.02000 EAP China Higher Education Reform Project 50.01999 LAC Chile Higher Education Improvement Project 145.51999 LAC Mexico Knowledge and Innovation Project 300.01998 LAC Brazil Science and Technology Reform Support Project 155.01998 EAP Indonesia Information Infrastructure Development Project 34.51997 EAP Thailand Secondary Education Quality Improvement Project 194.71996 ECA Russia Standards Development Project 24.01996 EAP Thailand Universities Science and Engineering Education Project 143.41996 EAP Indonesia Industrial Technology Development Project 38.51996 EAP China Technology Development Project 200.01996 AFR Mauritius Higher and Technical Education Project 16.01995 AFR Ghana Private Sector Development Project 13.01995 LAC Brazil Science and Technology Subprogram: Science Centers 15.8
and Directed Research1995 EAP Indonesia Second Professional Human Resource Development
Project 69.01995 EAP Indonesia University Research for Graduate Education Project 58.91995 AFR Mauritius Competitiveness Enhancement Project 6.71994 EAP Korea Science and Technical Education Project 190.01994 EAP Malaysia Polytechnic Development Project 107.01993 MNA Tunisia Higher Education Restructuring Project 75.01993 LAC Mexico Science and Technology Infrastructure 189.01993 EAP Korea Science Education and Libraries Computerization 50.0
Project1992 EAP Philippines Engineering and Science Education Project 85.0
(continued )
The term “Knowledge Economy” is used to describe the new economic environment in whichinnovation and knowledge are replacing capital and labor as the primary wealth-creating assets.The creation and use of knowledge is not necessarily focused only on the high-technology indus-tries, however—all industries need to use technology to maintain their competitiveness. Even inthe more traditional agricultural and manufacturing sectors, knowledge (about crop varieties, newmarkets, or innovative production processes) is becoming more easily and rapidly accessible on aglobal basis, and its competitive value thus is increasing. For the more sophisticated economies, thenext step in enhancing their competitiveness lies in creating an environment conducive to the tran-sition of concepts and new ideas to real products. This requires a reorientation toward marketindustry and a well-functioning national innovation system, together with the integration ofresearch and development institutions, universities and academia, and the private business sector.
An example of a region-wide initiative to become a knowledge-based society is the EuropeanUnion’s Lisbon Strategy.2 Three priorities that have been identified by the Lisbon Strategy in thisarea include improving investment in networks and knowledge, strengthening competitiveness inindustry and services, and promoting life-long learning. Following the strategy, while a lot morework would need to be done to achieve the goals, the EU countries have achieved some progress:6 million jobs created since 1999, in spite of the economic slowdown; significant improvements inlong-term unemployment and the rate of female employment; opening up to competition of sev-eral strategic network markets (such as telecommunications, energy, and rail freight); internet take-up in schools, businesses, public administrations and households.
The primary focus for all countries at all stages of development toward a knowledge-basedeconomy must be to build on their competitive advantage. For example, in the late 1980s Fin-land’s economy was predominantly based on the forest industry (76 percent of Finland is forest)and was as a consequence vulnerable to the cyclical nature of the raw materials. Exports accountedfor about 5 percent of GDP. Through large investment in R&D and a policy of innovation, Fin-
INNOVATION SYSTEMS 9
2. The Lisbon Strategy is a commitment to bring about economic, social and environmental renewal in theEuropean Union. In March 2000, the European Council in Lisbon set out a ten-year strategy to make the EUthe world’s most dynamic and competitive economy.
BOX 1: BANK: SCIENCE AND TECHNOLOGY PROJECTS (1989–2003) (Continued)
1992 ECA Turkey Technology Development Project 100.01992 AFR Kenya Universities Investment Project 55.01991 MNA Algeria Science and Technology University Development 65.0
Project1991 EAP China Rural Industrial Technology (SPARK) Project 95.11991 ECA Hungary Human Resources Development Project 150.01991 LAC Brazil Science and Research Development Project 150.01991 EAP Korea Third Technology Advancement Project 60.01990 EAP Korea Universities Science and Technology Project 45.01990 SAR India Industrial Technology Project 200.01989 ECA Hungary Third Industrial Restructuring Project 140.01985 EAP Korea Second Technology Development Project 50.01982 EAP Korea First Technology Development Project 50.01979 EAP Korea Korea Electronics Technology Project 29.0
Total Funding 4,253
Loan Amt.Fiscal Year Region Country Project US$ million
10 WORLD BANK WORKING PAPER
land has expanded and diversified its exports to include the supply of wood and paper products andmachinery, and exports now make up 20 percent of GDP. The country furthermore has captured a20 percent global market share in the wood and paper industry (Finnish Forest Industries Federa-tion 2003). Finland’s achievements were particularly unique due to the simultaneous expansion inthe high-technology industry as well, with Nokia. Finland has surpassed the US, according to latestOECD indicators (2003) in certain sectors such as size and growth of the information and com-munications technologies (ICT) sector, price of Internet access, high-skilled ICT workers for theinformation economy, scientific publications, and even in number of researchers per total employ-ment (OECD 2003).
The challenge of achieving a turnaround as dramatic as Finland’s may be very difficult forsmaller countries than larger ones. In larger countries, the focus should be on regional develop-
FIGURE 1: INVESTMENT IN KNOWLEDGEAs a percentage of GDP, 2000
02468%
R&D Software Higher education
8.8
n.a.
n.a.
8.3
1.8
n.a.
6.4
3.4
10.8
n.a.
6.8
6.7
4.2
4.5
5.0
n.a.
4.6
3.4
6.0
4.3
4.5
7.6
4.0
4.0
n.a.
8.8
6.1
9.7
Average annualgrowth rate1992-2000
Sweden
United States1
Finland
Korea
Canada1
Switzerland
Denmark (1999)2
OECD (1999)3, 4
Germany
Netherlands
Japan1
France
Belgium (1999)5
United Kingdom
Australia
EU6, 7
Austria
Norway
Czech Republic
Ireland
Hungary
Spain
Slovak Republic (1999)
Italy
Portugal
Poland
Mexico (1999)
Greece (1999)2
Source: OECD, Science, Technology and Industry Scorecard 2003. Copyright OECD 2003.http://www1.oecd.org/publications/e-book/92-2003-04-1-7294/pdf/A1.pdf
INNOVATION SYSTEMS 11
ment; for example, parts of India are among the poorest in the world, but the country also has adynamic and fast-growing information technology software and service industry. This largelybecame possible due to the promotion of excellent education as well as willingness of the Govern-ment of India to permit in mid-1990s liberalized captive satellite communications by companiesexporting IT services and products. The National Association of Software and Service Companiestoday estimates that Indian software and services sector will post a 28 percent growth in 2003–04at $12 billion in revenues, compared to $9.5 billion in 2002–03. The sector’s annual exports areworth around US$8 billion in 2003, accounting for 16 percent of all exports, and are growingrapidly and are expected to reach US$50 billion this decade. Larger developing countries mustidentify and build on pockets of development such as this where the country may have a compara-tive advantage: industrial base, cultural background and human resource base, entrepreneurialskills, or economic and political systems.
Building Innovations Systems: The World Bank experience. The Bank has significant experience intechnology projects, through successful programs in countries including India (Box 4), the Republicof Korea (Box 5), Turkey (Box 6), Spain, Israel, Indonesia, Brazil, China (Box 7), Chile (Box 8),and Mexico (Box 9), and has an important role to play in supporting future projects. Annex A, aMenu of Operations, includes a list of possible activities that have been and may be supported inthe future by the Bank projects; composition of each project would be unique depending on thecountry needs. The Bank’s engagement in industrial technology projects began in the 1970s with acomponent in Israel’s Industrial Development Loan, approved in 1975, to improve product designand production processes to reorient industry toward exports. The Bank’s first complete project forindustrial technology was in Spain, this time aimed to improve the import and use of technologiesto raise competitiveness and increase exports. A series of projects followed. The Korea ElectronicsTechnology Project, approved in 1979, aimed to reorient the Republic of Korea’s R&D sectortoward the semiconductor industry and led to a series of industrial technology development andtechnical training projects; and in the 1980s projects were initiated in China and Indonesia to buildR&D capacity through an emphasis on higher education and technical training. The initial projectsin Spain and Korea were implemented by public institutions; one of obstacles faced in these projectsresulted from not having private sector financing handled by independent bodies with professionalmanagement and banking capabilities. Heeding this lesson, in the 1980s the Bank changed the waythat it supported these types of projects. Bank involvement instead aimed to help catalyze privatesector participation in technology development, shifting the emphasis away from a public-sector-driven and less efficient approach to one driven by the needs of industry and the economy. Cur-rently, the Bank is engaged in preparation of the second-generation projects targeted at buildingknowledge-based economies in Croatia, Turkey, Bulgaria, Romania, and other countries. Theseprojects, in addition to more traditional policy reforms and innovation support activities, includesupport for e-Development, e-Government and other aspects to improve information flows andtransparency.
The Bank’s role typically has been to accelerate and augment reform efforts through its experi-ences around the world and play the role of an “honest broker” between the public productive andS&T sectors in institutional reforms. On the institution-building side, the Bank contributes in itscapacity as a facilitator of the reform process in bringing together relevant partners for each of theinstitutions that would advise and participate in building institutional capabilities. This enhancesthe effectiveness of the design and delivery of services and the sustainability of these activities forthe future. The Bank’s involvement also encourages that difficult measures are taken; including, forexample, the raising of institutional accountability. Prudent market tests are applied to the variousavailable interventions and fiscal discipline is imposed on institutions that are in the process ofrestructuring. Drawing on its experience in other countries the Bank can provide the long-termsupport, advice, and leverage needed during the restructuring phase for institutions that seek toattain greater fiscal independence and that seek to enhance the quality of their services and theircontribution to the national economy.
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The underlying themes of efforts to improve the innovation capacity of an economy have beenthe introduction of market competition, the development of exports, efforts to attract foreigndirect investment, and efforts to promote and protect local ideas and inventions. The work done inthese areas has included the upgrading of technological capability at the enterprise level, to incor-porate foreign technologies and processes; standardization of processes; skills upgrading of theworkforce; and the building of local entrepreneurial capabilities. This has required a shift in theincentive framework for applied research, the development of linkages between R&D communityand industry, the financing of innovation, and a shift from a supply-side-driven R&D approach toa demand-driven one. In most countries where S&T projects of this nature have been launched,liberalization reforms also have been underway, in turn also raising expectations for an increase indemand for R&D services and products.
Bank assistance in the knowledge-based economy arena has included not only assistance indeveloping the private and financial sectors, but also significant work in the agriculture sector andeducation. In a number of countries the Bank also has supported the development of informationand communications technologies (ICT) infrastructure. The Bank’s most diverse and substantialexperience has come in the innovation, science and technology development, however, where it hassupported the upgrading of intellectual property rights regimes, the improvement of measurements,standards, testing, and quality systems, and the restructuring of research and development institu-tions and has provided assistance to enterprises to develop, adapt, use, and commercialize new tech-nologies. The Bank has also supported the setting up of technoparks and venture capital funds. Thesupport of innovation development is effective and more sustainable if it is accompanied by appro-priate adjustments in the policy framework and by the introduction of economic incentives, as wellas by coordinated efforts to reorient education and training toward industry needs. A good ICTbackbone is also crucial if such interventions are to fully realize their potential.
There is a wide number of proponents of knowledge economy projects in the Bank and a lot ofsupport has been provided to the teams working in this area in the recent years including setting thearena for cross sector collaboration between the regions, sectors and networks across the Bank, thebulk of analytical research carried out to-date, and such regional initiatives as analytical frameworkset by the Regional Chief Economist’s (for the Latin America and Caribbean Region) recent Flag-ship Reports (De Ferranti et al. 2003). While the stages and main focus of innovation support pro-jects vary across the World they all follow the same goal of setting the framework and incentives tostimulate industry upgrading through use of better technologies, allow wider access to pertinentinformation for citizens in order to contribute to making more efficient use of public resources, and,ultimately, to economic growth.
The text boxes interspersed throughout this paper further describe activities and projects from acountry-based view, outlining how different countries have created institutions, implemented majorreforms, and strengthened their innovation capacity through partnerships with the World Bank.
The growth of a global knowledge-based economy creates great opportunities and poses inter-esting challenges for all countries, but particularly for those that are struggling to combatwidespread poverty and to promote sustainable development, those with weak political,
administrative, and economic institutions, and those dealing with the difficult transition from a cen-tralized to a market economy. To take advantage of the opportunities and navigate these risks, acountry must undergo major reform. First, it must develop a coherent, multifaceted national strategyfor building and sustaining a knowledge-based economy. Key to this strategy is development of amindset that is open to change and knowledge sharing. Second, it must provide the environment,including infrastructure for the networking and sharing of knowledge, to ensure cooperation andcoordination between and the balanced development of key sectors of the economy. Third, it mustdevelop and implement this strategy in a participatory, broad-based fashion that includes andempowers all major sectors of society, including the private sector, educators, scientists and innova-tors, civil society, the media, and others. These strategic reforms may be classified under the “fourpillars” of the knowledge economy (Dahlman 1999; see Box 2).
The full integration of the four pillars of the knowledge economy is the key means by which acountry can enhance its competitiveness in international markets and propel its economy toward itsmaximum social, political, and economic potential. The focus of this paper is to elaborate on Inno-vation systems development pillar and related policy frameworks, while touching only briefly on thethemes of education and information and communication technology.
Policy and Institutional FrameworkReforms always need a solid support on the policy level to take root. The support of a country’s eco-nomic development would ultimately include policy reforms to promote competition, ease of exitand entry of firms, deepen financial sector, reform enterprise sector, modernize tax system, promoteforeign direct investment, rule of law, open trade, flexible labor market, etc. The policy frameworkof a knowledge-based society in its turn would focus on elements that allow free information flowsamong the governments, businesses and citizens, provide incentive for private sector participation indifferent sectors, stimulate public and private sector collaboration to serve the needs of the economy,
THE FOUR PILLARS OF THEKNOWLEDGE ECONOMY
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CHAPTER 3
and promote business opportunities, investments and growth. The Innovation System reform thenwould step in to build and modernize intellectual property rights regime and measurement, testing,standards, and quality systems, restructure research and development institutions, provide incentivesto the industry and small and medium enterprises to use, adapt and develop new technologies, aswell as stimulate development of various mechanisms to finance the technology (Box 3). Whilebroad policy reforms such as business environment could be an agenda on its own, the knowledge-economy, and innovation systems policy reforms in particular, are better supported as componentsand conditionality of investment projects and reinforced within larger adjustment and program-matic operations.
Innovation SystemsKnowledge is transformed into goods and services through a country’s national innovation system.Its benefits become evident when it is employed within a complementary system of: (a) knowledge-producing organizations in the education and training system, such as universities and research insti-tutes; (b) macroeconomic and regulatory framework, including trade policies that affect technologydiffusion; (c) communications infrastructure; and (d) diverse other factors, such as access to theglobal knowledge base. The ultimate objective of a well-functioning innovation system is to servethe needs of the economy by achieving full integration of S&T infrastructure with the productionbase, by increasing private sector participation in innovation and technology development, and bydeveloping strong linkages between industry, universities, and research institutions.
National innovation systems are effective only to the extent that the different elements work inharmony, however. A multi-pronged structure must be built to support national innovation fromthe birth of an idea to its ultimate commercialization and production. The environment must beconducive to entrepreneurship, with key national policies, intellectual property rights protection,and an appropriate system of standards and quality in place. There must be a functioning frame-work for the generation of new ideas by research institutions, universities, and private firms, as wellas for the industry using these research products. Financing must be available for the enterprises touse, adapt, and develop new technologies, as well as there must be a framework to support theestablishment, and sustainability of knowledge-based firms.
There is a tendency among most countries to concentrate on adjusting input parameters, suchas the number of researchers. While such structural enhancements may be necessary they are not
BOX 2: THE FOUR PILLARS OF A KNOWLEDGE ECONOMY
Policy and Institutional Framework. Creating an appropriate economic incentive and institutional regimethat encourages the widespread and efficient use of local and global knowledge in all sectors of the economy, thatfosters entrepreneurship, and that permits and supports the economic and social transformations engendered bythe knowledge revolution.
Innovation System. Creating an efficient innovation system and business environment that encourages innova-tion and entrepreneurship, comprising firms, science and research centers, universities, think tanks, and otherorganizations that can tap into and contribute to the growing stock of global knowledge, that can adapt it to localneeds, and that can use it to create new products, services, and ways of doing business.
Education and Training. Creating a society of skilled, flexible, and creative people, with opportunities for a goodeducation and life-long learning available to all, and a flexible and appropriate mix of public and private funding.
Information Infrastructure (ICT/e-Development). Building a dynamic information infrastructure and a com-petitive and innovative information sector that fosters a variety of efficient and competitive ICT services and tools,available for all sectors of society. This includes not only high-end technologies such as the Internet and mobiletelephony, but also radio, television, and other media; computers and other devices for storing, processing, andusing information; and a range of communication services.
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BOX 3: MAIN POLICY REFORMS TO SUPPORT INNOVATIONS AGENDA
Intellectual Property Rights and Measurement, Testing, Standards and Quality:� Provide laws and regulations to be compatible with international and regional practices.
Research and Development Institutions (RDIs):� Create conducive environment for public RDIs and their staff to engage in contractual research and com-
mercialization of R&D;� Provide RDIs with appropriate flexibility and autonomy in managing their activities, including budget allo-
cation and human resources (including hiring and promotion of scientists);� Introduce incentives for applied research and financial sustainability;� Consolidate R&D system to be more efficient and less burdensome on the public budget;� Reform relevant laws to enhance the framework for R&D and innovation:
� decentralizing the management and financing of higher education institutions and programs, reducinguniversity and research institute fragmentation, and developing quality control for these institutionsand programs
Incentives for Industry (especially SMEs) to develop, adapt and commercialize new technologies:� Promote growth of knowledge-based companies and commercialization of research outputs;� R&D tax incentives, upgrade labor skills, reform of public procurement, technology parks, incubators.
Financing Instruments to support technology development:� Provide appropriate legal and regulatory framework and business environment for potential investors;� Create technology financing institutions, R&D financing instruments—such as loans, equity, venture
capital, and start-up funds, etc.
BOX 4: INDIA
Industrial Technology Development ProjectProject approved: December 1989. Project completed: June 1998. Loan: US$200 million
The objective of this project was to facilitate the acquisition and development of technology by industrial firms inIndia. It aimed to balance existing domestic technological capability with the import of foreign technology, and toreduce the financial constraints on new technology ventures and the foreign exchange constraint on technologyimports. The project helped small, innovative firms obtain financing by supporting the development of venturecapital in India, in the form of six VC companies managing nine VC funds. These VC companies invested in morethan 300 firms, producing returns that have averaged 18–20 percent. The project in essence launched the VCindustry in India, but its indirect contribution—introducing a culture of risk finance and thus attracting foreignventure capitalists to India—may have been equally important. The project additionally supported the upgradingof RDIs, providing technology services to industry and promoting collaboration between industry and researchinstitutions. The project provided loans rather than grants, forcing the borrower institutions to focus on theirfinancial management and rates of return. A number of research institutes were able to modernize and upgradetheir physical facilities, enabling them to enter new areas of research and to reorient themselves to serve indus-try. Finally, the project also financed the importation of technology and technical know-how by supporting thefast-track Technology Development Fund, which put forward US$100 million to benefit 600–800 firms.
Technical Education Engineering Quality Improvement ProjectProject approved: 2003. Loan: US$250 million
This project aims to improve the quality of engineering institutions throughout India. The country has six IndianInstitutes of Technology (IITs) that every year send large percent of their graduates to work for foreign multina-tionals, both in India or abroad. Initially the project proposed increasing the number of IITs in India, but based onMashelkar Committee report it was determined that upgrading existing regional engineering and technical institu-tions would be more resource-efficient and would produce a wider supply of qualified specialists to better meetthe needs of industry. The institutions are being selected based on their willingness to accept academic, financial,managerial, and administrative autonomy, increase cost-recovery ratios, etc. The number of institutions to beselected is expected to be 20–25.
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sufficient for the successful creation of an innovating economy. A shift in thinking toward outputparameters, such as the share of exports held by high-value-added products, is required. Bank inter-ventions in the building of innovation systems have been comprehensive. They have included theupgrading of measurements, standards, testing and quality systems; the creation of institutionalinfrastructure for quality enhancement and certification; alignment of technology regulations withWorld Trade Organization standards and regional requirements, such as the European CustomsUnion standards; strengthening of intellectual property rights regimes; restructuring of publicresearch and development institutions; supporting technology financing programs and technicalassistance grants; establishment of venture capital funds; and support of firm-level innovation andtechnology development, including establishment of technology centers and technoparks. Much ofthis has been achieved with significant private sector participation.
Project outcomes have varied with the country context and development objectives. Theinnovation system has been successful in several cases where it has used institutional linkages,international participation, and a systemic approach to move ideas from concept to product. In othercases the reform process has set broader objectives requiring technology institutions and scientists torespond to changed incentives, such as reorienting research toward applications and industry needs,increasing the amount of contractual research, and building international linkages and other goals. Insuch cases the momentum and commitment have needed to be mainstreamed for wide acceptance.For example, the Republic of Korea’s Technology Development Project has advanced to a third stagein a series that was initiated in the early 1980s when the Bank and the government set up the KoreaTechnology Development Corporation (KTDC). In its first 10 years of operation KTDC assistednearly 3,000 projects in their technology needs. The approved funding amounted to aboutUS$830 million (both from the Government and the Bank), 73 percent of which went to in-houseresearch activities, 2 percent to technology imports, 23 percent to commercialization, and 2 percentto the purchase of research equipment.
Measurements, Standards, Testing and Quality (MSTQ) system. A weak MSTQ system canimpede industry’s ability to compete. The demand for reliable MSTQ services is expected toincrease in the future, despite an evident lack of awareness among companies of the potentialbenefits of quality certification and standardization. Upgrading the framework for MSTQ is abasic requirement and a first step in improving the innovation system—as it helps level the playing field, in international terms. A strong MSTQ system furthermore is necessary for WorldTrade Organization compliance and other regional requirements, such as accession to the European Union, for example. Many S&T projects contain a component of such a system,through the setting up or upgrading of institutions: the first Technology Development Projectin Turkey resulted in the setting up of the National Metrology Institute (UME) that on com-pletion of the project (in 1998) was capable of meeting roughly 30–40 percent of Turkishindustry’s metrology needs. The follow-up Industrial Technology Project, which continued the upgrade of UME, has enabled it to meet 80 percent of metrology needs in the country byearly 2004 (expected to grow to 96 percent by 2006). The project provided investments intoboth upgrade of Turkey’s metrology physical infrastructure (building new laboratories and purchasing up-to-date equipment) but also modernizing its management structure and busi-ness processes and marketing capabilities. The setting up of this metrology center has greatlyenhanced measurement capabilities in Turkey, lowering the costs of metrology to firms andmaking measurement facilities available locally to smaller firms that would not otherwise haveused them. The Turkish Standards Institute additionally was strengthened through the settingup of the Quality Campus in Istanbul and staff training and technical assistance. The expansionand upgrading of the country’s standards infrastructure has helped industrial competitiveness byimproving quality standards and providing internationally acceptable certification to Turkishexporters. Similarly, Indonesia’s Industrial Technology Development Project upgraded theNational Metrology Center to provide better service to small and medium enterprises. Russia’s
INNOVATION SYSTEMS 17
Standards Development Project, Brazil’s Science and Technology Reform Support Project, andChina’s Technology Development Project also included components for the upgrading ofmetrology and standards institutes and services.
BOX 5: KOREA
Electronics Technology ProjectProject Approve: 1979; Project Completed: 1986, Total amount: US$29 million
The project supported setting up and development of Korean Institute of Electronics Technology (KIET). Theproject was to support KIET as a central facility in semiconductor industry, including explore and develop exportopportunities for Korean electronics sector overseas. The project played a catalytic role in building electronicssector in Korea. However, the project did not meet some of the objectives including profitability targets andindustry related R&D programs due to the situation in the country when the industry itself started to investheavily into semiconductors research leaving less room for KIET, and other economic and business conditions inKorea.
Technology Development Projects (First, Second, and Third)Projects approved: 1982, 1984, 1988. Projects completed: 1986, 1989, 1992. Total loan amount: US$129 million
The Technology Development Projects were a series of projects designed to foster the technological develop-ment of industry in the Republic of Korea through the financing of the Korea Technology Development Corpo-ration (KTDC) and the strengthening of three key institutions: KIST, one of Korea’s leading multidisciplinaryresearch institutes; KSBC, the Korea Basic Science Center Support to KIST was intended to cover a broad spec-trum of applied research activities and to recruit high-quality researchers; KBSC was established to provide moreopportunities for joint basic science research, the foundation of technological innovation; and the role of NITIwas to support SMEs by raising product quality. KTDC helped create linkages between the R&D institutes andindustry, supported SMEs through the financing of technology start-ups and technological support, and formu-lated technology policy and appraised national joint R&D projects between SMEs and industry.
Technology Advancement Projects (First, Second, and Third)Projects approved: 1989, 1990, 1991. Projects completed: 1993, 1994, 1994. Total loan amount: US$108 million
The Technology Advancement projects were a series of projects aimed at providing funds for the purchase ofmodern equipment for the five main national RDIs. The broad objective of this initiative was to strengthen indus-trial R&D and basic research capacity and to increase the use of industrial standards in order to raise productquality. These objectives were in conformity with government policy, which sought to expand and strengthenvocational, technical, and tertiary education in science and engineering and to support public and private R&Dactivities as Korea sought to join the ranks of the industrialized countries. The availability of the new equipmentand facilities made it possible for the RDIs to increase their R&D activities and joint projects, expand their testingfor quality improvements, and increase their output of technical and scientific publications.
Program for Science and Technical Education Project, Universities Science and TechnologyResearch Project, Science Education and Libraries Computerization ProjectProjects approved: 1984, 1990, 1992. Projects completed: 1989, 1995, 1997. Total loan amount: US$195 million
The Program for Science and Technical Education aimed to raise the quality of S&T education to the levelrequired by an industrial system that sought to be more skill- and knowledge-intensive and that was movingtoward the use of more advanced technologies. The Universities Science and Technology Research Projectaimed to help selected universities strengthen their ability to undertake research in science and technology andstrengthen their science teacher education, with the goal of raising the quality of science education in secondaryschools. The Science Education and Libraries Computerization Project aimed to help improve the quality ofbasic science education and to provide a more effective flow of information between those university librariesthat service teaching and research.
Intellectual Property Rights Regimes. The prevailing intellectual property rights regime is an impor-tant determinant of the amount and quality of technology transfer from industrialized to developingcountries as well as development of new ideas in the domestic markets. International evidence sug-gests that the ease with which foreign companies sell technology to developing countries, the termson which it is sold (licensed), and the vintage that is sold is affected by the owner’s ability to main-tain proprietary ownership. As a country moves from importing technology to finding ways ofadapting and modifying that technology to serve local demand or technical conditions, the absenceof a regime to protect such new ideas additionally can discourage the local developer from investingin its ideas. Knowledge-based societies pay special attention to these issues (for example, the UnitedStates is rated as number one in the world by number of patents filed, Japan second, and Taiwanthird), while in many developing countries there is a clear failure to understand the importance ofthese services. The lack of attorneys, patent agents, and judges able to handle infringement cases canmean that the enforcement mechanism for IPR is incapable of playing its role in supporting innova-tion and technology transfer.
Once other components of innovation systems take hold (such as RDIs reorienting towardapplied research, spin-off companies starting to appear in larger quantities, technology financing tak-ing off, and synergies building up between the research community and industry) the question ofappropriate support of their IPR becomes even more urgent. Most of these activities inevitably willtrigger patenting and licensing disputes if the framework is not functioning properly. (See Box 6.)
Many Bank projects have included intellectual property rights protection in one form or another,from the setting up or upgrading of national-level Patent Offices to the establishment of individualIPR units in universities or R&D Institutions to support the needs of research communities at themicro level. The Turkey Industrial Technology Project, for example, supports modernization of theTurkish IPR regime to align it with the World Trade Organization and European Customs Unionrequirements. The program stipulates giving assistance to the Turkish Patent Institute in its efforts toupgrade its organizational and operational systems and its physical infrastructure and staff skills, inorder to improve the quality and speed of its IPR-related services (such as the issuing of patents,licensing, enforcement, and dissemination of information) and thereby to serve the needs of theindustry and research community. The project also supports a promotion campaign, and the trainingof IPR lawyers, judges, and industry personnel. The ultimate objectives of the intervention in thisarea are to promote awareness of the IPR regime across the industry and among researchers, toencourage its use by making it more client-oriented and efficient, and ultimately to establish it as anecessary step in the commercialization process. The Mexico Science and Technology InfrastructureProject supported the creation of the Mexican Institute of Industrial Property, significantly reducingdelays in the award of patents, increasing enforcement activities, and increasing the number and fre-quency of inspections related to IPR violations.
Research and Development Institutions. The R&D sector in many developing countries typically com-prises a large number of public institutions and universities, in some cases, such as in Russia andCroatia, with an excellent academic base. These institutions tend to be inward-focused, pursuingactivities largely disconnected from the needs of industry and the economy at large, and therefore areincapable of serving as effective agents of technology transfer to the private sector. Normally thelargest RDIs are and would remain mostly public given their importance for the economy at largeand spill-over effects make this public investment into them justified. Returns on the R&D restruc-turing for the country could be as high as 50 to 100 percent. In Taiwan, for example, the Govern-ment set up a public R&D Institute which has resulted in spinning off of two major foundries dealingwith semiconductor equipment which in its turn produced linkages with 20,000 small and mediumenterprises in the country. In the United States, such examples include National Aeronautics andSpace Administration and National Institutes of Health that are publicly funded and provide verystrong spill-over effects to the economy. Other examples include India and Korea.
Most S&T projects consequently aim to strengthen and restructure public Research and Devel-opment Institutions to serve the economy, to undertake more applied research, and to promote the
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INNOVATION SYSTEMS 19
BOX 6: TURKEY
Technology Development ProjectProject approved: May 1992. Project completed: June 1998. Loan amount: US$100 million
This project had three broad objectives: (a) to develop the MSTQ system; (b) to encourage market-orientedR&D in the private sector; and (c) to foster the growth of a VC industry. The project supported the establish-ment of an independent National Metrology Institute (UME), separating it from the Marmara Research Center.By the end of the project UME was able to meet 30–40 percent of the needs of Turkish industry. The projectsupported modernization of the Turkish Standards Institute and improvement of the standardization processes;it also initiated an R&D financing culture in Turkey by setting up the Technology Development Foundation ofTurkey, TTGV, a private sector-managed NGO, and by funding the country’s first technology financing program(103 R&D projects financed). However, a VC industry did not materialize due to a range of reasons, includingthe absence of necessary incentives for the private sector and a lack of support from the International FinanceCorporation (IFC), which initially had been nominated as the main catalyst for this effort. The VC componentwas picked up by the follow-up project.
Industrial Technology ProjectProject approved: June 1999. Planned completion: December 2004. Loan amount: US$155 million
The main project objectives are to: (a) assist in the harmonization of Turkish technology infrastructure with ECUstandards, and (b) assist firms in upgrading their technological capabilities to improve the competitiveness ofTurkish industry. To achieve these objectives, the project concentrated on four main areas: (a) strengtheningof IPR services; (b) strengthening of metrology services to serve a larger section of Turkish industry; (c) restruc-turing of RDIs to make them more industry-oriented; and (d) supporting technology upgrading by firms (includingthe formation of a VC industry and the establishment of technoparks).
The project follows up on the First Technology Development Project by continuing support to (i) UME, that isdeveloping into a world-class metrology institution capable of meeting 95 percent of Turkish industry’s metrol-ogy needs, and (ii) the Technology Development Foundation of Turkey that is developing into a diverse tech-nology financing institution that has changed the entire technology financing culture in Turkey. In addition,the Project supports (i) restructuring the public R&D system in Turkey through reconfiguration of MarmaraResearch Center (MAM, a group of eight leading RDIs), and (ii) upgrading Turkish Intellectual Property Rights(IPR) regime through strengthening Turkish Patent Institute (TPE). As a result of the project investments, byend- 2003: (i) UME is capable to meet 80% of the industry’s metrology needs and provides about 500 services tothe industry; (i) TTGV, in addition to its original technology financing mandate (it has financed some 200 projectsto date), has become a catalyst in supporting VC funds (two VCCs were set up with TTGV’s equity participation)and also supports two technoparks, in addition, its competitive Technology Support Services (TSS) grant schemefor advisory services has benefited about 600 SMEs; most of TTGV’s projects have resulted in the commercial-ization of R&D outputs; (iii) MAM has increased its contractual research base and industry outreach, and wasabout 49 percent self-sufficient in 2003, targeting 65–70 percent self-sufficiency by 2006; and (iv) the IPR regimeis improving its alignment with ECU and WTO requirements and TPE is developing into an international-levelinstitution.
Knowledge and Innovation ProjectUnder preparation (2005). Loan amount: US$100 million
This project is expected to focus on a broad KE agenda, building on the two previous projects and the recentlycompleted Knowledge Economy Assessment Study (KEAS). This Study discussed Turkey in the framework of the4 pillars of the Knowledge Economy and provides key reforms and recommendations in each pillar. Building onthese recommendations a new project is under preparation which will focus on the larger KE agenda and buildon the successful experience and institutions of the previous two Technology Projects in Turkey. The maincomponents in this project will include: (i) Support to Enterprise Innovation; (ii) Information Society Develop-ment; and (iii) Developing Skills for the Knowledge Economy through training to enterprises.
commercialization of their research outputs. The reorientation of S&T to meet industry needsshould improve the competitiveness of industry at home and overseas, enhancing the efficiency andquality of research, increasing the synergy between the R&D community and industry, and reducingthe burden on public budgets. The objective of such effort is ultimately to make a shift in thinkingso that Research and Development transforms into Research for Development, where “R” becomessocially meaningful when it leads to “D” and when output is inducted into socioeconomic system.The support given by Bank programs to RDIs includes assistance in the upgrading of physical infra-structure, in the improvement of management information systems and cost accounting systems,and in the modernizing of human resource management and business processes. For greater sustain-ability, aid also should focus on improving the framework and providing appropriate incentives forcooperation between the research community and industry, by enhancing the incentives for appliedresearch, improving the marketing and commercialization functions of RDIs, introducing competi-tive research programs, promoting joint projects with industry and other R&D organizations, andintroducing a strategic approach to the commercialization of R&D outputs.
Because this restructuring is dynamic in nature and strongly depends on the market and onmacro conditions, the strategic approach works best, with R&D Institutions making the difficultand initial decisions first, taking the steps based on the strategy, and where necessary revisiting or
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BOX 7: CHINA
Rural Industrial Technology (Spark) ProjectProject completed: December 1997. Loan amount: US$114 million
The Ministry of Science and Technology’s pilot Spark program became nationwide in 1986. The overall objectiveof the program was to help transfer technological and managerial knowledge from the more advanced sectors ofthe economy to rural enterprises to support growth and development in the nonstate rural enterprise sector,mostly town and village enterprises, and to help increase output and employment. This project was the firstBank Group-supported operation in China specifically oriented to the rural nonstate industry. The term “Spark”referenced the phrase “one small spark can start a prairie fire,” reflecting the anticipated catalytic effect of theprogram on rural enterprise development.
Technology Development ProjectProject approved: 1995. Loan amount: US$200 million
The objective of this project is to support government reforms in technology policy and institutions, with the aimof promoting the development of clean, productivity-enhancing technologies in China’s industries. The project isdesigned to accelerate the diffusion and adaptation of technologies in China and abroad through the deepening oftechnology markets and through institutional initiatives. The project consists of two components. The first com-ponent is designed to assist in transforming part of the R&D establishment into market-responsive technologydevelopment corporations. This component will hive off the most dynamic technology development and service-oriented elements of existing research institutions to create, through a competitive selection process, market-oriented Engineering Research Centers. The second component comprises complementary investments aimedat improving public technology services, including the modernization of the National Institute of Metrology anda technical assistance program for a productivity center.
“China and the Knowledge Economy” Report—year 2000At the request of the Chinese Government, the World Bank Institute conducted a Knowledge Economy Assess-ment in China, in 2000 publishing “China’s Development Strategy: the Knowledge and Innovation Perspective, theWorld Bank, Washington D.C., 2000 (This report was used by the government as an input into the developmentof China’s 10th Five-Year Plan.) This assessment concluded that China’s strategy should be to build a foundationfor a knowledge-based economy by (a) updating the economic and institutional regime; (b) upgrading educationand learning; (c) building the information infrastructure and raising the technological level of the economy throughthe active diffusion of new technologies; (d) improving the R&D system; and (e) exploiting global knowledge.
INNOVATION SYSTEMS 21
revising the steps as the project progresses. This approach was successfully used in Turkey’s Indus-trial Technology, in which the Marmara Research Center (MAM) and other project agencies pre-pared medium-term business plans, with a three-year horizon, updating and refining those planseach year as changing conditions required. MAM, the largest RDI in Turkey, comprising eight indi-vidual R&D institutes, through support from the World Bank’s Industrial Technology Project hasrestructured itself by modernizing its business processes, downsizing/closing down low-demandareas, transferring one of the institutes to the private sector, reorienting its outputs towards marketneeds, expanding in areas with the strong prospects, and reducing overhead costs. The center alsoestablished a Technopark to promote commercialization of research outputs and to increase cooper-ation with the private sector. This restructuring has resulted in a significant shift to serve the indus-try needs in Turkey and also collaborate in the European market. In 2003, MAM covered about49 percent of its expenses through contractual research (self-sufficiency ratio is 57 percent takinginto account interest earned on these funds), and aims to reach 70 percent self-sufficiency by 2006.An earlier Bank project in Mexico linked the investment made in selected R&D institutes with theirpartial privatization—a unique approach in restructuring that met with mixed results.
The India Industrial Technology Project also supported the restructuring of the largest networkof public industrial research and development institutes (38 R&D Laboratories) of the Council forScientific and Industrial Research (CSIR). As a result of the restructuring, CSIR has more than dou-bled its share of contractual research to industry (albeit from a low starting level). The CSIR labora-tories have undergone a major cultural change, moving to proactive management in public R&Dapplied research and earning money from industry, foreign clients (CSIR has over 40 agreementswith foreign countries, including UK, USA, France, Russia), and international patents (in 2002 CSIRfiled 580 patent applications abroad and held 340 active patents abroad). Building up on the projectaccomplishments, India was able to attract large research contracts from outside of the country (forexample, the largest General Electric R&D center outside of the United States is located in India andemploys about 1,600 people). Increase in applied research in India also gave boost to the biotechnol-ogy revolution resulting in India now holding a prominent place worldwide (the United States hold-ing the first) in the biotechnology area. In the information technologies (IT) area, initially there wasno attempt by the Government or the World Bank to promote the regional development of IT inIndia. Rather, the combination of promotion of excellent higher level education (plus a high level ofinvestment R&D in defense and space) in certain areas as well as the willingness of the government topermit liberalized captive satellite communications by companies exporting IT services and productsled to this revolution. Later on financing played a role. This illustrates the importance of govern-ments to be reform minded and find ways to encourage nascent developments be they foreign invest-ment or by local techno-entrepreneurs.
Upgrading enterprise-level innovation capabilities. As seen from Figure 2, in developed countries thebulk of R&D activities are undertaken by business enterprises (OECD 2003). Having established theinfrastructure to develop new ideas, it is therefore important that a working framework, capable ofsupporting the establishment and development of knowledge-based companies, be built to take theseideas further. (Some of these companies will be spin-offs from RDIs or joint projects with the indus-try while others will emerge through the efforts of entrepreneurial individuals.) The frameworkshould encourage adoption of the new ideas and technologies by industry. Most SMEs are techno-logically behind the leading edge and need help in acquiring even existing technologies and in adapt-ing existing processes and materials to suit local requirements. To integrate the support available tothese companies a country needs to develop functions that can effectively: (a) institutions, startingtechnology financing programs, or setting up a VC industry); (b) set up and launch knowledge-basedcompanies (through setting up and upgrading the services of incubators and technology and R&Dcenters); and (c) help existing companies upgrade their capabilities and the quality of their servicesand products through the acquisition of new technologies (for example, through matching grantsschemes and, again, by upgrading technology and R&D centers). The creation of a sound businessenvironment conducive to growth, an increased technological base, and the encouragement of the
practical application of technical skills can help companies compete more effectively and can therebyfacilitate their economic integration with global markets. The sections below examine in more detailthe provision of firm-level assistance.
Financing R&D Development and its Use by IndustryGiven the importance of technology development for the economy and its complexity, many coun-tries have set up specialized institutions focusing on technology development financing. As practiceshows, governments seldom are equipped to undertake this function and the private sector typicallyis less than enthusiastic about venturing into it, especially during the early stages of developmentwhen the risks involved are high. These technology financing institutions typically are public orpublic–private partnerships or publicly funded not-for-profit organizations. In addition to theirregular business of providing technology financing for individual projects, they also in many casesserve as catalysts for development in new areas, such as venture capital funds, and start-up funds, and
22 WORLD BANK WORKING PAPER
FIGURE 2: R & D EXPENDITURES BY SOURCE OF FINANCINGPercentage share in national total, 2001
Mexico (1999)Greece (1999)PolandPortugalNew Zealand (1999)HungaryAustriaCanadaTurkey (2000)Italy (1996)Australia (2000)IcelandUnited KingdomSpainNetherlands (2000)NorwayCzech RepublicFrance (2000)Slovak RepublicEU (2000)Denmark (1999)OECDGermanyIreland (2000)Belgium (1999)United StatesSwitzerland (2000)FinlandSwedenKoreaJapan
020406080100 %
Business enterprises
Other (other national sources + abroad)
Government Not available
Source: OECD, Science, Technology and Industry Scorecard 2003. Copyright OECD 2003.http://www1.oecd.org/publications/e-book/92-2003-04-1-7294/pdf/A3.pdf
INNOVATION SYSTEMS 23
BOX 8: CHILE
Millennium Science InitiativeProject dates: 1999–2002. Loan amount: US$5 million
This project consisted of three components, aimed at creating: (a) a management structure for MillenniumScience Initiative; (b) a competitive fund for scientific excellence; and (c) a network for the promotion of scien-tific excellence.
Science for the Knowledge Economy (Phase I)Project planned: 2003–2007. Loan amount: US$25 million
Given the long-term commitment that is necessary to consolidate institutional and behavioral changes in the S&Tsector, a program approach is proposed for Chile that would use the Adaptable Program Lending (APL) instru-ment. The program comprises two phases. The first phase, Science for the Knowledge Economy, extends until2007 and supports the establishment of a strong policy framework. It also will provide for the continuation of theMillennium Science Initiative and a further strengthening of the science base. The second phase (2007–2010) willcontinue the activities to strengthen Chile’s science base, with a view particularly to enhancing private sectorR&D. A further phase aimed at improving the innovation system is planned for fiscal 2006.
technoparks. The financing provided through such institutions, given its developmental connotation,is typically low-interest, and in some cases is provided in the form of matching grants. The financialinstruments employed by technology financing institutions include loans (zero-interest, low-interest,commercial, and conditional), grants (usually competitive matching grants), equity participation(sometimes through venture capital programs), royalties, and guarantees. These matching grantschemes have met with success in several countries including the SPREAD program supported by theIndia Technology Development Project. This program provided assistance to SMEs to collaboratewith Technology Institutions. One start-up, a biotech firm, received SPREAD assistance in 1995, todevelop the hepatitis B vaccine in cooperation with the Council for Science and Industrial Research.The company developed the vaccine and began commercial production two years later, resulting ina sharp price decrease for the vaccine. This led to a saving in foreign exchange for a country that hadto import the vaccine in large amounts and now has its own production capacity. Examples of tech-nology financing institutions and programs in the industrialized countries include Finland’s TEKES,VINNOVA of Sweden, and the Vienna Science and Technology Fund of Austria.
In Turkey, the Bank supported the establishment of the Technology Development Foundation ofTurkey (TTGV) as part of the first Technology Development Project. The TTGV initially focusedsolely on technology development financing to private enterprises developing R&D products, butwith the follow-up efforts of the Industrial Technology Project has benefited some 200 companies andis now also involved in two venture capital funds, two technoparks, two innovations centers, and in astart-up fund (to focus on start-up firms and their initial projects). TTGV has also been successful withits matching grants scheme for technical assistance, and has supported more than 600 SMEs in carry-ing out activities to improve quality and their technology base.
Firm-level technology financing ranges from the provision of seed money for prototype develop-ment and the exploration of new business ideas to the support of the commercialization of researchoutputs. In Turkey, all of these activities were supported under the technology development financingprogram, but they may also be split into separate programs, as happened in Croatia, which supportsprototype development under the TEST Program and prototype commercialization under theRAZUM Program. Experience in implementing these programs worldwide demonstrates the impor-tance of ensuring that from the start they have appropriate guidelines, transparent review procedures,and intellectual property rights-related procedures, and that they make available diverse financialinstruments depending upon market requirements.
Another aspect of technology financing, the importation of ideas, was supported in the IndiaIndustrial Technology Project, in which one component enabled a wide range of technologies in
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BOX 9: MEXICO
Industrial Technology Development ProjectProject approved: July 1986. Project completed: June 1993. Loan amount: US$48 million
The project was designed to improve the capability of industry (especially private firms) to undertake the tech-nological innovation needed to contend with the increasing competition that was expected due to the govern-ment’s economic liberalization program. This project may have been premature, coming as it did in the earlystages of what has been a profound transformation of Mexico’s economy: conditions were not yet suited forprivate sector R&D and Mexico was going through one of its worst economic crises. The project nonethelesscan be credited for having been a catalyst in the policy dialogue on project and a factor in the ensuing changes ininstitutions and operational environment that are now providing a much more fertile ground for technologicalinnovation. Studies financed under the project enabled the government to improve its project policy and infra-structure; the metrology studies additionally produced a number of significant findings on which the follow-upproject was able to build.
Science and Technology Infrastructure ProjectProject approved: May 1992. Project completed: June 1998. Loan amount: US$189 million
The main objectives of this project were to rationalize public sector funding for S&T and to develop technologyinstitutions by supporting the restructuring of a science research program and improving the efficiency of publicsupport. The project was successful in increasing the number of Mexican scientific research publications and theirimpact, significantly increasing the production of research-trained personnel, renewing the Mexican researchinstrumentation infrastructure, institutionalizing a merit-based peer review, and improving the efficiency of theNational Science and Technology Council. The project supported the creation of the Mexican National Centerfor Metrology (CENAM), which now has 104 laboratories operational and which has helped to attract foreigninvestment and promote competitiveness in Mexican industry, and supported the creation of the Mexican Insti-tute of Industrial Property, significantly reducing delays in the award of patents, increasing enforcement activities,and increasing inspections relating to IPR violations. The project was also successful in creating a supply of basicS&T infrastructure and in helping to sustain development of an R&D capacity.
Knowledge Innovation ProjectProject approved: June 1998. Project completion expected June 2003. Loan amount: US$300 millionThe Knowledge and Innovation Project, approved in 1998 to support a third generation of reforms and toaddress some of the gaps remaining on completion of the S&T Infrastructure Project. Specifically, it was designedto enhance the effectiveness of research support programs while increasing linkages to user groups in societyand industry. The project’s development objectives were: (a) to support S&T research by stimulating work innew and lagging fields, specifically by promoting quality in research, by consolidating and improving peer review,and by prioritizing the integration of young researchers into the system; and by overseeing the institutionalstrengthening of the scientific management research conducted by National Council of Science and Technology(CONACYT); (b) to support joint action between universities/public research institutes and the private sector,by restructuring public S&T institutes to increase cost recovery and reorientation to industry and by matchinggrants for joint industry-academia projects; and (c) to support the productivity and competitiveness of firms,particularly SMEs, through a technology modernization program to support upgrading with matching grants andthrough the development of private regional/sectoral institutional technology support centers.
diverse sectors to be imported by firms of all sizes. The project came in at a time when foreignexchange limitations in the country were severe and the rules for the import of technology highlybureaucratic. By supporting this component, the project was not only able to upgrade the technolog-ical capacity of firms but was able also to bolster the speed of liberalization. The Mexico and Republicof Korea projects focused on financing to improve the absorption of foreign technology and thecommercialization of local technologies. Korean firms, through a series of technology advancementand technology development projects, imported technology in the form of equipment and licensesand depended little on foreign direct investment. The expectation was that firms should become
export-oriented soon after entering production, creating a pressure that, combined with policies toencourage industry to enter complex technological areas, encouraged firms to improve their R&Dcapacity to sustain global competitiveness.
Venture capital. Venture capital plays an important role in the promotion of innovation and launchof knowledge-based companies (OECD 2003, see Figure 3). Traditional financial institutions con-sider R&D activities a high-risk investment, as most new entrepreneurs lack track record and theconventional collateral and equity resources. There is a need therefore for non-traditional financialinstruments that are not based on conventional commercial terms and collateral requirements, tosupport innovative ideas. Venture capitalists can fill this gap and more, as they typically do not justprovide funding but also know-how, advice, and “hand-holding” services. This specialized form offinancial service is based on a deep knowledge of the innovations sector, and can be very rewardingfor the investor. However, in many countries Venture Capital Funds (VCFs) have proven risk-averse, focusing on the expansion of businesses in general rather than on R&D-driven new ideas.The Bank has been instrumental in many cases in creating or realigning a VC industry to supportalso grassroots activities. This venture capital culture needs to be promoted to attract the right kindof investors and the skills needed to run risky, but rewarding, operations.
INNOVATION SYSTEMS 25
FIGURE 3: INVESTMENT IN VENTURE CAPITAL, 1998–2001As a percentage of GDP
United StatesIcelandOECDCanadaNetherlandsUnited KingdomSwedenKoreaBelgiumFinlandEUGermanyNorwayFranceIrelandSpainAustraliaSwitzerlandPolandDenmarkItalyCzech RepublicNew ZealandPortugalGreeceHungaryAustriaJapanSlovak Republic
00.10.20.30.40.5 %
Early stages Expansion
Source: OECD, Science, Technology and Industry Scorecard 2003. Copyright OECD 2003.http://www1.oecd.org/publications/e-book/92-2003-04-1-7294/pdf/A7.pdf
There is some debate in the system about the utility of VCFs and their impact on the develop-ment of a sound market for technological ideas. There also is a concern that government participa-tion in what is primarily a private-sector endeavor may not be welcome, raising as it does the fear ofpolitical interference in business decisions. Research indicates, however, that a properly set-up venturecapital industry, supported with public funds, can make a useful contribution to the development oftechnology financing and the creation of knowledge-based companies. In Israel, Government’s sup-port of new R&D projects through venture capital (YOZMA Programs3) combined with the immi-gration of skilled and knowledgeable workers from Russia produced an exceptionally good effect forthe economy. Since inception in 1993, YOZMA managed more than $170 million and has madedirect investments in more than 40 portfolio companies as well as helping a significant number of itsportfolio companies go public on major stock exchanges in the US and Europe. The YOZMA fundswere instrumental in positioning the portfolio companies for acquisition or an investment by leadingcorporations such as Agilent, America On Line, Cisco, Computer Associates, ECI Telecom, Enron,General Instruments, Johnson & Johnson, Medtronic, Microsoft, Sequoia Capital and Terayon.
In collaboration with capital markets boards, the Bank has used awareness-raising and demand-assessment seminars to facilitate the formation of venture capital funds. The approach used has beento encourage minority equity participation in the high-tech sector, through funds that are thenmanaged and operated by the private sector. This practice has proved successful in India, Turkey,and Israel, among others. In India, the Industrial Technology Project supported six Venture CapitalCompanies (VCCs) involving nine funds. These VCCs have invested in more than 300 companies,producing average returns of 18–20 percent—a performance that is considerably better than that ofmost venture capital activities in infancy. The project in essence launched the venture capital industryin India by building upon the existence of one entity and encouraging the framing of appropriatepolicies and incentives. Its contribution, in terms of influencing the culture of risk finance andenabling foreign venture capitalists to be attracted to India, was equally if not more important thanits dollar contribution. In Turkey, the Industrial Technology Project similarly has supported twoventure capital funds jointly with Turkish and international investors, including the InternationalFinance Corporation and European Investors.
Technical assistance grants for productivity and quality enhancement. To offset the learning costs offirms during the initial acquisition of technology services, and to promote technology diffusionthrough strong demonstration effects, countries establish specialized facilities to provide matchinggrants to individual firms for technical assistance to enhance productivity and quality. Through theseprograms firms receive technical assistance and training to improve their technical processes, market-ing, and financial management, to acquire clean technologies, to diversify production, and so forth.Indirectly, these programs also support the development of a domestic consulting market for tech-nology and business services. One successful example is the Turkey Technology Support Services(TSS) Program, and a Productivity and Quality Facility (PQF) is also being set up in Croatia. ThePQF, similarly to the TSS, will focus on providing rapid support to firms in relatively simple activitiesrelated to productivity and quality enhancement. Other examples of matching grant schemes includeIndonesia’s Industrial Technology Development Project and Mexico’s Knowledge and InnovationProject.
Technoparks, science parks, and technology and R&D centers. The primary contribution of supportentities such as technoparks is in helping the development of the local R&D industry and improvingthe linkages between the research and industry communities. These entities normally are built as a
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3Yozma has earned worldwide recognition as the creator of the Israeli venture capital industry to supportR&D and its commercialization. Yozma makes equity investments in technology companies engaged in fieldswhere Israel has demonstrated world leadership. The Group targets high-growth companies in the sectors ofcommunications, information technologies and life sciences.
result of local initiatives to support firm-level innovation and technology development and toimprove the use, adaptation, development, and commercialization of new technologies. In additionto the obvious benefits of profit generation for the entity housing a technopark and of the supportthey give to local business development, many see these initiatives as important means by whichresearch and development institutions and universities can commercialize their own ideas.
Technoparks focus on technology-intensive development, generally with a university or researchinstitution as a key part of their establishment and operation. The university or research institutioncan contribute faculty members, students, libraries, laboratories, technological infrastructure to theoverall operation; the technopark itself typically is characterized by the presence of large, maturetenants that can make the substantial commitment required to take advantage of the academic orresearch potential of the nearby institution. Technopark investments are typically considered to beof a high-risk and high-reward nature, and thus typically are piloted in a phased manner on the basisof well-defined business plans and entry and exit criteria for the tenant firms. The Turkey IndustrialTechnology Project is supporting three technoparks and two innovation centers; other successfulparks can be found in Israel and throughout Europe, in the United Kingdom, Finland, Spain,Taiwan, and Ireland, for example.
Science parks are similar establishments, but are usually smaller and focus more on incubator-typeactivities. Otherwise they share many of the characteristics of a technopark, commonly being basedon an RDI or university and building on the potential of the linkages between the research staff andtenant firms. Technology centers and incubators provide a complementary service, usually in theform of advisory services for SMEs seeking to develop new technologies. These centers also provideinfrastructural support to firms, and are an effective tool in addressing the local and regional needsof industry and in assisting local start-up companies. One example, Armenia’s Enterprise IncubatorProject, initiated in 2002, aims to create business services centers to promote the Armenian ITindustry to potential investors and business partners. It has thus far had limited success, however, asthe project design is complex and the implementing institutions are still building capacity, and as aresult have had difficulty meeting the requirements needed for broader Armenian reforms.
Education and Lifelong LearningAs mentioned earlier, Bank experience in building the four pillars of the knowledge economy hasbeen most substantial in the areas of innovation systems and policy framework. It is important forcontext however, to provide at least a brief discussion of the other two areas: education and training,and the information infrastructure.
Equipping people to deal with the demands of knowledge-based economic growth requires anew model of education and training, with an emphasis on lifelong learning. A lifelong learningframework encompasses learning throughout the lifecycle, from early childhood through retirement.It encompasses formal learning (provided by schools, training institutions, and universities), non-formal learning (such as structured, on-the-job training), and informal learning (skills learned fromfamily members or people in the community). It allows people to access learning opportunities, asthey need them rather than because they have reached a certain age. Lifelong learning is crucial forpreparing workers to compete in the global economy, but it is important for other reasons as well: byimproving people’s ability to function as members of their economy, for example, it increases socialcohesion and improves income distribution. Developing countries and countries in transition riskbeing further marginalized in a competitive global knowledge economy if their education and train-ing systems fail to equip learners with the skills they need (World Bank 2003). In response to thisproblem, in recent decades the Bank has launched several projects designed to equip a country’slabor force to adapt to the changing needs of the global market.
General reforms in this sector have included the modernization of teaching curricula and of thetesting and examination process, with the aims of helping industry meet international standards,assisting in the creation of qualification assurance systems to certify the competencies of individualsand accredit firms and institutions, and meeting the training needs of industry. Critically, the
INNOVATION SYSTEMS 27
reforms have sought to establish new mechanisms by which to finance education and to improveaccess to learning services.
Formal learning. The Bank has been engaged in a number of projects in the primary and secondaryeducation areas to improve science and math skills, to modernize curricula to international standards,and to introduce more ICT components into basic education. Of these, this paper focuses on thoseprojects targeted at higher education, specifically at the university and graduate level. There havebeen significant investments in this area by many countries. Projects in science and technology, eventhose launched prior to the last decade, have made significant investments in upgrading science, engi-neering, and technical skills. This is partially due to the emphasis that countries have made on theinput parameters of the innovation system, which has guided the effort to upgrade the number andcapabilities of scientists and researchers. Examples of such projects have included the Science andTechnical Education project in the Republic of Korea, designed to improve the quality of scienceand technical education and research; the Science Education and Libraries Computerization Project,in the same country, to improve the quality of basic science education and to provide a more effectiveflow of information between the university libraries that service teaching and research; the PhilippinesEngineering and Science Education Project, aimed at upgrading the country’s industrial and techno-logical capability by increasing the supply of high-level S&T manpower; Tunisia’s Higher EducationRestructuring Project, designed to make the higher education system more responsive to the coun-try’s needs and to improve its performance in economic terms (cost effectiveness) and human terms(the proportion of university entrants who successfully graduate); the India Technical EngineeringQuality Improvement Project; and Indonesia’s University Research for Graduate Education Project,which aimed to improve the quality of graduate education.
Nonformal learning. The supply-driven model of education emphasizes the production of scientistsand researchers, but the increasingly predominant demand-driven model uses industry needs todetermine the skills needed in the workplace. According to this model, nonformal, industry-specifictraining and skill upgrading are a priority. Firms provide this education for their employees at variouslevels and through diverse programs, and formalizing the private sector participation in this processhas become an important item on the education reform agenda. Support programs increasingly areseeking to integrate the education sector into the broader economic growth strategy in an approachthat is quite different from the traditional focus of education reform, which has tended to be on edu-cation subsectors (higher education, basic education, continuing education, and so on). By structur-ing the education components of KE programs in this way, the program designers can keep sight ofthe demand-side requirements of education—that is, the requirements of the economy and of thelabor market. Examples include the Indonesia Second Professional Human Resource DevelopmentProject, which aimed to upgrade the quality of professional, managerial, and S&T staff in key govern-ment ministries and agencies, both at local and national levels and, on a limited scale, in the privatesector; the Malaysia Polytechnic Development Project, designed to improve the efficiency and capac-ity of technical education by establishing training practices that are market-oriented and as such seekto reduce structural unemployment and encourage greater labor absorption and mobility; and theMauritus Higher and Technical Education Project, aimed to produce personnel trained to supporta more competitive economy.
Informal learning. A third area of focus in lifelong learning is that of informal learning, by whichworkers learn through their communities and family. This is an area in which little work has beendone, but the Bank has begun to emphasize this as an additional component when modernizingeducation systems in developing countries.
Financing of education. The move toward a lifelong learning system can be an expensive one fordeveloping countries. While most education spending is based on local costs, many essential inputs of
28 WORLD BANK WORKING PAPER
lifelong learning, such as computers, laboratories, and Internet access, are priced on an internationalscale. Most of the money that funds education in developing economies comes from public funds,and these funds typically are inadequate to extend education opportunities to everyone. There areseveral financing instruments that have been used to increase private-sector participation in this arena,however. For example, Mexico’s Higher Education Financing Project, which aims to assist academi-cally qualified but economically disadvantaged students to pursue advanced studies, operates a pri-vate sector student loan program. Elsewhere, Indonesia’s Higher Education Support Project andRomania’s Reform of Higher Education and Research Project, completed in 2002, are examples ofcompetitive research programs.
Information Infrastructure (ICT/e-Development)Information and Communications Technology (ICT). A well-functioning communications infrastruc-ture is the backbone of a knowledge-based economy. Privatization and liberalization are essential forthe development of an affordable and modern telecommunications infrastructure. The key areas offocus are: (a) improving universal access to telecom services; (b) promoting affordable Internetaccess; (c) improving telecom infrastructure in rural areas; and (d) promoting alternative means ofcommunication, such as wireless services. Modern information communications has the potentialof eliminating the disadvantages of peripheral location, and as such is an equalizer of opportunities:Internet and mobile communications can help a company anywhere to establish a global presenceand communicate on the global scale.
INNOVATION SYSTEMS 29
BOX 10: IPR CASE STUDY—INDIA NATIONAL CHEMICAL LABORATORY (NCL)
The India Industrial Technology Project began the process of transformation of the Council of Scientific andIndustrial Research (CSIR) after nearly a half-century of inertia. CSIR is India’s largest R&D network with 40 research laboratories and over 25,000 staff. The project initiated the revamping of this institution throughdramatic modernization of business and HR processes, performance and outputs, and a reorientation towardsindustry through enhanced customer orientation and market responsiveness. This was re-emphasized in theirvision and strategy whereby they envisaged:
� re-engineering of the organizational structure to enable CSIR to become more customer oriented;� linking the R&D programs and activities to the industry through alliances, networking and partnerships;� stimulating the intellectual property management in CSIR;� investing in select high quality science that would be the precursor for high-technology; and� refurbishing human and physical capital.
One example of the momentum achieved by this institution is the specific case of one of its laboratories, NCL.The Bank supported technology project for India had a component of a grant to NCL. Among other things, NCLused this grant to enhance its capacity in intellectual property rights. NCL scientists were sent for training in IPRto British Technology Group in UK. These scientists brought and spread a new culture on patenting in NCL.(Note that the number of US patents granted to NCL till 1989 were zero). NCL acquired a patent on Solid StatePolycondensation of Polycarbonate that was licensed to General Electric (GE), who had 40 percent of world mar-ket share of polycarbonate. This built the partnership between NCL and GE. It grew to such an extent that JackWelch, the CEO of General Electric (GE), decided to set up the GE R&D Centre in India. This centre todayemploys over 1600 people (with further expansion planned to 2400). This is the second largest R&D centre of GEin the world. GE’s example was followed by many leading companies. India today is emerging as a global platformfor R&D, as many companies are following GE’s example. Indeed, over 100 companies have set up their R&D cen-ters in India now. For CSIR’s Senior Management, the catalytic effect of the Bank’s technology project is clearthrough this simple example of NCL developing the capacity to file and win US patents which acted as in initialtrigger for the NCL-GE partnership and ultimately resulted in GE’s decision to set up R&D Centre in Bangalore.
Electronic Development (e-Development) applications ease and can make more efficient thetransaction process between government, private firms, and civil society. These applications cantake many forms:
� Intragovernment interaction: Modernizing systems and processes to enhance the communi-cation and information flow within and between ministries and different governmentalorganizations (for example, e-Budgeting).
� Government-to-business interaction: Creating an environment conducive to business, toimprove efficiency in public spending and improve transparency (e-Licensing, e-Procurement,e-Registration).
� Government-to-civil-society interaction: Expanding access to government information toreduce bureaucracy, inefficiency, and enhance transparency (e-Justice).
� Business-to-business applications (e-Commerce, e-Supplier, e-Vendor, e-Services)� Business-to-customer applications (e-Banking, e-Payments)
Major issues to be tackled within the e-Development agenda include contract enforcement, con-sumer protection, liability assignment, privacy protection, process and technical standards, security,authentication, encryption, digital signatures, and connectivity protocols.
Several Bank projects have addressed e-Development issues in policy reform and the use of ICT.While some projects, like e-Sri-Lanka, take an integrated approach to e-Development by attemptingto tackle most of system within one project, most others focus on a small group of related issues at atime and phase the operations based on their readiness. For example, the Venezuela Supreme CourtModernization Project, completed in 1998, supported the tremendous potential of technology-driven reform. By streamlining and automating case handling and reporting systems, the courteliminated multi-year backlogs that had hampered its efficiency and eroded public confidence in theinstitution.4 Turkey’s recently completed Public Finance Management Project, a state-of-the-artmodern budget execution system, successfully deployed the “say 2000i” system, which embodiesthe functionality of a financial ledger system and has the reporting capabilities and capacity to providethe Ministry of Finance with accurate and timely information on the status of budget execution. Aproject under preparation in Russia, the Customs Development Project, aims to reform and mod-ernize the Russian Customs administration.
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4See the Venezuela Supreme Court Modernization Project website: http://www.tsj.gov.ve/
One of the main characteristics (and a cornerstone of the rationale) of technology support isthe public-good nature of technology development and the upgrading that results due tothe high spillovers from such efforts. It is difficult to measure these factors in traditional
terms, such as net present value or financial rate of return, and it is difficult to make estimations of thebenefits that might flow from the proposed investment. At the same time, however, it is imperativethat the impact of investments in this area be monitored if private sector involvement is desired. Theproposed approach to this dilemma has two components: (a) empirical analysis of the benefits to theeconomy; and (b) development of a set of project-specific performance indicators capable of measur-ing progress toward the project’s objectives. The project’s outcomes analysis should, in addition toproject specific indicators, include a broader good for the country such as FDI inflows, internationaloutreach and collaboration of the beneficiaries, employment generation in the country. Surveys andinterviews are important tools in assessing technology projects.
Empirical analysis should include benchmark analysis of the economic conditions at the begin-ning of the project and subsequent analysis (midway through the project and at the end) to checkthe hypothesis of improved economic conditions. The variables to be examined may include thegrowth of new business, exports, market share held by R&D companies, company profitabilityindicators, and, ultimately, such economic indicators as gross domestic product growth, growthin R&D expenditures, and foreign direct investment.
Specific project indicators should be developed at three levels: (a) input indicators to keep trackof the extent to which implementation meets the stated expectations and schedule; (b) output indica-tors to track the immediate results of implementation, in accordance with project plans; and (c) out-come indicators (including development impact indicators) to evaluate the extent to which theproject has achieved its objective of improving technology development. Each set of indicatorsshould be supported by specific ratios and measurable data, collected over the project lifetime. Forexample, input indicators could include the percentage of investments completed, and the number ofnew laboratories equipped or opened. Output indicators could include progress on the number ofpatent applications processed (for patent agencies), the average time required for application process-ing, industrial research income (public and private), industrial contracts income, the number of
MONITORING ANDEVALUATION
31
CHAPTER 4
clients, the number of joint projects, the number of publications, the self-sufficiency ratio, andrepayment ratios (in the case of technology financing). Outcome indicators could include increasesin the country’s R&D expenditure, the improvement in access to financing of technology companies,increases of exports by beneficiary firms, commercialization of new technologies, the reduction ofbarriers between industry and the research community, and the regional outreach of programs. Per-formance indicators should measure not only output indicators but also process indicators (restruc-turing of institutions, business process reengineering, reorienting to industry needs, etc.)
Monitoring and evaluation (M&E) activities are best carried out systematically. Performanceindicators should be updated periodically by responsible project agencies during their reporting cycles(at least semiannually), and empirical studies, including surveys and interviews, could be outsourcedto private sector firms or statistics institutions. An M&E scheme along these lines was successfullyintroduced under the Turkey Industrial Technology Project, and is present in various forms ofsophistication in several projects.
32 WORLD BANK WORKING PAPER
P roject Scope and Complexity. Technology projects normally include a wide spectrum ofinterventions, all of which are complementary in nature and would not function well with-out each other. The composition of the project would depend on the country situation and
would be unique in each case. On the supply side, the reforms can (a) tackle the restructuring ofR&D Institutions to reorient them toward industry; (b) build up a functioning measurements, stan-dards, testing and quality system to improve competitiveness of products domestically and interna-tionally; and (c) provide the necessary protection to the industry in the form of a healthy intellectualproperty rights regime. On the demand side, the reforms can support the use and adaptation by theindustry of innovations and new technologies developed by the research community. It should alsobe noted that the technology sector cannot function unless appropriate technology financing pro-grams, including venture capital, and start-up funds, are in place.
Technology projects typically are complex, contain multiple components of a complementarycharacter, and must be seen as long-term efforts. Experience has shown that a systemic and holisticapproach to technology development works best and that such operations should not be too nar-row. Each technology project has to be “custom-designed” and must be a product of a collaborativeapproach among the stakeholders in the country. A series of projects or an adaptable programmaticlending approach can work well, as this allows a country to develop a long-term strategy, comple-mented by medium-term interventions. As the examples described in the boxes in this report show,Mexico, Turkey, India, Chile, and many other countries are not only applying a multisectoralapproach, wherein different projects look at different sectors and improve them simultaneously, butthey are also looking at multigenerational approaches, wherein the vision and strategy is determinedwith a long horizon and prioritized activities are undertaken in a sequenced approach to meet thatvision. Lessons learnt from previous Bank projects endorse this approach by suggesting that tech-nology development be tackled in an integrated way and as part of a broader industrialization strat-egy. No single project, of course, can or should try to address all issues.
The complementarity of activities and the built-in synergies in these projects imply complexity indesign, and as a result these projects are labor-intensive and resource-intensive to prepare and super-vise (for both the client and the Bank). The projects require support from the public sector, to pro-
LESSONS
33
CHAPTER 5
mote investment in R&D. Given the difficulties of the initial reforms and delayed return for the econ-omy, the innovation support agenda sometimes is accorded low priority by the busy governmentsstruggling with fiscal deficits and other macro-economic challenges. Therefore, technology projectsrequire strong dedicated championship in the country to move the reforms along on both the Government and the institutional level. The role of a strong local champion is crucial for followingthrough with the tough initial reforms as well as to ensure integrity of the project design for all Bankprojects, but even more so for the innovation support ones. The Bank should not launch into exten-sive project preparation (and ultimately, implementation) without finding such a local champion.
The technology projects also require intensive preparation and supervision by the Bank, andas a result the lending and supervision budgets of these projects are typically higher than average.Continuity in the skilled and dedicated Bank staff managing these projects is also critical to ensurethe transfer of knowledge as well as benefit of the worldwide experience. The capacity of the Bankproject teams must be increased to allow them to provide high-quality advice and coordination skillsto meet the expectations of the highly sophisticated clients in the Innovations Systems area.
Flexibility in project design. Given the nature of technology development activities and the newnessof many of these activities in some countries, it is not always appropriate to follow a rigid implemen-tation scenario. It is therefore critical that flexibility be incorporated into the project design, toenhance its effectiveness and to reduce the bureaucracy involved in implementation and to permitadaptation of the project to changes in the institutional and economic environment. This flexibilityincludes the incorporation of unallocated funds for use in priority activities that demonstrate supe-rior performance, as well as pilot initiatives to determine viability and the annual review and updat-ing of business plans. Intensive monitoring to determine if continuation or modification of projectelements is required and to permit a rapid response to changing needs is an integral part of theprocess. It may also prove beneficial for the projects to focus on the mechanisms and how theywork—criteria, transparency, speed, reliability, and oversight–and improve them overtime througheffective evaluation processes. A good feedback loop to adjust to changing needs should be incorpo-rated in project design to allow for appropriate and necessary adjustments. This was crucial to thesuccess of the India Industrial Technology Project, the Indonesia Industrial Technology Project andthe Turkey Industrial Technology Project. Each of these projects survived well in environments thatwent through major economic upheavals. However, these projects also succeeded mainly due tostrong local ownership and champions, committed institutional leadership and recognition ofprojects long-term benefits and impact as well as appropriate response by both the Bank and theGovernment/Institutions in accommodating changing needs during the project lifecycle.
Public-good nature and externalities. Due to the public-good nature of investment in measurements,standards, testing and quality systems and R&D infrastructure and the high spillover effects and exter-nalities associated with the generation, adaptation, and diffusion of new technologies, the involvementof the public sector in this area is justified. The private sector normally would invest in these activitiesonly to the extent that it could internalize the benefits of these investments fully and make a profit.This is possible only for very large firms, leaving a large part of the industry needs unfulfilled and thelevel of private investment far below the socially optimal level. The role of the public sector thereforeis crucial, in its ability to create a shared approach by providing support for the setting-up of technol-ogy services where they do not exist or the reorientation of those that do exist. Building a goodinstitutional framework and setting up regulations conducive for technology development remain theresponsibility of the public sector. Many MSTQ services, especially metrology services, remain in partpublicly funded even after they are up and running, but the cost to the government will be far out-weighed by the benefits of a well-running system that accrue for the economy at large.
Private sector participation. Public sector approaches in the past have led to inefficient infrastructureand services that do not respond well to industry needs. An emphasis on private sector participation
34 WORLD BANK WORKING PAPER
therefore is important in the restructuring process, for the sector’s ability to inject into the processefficiency, management capability, good governance, and cost-effective design and delivery. Cofi-nancing from the private sector and the setting up of advisory boards and councils with private sectorparticipation, while maintaining involvement of the public sector, have in past experience provedvaluable in helping maintain a business focus that benefits the economy. Also, private sector researchcommunity involvement in the project evaluation and monitoring process is important.
Venture capital and technoparks initiatives should not even be considered unless there is strongsupport and cofinancing from the private sector. The Government’s role should be restricted toproviding seed funds to start and catalyze these initiatives, but they should ultimately be managedby the private sector and funded by other sources (for example, in the India case, 25–33 percentof venture capital funds were financed through the Bank loan, while the Turkey Industrial Technol-ogy Project financed 12 percent of the equity participation in individual venture capital funds, and30 percent in the technoparks).
Technology financing agencies. Some later Bank projects have financed autonomous counterpart tech-nology financing agencies to maximize the ability to achieve project goals and objectives in this area.If they are to be able effectively to take risks and attract high-caliber professionals and entrepreneurs,these intermediary agencies should be set up with independent management, professionalism, andshould bring with them knowledge of different industries and the R&D sector. Specialized technol-ogy financing agencies are best equipped for lending to technology programs. The Korea, India, andTurkey experiences illustrate the advantages of working with professionally managed institutions thatare responsive to market needs.
Institutional reforms. Any effort to change an entrenched mindset will be slow. In this arena typicallythere will be strong resistance from the research community, which traditionally is focused on acade-mia and publishing. The momentum in these projects usually rises slowly in the initial stages. It istherefore important that incentives, both career and financial, and on the institutional and individuallevels, be strong: public institutions should be made accountable for their performance to encouragethem to strive for their specific goals, and scientists must be rewarded for initiating joint projects andconducting applied research for industry. The modern business culture and management experiencetypically are unfamiliar to the scientific community at large, and therefore incentive changes must becombined with training and awareness-building. As the restructuring of public institutions to meetindustry needs unavoidably will lead to closures in nonperforming areas and enlargement in promisingareas, fully considered and transparent staff redundancy plans need be put in place. The fair and trans-parent treatment of human resource matters can help smooth the process of reform and reduce theresistance to change; it also can help the public to understand the process and its objectives and thusbuild up broader support.
Management Intensity. The technology-related business, and specifically projects targeting the restruc-turing of the technology sector, require high level of management and coordination effort. Such pro-jects are labor- and resource-intensive, and would ideally require the solid commitment of and toughdecision-making by government and institutions before the beginning of the project, require a changein the mindset of relevant institutions, and must involve the participation of the private sector, a beastthat has a mind of its own and that cannot be lured into doing something that offers no profit or gain.It would be most desirable that the government and key institutions make their tough decisionsupfront. Making the key decisions early on the autonomy and governance, and setting up a functioningchange management group, will in addition to increasing probability of success of the operation alsohelp to maintain the momentum of the reform. However, in real life one needs to find a reasonablebalance between the commitment, reforms and timeliness, and some tough decisions will inevitablebe carried out into the implementation period.
INNOVATION SYSTEMS 35
Time factor. It is important, finally, to have an end in sight. Typical Bank-loan four-to-five-year timehorizon has proven to be effective for successful implementation. Most successful projects do notwait for a country’s entire reform process to be either initiated or completed, but work within theexisting agenda by phasing reforms and often catalyzing the future steps.
Impediments to Avoid. As mentioned earlier, the Bank can play an important role in assisting clientcountries in upgrading their innovation systems, including scientific and technological capacity.However, the success level has been mixed. This review of Bank projects, in particular of the factorscontributing to their success and failure, has revealed a number of impediments to successful achieve-ment of project objectives. The key impediments on the Bank side include highly complex projectdesign combined with rigidity, inadequate resources for preparation and supervision, poor monitor-ing and evaluation processes, a lack of continuity and appropriate skills and dedication in projectteams to customize project design to country context and local institutional capacity, poor resolve tofollow through on institutional and policy issues. On the Client side, the key issues involve weakleadership and institutional capacity, resistance to long-term commitment to change, weak policyframework, a lack of continuity in institutions and in the project management teams, inadequateautonomy and governance structures of the project beneficiaries, a lack of effective monitoring andevaluation systems and lax focus on project impact. Therefore, it is important to ensure that theseissues are effectively addressed during the design and implementation stages of these inherentlycomplex and attention intensive but highly rewarding projects.
36 WORLD BANK WORKING PAPER
ANNEXES
Potential Interventions in the Four Pillars of the Knowledge Economy
I Policy and Institutional FrameworkA An appropriate policy, regulatory, and institutional environment to promote business
investment and economic growth driven by innovation:� Openness to trade and foreign direct investment� Credit and financial sector policies to deepen financial intermediation� Judicial systems to improve the rule of law and its enforcement� Labor markets to be stimulated to create a supply of knowledge workers (including
development of conducive labor codes, redundancy regulations, human resources regu-lations, and so forth)
� Development of regulations governing distance learning establishments, their accredita-tion and supervision
� Environment to support public research and development institutions and their staffengaging in contractual research and commercialization of R&D
B Domestic competition policy to promote sustained economic growth and ease the entry andexit of firms into and out of the market:� Intellectual Property Rights regime to align with World Trade Organization and Euro-
pean Union standards� National competitiveness policy, including antimonopoly regulations and the setting up
and strengthening of antimonopoly institutions� Science and higher education policy to be aligned with the needs of the economy� Business environment to be conducive to private sector investment in new technologi-
cal ventures (including appropriate regulations and incentives for venture capital);
KNOWLEDGE ECONOMYPROJECT MENU
39
ANNEX A
� Tax and other incentives to improve private sector participation in R&D, includinginvestment in R&D (adapt, use and develop R&D) and promotion of knowledge-basedcompanies
� Privatization and liberalization of telecommunications and postal services
C Support for technology policy, through the setting up and/or strengthening of technologypolicy institutions to enable them (and to finance some of their activities) to carry out ade-quate policy studies, conducting foresight studies, serve as data centers on technologyissues for private and public sectors both locally and internationally, and to carry out tech-nology outreach and public awareness activities.
II Innovation SystemsA Upgrade intellectual property rights (IPR) regime and metrology, standards, testing, and
quality (MSTQ) systems to enhance the competitiveness of the economy and increase tradeby aligning the policy, legal, and institutional framework and physical infrastructure withEU and WTO standards:� Strengthen IPR regime, upgrading the national patent organization’s physical infra-
structure; improve the quality and speed of services; train patent judges, lawyers, andindustry; improve information dissemination
� Improve national standard and quality systems by enhancing the role of the private sec-tor in service delivery; upgrading physical and laboratory infrastructure; improving thequality and speed of services; and reducing costs
� Upgrade metrology services by strengthening national metrology organizations and pri-vate laboratories; upgrading metrology facilities and laboratories; improving the quality,number, and type of services; improving awareness among the industry and academiccommunity; and promoting the systems and training users
� Create institutional infrastructure for quality enhancement and certifications, includingnational quality councils and national accreditation systems
B Restructure R&D institutions to improve the efficiency and quality of research, increase thesynergy between the R&D community and industry, and reduce the burden on publicbudgets.� Enhance the benefits of R&D to society by upgrading laboratory facilities and staff skills,
modernizing management and HR systems and business processes, improving marketingand commercialization functions, enhancing the incentives for applied research
� Introducing competitive research programs� Promote joint projects with industry and other R&D organizations
C Support firm-level innovation and technology development to improve the use, adaptation,development, and commercialization of new technologies:� Strengthen technology financing institutions with private sector participation and build
their capacity to provide various types of assistance to knowledge-based companies� Introduce appropriate financial products to provide low-interest loans, equity, and
matching grants to firms for R&D activities and prototype building and for the com-mercialization of such ideas
� Promote venture capital funds to provide equity financing (and assistance to entrepre-neurs): start-up capital funds to focus on new ventures, and technology funds to supportthe projects of established companies
� Provide small matching grants for quick technical assistance support for feasibility stud-ies, quality assessments, international standards certifications, process improvements,and other noncomplex measures to improve the quality of products or processes and todevelop new products
40 WORLD BANK WORKING PAPER
� Support technology and science parks, preferably linked in research and developmentinstitutions, to help build synergies with industry by bringing together researchers, labo-ratory facilities, and private firms
� Set up business incubators and technology service centers to encourage technology-focused new entrepreneurship and to encourage local initiatives to promote SMEgrowth by providing fee-based premises, logistical support, and training
III Education and Lifelong LearningA. General reforms
� Modernize the curricula and testing and examination process at all levels to meet theneeds of industry and to meet international standards
� Align academic research toward industry needs:� Restructure (in some cases establish) education councils and boards to include pri-
vate sector representatives and sponsors, to ensure alignment with industry needsand to introduce commercial practices
� Develop the environment and promote informal learning� Improve the research base and integrate with the international community through
joint collaborations on publications and projects
B. Qualification assurance and certification� Create qualification assurance systems to certify individuals and to accredit institutions
and firms� Design national (unified) testing system for higher education establishments, to pro-
vide unified requirements for future students, to make admissions more transparent,and to reduce the cost of the admission process
C. Specific assistance to meet training needs� Provide vocational training through private sector partnerships to meet the demands of
the labor market� Provide retraining for workers to adapt their skills (especially Internet and business and
marketing skills) in the rapidly changing environment of the knowledge economy� Provide training and assistance for redundant employees to reorient them for the job
market and to teach new skills� Provide distance learning (Internet-based education)� Improve computer literacy and Internet-based skills:� Start computer (basic programming and software use) training early in schools and
continue into adulthood� Connect schools and universities to the Internet� Provide vocational information and communications technology (ICT) training� Provide ICT training to enable civil servants to work effectively with modern systems
and processes, including e-applications such as e-Procurement, e-Budgeting, and e-Information.
D. Education financing products� Encourage private-sector-driven financing (scholarships, competitive funds, long-term
education loans with income-contingent repayment schemes, and so forth)� Support the public with subsidies, grants, and targeted education vouchers
IV ICT/e-DevelopmentA. ICT infrastructure
� Modernize telecommunications networks� Promote alternative communication tools (wireless services)
INNOVATION SYSTEMS 41
� Improve access to telecommunications (including that of low-income, rural, and othergroups—“bridging the digital divide”)
� Promote affordable Internet access, especially in rural areas� Support creation of a global distance learning network
B. e-Development applications� Intragovernmental interaction: Modernize systems and processes to enhance the com-
munication and information flow within and between ministries and different govern-mental organizations
� e-Budgeting—to enhance efficiency and transparency in public expenditures management� Government-to-business interaction: Create an environment conducive to business,
improve efficiency in public spending, and improve transparency� e-Registration—to reduce the time taken for and costs of the SME registration process� e-Procurement—to reduce costs, strengthen competition, and enhance transparency
and thereby to support the participation of SMEs in the public procurement process;� e-Taxation—to improve revenue collection, enhance transparency, and increase effi-
ciency of the public tax system� digital signatures—to enhance the speed of B2B transactions and improve the efficiency
of business contracting� e-Credit information system—to improve the availability to financial institutions of the
credit history of borrowers and thereby to enhance the access to finance of SMEs� e-Mortgage and pledge registry (of fixed and movable assets)—to improve creditor
rights and thereby to enhance financial intermediation in the economy� e-Investor—to improve the foreign direct investment flow in the economy by serving as
the first point of contact for investors, especially foreign� Government-to-civil-society interaction: Expand access to government information to
reduce bureaucracy and inefficiency and to enhance transparency� e-Justice—to streamline and automate case handling and reporting systems, and
thereby to reduce multi-year backlogs and improve the efficiency of the courts� e-Health—to provide access for service providers to vital information and statistics, and
thereby to enhance service delivery� Land Cadastre—to improve access to land records and titles information, to develop
land markets and improve financial intermediation� Business-to-business applications� e-Commerce� Data and information exchange tools for business� Business-to-client applications� e-Services � e-Payments (bills, taxes, and so forth)
V Education and Lifelong LearningA. General reforms
� Modernize the curricula and testing and examination process at all levels to meet theneeds of industry and to meet international standards
� Align academic research toward industry needs:� Restructure (in some cases establish) education councils and boards to include private
sector representatives and sponsors, to ensure alignment with industry needs and tointroduce commercial practices
� Develop the environment and promote informal learning� Improve the research base and integrate with the international community through
joint collaborations on publications and projects
42 WORLD BANK WORKING PAPER
B. Qualification assurance and certification� Create qualification assurance systems to certify individuals and to accredit institutions
and firms� Design national (unified) testing system for higher education establishments, to pro-
vide unified requirements for future students, to make admissions more transparent,and to reduce the cost of the admission process
C. Specific assistance to meet training needs� Provide vocational training through private sector partnerships to meet the demands of
the labor market� Provide retraining for workers to adapt their skills (especially Internet and business and
marketing skills) in the rapidly changing environment of the knowledge economy� Provide training and assistance for redundant employees to reorient them for the job
market and to teach new skills� Provide distance learning (Internet-based education)� Improve computer literacy and Internet-based skills:
� Start computer (basic programming and software use) training early in schools andcontinue into adulthood
� Connect schools and universities to the Internet� Provide vocational information and communications technology (ICT) training� Provide ICT training to enable civil servants to work effectively with modern systems
and processes, including e-applications such as e-Procurement, e-Budgeting, and e-Information
D. Education financing products� Encourage private-sector-driven financing (scholarships, competitive funds, long-term
education loans with income-contingent repayment schemes, and so forth)� Support the public with subsidies, grants, and targeted education vouchers
INNOVATION SYSTEMS 43
ANNEX B
BANK INNOVATION SUPPORTAND SCIENCE AND
TECHNOLOGY PROJECTS(1980–2003)
45
46 WORLD BANK WORKING PAPER
Fis
cal
Pro
ject
Y
ear
Co
untr
yIn
form
atio
nP
roje
ct C
om
pone
nts
Sta
tus
Out
com
es
1979
Kor
ea�
To
prov
ide
tech
nolo
gica
l inf
ra-
stru
ctur
e of
ess
entia
l pro
duc-
tion
and
supp
ort
serv
ices
for
sem
icon
duct
ors;
�A
ssis
t in
tra
inin
g of
tec
hnic
alst
aff o
f the
indu
stry
;�
Lead
the
indu
stry
in a
cqui
ring
and
deve
lopi
ng t
echn
olog
ies;
�C
arry
out
R&
D fo
r in
dust
ry;
and
�Ex
plor
e m
arke
t op
port
uniti
esfo
r th
e in
dust
ry a
broa
d.
Ele
ctro
nics
T
echn
olo
gy
Pro
ject
Proj
ect
ID: P
0040
84T
M:
Loan
am
ount
:U
S$29
mill
ion
Dev
elo
pmen
tO
bjec
tive
:The
obje
ctiv
es o
f the
proj
ect
wer
e to
finan
ce t
he e
stab
-lis
hmen
t of
are
sear
ch in
stitu
te in
elec
tron
ics
to b
eca
lled
the
Kor
ean
Inst
itute
of E
lec-
tron
ics
Tec
hnol
ogy
(KIE
T),
to s
pear
-he
ad t
he K
orea
nel
ectr
onic
indu
stry
into
adv
ance
d se
mi-
cond
ucto
rs.
Clo
sed
June
198
6;
4 ye
ars
afte
rex
pect
ed c
losi
ng d
ate
The
loan
was
mad
e to
the
Rep
ublic
of K
orea
for
a pr
ojec
t car
ried
out
by
KIE
T, w
hich
late
rm
erge
d in
to a
noth
er in
stitu
te c
alle
d El
ectr
on-
ics
and
Tel
ecom
mun
icat
ions
Res
earc
h In
stitu
te(E
TR
I). K
IET
’s p
ione
erin
g ef
fort
s in
197
9–81
inth
e ac
quis
ition
and
dev
elop
men
t of s
emic
on-
duct
or te
chno
logi
es a
nd th
e de
mon
stra
tion
effe
ct it
had
in K
orea
, and
the
trai
ning
pro
-vi
ded
by K
IET
to p
erso
nnel
from
pri
vate
ent
rypl
ayed
an
impo
rtan
t rol
e in
the
esta
blis
hmen
tof
this
indu
stry
. Unt
il 19
82 th
e ra
pidl
y gr
ow-
ing
elec
tron
ics
indu
stry
in K
orea
pra
ctic
ally
igno
red
sem
icon
duct
ors.
The
shi
ft oc
curr
edas
a r
esul
t of w
orld
wid
e sh
orta
ges
in s
emi-
cond
ucto
rs, w
hich
incr
ease
d th
e pr
ices
of
sem
icon
duct
ors
and
also
sev
erel
y im
pair
edpr
oduc
tion
of c
onsu
mer
goo
ds. I
t was
then
that
the
lead
ing
com
pani
es in
Kor
ea d
ecid
ed to
vert
ical
ly in
tegr
ate
and
mov
e ag
gres
sive
ly in
tose
mic
ondu
ctor
s as
wel
l. A
ccum
ulat
ed fi
xed
inve
stm
ents
in s
emic
ondu
ctor
s in
Kor
ea fr
om19
74 to
198
1 am
ount
ed to
abo
ut U
S$20
0 m
il-lio
n. In
198
3 al
one,
inve
stm
ent t
otal
ed U
S$30
0m
illio
n, th
en c
limbe
d to
ove
r U
S$40
0 m
illio
nea
ch y
ear
for
1984
, 198
5 an
d 19
86. A
s a
resu
lt,K
orea
n fir
ms
man
aged
to a
chie
ve a
pro
min
ent
posi
tion
amon
g th
e w
orld
man
ufac
ture
rs.
Onc
e th
e pr
ivat
e se
ctor
mad
e th
e de
cisi
on to
go in
to s
emic
ondu
ctor
s, it
did
so
in a
way
whi
ch d
war
fed
KIE
T a
nd, a
s a
resu
lt K
IET
’sse
rvic
es b
ecam
e in
crea
sing
ly le
ss a
ttra
ctiv
e. In
a br
oad
cont
ext,
taki
ng in
to c
onsi
dera
tion
the
Kor
ean
sem
icon
duct
or in
dust
ry’s
big
mov
e in
term
s of
inve
stm
ent i
n 19
83/8
4 an
d th
e hu
gequ
antu
m le
ap in
term
s of
tech
nolo
gica
l lev
elfr
om 1
980/
81 to
198
3/84
, it c
ould
be
said
that
the
proj
ect a
nd K
IET
may
hav
e pl
ayed
an
impo
rtan
t cat
alyt
ic r
ole
(not
a le
ader
ship
rol
e)
(con
tinue
d)
INNOVATION SYSTEMS 47
1989
Hun
gary
�R
edir
ectin
g th
e pr
oduc
t/m
arke
tm
ix o
f the
sec
tor
to c
ompe
titiv
ear
eas
suita
ble
for
conv
ertib
lecu
rren
cy e
xpor
ts�
Impr
ovin
g en
terp
rise
man
age-
men
t pr
actic
es a
nd c
apab
ilitie
s�
Stim
ulat
ing
the
esta
blis
hmen
tan
d gr
owth
of s
mal
l bus
ines
sfir
ms,
incl
udin
g in
the
pri
vate
sect
or�
Alle
viat
ing
the
adve
rse
empl
oy-
men
t im
pact
of i
ndus
tria
lre
stru
ctur
ing
�St
reng
then
ing
inst
itutio
nal
capa
bilit
ies
in s
uppo
rt o
f ind
us-
tria
l res
truc
turi
ng
Thi
rd I
ndus
tria
lR
estr
uctu
ring
Pro
ject
Proj
ect
ID: P
0084
75T
M: H
iran
Hea
rt;
Hen
nie
van
Gre
unin
gLo
an a
mou
nt:
US$
140
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
sup-
port
the
res
truc
tur-
ing
of t
he in
dust
rial
sect
or t
o en
hanc
eits
inte
rnat
iona
lco
mpe
titiv
enes
s
Clo
sed
June
199
7
to p
rove
to K
orea
n in
dust
ry in
198
1/82
that
Kor
ea, t
hrou
gh K
IET
, in
the
deve
lopm
ent o
fth
e se
mic
ondu
ctor
s in
dust
ry in
Kor
ea a
s w
asor
igin
ally
env
isag
ed.
Sinc
e le
ndin
g to
Hun
gary
beg
an in
198
3, th
eBa
nk h
as fo
cuse
d on
sup
port
ing
the
coun
try’
spr
ogra
m o
f str
uctu
ral a
djus
tmen
t aim
ed a
tm
akin
g th
e ec
onom
y m
ore
effic
ient
, flex
ible
,m
arke
t res
pons
ive,
and
com
petit
ive
over
seas
.T
he B
ank
was
hea
vily
invo
lved
in th
e en
ter-
pris
e se
ctor
, pro
vidi
ng a
ssis
tanc
e in
form
ulat
-in
g a
med
ium
-ter
m s
ecto
r st
rate
gy a
ndpr
ovid
ing
supp
ort t
hrou
gh n
ine
lend
ing
oper
a-tio
ns. T
hese
incl
ude
four
lend
ing
oper
atio
nsth
at a
re r
elev
ant t
o th
is lo
an: t
he F
irst
and
Sec
-on
d In
dust
rial
Res
truc
turi
ng P
roje
cts,
whi
chcl
osed
in Ju
ne a
nd S
epte
mbe
r 19
93, r
espe
c-tiv
ely;
the
Indu
stri
al S
ecto
r A
djus
tmen
t Loa
n(IS
AL)
, whi
ch c
lose
d in
June
199
1; a
nd th
eEn
terp
rise
Ref
orm
Loa
n (E
RL)
, whi
ch c
lose
d in
June
199
2. T
hree
res
truc
turi
ng lo
ans
in th
esp
ace
of th
ree
year
s, a
mou
ntin
g to
US$
390
mill
ion,
put
a lo
t of p
ress
ure
on th
e co
unte
r-pa
rts
as w
ell a
s on
the
finan
cial
inst
itutio
ns.
The
mai
n ob
ject
ives
of t
his
proj
ect w
ere
con-
ceiv
ed fo
r a
diffe
rent
eco
nom
ic a
nd b
usin
ess
envi
ronm
ent,
and
whe
n th
is e
nvir
onm
ent
chan
ged
mos
t of t
he o
bjec
tives
bec
ame
obso
-le
te o
r im
poss
ible
to a
chie
ve. T
he B
ank,
inco
nsul
tatio
n w
ith th
e H
unga
rian
aut
hori
ties,
cons
eque
ntly
am
ende
d th
e lo
an to
bet
ter
suit
the
prev
ailin
g bu
sine
ss e
nvir
onm
ent.
The
maj
or fe
atur
es o
f the
cha
nges
mad
e in
clud
ed:
(a) r
elax
atio
n of
the
elig
ibili
ty c
rite
ria
for
inve
stm
ent,
such
as
dele
tion
of th
e re
quir
e-m
ent f
or a
n ex
port
ori
enta
tion;
(b) c
onso
lida-
tion
of a
ll cr
edit
line
com
pone
nts
unde
r on
ecr
edit
line;
(c) o
peni
ng o
f the
cre
dit l
ine
to a
llse
ctor
s; (d
) fina
ncin
g of
free
-sta
ndin
g w
orki
ng
1990
48 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
capi
tal;
and
(e)
an in
crea
se in
the
siz
e lim
itof
loan
s to
SM
Es fr
om U
S$15
0,00
0 to
US$
300,
000.
The
se c
hang
es e
nabl
ed 9
85 s
ub-
loan
s to
be
mad
e to
SM
Es fo
r bu
sine
ss d
evel
-op
men
t, w
orki
ng c
apita
l, an
d in
vest
men
tfin
anci
ng. W
ith a
few
exc
eptio
ns, m
ost b
anks
did
not v
igor
ousl
y pr
omot
e th
e av
aila
bilit
y of
the
Bank
cre
dit l
ine,
but
the
colle
ctio
n ra
tios
of th
e ba
nks
none
thel
ess
wer
e ar
ound
87
per-
cent
. The
em
ploy
men
t ser
vice
s an
d re
trai
ning
com
pone
nt w
as b
y fa
r th
e m
ost s
ucce
ssfu
lco
mpo
nent
of t
he p
roje
ct.
The
pro
ject
was
abl
e to
bol
ster
the
spee
d at
whi
ch r
efor
ms
mov
ed to
war
d lib
eral
izat
ion,
and
a la
rge
part
of t
he o
rigi
nal f
undi
ng w
as in
the
end
not r
equi
red.
Fou
r hu
ndre
d fir
ms
bene
fited
from
this
fina
ncin
g to
upg
rade
thei
rte
chno
logi
cal c
apab
ilitie
s. T
he p
roje
ct a
dditi
on-
ally
sup
port
ed s
ix v
entu
re c
apita
l com
pani
es(V
CC
s), w
hich
man
aged
nin
e fu
nds.
The
VC
Cs
inve
sted
in m
ore
than
300
com
pani
es, w
ithre
turn
s av
erag
ing
arou
nd 1
8–20
per
cent
.Be
caus
e of
the
lack
of o
ther
sou
rces
of t
ech-
nolo
gy fi
nanc
e, m
any
of th
ese
vent
ures
wou
ldno
t hav
e be
en p
ossi
ble
with
out t
he in
terv
en-
tion
of th
e V
CC
s. (T
he p
roje
ct in
fact
effe
c-tiv
ely
laun
ched
the
VC
indu
stry
in In
dia,
and
indi
rect
ly in
fluen
ced
the
cultu
re o
f ris
kfin
ance
.) T
he p
roje
ct s
uppo
rted
33
loan
s in
30
Tec
hnol
ogy
Inst
itutio
ns, p
rovi
ding
loan
sra
ther
than
gra
nts
to o
blig
e th
e T
Is to
focu
s on
fina
ncia
l man
agem
ent a
nd r
ates
of r
etur
n.M
any
rese
arch
inst
itute
s ad
ditio
nally
wer
e ab
leto
mod
erni
ze th
eir
phys
ical
faci
litie
s, e
nabl
ing
them
to r
eori
ent t
hem
selv
es to
ser
ve in
dust
ry.
Mos
t of t
hese
inst
itutio
ns h
ave
sign
ifica
ntly
rais
ed th
e pr
opor
tion
of th
e bu
dget
that
com
es fr
om th
eir
own
earn
ings
. The
Spo
n-
Clo
sed
1997
, tw
oye
ars
afte
r sc
hedu
led
clos
ing
date
�H
elpi
ng s
mal
l, in
nova
tive
firm
sob
tain
fina
ncin
g by
sup
port
ing
the
deve
lopm
ent
of v
entu
reca
pita
l (V
C)
�U
pgra
ding
res
earc
h an
d st
an-
dard
s in
stitu
tions
to
prov
ide
tech
nolo
gy s
ervi
ces
to in
dust
ry,
and
prom
otin
g co
llabo
ratio
nbe
twee
n in
dust
ry a
nd r
esea
rch
inst
itutio
ns�
Fina
ncin
g th
e im
port
atio
n of
tech
nolo
gy a
nd t
echn
ical
kno
w-
how
by
indu
stry
by
supp
ortin
gth
e fa
st-t
rack
Tec
hnol
ogy
Dev
elop
men
t Fu
nd (
TD
F)
Indu
stri
al T
ech-
nolo
gy P
roje
ctPr
ojec
t ID
: P00
9895
TM
: Mel
vin
Gol
d-m
an; S
anja
y K
athu
ria
Loan
am
ount
:U
S$20
0 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
o fa
cil-
itate
the
acqu
isitio
nan
d de
velo
pmen
t of
tech
nolo
gy b
y in
dus-
tria
l firm
s; to
bal
ance
dom
estic
tech
nolo
gi-
cal c
apab
ility
with
impo
rted
fore
ign
tech
nolo
gy; t
ore
duce
the
finan
cial
cons
trai
nts
on n
ewte
chno
logy
ven
ture
s;an
d to
red
uce
for-
eign
exc
hang
e co
n-st
rain
ts o
n th
eim
port
atio
n of
tech
nolo
gy
Indi
a
INNOVATION SYSTEMS 49
1991
Rep
ublic
of
Kor
ea�
Supp
ortin
g th
e fin
anci
ng o
f spe
-ci
aliz
ed r
esea
rch
equi
pmen
t,co
nsum
able
mat
eria
ls, a
ndeq
uipm
ent-
rela
ted
oper
atio
nan
d O
&M
exp
endi
ture
s to
stre
ngth
en:
�re
sear
ch p
rogr
ams
in g
radu
ate
scho
ols
of n
atur
al s
cien
ce, a
nden
gine
erin
g in
sel
ecte
d pu
blic
and
priv
ate
univ
ersi
ties
�jo
int
rese
arch
faci
litie
s in
sele
cted
uni
vers
ities
, to
pro-
mot
e th
e co
st-e
ffect
ive
utili
za-
tion
of a
dvan
ced
rese
arch
equi
pmen
t�
sele
cted
uni
vers
ity d
epar
t-m
ents
of s
cien
ce e
duca
tion,
to
impr
ove
rese
arch
in a
reas
of
peda
gogy
and
sci
ence
sub
ject
s
Uni
vers
itie
s S
ci-
ence
and
Tec
h-no
logy
Pro
ject
Proj
ect
ID: P
0041
29T
M: n
/aLo
an a
mou
nt:
US$
45 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oas
sist
sel
ecte
d un
i-ve
rsiti
es in
bro
ad-
enin
g an
d de
epen
ing
thei
r ba
sic
rese
arch
prog
ram
s in
pri
ority
field
s in
sci
ence
and
tech
nolo
gy; a
nd t
oim
prov
e th
e tr
aini
ngof
sci
ence
tea
cher
sth
roug
h th
een
hanc
emen
t of
rese
arch
cap
acity
inth
is fi
eld
whi
ch in
turn
will
str
engt
hen
the
base
of s
cien
ceed
ucat
ion
in t
hese
cond
ary
scho
ols.
Clo
sed
1995
sore
d R
&D
(SPR
EAD
) pro
mot
ion
fund
com
-po
nent
of t
he p
roje
ct s
imila
rly
show
ed s
tron
gpo
sitiv
e re
sults
. Man
y bo
rrow
ers
had
neve
run
dert
aken
any
R&
D a
ctiv
ity b
efor
e an
d ha
dno
pre
viou
s ac
tiviti
es w
ith a
TI.
Mos
t com
pa-
nies
bor
row
ing
unde
r SP
REA
D w
ere
smal
l or
of m
ediu
m s
ize,
but
man
y of
the
tech
nolo
gies
deve
lope
d w
ere
com
plex
, inv
olve
d su
bsta
ntia
lte
chno
logi
cal e
ffort
, and
intr
oduc
ed c
om-
plet
ely
new
pro
duct
s or
pro
cess
es to
Indi
a.Ex
port
s of
ten
resu
lted
from
SPR
EAD
pro
ject
s.T
he p
roje
ct s
ucce
ssfu
lly m
et it
s ob
ject
ives
, as
evid
ence
d by
: (a)
the
util
izat
ion
of m
ore
than
3,15
0 ite
ms
of r
esea
rch
equi
pmen
t su
pplie
dby
the
pro
ject
; (b)
the
larg
e nu
mbe
r of
com
-pl
eted
res
earc
h pr
ojec
ts (
1,13
2) a
nd a
pub
li-ca
tion
rate
of t
he r
esea
rch
resu
lts o
f 91
perc
ent;
(c)
an in
crea
se in
reg
iste
red
pate
ntri
ghts
in t
he p
roje
ct in
stitu
tions
; and
(d)
a s
ig-
nific
ant
expa
nsio
n of
pra
ctic
al in
stru
ctio
n in
scie
nce
educ
atio
n de
part
men
ts. R
esea
rch
capa
city
was
incr
ease
d du
ring
the
ter
m o
f the
proj
ect:
a to
tal o
f 1,6
21 r
esea
rch
proj
ects
wer
e se
lect
ed, o
f whi
ch 7
0 pe
rcen
t w
ere
com
plet
ed, 2
7 pe
rcen
t ar
e on
goin
g, a
nd t
here
mai
ning
3 p
erce
nt a
re in
the
initi
atio
n st
age.
The
latt
er p
roje
cts
lagg
ed d
ue t
o th
e de
laye
dde
liver
y of
som
e re
sear
ch e
quip
men
t. T
hefin
ding
s of
117
res
earc
h pr
ojec
ts, 6
7 co
n-du
cted
by
publ
ic u
nive
rsiti
es a
nd 5
0 by
pri
vate
univ
ersi
ties,
wer
e ad
opte
d by
pri
vate
firm
s.T
he p
roje
ct d
esig
n w
as c
onsi
sten
t w
ith s
ec-
tora
l obj
ectiv
es a
nd t
he b
road
er g
oals
of
tech
nolo
gy-in
tens
ive
indu
stri
aliz
atio
n in
Kor
ea. T
he p
roje
ct w
as b
ased
on
mor
e th
an a
deca
de o
f pre
viou
s Ba
nk s
uppo
rt fo
r te
chno
l-og
y de
velo
pmen
t in
Kor
ea th
at h
ad fo
cuse
d on
finan
cing
R&
D p
roje
cts
thro
ugh
finan
cial
inte
r-m
edia
ries
, str
engt
heni
ng t
hose
inte
rmed
iari
es,
(con
tinue
d)
1991
50 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
enha
ncin
g th
e R
&D
cap
acity
of t
he n
atio
nal
rese
arch
inst
itute
s, a
nd d
evel
opin
g te
chni
cal
and
scie
ntifi
c ed
ucat
ion.
At
the
time
of p
repa
-ra
tion
the
Bank
had
fina
nced
pro
ject
s in
ele
c-tr
onic
s te
chno
logy
and
indu
stry
pro
mot
ion;
ital
so h
ad s
tart
ed t
o as
sist
R&
D a
ctiv
ities
in t
heun
iver
sitie
s un
der
Loan
242
7-K
O a
nd in
the
natio
nal r
esea
rch
inst
itute
s un
der
the
first
Tec
hnol
ogy
Adv
ance
men
t Pr
ojec
t (L
oan
3037
-KO
). T
he p
roje
ct w
as d
esig
ned
with
in a
soun
d po
licy
envi
ronm
ent,
deve
lope
d w
ithco
nsid
erab
le a
ssis
tanc
e fr
om t
he B
ank’
s tw
oed
ucat
ion
sect
or lo
ans
(Loa
n 18
00-K
O a
ndLo
an 2
427-
KO
) th
at h
ad a
ddre
ssed
pol
icy
issu
es in
res
earc
h an
d in
sci
ence
and
tec
hnol
-og
y ed
ucat
ion.
The
pro
ject
con
tinue
d th
eas
sist
ance
to
grad
uate
pro
gram
s, b
asic
rese
arch
in s
cien
ce a
nd t
echn
olog
y, a
nd t
hest
reng
then
ing
of s
cien
ce e
duca
tion
that
the
Bank
had
beg
un w
ith L
oan
2427
-KO
.T
he p
roje
ct d
id n
ot a
chie
ve a
ll of
its
obje
c-tiv
es. H
owev
er, i
ts im
plem
enta
tion
had
a po
si-
tive
impa
ct o
n th
e te
achi
ng a
nd r
esea
rch
capa
citie
s an
d on
the
man
agem
ent
of t
hese
lect
ed u
nive
rsiti
es. T
he S
cien
ce a
nd T
ech-
nolo
gy U
nive
rsity
Dev
elop
men
t Pr
ojec
t w
asth
e fir
st B
ank
proj
ect
in t
he h
ighe
r ed
ucat
ion
sect
or. I
t w
as in
itiat
ed in
198
8 an
d de
velo
ped
as a
pilo
t ex
peri
ence
aim
ed a
t in
crea
sing
uni
-ve
rsity
aut
onom
y an
d ef
ficie
ncy
in t
he c
onte
xtof
a s
carc
ity o
f res
ourc
es, t
he r
esul
t of
the
shar
p dr
op in
cou
ntry
oil
reve
nues
tha
t be
gan
in 1
986.
Con
cept
ion
and
impl
emen
tatio
n of
the
proj
ect
coin
cide
d w
ith a
dra
mat
ic d
egra
-da
tion
of t
he p
oliti
cal a
nd s
ecur
ity s
ituat
ion
inA
lger
ia. T
hrou
ghou
t th
e 10
-yea
r pe
riod
of t
hepr
ojec
t its
impl
emen
tatio
n w
as s
ever
ely
con-
stra
ined
by
the
unfa
vora
ble
envi
ronm
ent,
but
Clo
sed
June
199
8,tw
o ye
ars
afte
r th
esc
hedu
led
clos
ing
date
�Im
prov
ing
univ
ersi
ty m
anag
e-m
ent
and
adm
inis
trat
ion
�Im
prov
ing
curr
icul
um r
ele-
vanc
e, t
each
ing
qual
ity, a
ndte
ache
r qu
alifi
catio
ns in
sele
cted
S&
T d
egre
e pr
ogra
ms
that
tar
get
spec
ific
need
s of
the
labo
r m
arke
t�
Impr
ovin
g th
e co
ntri
butio
n of
the
univ
ersi
ties
to r
egio
nal a
ndna
tiona
l dev
elop
men
t th
roug
hth
e fo
rgin
g of
clo
ser
rese
arch
and
trai
ning
link
s w
ith lo
cal
indu
stry
Sci
ence
and
Tec
hno
logy
Uni
-ve
rsit
y D
evel
op-
men
t P
roje
ctPr
ojec
t ID
: P00
4934
TM
: Mou
rad
Ezzi
neLo
an a
mou
nt:
US$
65 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
opr
ovid
e an
inst
itu-
tiona
l mod
el (
base
don
pee
r re
view
and
tran
spar
ency
) fo
rth
e al
loca
tion
ofin
vest
men
tre
sour
ces
to h
ighe
r
Alg
eria
INNOVATION SYSTEMS 51
1991
Chi
na�
Prov
idin
g cr
edit
to t
hose
tow
nan
d vi
llage
ent
erpr
ises
(TV
Es)
that
are
impl
emen
ting
appr
oved
Spar
k su
bpro
ject
s to
intr
oduc
ene
w o
r up
grad
ed p
rodu
ctio
nte
chno
logy
and
/or
prod
uct
desi
gn�
Supp
ortin
g pr
ogra
ms
toup
grad
e th
e sk
ills
of r
ural
ente
rpri
se m
anag
ers
and
wor
k-er
s, b
y pr
ovid
ing
tech
nica
l ass
is-
tanc
e an
d tr
aini
ng t
o Sp
ark
trai
ning
man
ager
s an
d in
stru
c-to
rs. H
elpi
ng In
stitu
te o
f Sci
en-
tific
and
Tec
hnic
al In
form
atio
nof
Chi
na a
dapt
its
info
rmat
ion
netw
ork
to r
each
TV
Es w
ithbu
sine
ss-o
rien
ted
info
rmat
ion
by (a
) pro
vidi
ng t
echn
ical
ass
is-
tanc
e, (b
) pro
vidi
ng t
rain
ing
and
educ
atio
n an
d to
assi
st t
he G
over
n-m
ent
in u
pgra
ding
unde
rgra
duat
e an
dpo
st-g
radu
ate
teac
hing
and
rese
arch
, con
cen-
trat
ing
on t
he t
hree
maj
or u
nive
rsiti
esof
sci
ence
and
te
chno
logy
.
Rur
al I
ndus
tria
lT
echn
olo
gy(S
park
) P
roje
ctPr
ojec
t ID
: P00
3529
TM
: Hel
en C
han
Loan
am
ount
:U
S$11
4.3
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
prov
ide
inst
itutio
nal
supp
ort
serv
ices
to
rura
l ent
erpr
ises
thro
ugh
the
prov
i-si
on t
o th
e na
tiona
lSp
ark
prog
ram
of
trai
ning
, tec
hnic
alan
d m
anag
emen
tin
form
atio
n, t
echn
i-ca
l eva
luat
ion
Clo
sed
1997
it di
d re
aliz
e so
me
impr
ovem
ents
in t
he q
ual-
ity o
f tea
chin
g an
d re
sear
ch, a
s ev
iden
ced
byth
e fo
llow
ing
indi
cato
rs: (
a) a
n in
crea
se in
the
num
ber
of p
ostg
radu
ate
dipl
omas
; (b)
a r
educ
-tio
n in
the
dur
atio
n of
stu
dies
for
com
plet
ion
of d
octo
rate
s; (c
) a r
educ
tion
in t
he n
umbe
rsof
rep
eate
r st
uden
ts; (
d) a
n in
crea
se in
the
us
e of
libr
arie
s an
d do
cum
enta
tion
cent
ers;
(e) a
n in
crea
se in
the
num
ber
of s
cien
tific
publ
i-ca
tions
of i
nter
natio
nal s
tand
ard;
and
(f) a
nin
crea
se in
the
use
of l
abor
ator
ies.
The
full
pote
ntia
l of t
he p
roje
ct t
o im
prov
e te
achi
ngan
d re
sear
ch c
ondi
tions
was
not
rea
lized
due
in la
rge
part
to
the
diffi
culti
es e
ncou
nter
ed b
yA
lger
ians
in o
btai
ning
vis
as t
o tr
avel
abr
oad
and
to th
e re
luct
ance
of f
orei
gn n
atio
nals
to g
oto
Alg
eria
. The
pro
ject
was
suc
cess
ful i
n pr
o-vi
ding
uni
vers
ities
with
nee
ded
scie
ntifi
c an
dpe
dago
gica
l equ
ipm
ent.
Proj
ect r
esul
ts w
ere
mix
ed. T
he te
chni
cal
assi
stan
ce c
ompo
nent
s w
ere
high
ly s
atis
fac-
tory
, but
the
resu
lts o
f the
ent
erpr
ise
mod
ern-
izat
ion
com
pone
nt w
ere
unsa
tisfa
ctor
y. T
hete
chni
cal a
ssis
tanc
e co
mpo
nent
s w
ere
plea
sing
for
seve
ral r
easo
ns: (
a) th
e go
vern
men
t com
-pl
eted
all
tech
nica
l ass
ista
nce
com
pone
nts
with
grea
t effi
cien
cy; (
b) th
ese
activ
ities
pro
vide
des
sent
ial s
uppo
rt to
the
TV
E se
ctor
, whi
ch h
adex
hibi
ted
extr
aord
inar
y gr
owth
in th
e pr
evio
usde
cade
; and
(c) t
he n
atio
nal S
park
pro
gram
was
str
engt
hene
d as
a r
esul
t. H
owev
er, m
ost
sub-
borr
ower
s of
the
ente
rpri
se m
oder
niza
-tio
n co
mpo
nent
did
not
rep
ay th
eir
loan
s, w
ithth
e re
sult
that
the
Part
icip
atin
g Fi
nanc
ial I
nsti-
tutio
ns a
nd u
ltim
atel
y th
e pr
ovin
cial
/mun
icip
alfin
ance
bur
eaus
wou
ld h
ave
to b
ear
the
finan
-ci
al c
ost.
Ove
rall,
with
the
sup
port
of l
ocal
Scie
nce
and
Tec
hnol
ogy
Bure
au, m
any
of th
eSp
ark
subp
roje
cts
beca
me
pilla
r in
dust
ries
of
(con
tinue
d)
1991
52 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
thei
r re
spec
tive
“Spa
rk-in
tens
ive”
are
as, p
ro-
vidi
ng n
ot o
nly
dire
ct a
nd in
dire
ct e
mpl
oym
ent
oppo
rtun
ities
but
als
o in
crea
sing
the
vert
ical
and
hori
zont
al in
tegr
atio
n of
loca
l ind
ustr
ies.
The
Cho
ngm
ing
Tra
inin
g C
ente
r, d
espi
te it
sge
ogra
phic
dis
adva
ntag
e, h
as e
volv
ed in
to a
high
-qua
lity
inte
nsiv
e tr
aini
ng c
ente
r in
the
Shan
ghai
are
a, a
nd it
s ut
iliza
tion
rate
has
bee
n10
0 pe
rcen
t for
mor
e th
an tw
o ye
ars.
Sinc
e le
ndin
g to
Hun
gary
beg
an in
198
3, t
heBa
nk h
as fo
cuse
d on
sup
port
ing
the
coun
try’
spr
ogra
m o
f str
uctu
ral a
djus
tmen
t ai
med
at
mak
ing
the
econ
omy
mor
e ef
ficie
nt, fl
exib
le,
mar
ket
resp
onsi
ve, a
nd c
ompe
titiv
e ov
erse
as.
In t
he fi
rst
eigh
t ye
ars
the
Bank
was
hea
vily
invo
lved
in in
dust
rial
, agr
icul
tura
l, an
d in
fra-
stru
ctur
e re
stru
ctur
ing.
The
Hum
anR
esou
rces
Dev
elop
men
t Pr
ojec
t (H
RD
P) w
asth
e fir
st lo
an t
o gi
ve a
ssis
tanc
e ac
ross
a b
road
spec
trum
of h
uman
res
ourc
es is
sues
, inc
lud-
ing
labo
r m
arke
ts, t
rain
ing,
hig
her
educ
atio
n,an
d sc
ienc
e an
d te
chno
logy
res
earc
h. T
hepr
ojec
t su
cces
sful
ly m
et a
ll of
its
obje
ctiv
es. I
teq
uipp
ed t
he e
mpl
oym
ent
netw
ork,
adu
lt an
dyo
uth
trai
ning
cen
ters
, hig
her
educ
atio
nal
inst
itute
s, a
nd r
esea
rch
cent
ers
with
sta
te-
of-t
he-a
rt fa
cilit
ies
and
trai
ning
equ
ipm
ent.
A m
oder
n la
bor
stat
istic
s sy
stem
was
dev
el-
oped
; a s
hort
-ter
m (
six-
mon
th)
labo
r fo
reca
stm
odel
was
ado
pted
; pub
lic e
mpl
oym
ent
ser-
vice
s w
ere
mod
erni
zed;
eig
ht n
ew R
egio
nal
Labo
r D
evel
opm
ent
Tra
inin
g C
ente
rs(R
LDC
s) a
nd 3
1 ne
w m
obile
cen
ters
wer
ees
tabl
ishe
d, c
over
ing
the
entir
e co
untr
y an
dpr
ovid
ing
trai
ning
to
abou
t 10
,000
per
sons
per
annu
m; n
ew e
duca
tion
syst
ems,
incl
udin
g
Clo
sed
June
199
7,on
e ye
ar a
fter
the
sche
dule
d cl
osin
gda
te
equi
pmen
t fo
r th
e de
velo
pmen
tof
new
dat
abas
es, (
c) im
prov
ing
elec
tron
ic a
nd o
ther
info
rma-
tion
syst
ems,
and
(d) u
pgra
ding
deliv
ery
netw
orks
in t
he p
ro-
ject
are
as�
Dev
elop
ing
inst
itutio
ns b
yst
reng
then
ing
impl
emen
tatio
nca
pabi
litie
s w
ithin
the
Sta
te
Scie
nce
and
Tec
hnol
ogy
Com
mis
sion
�A
ssis
ting
unem
ploy
ed w
orke
rsto
find
jobs
, and
ent
erpr
ises
to
find
suita
ble
wor
kers
�Pr
ovid
ing
rele
vant
tra
inin
g fo
ryo
uth
and
adul
ts�
Impr
ovin
g th
e re
spon
sive
ness
of h
ighe
r ed
ucat
ion
to t
he n
ewte
chni
cal a
nd m
anag
eria
lde
man
ds o
f a m
arke
t ec
onom
y;�
Nar
row
ing
the
tech
nolo
gica
lga
p by
exp
andi
ng a
nd r
eori
ent-
ing
the
trai
ning
of s
cien
ce a
ndte
chno
logy
res
earc
hers
,im
prov
ing
man
agem
ent
ofre
sear
ch a
nd im
prov
ing
the
linka
ges
betw
een
acad
emic
com
mun
ity a
nd e
nter
pris
es;
�D
evel
opin
g fo
reig
n la
ngua
geco
mpe
tenc
y
met
hodo
logy
, and
cons
ulta
nt s
ervi
ces;
and
to p
rovi
defin
anci
al s
uppo
rt t
oth
e on
goin
g Sp
ark
prog
ram
Hum
anR
eso
urce
s D
evel
-o
pmen
t P
roje
ctPr
ojec
t ID
: P00
8483
TM
: Gyo
rgy
Nov
otny
Loan
am
ount
:U
S$15
0 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oad
dres
s hu
man
reso
urce
s iss
ues
that
are
prev
entin
g su
c-ce
ssfu
l tra
nsiti
on to
a m
arke
t eco
nom
y
Hun
gary
INNOVATION SYSTEMS 53
1991
Braz
il�
Prov
idin
g co
mpe
titiv
e gr
ants
for
rese
arch
and
tra
inin
g in
six
scie
ntifi
c ar
eas
(bio
tech
nolo
gy,
chem
istr
y an
d ch
emic
al e
ngi-
neer
ing,
geo
-sci
ence
s an
d m
iner
al t
echn
olog
y, in
stru
men
-ta
tion,
new
mat
eria
ls a
nd e
nvi-
ronm
enta
l sci
ence
s); a
nd in
six
supp
ort
area
s (p
rim
ary
and
seco
ndar
y sc
ienc
e ed
ucat
ion,
scie
nce
plan
ning
and
man
age-
men
t, ba
sic
indu
stri
al t
echn
ol-
ogy,
sci
ence
tec
hnol
ogy
info
rmat
ion,
pro
visi
on o
f con
-su
mab
le, a
nd m
aint
enan
ce o
fsc
ient
ific
equi
pmen
t).
�En
hanc
ing
hum
an r
esou
rces
deve
lopm
ent b
y (a
) fina
ncin
gsh
ort c
ours
es; (
b) u
sing
fore
ign
cons
ulta
nts;
(c) p
rovi
ding
ove
r-se
as tr
aini
ng fo
r pr
ofes
sion
als;
(d) e
stab
lishi
ng e
xcha
nges
of
fore
ign
rese
arch
ers;
and
(e) s
up-
port
ing
prof
essi
onal
s in
spe
cific
rese
arch
pro
ject
s
Sci
ence
Res
earc
han
d T
rain
ing
(PA
DC
T I
I)
Pro
ject
Proj
ect
ID: P
0064
83T
M: A
lcyo
ne S
alib
aLo
an a
mou
nt:
US$
150
mill
ion
Dev
elo
pmen
tO
bjec
tive
:to
stre
ngth
en h
uman
reso
urce
dev
elop
-m
ent
in s
peci
fic s
ci-
ence
are
as t
hrou
ghsu
ppor
t fo
r sc
ienc
ere
sear
ch a
nd g
radu
-at
e tr
aini
ng.
Clo
sed
1996
, one
year
aft
er t
he s
ched
-ul
ed c
losi
ng d
ate
the
deve
lopm
ent
of n
ew c
urri
cula
and
vo
cati
onal
tra
inin
g, w
ere
intr
oduc
ed in
79
voc
atio
nal s
econ
dary
sch
ools
; thr
ough
aco
mpe
titio
n-ba
sed
fund
ing
syst
em t
he h
ighe
red
ucat
ion
and
the
conn
ectin
g ba
sic
rese
arch
activ
ity w
ere
mod
erni
zed,
bet
ter
equi
pped
,an
d be
cam
e ca
pabl
e of
pro
vidi
ng t
rain
ing
and
serv
ices
on
a W
este
rn E
urop
ean
leve
l; un
i-ve
rsiti
es w
ere
empo
wer
ed t
o aw
ard
rese
arch
degr
ees;
thr
ee-y
ear
retr
aini
ng c
ours
es w
ere
orga
nize
d fo
r m
ore
than
2,0
00 la
ngua
gete
ache
rs; a
nd n
ew la
ngua
ge t
rain
ing
met
hod-
olog
y an
d co
mm
unic
atio
n-or
ient
ed c
urri
cula
wer
e in
trod
uced
.T
he g
oal o
f PA
DC
T II
was
to
cont
inue
to
impr
ove
the
man
agem
ent
and
deci
sion
-m
akin
g pr
oces
ses
that
wer
e es
tabl
ishe
dun
der
the
PAD
CT
I. It
s m
etho
dolo
gy w
as t
ous
e op
en c
ompe
titio
n fo
r re
sear
ch g
rant
s,in
tera
ctio
n be
twee
n go
vern
men
t ag
enci
es a
ndth
e sc
ient
ific
com
mun
ity, a
nd g
reat
er c
onti-
nuity
and
inte
grat
ion
in t
he fi
nanc
ing
ofre
sear
ch p
roje
cts.
A t
otal
of 1
,809
pro
ject
s,im
plem
ente
d by
mor
e th
an 3
50 in
stitu
tions
,w
ere
appr
oved
for
assi
stan
ce. T
he a
vera
gepr
ojec
t si
ze (
US$
168,
000)
was
sig
nific
antly
high
er t
han
unde
r PA
DC
T I
(US$
70,0
00),
thus
ach
ievi
ng a
dec
reas
e in
the
sca
tter
ing
ofre
sour
ces.
In a
ll, 7
8 pe
rcen
t of
pro
ject
s an
d80
per
cent
of r
esou
rces
wen
t to
pro
ject
s in
inst
itutio
ns fr
om t
he s
outh
ern
and
sout
heas
t-er
n st
ates
of B
razi
l. M
any
basi
c re
sear
ch
proj
ects
res
ulte
d in
the
cre
atio
n of
new
tec
h-no
logi
es, p
roce
sses
, and
pro
duct
s. H
owev
er,
only
a fe
w o
f the
sam
pled
pro
ject
s in
the
five
“mai
nstr
eam
” re
sear
ch a
reas
(bi
otec
hnol
ogy,
geos
cien
ces,
che
mis
try,
new
mat
eria
ls, a
ndin
stru
men
tatio
n) fo
und
thei
r w
ay in
to in
dus-
tria
l app
licat
ions
. Abo
ut o
ne-t
hird
of p
roje
cts
deve
lope
d pr
oduc
ts a
nd 1
8 pe
rcen
t ap
plie
d
(con
tinue
d)
1992
54 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
for
pate
nts,
but
few
er t
han
5 pe
rcen
t of
pro
-je
cts
deve
lope
d pr
oduc
ts t
hat
wer
e co
mm
er-
cial
ized
and
onl
y 6
perc
ent
resu
lted
inte
chno
logy
tra
nsfe
rs. P
AD
CT
II n
onet
hele
ssco
ntri
bute
d to
a s
tren
gthe
ning
of B
razi
l’sba
sic
tech
nolo
gica
l inf
rast
ruct
ure.
In p
artic
u-la
r, it
has
hel
ped
to o
verc
ome
seri
ous
gaps
inth
e in
fras
truc
ture
of t
he N
atio
nal M
etro
logy
Labo
rato
ry s
yste
m. T
hrou
gh t
he Q
ualit
yM
anag
emen
t Pr
ogra
m (
PEG
Q)
it al
so p
ro-
mot
ed t
he v
olun
tary
app
licat
ion
of q
ualit
yco
ntro
l man
agem
ent
in in
dust
ry, t
rain
ing
24,0
00 p
rofe
ssio
nals
from
pub
lic a
nd p
riva
teor
gani
zatio
ns a
nd c
ontr
ibut
ing
to t
he la
rge
incr
ease
in e
nter
pris
es c
ertifi
ed t
o IS
O 9
000
stan
dard
s fr
om 1
8 in
199
1 to
mor
e th
an2,
000
by m
id-1
997.
Fin
ally
, an
impo
rtan
t or
ga-
niza
tiona
l cha
nge
in t
he B
razi
lian
S&T
sys
tem
occu
rred
on
9 Ja
nuar
y 19
96, w
ith t
he c
re-
atio
n of
the
inte
rmin
iste
rial
Nat
iona
l Cou
ncil
for
Scie
nce
and
Tec
hnol
ogy
(CC
T).
The
CC
Tse
rves
as
a su
peri
or a
dvis
ory
body
to
the
Pres
iden
t, w
ith a
bro
ad le
gal m
anda
te t
o pr
opos
e na
tiona
l S&
T p
olic
y.T
he p
roje
ct r
esul
ted
in th
e se
ttin
g up
of t
heN
atio
nal M
etro
logy
Inst
itute
(UM
E), w
hich
has
25 la
bora
tori
es. U
ME
perf
orm
s ca
libra
tion
ser-
vice
s an
d co
nduc
ts s
ome
R&
D. T
he T
urki
shSt
anda
rds
Inst
itute
(TSE
) was
str
engt
hene
dth
roug
h th
e se
ttin
g up
of a
mod
ern
Qua
lity
Cam
pus
in Is
tanb
ul. M
oder
n fin
anci
al a
nd
man
agem
ent i
nfor
mat
ion
syst
ems
have
bee
nes
tabl
ishe
d th
at h
ave
stre
amlin
ed th
e co
stac
coun
ting,
bud
getin
g, a
nd m
anag
emen
tre
port
ing
func
tions
in T
SE, b
ut a
n in
depe
nden
tN
atio
nal A
ccre
dita
tion
Cou
ncil
(NA
C) w
asno
t est
ablis
hed
until
the
follo
w-u
p pr
ojec
t tha
tcu
rren
tly is
und
er s
uper
visio
n. T
he T
echn
olog
y
Clo
sed
Dec
embe
r19
98, 1
8 m
onth
saf
ter
sche
dule
d cl
osin
g da
te
�U
pgra
ding
MST
Q t
hrou
ghde
velo
pmen
t of
a N
atio
nal
Met
rolo
gy In
stitu
te, i
mpr
ove-
men
ts in
the
Tur
kish
Sta
ndar
dsIn
stitu
te, a
nd s
ettin
g up
aN
atio
nal A
ccre
dita
tion
Cou
ncil
(tha
t in
tur
n w
ould
set
up
the
Prof
essi
onal
Inst
itute
for
Qua
lity
Ass
uran
ce)
�Es
tabl
ishi
ng fu
nds
to s
timul
ate
the
amou
nt o
f app
lied
R&
Dco
nduc
ted
by in
dust
ry, i
n a
mix
of m
atch
ing
gran
ts, i
ncom
eno
tes
and
cond
ition
al lo
ans,
Tec
hno
logy
Dev
elo
pmen
tP
roje
ctPr
ojec
t ID
: P00
9058
TM
: Vin
od K
. Goe
lLo
an a
mou
nt:
US$
100
mill
ion
Dev
elop
men
tO
bjec
tive
:To
deve
lop
the
MST
Q(m
etro
logy
, sta
n-da
rds,
tes
ting,
and
qual
ity) s
yste
m t
o
Tur
key
INNOVATION SYSTEMS 55
1992
Phili
ppin
es
and
seed
cap
ital f
or s
tudi
es o
nth
e co
mpe
titiv
enes
s of
str
ate-
gic
indu
stri
es�
Faci
litat
ing
the
grow
th o
f the
VC
indu
stry
by
defin
ing
a le
gal
and
regu
lato
ry s
truc
ture
for
VC
and
pro
vidi
ng a
ppro
pria
teta
x tr
eatm
ent
for
VC
fund
s;an
d by
est
ablis
hing
a V
C c
om-
pany
and
fund
to
act
as a
rol
em
odel
for
the
indu
stry
�Im
prov
ing
the
inst
itutio
nal
fram
ewor
k of
eng
inee
ring
and
scie
nce
educ
atio
n; s
tren
gthe
n-in
g fin
anci
al a
nd r
esou
rce
man
-ag
emen
t; m
atch
ing
enro
llmen
tsto
S&
T m
anpo
wer
nee
ds; a
ndim
prov
ing
accr
edita
tion
�O
fferi
ng s
uppo
rt a
nd s
ervi
ces
to e
nsur
e th
e pr
ovis
ion
ofbi
otec
hnol
ogy
cons
umab
les;
impl
antin
g a
syst
em o
f onl
ine
elec
tron
ic d
isse
min
atio
n; a
ndes
tabl
ishi
ng a
sys
tem
of m
oni-
tori
ng a
nd e
valu
atio
n�
Impl
emen
ting
an in
vest
men
tpr
ogra
m t
o fin
ance
qua
litat
ive
impr
ovem
ents
in e
ngin
eeri
nged
ucat
ion,
sci
ence
edu
catio
nan
d re
sear
ch, t
echn
olog
y m
an-
agem
ent,
libra
ry n
etw
orks
, se
cond
ary
scho
ol s
cien
ce a
ndm
athe
mat
ics,
and
S&
T
man
pow
er p
lann
ing
inte
rnat
iona
l sta
n-da
rds;
to
enco
urag
em
arke
t-or
ient
edR
&D
in t
he p
riva
tese
ctor
by
finan
cing
proj
ects
on
am
atch
ing
basi
s; a
ndto
fost
er t
he g
row
thof
a v
entu
re c
apita
l(V
C) i
ndus
try
Eng
inee
ring
and
Sci
ence
Edu
ca-
tio
n P
roje
ctPr
ojec
t ID
: P00
4591
TM
: Om
pom
Reg
elLo
an a
mou
nt:
US$
85 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oup
grad
e in
dust
rial
and
tech
nolo
gica
lca
pabi
lity
byin
crea
sing
the
sup
-pl
y of
hig
h-le
vel
S&T
man
pow
er
Clo
sed
June
199
8,on
e ye
ar a
fter
the
sche
dule
d cl
osin
gda
te
Dev
elop
men
t Fou
ndat
ion
of T
urke
y (T
TG
V)
was
est
ablis
hed
and
supp
orte
d 10
3 R
&D
pro
-je
cts
and
sect
or/fo
resi
ght s
tudi
es. P
riva
te s
ec-
tor
part
icip
atio
n in
tech
nolo
gy d
evel
opm
ent
proj
ects
was
in e
xces
s of
50
perc
ent,
and
ala
rge
maj
ority
of p
roje
cts
have
bee
n te
chni
cally
and
com
mer
cial
ly s
ucce
ssfu
l. O
vera
ll, T
TG
Vha
s be
en s
ucce
ssfu
l in
initi
atin
g a
cultu
re o
fR
&D
and
tech
nolo
gy fi
nanc
e in
Tur
key.
The
proj
ect a
dditi
onal
ly h
elpe
d th
e le
gal a
nd r
egul
a-to
ry fr
amew
ork
in T
urke
y to
bec
ome
mor
eco
nduc
ive
to th
e gr
owth
of v
entu
re c
apita
l,an
d th
e fo
llow
-on
oper
atio
n cu
rren
tly u
nder
supe
rvis
ion
has
seen
TT
GV
take
an
equi
tyst
ake
in tw
o ve
ntur
e ca
pita
l com
pani
es.
The
Ban
k ha
s be
en in
volv
ed s
ince
196
5 in
the
educ
atio
n se
ctor
in t
he P
hilip
pine
s, o
pera
ting
14 e
duca
tion
and
trai
ning
pro
ject
s fo
r a
tota
lfin
anci
ng o
f US$
767.
5 m
illio
n. T
his
late
st p
ro-
gram
enh
ance
d th
e qu
ality
and
rel
evan
ce o
fen
gine
erin
g an
d sc
ienc
e ed
ucat
ion
thro
ugh
facu
lty a
nd p
rogr
am u
pgra
ding
, inv
estm
ent
infa
cilit
ies
and
equi
pmen
t, an
d im
prov
ed li
nk-
ages
with
indu
stry
. Sci
ence
labo
rato
ries
at
110
seco
ndar
y sc
hool
s ha
ve b
een
upgr
aded
and
equi
pped
, cur
ricu
la r
evis
ed, a
nd m
ore
than
1,0
00 t
each
ers
trai
ned.
Loc
al c
apac
ities
for
scie
nce
and
mat
hem
atic
s te
ache
r tr
aini
ngha
ve b
een
stre
ngth
ened
by
the
upgr
adin
g of
scie
nce
labo
rato
ries
at
22 t
each
er t
rain
ing
inst
itutio
ns a
nd t
hrou
gh t
he im
prov
emen
t of
the
teac
her
trai
ner
qual
ifica
tions
. Und
ergr
ad-
uate
enr
ollm
ents
at
the
19 in
term
edia
te e
ngi-
neer
ing
colle
ges
in t
he p
rior
ity fi
elds
tar
gete
din
crea
sed
from
19,
267
in 1
990/
91 (
base
line)
to 2
1,60
0 in
199
7/98
(pr
ojec
t co
mpl
etio
n), a
nin
crea
se o
f 12
perc
ent.
MS/
PhD
enr
ollm
ents
alm
ost
doub
led
from
200
to
380
over
the
sam
e pe
riod
, or
alm
ost
2 pe
rcen
t of
und
er-
grad
uate
enr
ollm
ent,
as p
lann
ed. A
s re
gard
s
(con
tinue
d)
1992
56 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
qual
ity im
prov
emen
ts, a
n ag
gres
sive
facu
ltyde
velo
pmen
t pr
ogra
m (
PhD
and
MS/
MEn
g),
cove
ring
abo
ut 8
00 fa
culti
es, w
as c
ompl
eted
in 2
000
with
gov
ernm
ent
finan
cing
. Lab
orat
o-ri
es a
t 19
eng
inee
ring
sch
ools
wer
e up
grad
ed.
Thi
rtee
n ne
twor
k sc
hool
s es
tabl
ishe
d fo
rmal
linka
ges
with
indu
stry
, and
gra
duat
e pr
ogra
ms
and
shor
t-te
rm c
ours
es in
the
man
agem
ent
ofte
chno
logy
wer
e in
trod
uced
as
optio
ns a
tth
ree
flags
hip
inst
itutio
ns (
Asi
an In
stitu
te o
fM
anag
emen
t, D
e La
Sal
le U
nive
rsity
, and
Uni
-ve
rsity
of t
he P
hilip
pine
s-D
ilim
an).
Libr
arie
s at
seve
n sc
ienc
e an
d th
ree
engi
neer
ing
colle
ges
wer
e im
prov
ed a
s pl
anne
d.A
bout
600
uni
vers
ity s
taff
wer
e tr
aine
d,m
ainl
y at
the
mas
ter’
s de
gree
, dip
lom
a, a
ndce
rtifi
cate
leve
ls. E
ight
App
lied
Res
earc
h pr
o-je
cts
shar
ed t
he fu
nds
that
had
bee
n al
loca
ted
for
this
pur
pose
, with
five
alr
eady
gen
erat
ing
reas
onab
le in
com
e. T
he H
ighe
r Ed
ucat
ion
Loan
s Bo
ard
(HEL
B) a
dvis
es t
hat
the
perc
ent-
age
of lo
anee
s w
ith m
atur
e lo
ans
who
are
repa
ying
has
incr
ease
d fr
om 1
0 pe
rcen
t in
1995
to
38 p
erce
nt in
June
199
9. T
he u
nive
r-si
ties
calc
ulat
e th
e un
it co
sts
of v
ario
usde
gree
pro
gram
s an
d pl
ace
mor
e em
phas
ison
rai
sing
the
ir o
wn
reve
nues
, inc
ludi
ng b
yen
rolli
ng “
para
llel”
stu
dent
s w
ho a
re n
otsp
onso
red
by t
he g
over
nmen
t. T
he s
even
Pr
imar
y T
each
er T
rain
ing
Col
lege
s in
itiat
edun
der
the
Sixt
h Ed
ucat
ion
Proj
ect,
and
also
rece
ivin
g fu
nds
from
the
Uni
vers
ities
Inve
st-
men
t C
redi
t, ac
coun
t fo
r ab
out
30 p
erce
nt o
fth
e to
tal t
each
er t
rain
ing
capa
city
in g
over
n-m
ent
inst
itutio
ns in
Ken
ya. T
he s
ix o
f the
seco
llege
s th
at a
re o
pera
ting
have
hel
ped
toen
able
the
rep
lace
men
t of
unt
rain
ed t
each
ers,
such
tha
t th
ere
are
no lo
nger
any
unt
rain
edte
ache
rs e
mpl
oyed
.
Clo
sed
1999
, 2.
5 ye
ars
afte
r th
esc
hedu
led
clos
ing
date
�R
atio
naliz
ing
and
stre
ngth
enin
gth
e in
stitu
tiona
l fra
mew
ork
for
high
er e
duca
tion
in t
he p
ublic
and
priv
ate
sect
ors
�Li
mit
ing
grow
th o
f the
bor
-ro
wed
bud
geta
ry r
esou
rces
devo
ted
to t
he p
ublic
uni
ver-
siti
es b
y pr
omot
ing
cost
sha
r-in
g an
d im
prov
ed in
vest
men
tpl
anni
ng�
Impr
ovin
g th
e qu
alit
y of
tea
ch-
ing
and
rese
arch
at
publ
ic
univ
ersi
ties
Uni
vers
itie
sIn
vest
men
t P
roje
ctPr
ojec
t ID
: P00
1362
TM
: Bru
ce Jo
nes
Loan
am
ount
:U
S$55
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
sup-
port
the
gov
ern-
men
t’s e
duca
tion
sect
or a
djus
tmen
tpr
ogra
m t
hrou
ghpr
ovis
ion
of a
nin
vest
men
t-or
i-en
ted
com
plem
ent
to t
he E
duca
tion
Sect
or A
djus
tmen
tC
redi
t (E
dSA
C)
Ken
ya
INNOVATION SYSTEMS 57
1993
1993
Rep
ublic
of
Kor
ea
Mex
ico
�R
aisi
ng t
he q
ualit
y of
sci
ence
prog
ram
s of
fere
d in
sec
onda
ry-
leve
l sci
ence
edu
catio
n ce
nter
san
d in
und
ergr
adua
te b
asic
sc
ienc
e pr
ogra
ms
in s
elec
ted
univ
ersi
ties,
to
stre
ngth
en t
hequ
ality
of s
cien
ce a
nd e
ngin
eer-
ing
degr
ees
�Es
tabl
ishi
ng a
com
pute
rize
d,in
terl
ibra
ry n
etw
ork
linki
ng
37 in
stitu
tions
, to
enha
nce
the
acce
ss t
o in
form
atio
n of
stu
-de
nts,
facu
lty, a
nd r
esea
rche
rs
�Su
ppor
ting
incr
ease
d pu
blic
spen
ding
, (a)
for
gran
ts fo
rba
sic
scie
ntifi
c re
sear
ch p
ro-
ject
s an
d eq
uipm
ent
infr
astr
uc-
ture
pro
ject
s, w
ith im
prov
edal
loca
tion
on a
com
petit
ive
basi
s; a
nd (
b) fo
r te
chno
logy
infr
astr
uctu
re in
the
are
a of
MST
Q a
nd in
telle
ctua
l pro
p-er
ty p
rote
ctio
n, t
o im
prov
ese
rvic
es t
o in
dust
ry, t
oen
hanc
e co
mpe
titiv
enes
s, a
ndto
incr
ease
att
ract
iven
ess
for
fore
ign
inve
stm
ent
�D
evel
opin
g in
stitu
tions
,th
roug
h su
ppor
t fo
r th
ere
stru
ctur
ing
of t
he s
cien
cere
sear
ch p
rogr
am, t
hat
in t
urn
Sci
ence
E
duca
tio
n an
dL
ibra
ries
C
om
pute
riza
tio
nP
roje
ctPr
ojec
t ID
: P00
4165
TM
: Rob
ert
McG
ough
Loan
am
ount
:U
S$50
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
assi
st in
impr
ovin
gth
e qu
ality
of b
asic
scie
nce
educ
atio
nan
d to
cre
ate
effe
c-tiv
e lin
ks b
etw
een
the
univ
ersi
tylib
rari
es t
hat
serv
ice
teac
hing
and
rese
arch
Sci
ence
and
Tec
hno
logy
Infr
astr
uctu
re(P
AC
IME
) P
roje
ctPr
ojec
t ID
: P00
7676
TM
: Dan
iel
Cri
safu
lliLo
an a
mou
nt:
US$
189
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
impr
ove
the
com
-pe
titiv
enes
s of
dom
estic
firm
s an
dat
trac
t fo
reig
nin
vest
men
t; to
Clo
sed
1997
Clo
sed
1998
The
sci
ence
edu
catio
n ce
nter
s of
the
sec
-on
dary
sch
ools
and
the
join
t sc
ienc
e ce
nter
sof
the
nat
iona
l uni
vers
ities
hav
e ra
ised
the
qual
ity o
f sci
ence
edu
catio
n an
d in
crea
sed
itsre
leva
nce
give
n th
e ra
pidl
y ch
angi
ng t
echn
ol-
ogy
of t
he w
orkp
lace
. Sec
onda
ry s
choo
l gra
d-ua
tes
have
bee
n ab
le t
o fin
d em
ploy
men
t or
have
con
tinue
d to
uni
vers
ities
and
col
lege
s.T
he c
ompu
teri
zed
libra
ry n
etw
ork,
link
ing
all
publ
ic a
nd p
riva
te u
nive
rsity
libr
arie
s, is
in fu
llop
erat
ion
at it
s pl
anne
d sc
ale.
The
use
of a
new
ope
ratin
g sy
stem
was
a k
ey fa
ctor
beh
ind
the
incr
ease
in t
he n
umbe
r of
res
earc
h pr
o-gr
ams
and
scie
ntifi
c pu
blic
atio
ns t
hat
emer
ged
duri
ng t
he p
roje
ct y
ears
.
The
pro
ject
met
its
obje
ctiv
es, a
s ev
iden
ced
by a
n in
crea
se in
the
num
ber
of s
cien
tific
rese
arch
pub
licat
ions
and
the
ir im
pact
, the
prod
uctio
n of
a s
igni
fican
t nu
mbe
r of
per
son-
nel t
rain
ed in
res
earc
h, a
ren
ewal
of t
he M
ex-
ican
res
earc
h in
stru
men
tatio
n in
fras
truc
ture
,th
e in
stitu
tiona
lizat
ion
of m
erit-
base
d pe
erre
view
, and
impr
ovem
ents
in t
he e
ffici
ency
of
the
Nat
iona
l Sci
ence
and
Tec
hnol
ogy
Cou
ncil.
The
cre
atio
n of
the
Mex
ican
Nat
iona
l Cen
ter
for
Met
rolo
gy is
hel
ping
to
attr
act
fore
ign
inve
stm
ent
and
is p
rom
otin
g th
e co
mpe
titiv
e-ne
ss o
f Mex
ican
indu
stry
. In
tand
em w
ith t
hecr
eatio
n of
a t
his
met
rolo
gy c
apab
ility
, pol
i-ci
es t
o st
imul
ate
priv
ate
sect
or d
eman
d fo
rse
rvic
es a
nd fo
r th
e fo
rmat
ion
of a
sec
onda
ry,
priv
ate
met
rolo
gy n
etw
ork
will
be
criti
cal t
oth
e ac
hiev
emen
t of
a s
igni
fican
t m
ediu
m-t
erm
(con
tinue
d)
1993
58 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
impa
ct o
n th
e co
mpe
titiv
enes
s of
loca
l ind
us-
try.
The
pro
ject
sup
port
ed t
he c
reat
ion
ofth
e M
exic
an In
stitu
te o
f Ind
ustr
ial P
rope
rty,
sign
ifica
ntly
red
ucin
g de
lays
in t
he a
war
d of
pate
nts,
incr
easi
ng e
nfor
cem
ent
activ
ities
, and
incr
easi
ng in
spec
tions
rel
ated
to
inte
llect
ual
prop
erty
vio
latio
ns. I
nstit
utio
nal s
tren
gthe
n-in
g an
d th
e cr
eatio
n of
an
inte
rnat
iona
llyre
spec
ted
Inte
llect
ual P
rope
rty
Rig
hts
agen
cysh
ould
ena
ble
the
deve
lopm
ent
of a
sys
tem
icap
proa
ch t
o ad
dres
s w
eakn
esse
s in
the
judi
-ci
al s
yste
m a
nd b
road
er is
sues
in t
he c
reat
ion,
diffu
sion
, and
app
licat
ion
of t
echn
ical
kno
wl-
edge
in t
he c
ount
ry. A
lthou
gh s
uppo
rt fo
r th
ecr
eatio
n of
bas
ic S
&T
infr
astr
uctu
re w
asde
emed
app
ropr
iate
giv
en t
he c
hron
ic u
nder
-in
vest
men
t of
the
198
0s, h
owev
er, t
he p
ro-
ject
sho
uld
have
inco
rpor
ated
mea
sure
s to
prom
ote
artic
ulat
ion
of d
eman
d fo
r S&
T s
er-
vice
s an
d fo
r a
linka
ge o
f res
earc
h to
soc
ieta
lne
eds.
A s
econ
d w
eakn
ess
of p
roje
ct d
esig
nw
as o
f its
failu
re t
o in
trod
uce
ince
ntiv
es t
olin
k re
sear
ch w
ith t
each
ing,
thu
s po
tent
ially
redu
cing
the
impa
ct o
f res
earc
h on
the
for-
mat
ion
of s
kille
d hu
man
res
ourc
es.
The
cre
atio
n of
a n
ew g
ener
atio
n of
inst
itu-
tions
of h
ighe
r ed
ucat
ion
(ISET
s) h
as d
iver
si-
fied
Tun
isia
n hi
gher
edu
catio
n, s
uch
that
itno
w is
dev
elop
ing
mid
dle-
leve
l tec
hnic
ians
and
man
ager
s fo
r th
e la
bor
forc
e. T
he n
atur
e of
the
ISET
s (t
rain
ing
of s
enio
r te
chni
cian
s, t
ies
to t
he e
cono
mic
env
iron
men
t, st
atus
of s
pe-
cial
ist
teac
hing
sta
ff, g
reat
er a
uton
omy
in in
sti-
tutio
nal m
anag
emen
t) h
as n
ot o
nly
mad
e th
emm
ore
resp
onsi
ve t
o th
e co
untr
y’s
econ
omic
need
s bu
t ha
s al
so s
erve
d as
a m
odel
for
an in
-de
pth
refo
rm o
f the
ent
ire
high
er e
duca
tion
syst
em. A
s a
dire
ct o
utco
me
of t
he c
ompe
ti-
Clo
sed
2001
, thr
eeye
ars
afte
r th
esc
hedu
led
clos
ing
date
prov
ide
supp
ort
to in
dust
ry in
term
s of
MST
Q a
nd in
telle
ctua
lpr
oper
ty p
rote
ctio
n
�D
iver
sify
ing
the
high
er e
duca
-tio
n sy
stem
thr
ough
the
cre
-at
ion
of h
ighe
r in
stitu
tes
ofte
chno
logy
, to
impr
ove
the
crea
tion
of a
tra
ined
tec
hnic
alan
d m
anag
eria
l lab
or fo
rce
�Pr
ovid
ing
ince
ntiv
es t
o en
cour
-ag
e un
iver
sitie
s to
ree
xam
ine
and
revi
ew t
heir
cur
ricu
la, w
itha
view
to
stre
ngth
enin
g th
equ
ality
of e
duca
tion
and
acad
e-m
ic a
ttai
nmen
t
emba
rk o
n a
pro-
gram
of l
ong-
term
inst
itutio
nal
deve
lopm
ent
Hig
her
Edu
cati
on
Res
truc
turi
ngP
roje
ctPr
ojec
t ID
: P00
5726
TM
: Fra
ncis
Ste
ier,
Jeffr
ey W
aite
Loan
am
ount
:U
S$75
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
mak
e th
e hi
gher
educ
atio
n sy
stem
Tun
isia
INNOVATION SYSTEMS 59
1994
Mal
i
�Im
prov
ing
reso
urce
dis
trib
u-tio
n an
d us
e ac
cord
ing
to s
etst
rate
gies
, by
crea
ting
a ne
wno
rmat
ive
syst
em o
f bud
geta
ryal
loca
tion
and
thro
ugh
the
deve
lopm
ent
of a
new
man
age-
men
t sy
stem
ada
pted
to
the
need
s of
mor
e au
tono
mou
sin
stitu
tions
of h
ighe
r ed
ucat
ion
�Im
prov
ing
inst
itutio
nal c
apac
ityof
the
Nat
iona
l Agr
icul
tura
lR
esea
rch
Cou
ncil
and
Nat
iona
lA
gric
ultu
ral R
esea
rch
Inst
itute
IER
�Su
ppor
ting
Tec
hnol
ogy
Tra
nsfe
ran
d U
ser
Part
icip
atio
n th
roug
him
prov
ing
inte
ract
ions
bet
wee
nre
sear
cher
s, fa
rmer
s an
d ex
ten-
sion
sta
ff; e
stab
lishi
ng o
f a p
ilot
rese
arch
fund
ava
ilabl
e to
co
ntra
ct fo
r re
sear
ch.
�Im
prov
ing
rese
arch
qua
lity
and
rele
vanc
e th
roug
h im
prov
edre
sear
ch p
rogr
amm
ing,
mon
i-to
ring
and
eva
luat
ion
met
hods
and
proc
edur
es; s
tren
gthe
ning
mor
e re
spon
sive
to
the
coun
try’
s ne
eds;
and
to im
prov
e its
perf
orm
ance
inec
onom
ic t
erm
s(c
ost
effe
ctiv
enes
s)an
d hu
man
ter
ms
(pro
port
ion
of u
ni-
vers
ity e
ntra
nts
who
gra
duat
e)
Nat
iona
l A
gric
ultu
ral
Res
earc
h P
roje
ctPr
ojec
t ID
: P00
1751
TM
: Mar
ie-H
elen
eC
ollio
n, A
gadi
ouD
ama
Loan
am
ount
:U
S$20
Mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
ensu
re t
hat
ade-
quat
e te
chno
logy
will
bec
ome
avai
l-ab
le t
o fa
rmer
s as
am
eans
to
incr
ease
agri
cultu
ral g
row
th
Clo
sed
2001
tive
fund
for
inno
vatio
n (P
NR
U) a
ctiv
ities
and
the
indi
rect
exa
mpl
e of
the
ISET
s, m
ost
uni-
vers
ities
hav
e no
w r
evie
wed
the
ir c
urri
cula
with
a v
iew
to
stre
ngth
enin
g th
e qu
ality
of
educ
atio
n an
d ac
adem
ic a
ttai
nmen
t. In
add
i-tio
n, t
he M
inis
try
of H
ighe
r Ed
ucat
ion
is n
owfu
lly in
volv
ed in
the
acc
redi
tatio
n of
all
new
univ
ersi
ty p
rogr
ams.
How
ever
, alth
ough
all
PNR
U p
roje
cts
met
the
cri
teri
a se
t ou
t, fu
llyon
e-th
ird
of t
he p
roje
cts
wer
e su
bmitt
ed b
yth
e M
HE
itsel
f, an
d no
t by
uni
vers
ities
, as
was
plan
ned.
It is
cle
ar t
hat
a cu
lture
of p
rom
otin
gpe
rfor
man
ce t
hrou
gh c
ompe
titio
n fo
r ad
di-
tiona
l res
ourc
es h
as n
ot y
et b
een
deve
lope
d.R
esou
rce
dist
ribu
tion
and
use
appe
ar t
o ha
veim
prov
ed, a
lthou
gh it
rem
ains
unc
lear
whe
ther
or
not
this
impr
ovem
ent
can
beat
trib
uted
sol
ely
to t
he p
roje
ct. F
inal
ly, t
hehi
gher
edu
catio
n m
anag
emen
t in
form
atio
nsy
stem
(SA
GES
) of t
he M
HE
appe
ars
key
toth
e ra
tiona
lizat
ion
proc
ess
and
its m
anag
eria
ltr
aini
ng h
as h
ad c
onsi
dera
ble
impa
ct.
The
pro
ject
ach
ieve
d its
obj
ectiv
e of
impr
ov-
ing
the
perf
orm
ance
of t
he n
atio
nal a
gric
ul-
tura
l res
earc
h sy
stem
. The
pro
ject
ach
ieve
dfu
ndam
enta
l cha
nges
in t
he s
truc
ture
and
man
agem
ent
of r
esea
rch,
incr
ease
d us
er p
ar-
ticip
atio
n an
d ex
tern
al r
evie
ws
of t
he q
ualit
yof
ong
oing
and
pro
pose
d re
sear
ch a
ctiv
ities
.T
here
wer
e, h
owev
er, s
ome
seri
ous
dela
ys in
proj
ect
impl
emen
tatio
n th
at n
egat
ivel
yim
pact
ed o
n th
e st
reng
then
ing
of h
uman
reso
urce
man
agem
ent,
finan
cial
man
agem
ent
and
mon
itori
ng a
nd e
valu
atio
n re
mai
n w
eak.
Col
labo
ratio
n be
twee
n re
sear
ch a
nd it
s na
t-ur
al p
artn
ers
(ext
ensi
on, p
rodu
cer
orga
niza
-tio
ns, N
GO
s) w
as s
tren
gthe
ned
thro
ugh
the
crea
tion
of r
esea
rch
user
com
mitt
ees,
reg
ular
regi
onal
tec
hnic
al r
evie
w m
eetin
gs, a
nd t
he
(con
tinue
d)
1994
60 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
esta
blis
hmen
t of
a r
esea
rch
fund
man
aged
by
the
rese
arch
use
r co
mm
ittee
s w
hich
per
mit-
ted
thes
e to
con
trac
t ou
t re
sear
ch a
ctiv
ities
with
IER
tha
t w
ere
a pr
iori
ty t
o th
em.
Reg
iona
l col
labo
ratio
n w
as s
ubst
antia
llyst
reng
then
ed t
hrou
gh t
he p
roje
ct. T
wel
veou
t of
the
six
teen
res
earc
h pr
ogra
ms
are
now
exe
cute
d in
col
labo
ratio
n w
ith r
egio
nal
and
inte
rnat
iona
l agr
icul
tura
l res
earc
h or
gani
-za
tions
in a
dapt
ing
prom
isin
g te
chno
logi
es t
olo
cal c
ircu
mst
ance
s.A
tot
al o
f 120
new
tec
hnol
ogie
s w
ere
intr
o-du
ced
by IE
R, o
f whi
ch 1
10 w
ere
diss
emi-
nate
d by
the
ext
ensi
on s
ervi
ces
and
wer
ead
opte
d to
diff
eren
t de
gree
s by
farm
ers.
The
tech
nolo
gies
wer
e m
ainl
y fo
cuse
d on
red
uc-
ing
the
risk
s fr
om c
limat
ic c
hang
e, im
prov
ing
prod
uctio
n (r
ice,
frui
ts a
nd v
eget
able
s, a
ndpo
ultr
y) a
nd q
ualit
y of
cro
ps in
tend
ed fo
rtr
ansf
orm
atio
n (c
otto
n, c
orn,
hon
ey).
Ado
p-tio
n ra
tes
wer
e cl
osel
y lin
ked
to p
oten
tial
inco
me
incr
ease
s, in
put
requ
irem
ents
(la
bor
and
non-
labo
r in
puts
) an
d av
aila
bilit
y, a
cces
sto
cre
dit,
and
risk
of c
rop
failu
re.
The
follo
win
g ac
hiev
emen
ts w
ere
reco
rded
at
proj
ect
com
plet
ion:
(a)
a m
ore
dece
ntra
lized
,de
man
d-dr
iven
pol
ytec
hnic
sys
tem
was
put
inpl
ace;
(b)
a N
atio
nal A
dvis
ory
Com
mitt
eew
as e
stab
lishe
d fo
r th
e sy
stem
; (c)
loca
l-lev
elin
dust
ry/e
duca
tion
advi
sory
com
mitt
ees
wer
ees
tabl
ishe
d in
all
poly
tech
nics
; (d)
cos
t re
cov-
ery
polic
ies
wer
e in
trod
uced
, inc
ludi
ng t
ime
shar
e pr
ogra
ms
with
firm
s in
exi
stin
g in
stitu
-tio
ns, a
25
perc
ent
incr
ease
in e
mpl
oyer
-sp
onso
red
trai
ning
, and
the
est
ablis
hmen
t of
ast
uden
t fe
e of
2,0
00 r
ingg
it (a
bout
US$
525
atU
S$1
=R
M3.
8) p
er s
emes
ter;
(e)
faci
lity
opti-
miz
atio
n po
licie
s w
ere
initi
ated
for
all i
nstit
u-
Clo
sed
1999
exte
rnal
link
ages
and
sup
port
-in
g th
e pa
rtic
ipat
ion
of M
alia
nin
stitu
tions
and
sci
entis
ts in
regi
onal
and
inte
rnat
iona
l col
-la
bora
tive
rese
arch
pro
gram
s.�
Impr
ovin
g re
sour
ce d
evel
op-
men
t an
d m
anag
emen
t, re
ha-
bilit
atin
g an
d re
new
ing
rese
arch
exp
erim
ent
stat
ion
and
equi
pmen
t.
�Es
tabl
ishi
ng t
hree
new
pol
y-te
chni
cs a
t Sh
ah A
lam
, Pen
ang
(at
Sebe
rang
Pra
i), a
nd Jo
hor
Bahr
u to
cre
ate
abou
t 13
,000
addi
tiona
l tra
inin
g pl
aces
�R
efor
min
g po
licy
and
stre
ngth
-en
ing
inst
itutio
ns b
y: (a
) sup
-po
rtin
g a
trai
ning
sys
tem
dr
iven
by
empl
oyer
dem
and;
(b
) int
rodu
cing
cos
t rec
over
yan
d op
erat
iona
l effi
cien
cy;
(c) d
ecen
tral
izin
g th
e co
ntro
l of
pol
ytec
hnic
inst
itute
s; a
nd(d
) im
prov
ing
capa
city
util
iza-
and
to r
ever
se t
hede
clin
e in
the
pro
-du
ctiv
e ca
paci
ty o
fth
e na
tura
lre
sour
ce b
ase.
Po
lyte
chni
cD
evel
opm
ent
Pro
ject
Proj
ect
ID: P
0043
09T
M: O
mpo
rn R
egel
Loan
am
ount
:U
S$10
7 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oim
prov
e th
e ef
fi-ci
ency
and
cap
acity
of t
echn
ical
edu
ca-
tion
thro
ugh
esta
b-
Mal
aysi
a
INNOVATION SYSTEMS 61
1994
Rep
ublic
of
Kor
ea
tion,
teac
her/
stud
ent r
atio
s, an
dth
e lo
wer
ing
of u
nit c
osts
�Es
tabl
ishi
ng a
Pol
ytec
hnic
Sta
ffT
rain
ing
Cen
ter
to t
rain
tea
ch-
ers,
incl
udin
g th
e re
crui
tmen
tan
d tr
aini
ng o
f abo
ut 1
,000
new
teac
hers
and
inst
ruct
ors
orpr
ojec
t in
stitu
tions
�U
pgra
ding
cur
ricu
la a
nd d
evel
-op
ing
new
cou
rses
to
expa
ndth
e se
rvic
es o
ffere
d by
the
poly
tech
nic
syst
em�
Car
ryin
g ou
t th
ree
stud
ies
for
the
impr
ovem
ent
of t
hepo
lyte
chni
c sy
stem
�T
rain
ing
to s
tren
gthe
n th
eH
uman
Res
ourc
es D
evel
op-
men
t Fu
nd (
HR
DF)
�T
rain
ing
to s
tren
gthe
n th
eN
atio
nal V
ocat
iona
l Tra
inin
gC
ounc
il
�Su
ppor
ting
qual
ity im
prov
e-m
ents
in u
nder
grad
uate
sci
ence
and
engi
neer
ing
depa
rtm
ents
inse
lect
ed u
nive
rsiti
es�
Stre
ngth
enin
g th
e te
achi
ng a
ndre
sear
ch c
apac
ity o
f mar
ine
scie
nce
inst
itutio
ns�
Hel
ping
impr
ove
the
qual
ity o
fpr
actic
al s
cien
ce a
nd e
ngin
eer-
ing
prog
ram
s in
the
ope
n un
i-ve
rsiti
es (
OU
s) a
nd in
sel
ecte
dju
nior
tec
hnic
al c
olle
ges
(JTC
s)�
Impr
ovin
g op
port
uniti
es fo
rju
nior
res
earc
h ac
tiviti
es in
basi
c sc
ienc
es b
y st
reng
then
ing
lishi
ng t
rain
ing
prac
-tic
es t
hat
are
mar
-ke
t-or
ient
ed; a
nd t
ore
duce
str
uctu
ral
unem
ploy
men
t an
den
cour
age
grea
ter
labo
r ab
sorp
tion
and
mob
ility
Sci
ence
and
Tec
hnic
al
Edu
cati
on
Pro
ject
Proj
ect
ID: P
0041
68T
M: C
arol
Hau
-Lai
Ball
Loan
am
ount
:U
S$19
0 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oas
sist
in im
prov
ing
the
qual
ity o
f sci
-en
ce a
nd t
echn
ical
Clo
sed
1999
tions
; and
(f) c
aree
r gu
idan
ce c
ouns
elor
s w
ere
intr
oduc
ed t
o re
duce
dro
p-ou
t ra
tes.
The
staf
f dev
elop
men
t co
mpo
nent
suc
cess
fully
trai
ned
(a)
579
stud
ents
in a
Mas
ter’
s (T
ech-
nica
l Edu
catio
n) p
rogr
am, m
any
of w
hom
are
serv
ing
as p
olyt
echn
ic le
ctur
ers
(and
a fu
rthe
r12
1 st
uden
ts in
200
0); (
b) 7
40 s
tude
nts
in B
.Sc.
Engi
neer
ing,
exc
eedi
ng th
e ta
rget
of 6
00; a
nd(c
) 19
3 st
uden
ts in
dip
lom
a co
urse
s, c
om-
pare
d w
ith t
he t
arge
t of
200
. 110
sch
olar
ship
sw
ere
awar
ded
for
bach
elor
deg
ree
cour
ses
inlo
cal u
nive
rsiti
es, w
ith 1
00 s
tude
nts
com
plet
-in
g th
eir
trai
ning
. Cur
ricu
lum
dev
elop
men
t w
as a
chie
ved
thro
ugh
two
trai
ning
cou
rses
cond
ucte
d fo
r 22
par
tici
pant
s fr
om a
ll 12
pol
ytec
hnic
s. T
he s
yste
m is
now
bei
ngin
stitu
tiona
lized
in a
ll po
lyte
chni
cs. T
heH
RD
F co
mpo
nent
tha
t so
ught
to
enco
urag
epr
ivat
e se
ctor
firm
s to
pro
vide
com
pany
-sp
ecifi
c tr
aini
ng p
rogr
ams
saw
the
suc
cess
ful
impl
emen
tatio
n of
loca
l and
ove
rsea
s tr
aini
ngac
tiviti
es, w
ith m
ost
com
plet
ed d
urin
g th
efir
st y
ear
of p
roje
ct im
plem
enta
tion.
Thr
eeH
RD
C s
taff
com
plet
ed s
hort
-ter
m t
rain
ing
inT
aiw
an, t
he U
nite
d St
ates
, and
Aus
tral
ia.
Und
er t
he g
uida
nce
of t
he M
OE,
the
pro
ject
faci
litat
ed a
nd e
nhan
ced
rese
arch
cap
abili
ties
and
teac
hing
pro
gram
s at
36
univ
ersi
ty e
ngi-
neer
ing
depa
rtm
ents
, 41
univ
ersi
ty n
atur
alsc
ienc
e de
part
men
ts, 1
0 m
arin
e sc
ienc
e in
sti-
tutio
ns, n
ine
OU
s, e
ight
JTC
s, a
nd 1
9 V
HSs
.T
he r
esea
rch
outp
uts
wer
e im
pres
sive
. The
num
ber
of r
esea
rch
proj
ects
mor
e th
an d
ou-
bled
from
4,1
05 in
199
5 to
mor
e th
an 1
0,00
0in
199
9. A
tot
al o
f 40,
929
rese
arch
act
iviti
esw
ere
cond
ucte
d du
ring
the
impl
emen
tatio
npe
riod
(ab
out
50 p
erce
nt m
ore
than
app
rais
ales
timat
es).
The
res
ults
of 8
7 pe
rcen
t of
the
seac
tiviti
es w
ere
publ
ishe
d do
mes
tical
ly o
rin
tern
atio
nally
, 12
perc
ent
wer
e us
ed b
y
(con
tinue
d)
1994
62 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
rela
ted
indu
stri
es, a
nd 2
per
cent
wer
eaw
arde
d pa
tent
s. M
ore
than
40,
000
join
tre
sear
ch p
roje
cts
wer
e co
nduc
ted
with
uni
-ve
rsiti
es, r
esea
rch
inst
itute
s, a
nd in
dust
rial
com
pani
es d
urin
g th
e im
plem
enta
tion
peri
od,
appr
oxim
atel
y 60
0 of
whi
ch w
ere
publ
ishe
ddo
mes
tical
ly a
nd in
tern
atio
nally
. The
pro
ject
furt
her
bene
fited
the
pro
ject
inst
itutio
ns a
ndot
her
inst
itutio
ns, i
nclu
ding
sev
eral
in t
he p
ri-
vate
sec
tor,
thr
ough
mak
ing
avai
labl
e to
the
mth
e pr
ocur
ed e
quip
men
t. Fo
r ex
ampl
e, n
ine
maj
or n
atio
nal u
nive
rsiti
es in
Kor
ea a
lloca
ted
29.4
per
cent
of t
heir
loan
allo
catio
ns t
o th
eir
rese
arch
and
tea
chin
g su
ppor
t in
stitu
tes,
whi
ch p
rovi
de c
omm
on fa
cilit
ies
and
equi
p-m
ent
to u
sers
from
insi
de a
nd o
utsi
de t
hepr
ojec
t un
iver
sitie
s. S
imila
rly,
equ
ipm
ent
pro-
vide
d to
the
Kor
ea M
arin
e U
nive
rsity
was
uti-
lized
for
trai
ning
by
priv
ate
orga
niza
tions
and
indu
stry
.En
trep
rene
uria
l dev
elop
men
t in
the
pri
vate
sect
or w
as e
nhan
ced
and
cons
trai
nts
toem
ploy
men
t pr
omot
ion
and
inco
me
enha
nce-
men
t in
the
mic
ro-
and
smal
l-ent
erpr
ise
(info
rmal
) se
ctor
wer
e re
duce
d.A
tot
al o
f 34,
778
mic
ro-e
nter
pris
e ow
ners
and
wor
kers
rec
eive
d tr
aini
ng in
four
yea
rsou
t of
a t
otal
of 1
72,0
00 m
icro
-ent
erpr
ise
units
est
imat
ed in
the
199
9 ce
nsus
. Of t
hese
,70
% w
ere
trai
ned
in t
echn
ical
are
as a
nd 3
0%in
man
agem
ent.
60%
of a
ll tr
aine
es w
ere
wom
en, g
reat
ly e
xcee
ding
the
tar
get
of 2
0%.
The
pro
visi
on o
f tra
inin
g at
the
nat
ionw
ide
leve
l has
gre
atly
exc
eede
d th
e ta
rget
of
24,0
00 r
evis
ed in
199
8 an
d al
so s
urpa
ssed
the
targ
et o
f 32,
000
set
in 1
997.
80%
of t
rain
ees
repo
rted
gro
wth
in t
heir
bus
ines
s (a
s ag
ains
t13
% in
the
con
trol
gro
up),
and
61%
had
adde
d bu
sine
ss a
sset
s (v
s. 2
1%);
Clo
sed
2002
, one
year
aft
er t
he s
ched
-ul
ed c
losi
ng d
ate
faci
litie
s at
the
Kor
ea B
asic
Sci
-en
ce In
stitu
te (
KBS
I) (fo
rmer
lyth
e K
orea
Bas
ic S
cien
ce
Cen
ter)
�En
hanc
ing
the
qual
ity o
f tra
inin
gin
voc
atio
nal h
igh
scho
ols
(VH
Ss)
�Es
tabl
ishi
ng a
mic
ro-
and
smal
len
terp
rise
tra
inin
g fu
nd t
o pr
ovid
e in
cent
ives
for
skill
upgr
adin
g an
d te
chno
logy
deve
lopm
ent.
�Su
ppor
ting
Tec
hnol
ogy
Info
rmat
ion/
Inno
vatio
n an
dR
esea
rch
Prog
ram
to
stim
ulat
ein
form
atio
n ex
chan
ge a
nd in
no-
vatio
n in
pro
duct
dev
elop
men
t.�
Des
igni
ng a
sm
all p
ilot
prog
ram
of a
dapt
ive
tech
nolo
gyre
sear
ch g
rant
s to
pro
mot
e th
ein
dige
nous
cap
acity
for
the
rese
arch
, des
ign,
and
com
mer
-ci
aliz
atio
n of
new
pro
duct
s an
dpr
oduc
tion
tech
nolo
gies
for
the
info
rmal
sec
tor.
educ
atio
n an
dre
sear
ch t
hrou
ghim
plem
enta
tion
of a
Min
istr
y of
Edu
ca-
tion
(MO
E) p
olic
ies
and
actio
ns
prog
ram
Mic
ro a
nd S
mal
lE
nter
pris
e T
rain
-in
g an
d T
echn
ol-
ogy
Pro
ject
Proj
ect
ID: P
0013
53T
M: I
van
Ros
sign
olLo
an A
mou
nt: U
S$21
.83
Mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
enha
nce
the
entr
e-pr
eneu
rial
dev
elop
-m
ent
in t
he p
riva
tese
ctor
and
, mor
esp
ecifi
cally
, red
uce
cons
trai
nts
toem
ploy
men
t pr
o-
Ken
ya
INNOVATION SYSTEMS 63
1995
Indo
nesi
a
�D
evel
opin
g a
new
par
tner
ship
betw
een
the
publ
ic a
nd p
riva
tese
ctor
gua
rant
eein
g th
e fu
llpa
rtic
ipat
ion
for
Jua
Kal
i ent
re-
pren
eurs
and
wor
kers
in t
rain
-in
g an
d te
chno
logy
pol
icy
and
prog
ram
dec
isio
ns a
nd s
ubse
-qu
ent
impl
emen
tatio
n.�
Impr
ovin
g pl
anni
ng a
nd m
an-
agem
ent
for
grad
uate
edu
ca-
tion
and
univ
ersi
ty r
esea
rch
bypr
ovid
ing
assi
stan
ce t
o th
e U
nive
rsity
Res
earc
h C
ounc
il(U
RC
)�
Supp
ortin
g co
mpe
titiv
e gr
ant
and
fello
wsh
ip p
rogr
ams
tost
reng
then
the
ince
ntiv
es fo
rin
stitu
tions
, uni
vers
ity s
taff,
and
grad
uate
stu
dent
s to
par
ticip
ate
in h
igh-
qual
ity g
radu
ate
trai
ning
and
rese
arch
act
iviti
es (t
he g
rant
prog
ram
sup
port
ed th
e fo
llow
-in
g: (a
) the
cen
ter
gran
t pro
-gr
am; (
b) r
esea
rch
gran
tpr
ogra
ms;
(c) g
radu
ate
educ
a-tio
n pr
ogra
ms;
(d) s
cien
tific
pub-
licat
ion
prog
ram
s; (e
) dom
estic
colla
bora
tive
rese
arch
gra
nts;
and
(f) in
tern
atio
nal r
esea
rch
linka
ges)
mot
ion
and
inco
me
enha
ncem
ent
in t
hem
icro
- an
d sm
all-
ente
rpri
se (
info
r-m
al)
sect
or.
Uni
vers
ity
Res
earc
h fo
rG
radu
ate
Edu
ca-
tio
n P
roje
ctPr
ojec
t ID
: P00
4017
TM
: Hal
sey
L.Be
emer
, Jr.
Loan
am
ount
:U
S$58
.9 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oim
prov
e th
e qu
ality
of g
radu
ate
educ
a-tio
n, a
ttra
ct m
ore
qual
ified
can
dida
tes
for
dom
estic
gra
du-
ate
educ
atio
n, a
ndst
reng
then
res
earc
hca
paci
ty a
nd d
is-
sem
inat
ion
ofre
sear
ch fi
ndin
gs in
univ
ersi
ties.
Clo
sed
2001
, one
year
aft
er t
he s
ched
-ul
ed c
losi
ng d
ate
Und
er t
echn
olog
y de
velo
pmen
t co
mpo
nent
s,12
75 v
ouch
er c
lient
s an
d 79
Sav
ings
and
Cre
dit
Coo
pera
tives
offi
cial
s w
ere
trai
ned,
thre
e se
ctor
al e
xhib
ition
s w
ere
held
, and
12
sub
-sec
tora
l stu
dies
wer
e ca
rrie
d ou
t. T
hepr
ojec
t pl
ayed
a m
ajor
rol
e in
enh
anci
ngin
form
atio
n ex
chan
ge a
nd b
usin
ess
netw
orks
amon
g M
SEs.
The
Cen
ter
Gra
nt P
rogr
am, w
hich
focu
sed
onth
e cr
eatio
n of
sci
entifi
c re
sear
ch u
nits
led
byyo
unge
r In
done
sian
aca
dem
ics,
pro
vide
d a
dyna
mic
env
iron
men
t with
in w
hich
you
nggr
adua
te s
tude
nts
and
rese
arch
ers
wer
e ab
leto
car
ry o
n th
eir
wor
k in
Indo
nesi
a ra
ther
than
goin
g ab
road
. The
pro
gram
to p
repa
re ju
nior
facu
lty fr
om s
econ
d- a
nd th
ird-
tier
inst
itutio
nsfo
r gr
adua
te e
duca
tion
help
ed th
em c
ompe
tem
ore
succ
essf
ully
for
acce
ss to
pro
gram
s at
first
-tie
r in
stitu
tions
. As
thes
e ju
nior
facu
ltym
embe
rs r
etur
ned
to th
eir
hom
e un
iver
sitie
s,it
beca
me
appa
rent
that
this
app
roac
h to
rai
s-in
g th
e ac
adem
ic q
ualit
y of
the
hom
e in
stitu
-tio
ns w
orke
d be
tter
than
pre
viou
s sy
stem
sth
at s
ough
t to
enco
urag
e gr
adua
tes
of fi
rst-
tier
inst
itutio
ns to
mov
e do
wn
the
scal
e. In
add
i-tio
n, fu
ndin
g m
ade
avai
labl
e to
res
earc
hers
from
out
side
-pro
ject
-sup
port
ed r
esea
rch
units
to c
arry
out
col
labo
rativ
e re
sear
ch w
ith p
ro-
ject
-sup
port
ed r
esea
rche
rs e
xpan
ded
the
impa
ct o
f pro
ject
s w
ell b
eyon
d th
eir
orig
inal
inst
itutio
n fo
cus.
The
pro
visi
on o
f the
se n
et-
wor
k-su
ppor
ting
fund
s by
the
Dom
estic
Col
-la
bora
tive
Res
earc
h G
rant
s pr
ogra
m e
nabl
edgr
eate
r us
e by
res
earc
hers
cou
ntry
wid
e of
proj
ect-
deve
lope
d re
sour
ces
and
rese
arch
prog
ram
s. T
he G
radu
ate
Tea
m R
esea
rch
Pro-
gram
and
the
You
ng A
cade
mic
Pro
gram
wer
eal
so a
ble
to in
crea
se th
e re
sear
ch c
apac
ity o
fth
e gr
adua
te s
uper
viso
rs, a
nd t
his
in t
urn
bene
fited
gra
duat
e st
uden
ts a
nd g
radu
ate
(con
tinue
d)
1995
64 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
educ
atio
n pr
ogra
ms.
The
focu
s on
str
engt
hen-
ing
dom
estic
inst
itutio
ns r
athe
r th
an s
endi
ngre
sear
cher
s ab
road
cre
ated
a s
tron
ger
and
pote
ntia
lly m
ore
sust
aina
ble
dom
estic
hum
anca
paci
ty tr
aini
ng.
The
TD
S pr
ojec
t rea
lized
its
over
all o
bjec
tive
of h
elpi
ng fi
rms
gain
acc
ess
to s
peci
aliz
edte
chni
cal a
nd m
arke
ting
know
-how
. Thi
s w
asac
hiev
ed th
roug
h a
sign
ifica
nt tr
ansf
er o
f tec
h-ni
cal r
esou
rces
to p
riva
te e
nter
pris
es, a
chie
ved
by m
eans
of a
gra
nt in
stru
men
t tha
t fina
nced
the
tech
nolo
gy tr
ansf
er o
n a
cost
-sha
ring
bas
is.
The
TD
S he
lped
190
firm
s im
plem
ent 2
66 d
if-fe
rent
pro
ject
s. A
noth
er k
ey p
roje
ct ta
rget
was
enh
ance
d ex
port
per
form
ance
. Alth
ough
the
proj
ect d
id n
ot s
et s
peci
fic e
xpor
t tar
gets
for
part
icip
ant fi
rms,
the
expo
rt p
erfo
rman
ceof
thes
e fir
ms
surp
asse
d in
dust
ry a
vera
ges
and
the
natio
nal e
xpor
t gro
wth
rat
e: e
xpor
ts b
ypa
rtic
ipan
t firm
s ro
se 5
3 pe
rcen
t com
pare
d to
an o
vera
ll ex
port
incr
ease
of 2
1 pe
rcen
t in
1996
and
3 p
erce
nt in
199
7. E
xpor
ts b
y pa
rtic
i-pa
nt fi
rms
in th
e ex
port
pro
cess
ing
zone
(EPZ
)gr
ew a
bout
61
perc
ent,
com
pare
d to
gro
wth
rate
s of
15
perc
ent i
n 19
96 a
nd 1
0 pe
rcen
t in
1997
ach
ieve
d ac
ross
all
EPZ
firm
s. T
here
addi
tiona
lly w
as a
mar
ked
incr
ease
in th
e ra
nge
of p
rodu
cts
that
are
exp
orte
d. A
long
side
the
TD
S, th
e go
vern
men
t set
up
a si
mila
r m
atch
ing
gran
t fun
d w
ith it
s ow
n re
sour
ces,
to b
ead
min
iste
red
by th
e M
inis
try
of In
dust
ry a
ndC
omm
erce
. Effo
rts
to s
tren
gthe
n th
e M
auri
-tiu
s St
anda
rds
Bure
au (M
SB) h
ave
affo
rded
the
bure
au in
tern
atio
nal c
redi
bilit
y, e
nabl
ing
it to
join
the
Inte
rnat
iona
l Sta
ndar
ds O
rgan
izat
ion
(ISO
) and
ena
blin
g M
auri
tius
to m
eet W
TO
requ
irem
ents
. The
Ele
ctro
nic
Tra
de F
acili
ta-
tion
Syst
em (E
TFS
) com
pone
nt o
f the
pro
ject
Clo
sed
1999
�Su
ppor
ting
a T
echn
olog
y D
iffu-
sion
Sch
eme
(TD
S) t
o he
lpfir
ms
acce
ss s
peci
aliz
ed t
echn
i-ca
l and
mar
ketin
g kn
ow-h
ow�
Cre
atin
g th
e ba
sic
inst
itutio
nal
infr
astr
uctu
re fo
r M
STQ
-re
late
d se
rvic
es, a
nd c
reat
ing
ana
tiona
l qua
lity
syst
em�
Supp
ortin
g an
Ele
ctro
nic
Tra
deFa
cilit
atio
n Sy
stem
(ET
FS)
�Pr
ovid
ing
tech
nica
l ass
istan
ce in
(a) t
he d
evel
opm
ent o
f pro
duc-
tivity
and
com
petit
iven
ess
indi
-ca
tors
and
impr
ovem
ent o
f the
mon
itori
ng o
f ind
ustr
ial d
evel
op-
men
t; (b
) rev
iew
of t
he R
etir
e-m
ent S
avin
gs S
yste
m; a
nd (c
) the
rest
ruct
urin
g of
the
Inve
stm
ent
Aut
hori
zatio
n Sy
stem
Tec
hnic
al
Ass
ista
nce
toE
nhan
ce
Co
mpe
titi
vene
ssP
roje
ctPr
ojec
t ID
: P00
1918
TL:
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et
Soyl
emez
oglu
Loan
am
ount
:U
S$6.
7 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
o he
lpfir
ms
enha
nce
thei
rco
mpe
titiv
enes
s an
dth
ereb
y im
prov
e th
e pr
ospe
cts
for
sust
aina
ble
rapi
dgr
owth
. To
beac
hiev
ed b
y fa
cilit
at-
ing
priv
ate
sect
orac
cess
to k
now
-how
to h
elp
impr
ove
prod
uctiv
ity, q
ualit
y,de
sign
, and
res
pons
etim
es, a
nd to
di
vers
ify e
xpor
t pr
oduc
tion
Mau
ritiu
s
INNOVATION SYSTEMS 65
1995
Gha
na�
Prov
idin
g tr
aini
ng a
nd t
echn
ical
assi
stan
ce t
o th
e Se
cret
aria
t of
the
Cou
ncil
for
Scie
ntifi
c an
dIn
dust
rial
Res
earc
h (C
SIR
) an
dfo
ur in
stitu
tions
to
deve
lop
aco
mm
erci
aliz
atio
n st
rate
gy t
ose
rve
the
need
s of
the
pri
vate
sect
or, a
nd a
ssis
ting
the
Gha
naSt
anda
rds
Boar
d (G
SB)
tode
velo
p m
etro
logy
and
qua
lity
test
ing
stan
dard
s�
Form
ing
a T
echn
olog
y an
dEn
terp
rise
Dev
elop
men
t Fu
nd(T
EDF)
to
assi
st p
riva
te S
MEs
to d
evel
op p
rodu
cts
and
pro-
vide
ser
vice
s, t
o de
velo
p th
eir
tech
nica
l and
fina
ncia
l pla
ns t
oa
leve
l of b
anka
ble
qual
ity a
ndfe
asib
ility
, and
to
supp
ort
thei
ref
fort
s to
rai
se fu
nds
orin
vest
or s
uppo
rt�
Supp
ortin
g a
stud
y to
det
er-
min
e th
e m
arke
t de
man
d fo
rth
e G
hana
Tra
de F
air
Aut
hori
ty(G
TFA
) an
d an
arc
hite
ctur
alsu
rvey
to
asse
ss t
he r
ehab
ilita
-tio
n an
d re
desi
gn n
eeds
of t
heG
TFA
pav
ilion
s�
Supp
ortin
g a
feas
ibili
ty s
tudy
to
dete
rmin
e th
e sc
ope,
fina
ncia
lvi
abili
ty, c
omm
erci
al d
eman
d,
Pri
vate
Sec
tor
Dev
elo
pmen
tP
roje
ctPr
ojec
t ID
: P00
0960
TM
: Kofi
Boat
eng-
Agy
en, M
icha
elW
ong
Loan
am
ount
:U
S$13
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
incr
ease
and
deep
en t
he p
riva
tese
ctor
con
trib
utio
nto
eco
nom
icgr
owth
, and
in p
ar-
ticul
ar t
o im
prov
epr
ivat
e se
ctor
com
-pe
titiv
enes
s in
glob
al m
arke
ts
Clo
sed
2000
redu
ced
the
proc
essi
ng ti
me
of tr
ade
docu
-m
enta
tion
from
abo
ut tw
o–fo
ur d
ays
to
15 m
inut
es, w
ith 2
4-ho
ur a
vaila
bilit
y. A
ll us
ers
of th
e sy
stem
, inc
ludi
ng c
usto
ms
offic
ials
, wer
etr
aine
d in
the
new
sys
tem
. The
ET
FS in
fra-
stru
ctur
e w
ill a
lso
prov
ide
serv
ices
for
the
Mau
ritiu
s O
ffsho
re B
usin
ess
Act
iviti
es A
utho
r-ity
, mak
ing
it a
sust
aine
d in
itiat
ive.
The
mac
roec
onom
ic fu
ndam
enta
ls o
f Gha
naha
ve b
een
dete
rior
atin
g si
nce
the
cred
it w
as a
ppro
ved,
and
it is
like
ly t
hat
this
res
ulte
din
cha
nged
per
cept
ions
and
pri
oriti
es a
ndaf
fect
ed p
roje
ct o
utco
me.
The
pro
ject
hel
ped
crea
te a
gre
ater
con
scio
usne
ss o
f mar
kets
and
com
mer
cial
pra
ctic
es a
mon
g al
l par
ticip
atin
gin
stitu
tions
, whi
ch is
an
impo
rtan
t st
epto
war
d ac
hiev
ing
the
proj
ect
obje
ctiv
e of
rest
ruct
urin
g, r
efor
min
g, a
nd c
omm
erci
aliz
ing
thes
e in
stitu
tions
. The
act
ual p
rogr
ess
ofso
me
of t
he b
enefi
ciar
y in
stitu
tions
in m
eetin
gpr
ojec
t ob
ject
ives
was
lim
ited,
but
sig
nific
ant
prog
ress
was
mad
e in
impr
ovin
g th
e pe
rfor
-m
ance
of t
he G
SB a
nd in
the
mod
erni
zatio
n of
the
lega
l inf
rast
ruct
ure,
and
Ban
k su
ppor
tfo
r th
ese
activ
ities
will
be
cont
inue
d un
der
anot
her
Bank
pro
ject
. The
sec
ond
key
proj
ect
com
pone
nt, t
he T
EDF,
had
lim
ited
impa
ct.
Its o
utco
me
was
adv
erse
ly a
ffect
ed n
ot o
nly
beca
use
of it
s de
sign
, but
als
o by
the
adv
erse
inve
stm
ent
clim
ate
in t
he c
ount
ry.
(con
tinue
d)
1995
66 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
Tw
enty
-thr
ee r
esea
rch
proj
ects
wer
e se
lect
edin
199
5. D
irec
ted
Res
earc
h su
bpro
ject
exe
cu-
tors
incl
uded
INPA
, the
Bra
zilia
n A
gric
ultu
ral
Res
earc
h C
orpo
ratio
n (E
MBR
APA
), th
eN
atio
nal I
nstit
ute
for
Spac
e R
esea
rch
(INPE
),an
d th
e Br
azili
an C
ocoa
Dev
elop
men
t Age
ncy
(CEP
LAC
), al
ong
with
oth
er A
maz
onia
n in
sti-
tutio
ns (c
ompr
isin
g m
ainl
y un
iver
sitie
s an
d on
e N
GO
). A
bout
26
regi
onal
inst
itutio
ns,
17 n
atio
nal a
genc
ies
from
oth
er s
tate
s, a
ndni
ne in
tern
atio
nal i
nstit
utio
ns p
artic
ipat
ed in
the
impl
emen
tatio
n of
the
proj
ects
, ind
icat
ing
ast
rong
inte
r-in
stitu
tiona
l and
inte
rdis
cipl
inar
yin
tegr
atio
n. In
add
ition
, 51
natio
nal a
nd
26 in
tern
atio
nal i
nstit
utio
ns c
oope
rate
d w
ithth
e su
bpro
ject
exe
cutin
g in
stitu
tions
, ind
icat
ing
both
a w
orld
wid
e in
tere
st in
Am
azon
ian
issu
esan
d an
evi
dent
effo
rt to
war
d m
ulti-
inst
itutio
nal
coop
erat
ion.
The
maj
ority
of t
he s
ubpr
ojec
ts(1
4) p
rodu
ced
resu
lts o
r pa
rtia
l res
ults
; mos
tof
the
proj
ects
rep
ortin
g no
res
ults
wer
em
ainl
y lo
ng-t
erm
pro
ject
s ne
edin
g fu
rthe
rre
sear
ch b
efor
e re
liabl
e co
nclu
sion
s co
uld
bedr
awn.
The
Dir
ecte
d R
esea
rch
subp
roje
cts
also
con
trib
uted
to th
e in
trod
uctio
n of
inno
va-
tive
met
hodo
logi
cal t
echn
ique
s fo
r w
ider
use
in A
maz
on r
esea
rch
activ
ities
. Oth
er m
ain
achi
evem
ents
incl
uded
: (a)
the
rest
ruct
urin
gan
d pr
iori
tizat
ion
of r
esea
rch
prog
ram
s;
(b) t
he d
efini
tion
of s
trat
egic
obj
ectiv
es o
f the
Clo
sed
1999
, tw
oye
ars
afte
r th
esc
hedu
led
clos
ing
date
and
orga
niza
tiona
l str
uctu
re fo
rth
e In
dust
rial
Des
ign
Cen
ter
�Su
ppor
ting
a st
udy
of w
ays
toim
prov
e th
e de
liver
y of
lega
lse
rvic
es a
nd a
ssis
tanc
e, t
ost
reng
then
the
cap
acity
of g
ov-
ernm
ent
to s
uppo
rt t
he d
eliv
-er
y of
ser
vice
s�
Supp
ortin
g a
gran
ts p
rogr
amfo
r th
e co
mpe
titiv
e fu
ndin
g of
res
earc
h pr
ojec
ts in
the
Am
azon
reg
ion
�St
reng
then
ing
two
esta
blis
hed
rese
arch
inst
itutio
ns o
f the
Am
azon
, the
Nat
iona
l Ins
titut
efo
r A
maz
on R
esea
rch
(INPA
)in
Man
aus
and
the
Emili
oG
oeld
i Mus
eum
of P
ara
(MPE
G)
in B
elem
Sci
ence
and
Tec
hno
logy
Sub
-pr
ogr
am: P
roje
ctS
cien
ce C
ente
rsan
d D
irec
ted
Res
earc
h P
hase
1Pr
ojec
t ID
: P00
6568
TM
: Jud
ith M
. Li
sans
kyLo
an a
mou
nt:
US$
15.8
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
prom
ote
the
gene
r-at
ion
and
diss
emin
a-tio
n of
sci
entifi
ckn
owle
dge
rele
vant
to c
onse
rvat
ion
and
sust
aina
ble
deve
lop-
men
t ac
tiviti
es in
the
Am
azon
reg
ion
Braz
il
INNOVATION SYSTEMS 67
1995
Indo
nesi
a�
Supp
ortin
g fe
llow
ship
s an
d th
etr
aini
ng c
ompo
nent
s of
thr
eeel
emen
ts w
ith a
sim
ilar
rang
e of
activ
ities
but
aim
ed a
t di
ffere
ntcl
ient
gro
ups
and
subj
ect
area
s(t
he O
vers
eas
Tra
inin
g O
ffice
(OT
O),
Min
istr
y of
Fin
ance
(MO
F), a
nd S
cien
ce a
nd T
ech-
nolo
gy fo
r In
dust
rial
Dev
elop
-m
ent
(ST
AID
))�
Supp
ortin
g th
e N
atio
nal S
teer
-in
g T
eam
for
Ove
rsea
s T
rain
ing
(NA
STO
T)
com
pone
nt t
o he
lpN
AST
OT
pla
y a
mor
e ef
fect
ive
role
in fo
rmul
atin
g po
licy;
and
coor
dina
ting
and
mon
itori
ngth
e ci
vil s
ervi
ce fe
llow
ship
s an
dth
e pi
lot
prog
ram
s fo
r fr
esh
grad
uate
s
Sec
ond
P
rofe
ssio
nal
Hum
an R
eso
urce
Dev
elo
pmen
tP
roje
ctPr
ojec
t ID
: P00
3988
TM
: Chr
isto
pher
Jam
es S
mith
Loan
am
ount
:U
S$69
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
fos-
ter
econ
omic
dev
el-
opm
ent
and
indu
stri
aliz
atio
n an
dto
faci
litat
e po
licie
sof
der
egul
atio
n an
dde
cent
raliz
atio
n by
upgr
adin
g th
e
Clo
sed
2001
Scie
nce
Cen
ters
; and
(c) t
he in
trod
uctio
n of
com
petit
ive
fund
allo
catio
n sy
stem
s to
sup
port
rese
arch
pro
ject
s w
ithin
eac
h in
stitu
tion.
The
effo
rt to
upg
rade
hum
an r
esou
rces
saw
a
34 p
erce
nt in
crea
se in
the
num
ber
of P
hDs
atIN
PA a
nd a
54
perc
ent i
ncre
ase
at M
PEG
, and
at p
roje
ct c
ompl
etio
n m
ost o
f the
rem
aini
ngre
sear
ch s
taff
of b
oth
inst
itute
s w
ere
regi
s-te
red
in g
radu
ate
cour
ses.
Par
ticip
atio
n of
the
rese
arch
ers
at n
atio
nal a
nd in
tern
atio
nal s
ci-
entifi
c co
ngre
sses
was
sig
nific
antly
exp
ande
d,an
d th
e po
stgr
adua
te p
rogr
am fo
r no
nsta
ffre
sear
cher
s th
at is
pro
vide
d by
INPA
and
MPE
G w
as c
onsi
dera
bly
incr
ease
d. In
fras
truc
-tu
ral i
mpr
ovem
ents
als
o w
ere
mad
e th
at w
ere
esse
ntia
l to
the
pres
erva
tion
of t
he v
ario
ussc
ient
ific
colle
ctio
ns a
t bo
th c
ente
rs: b
oth
cent
ers
furt
herm
ore
expa
nded
thei
r co
llec-
tions
and
mod
erni
zed
and
com
pute
rize
d th
eir
man
agem
ent.
(con
tinue
d)
1996
68 WORLD BANK WORKING PAPER
Fis
cal
Pro
ject
Y
ear
Co
untr
yIn
form
atio
nP
roje
ct C
om
pone
nts
Sta
tus
Out
com
es
Expe
cted
clo
sing
date
is D
ecem
ber
2003
�St
reng
then
ing
the
teac
hing
capa
bilit
ies
of fa
culty
�U
pgra
ding
the
con
tent
of e
xist
-in
g pr
ogra
ms
in s
cien
ce a
nden
gine
erin
g an
d br
oade
n th
era
nge
of p
rogr
ams
rele
vant
to
Tha
iland
’s t
echn
olog
ical
adva
ncem
ent
�M
oder
nizi
ng la
bora
tori
es a
ndst
reng
then
ing
thei
r m
anag
e-m
ent
�Im
prov
ing
the
utili
zatio
n of
reso
urce
s in
facu
lties
of e
ngi-
neer
ing
and
scie
nce,
and
est
ab-
lishi
ng a
sys
tem
for
the
larg
e-sc
ale
proc
urem
ent
ofeq
uipm
ent
�Su
ppor
ting
proj
ect
man
age-
men
t by
fina
ncin
g of
fice
faci
li-tie
s an
d eq
uipm
ent;
the
empl
oym
ent
of lo
cal c
onsu
l-ta
nts,
sup
port
sta
ff, a
nd t
empo
-ra
ry s
taff;
and
, for
pro
ject
impl
emen
tatio
n st
aff,
shor
t-te
rm lo
cal a
nd o
vers
eas
trai
n-in
g in
man
agem
ent
tech
niqu
es
qual
ity o
f pro
fes-
sion
al, m
anag
eria
l,sc
ienc
e, a
nd t
ech-
nolo
gy s
taff
in k
eygo
vern
men
t m
in-
istr
ies
and
agen
cies
at t
he lo
cal a
ndna
tiona
l lev
els
and,
on a
lim
ited
scal
e, in
the
priv
ate
sect
orU
nive
rsit
ies
Sci
ence
and
E
ngin
eeri
ng
Edu
cati
on
Pro
ject
Proj
ect
ID: P
0048
05T
M: W
illia
m R
ees
Loan
am
ount
:U
S$14
3.4
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
impr
ove
the
qual
ityof
und
ergr
adua
tesc
ienc
e an
d en
gi-
neer
ing
prog
ram
s
Tha
iland
INNOVATION SYSTEMS 69
1996
Indo
nesi
a�
Impr
ovin
g M
STQ
ser
vice
s, a
ndup
grad
ing
and
asse
ssin
g ca
libra
-tio
n la
bora
tori
es u
nder
the
Nat
iona
l Cal
ibra
tion
Syst
em t
opr
ovid
e be
tter
ser
vice
to
R&
Dce
nter
s�
Impr
ovin
g th
e pr
ovis
ion
ofte
chno
logy
upg
radi
ng s
ervi
ces
to S
MEs
by
crea
ting
a T
echn
ol-
ogy
Serv
ices
Mat
chin
g G
rant
Sche
me
(DA
PAT
I)�
Impr
ovin
g th
e pr
oduc
tivity
of
publ
ic R
&D
inst
itutio
ns t
o pr
o-vi
de b
ette
r se
rvic
es t
o SM
Es�
Impr
ovin
g in
dust
rial
and
tec
h-no
logy
pol
icy
form
ulat
ion
Indu
stri
al
Tec
hno
logy
Dev
elo
pmen
tP
roje
ctPr
ojec
t ID
: P00
3978
TM
: Lily
Uy
Hal
eLo
an a
mou
nt:
US$
38.5
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
enha
nce
the
com
-pe
titiv
enes
s of
indu
stry
, and
par
tic-
ular
ly o
f sm
all a
ndm
ediu
m-s
ize
ente
r-pr
ises
(SM
Es)
Clo
sed
2001
The
pro
ject
ena
bled
the
gove
rnm
ent t
o ta
ke a
mor
e pr
oact
ive
stan
ce in
the
focu
sing
of i
ndus
-tr
ial t
echn
olog
y de
velo
pmen
t pol
icie
s an
d pr
o-gr
ams
such
that
they
alig
n m
ore
clea
rly
with
priv
ate
sect
or d
evel
opm
ent a
nd in
dust
rial
com
petit
iven
ess.
The
use
of t
win
ning
par
tner
sai
ded
loca
l ins
titut
ions
thro
ugh
the
tran
sfer
of
R&
D m
anag
emen
t pra
ctic
es, a
nd le
d al
so to
the
inve
stig
atio
n of
new
ave
nues
of t
echn
olog
yan
d bu
sine
ss d
evel
opm
ent a
nd o
f hum
anre
sour
ce d
evel
opm
ent (
for
exam
ple,
in th
etr
aini
ng o
f lea
ders
in R
&D
man
agem
ent)
. The
busi
ness
reo
rien
tatio
n of
the
R&
D in
stitu
tions
exce
eded
the
orig
inal
exp
ecta
tions
, not
ably
insp
irin
g so
me
inst
itutio
ns to
set
up
spin
-off
com
pani
es. I
ncom
e of
Res
earc
h an
d D
evel
op-
men
t Cen
ter
for
App
lied
Che
mis
try
from
indu
stry
incr
ease
d fr
om 2
4 pe
rcen
t to
84 p
er-
cent
dur
ing
the
proj
ect.
Ove
rall
inco
me
of th
eA
genc
y fo
r th
e A
sses
smen
t and
App
licat
ion
ofT
echn
olog
y in
crea
sed
from
10
billi
on r
upia
h(a
bout
US$
1 m
illio
n) to
15
billi
on r
upia
h(U
S$15
mill
ion)
in th
ree
year
s, a
nd R
DC
AC
’sse
lf-fin
anci
ng ju
mpe
d in
the
last
yea
r of
the
proj
ect f
rom
16
perc
ent t
o 43
per
cent
. The
inst
itutio
nal s
tren
gthe
ning
com
pone
nt o
f the
proj
ect c
ompl
eted
a s
tudy
on
the
form
ulat
ion
of a
n in
dust
rial
mas
ter
plan
and
pol
icy
that
led
to th
e cr
eatio
n of
the
Nat
iona
l Com
petit
ive-
ness
Cou
ncil,
hea
ded
by th
e C
oord
inat
ing
Min
-is
ter
for
Econ
omic
Affa
irs.
The
gov
ernm
ent
addi
tiona
lly is
pre
pari
ng a
gre
en p
aper
that
will
take
not
e of
the
disc
ussi
ons
and
deci
sion
sfr
om th
e w
orks
hop
and
that
is in
tend
ed to
serv
e as
the
polic
y gu
idan
ce fo
r fu
ture
R&
Dde
velo
pmen
t. T
he d
eepe
r ob
ject
ive
of th
isw
orks
hop
was
to p
ersu
ade
the
Min
istr
y of
Fina
nce
to r
evis
e La
w 2
0 to
allo
w b
udge
tary
flexi
bilit
y of
the
R&
D in
stitu
tes.
Ove
rall,
the
proj
ect s
erve
d th
e in
tend
ed p
urpo
se o
f hav
ing
(con
tinue
d)
1996
70 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
a de
mon
stra
tion
effe
ct, i
nflue
ncin
g th
e ov
eral
lte
chno
logy
pol
icy
and
expe
nditu
re in
the
dire
ctio
n of
com
mer
cial
izat
ion,
acc
ount
abili
ty,
and
tran
spar
ency
.A
ll of
the
47
ERC
s fin
ance
d un
der
the
proj
ect
wer
e co
nver
ted
to e
ither
a li
mite
d lia
bilit
yco
rpor
atio
n (L
LC),
a st
ock
limite
d co
rpor
a-tio
n (S
LC),
a st
ate-
owne
d en
terp
rise
(SO
E),
or w
ere
abso
rbed
as
R&
D c
ente
rs o
f oth
erLL
C/S
LC/S
OEs
. The
47
ERC
s w
ere
mos
tly in
the
field
s of
cle
an p
rodu
ctio
n an
d en
viro
n-m
enta
l pro
tect
ion
tech
nolo
gy, e
nerg
y sa
ving
tech
nolo
gy, a
nd in
form
atio
n fo
r in
dust
rial
prod
uctio
n. S
tart
ing
in 1
996,
the
Pro
ject
Offi
ce a
nd G
olde
n C
hina
Cor
pora
tion
orga
-ni
zed
(with
Ban
k as
sist
ance
) na
tiona
l ER
Cw
orks
hops
alm
ost
ever
y ye
ar, w
ith a
n av
er-
age
part
icip
atio
n of
aro
und
200,
as
wel
l as
anu
mbe
r of
stu
dy t
ours
. The
ER
Cs
addi
tiona
llyor
gani
zed
thei
r ow
n ov
erse
as a
nd d
omes
tictr
aini
ng in
man
agem
ent
and
tran
sfor
mat
ion,
with
mor
e th
an 1
60 p
eopl
e pa
rtic
ipat
ing
in36
tea
ms.
In 2
001
the
Stat
e D
evel
opm
ent
&Pl
anni
ng C
omm
issi
on o
rgan
ized
an
ERC
exhi
bit
and
an E
RC
Tec
hnol
ogy
and
Inve
st-
men
t C
onfe
renc
e at
the
Thi
rd S
henz
en H
igh
Tec
hnol
ogy
Fair
. The
ER
C fa
ir, w
hich
sho
w-
case
d so
me
200
achi
evem
ents
, rec
eive
d15
0,00
0 vi
sito
rs, a
nd 1
9 ER
Cs
sign
ed c
on-
trac
ts w
orth
a t
otal
of R
MB2
60 m
illio
n(U
S$32
mill
ion)
. The
47
ERC
s no
w e
mpl
oyab
out
6,90
0 pe
ople
, mor
e th
an 5
0 pe
rcen
t of
who
m h
ave
seni
or o
r in
term
edia
te p
rofe
s-si
onal
tit
les.
The
y ha
ve t
rans
ferr
ed s
ome
600
maj
or r
esea
rch
resu
lts, i
mpl
emen
ted
mor
e th
an 2
6,50
0 te
chno
logy
tra
nsfe
r co
n-tr
acts
, and
est
ablis
hed
som
e 60
sub
sidi
arie
s,in
clud
ing
join
t ve
ntur
es. A
ccor
ding
to
info
r-
Clo
sed
2002
�Su
ppor
ting
engi
neer
ing
rese
arch
cen
ters
(ER
Cs)
to
assi
st in
res
truc
turi
ng p
art
ofC
hina
’s R
&D
cap
abili
ty in
tom
arke
t-re
spon
sive
cor
pora
-tio
ns, w
ith t
he o
bjec
tive
ofad
aptin
g, d
evel
opin
g, a
nd
diffu
sing
tec
hnol
ogie
s�
Supp
ortin
g co
mpl
emen
tary
inve
stm
ents
in t
echn
olog
y-ba
sed
publ
ic s
ervi
ces,
suc
h as
the
mod
erni
zatio
n of
the
Nat
iona
l Ins
titut
e of
Met
rolo
gyan
d a
tech
nica
l ass
ista
nce
pro-
gram
for
a Pr
oduc
tivity
Cen
ter
Tec
hno
logy
Dev
elo
pmen
tP
roje
ctPr
ojec
t ID
: P00
3600
TL:
Lily
Uy
Hal
eLo
an a
mou
nt:
US$
200
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
sup-
port
the
gov
ern-
men
t’s r
efor
ms
inte
chno
logy
pol
icy
and
inst
itutio
ns, a
ndto
pro
mot
e th
ede
velo
pmen
t an
dad
optio
n by
indu
s-tr
y of
cle
aner
, pro
-du
ctiv
ity-e
nhan
cing
tech
nolo
gies
Chi
na
INNOVATION SYSTEMS 71
1996
Mau
ritiu
s�
Stre
ngth
enin
g th
e U
nive
rsity
of
Mau
ritiu
s (U
oM)
by: (
a) u
pgra
d-in
g st
aff a
nd fa
cilit
ies
toim
prov
e ed
ucat
ion
qual
ity;
(b)
incr
easi
ng t
he n
umbe
r of
qual
ified
gra
duat
es; (
c) im
prov
-in
g lin
ks w
ith e
mpl
oyer
s to
incr
ease
cur
ricu
lum
rel
evan
cean
d gr
adua
te m
arke
tabi
lity;
(d
) de
velo
ping
via
ble
post
-gr
adua
te e
duca
tion
and
rese
arch
pro
gram
s in
str
ateg
icar
eas;
and
(e)
enh
anci
ng t
heef
ficie
ncy
of U
oM o
pera
tions
�R
atio
naliz
ing
poly
tech
nic
educ
a-tio
n by
: (a)
impr
ovin
g th
e qu
ality
of fa
culty
, cur
ricu
la, a
nd fa
cili-
ties;
(b) s
uppo
rtin
g th
e de
velo
p-m
ent o
f bus
ines
s pr
ogra
ms
and
stre
ngth
enin
g lin
ks w
ith U
oMan
d th
e pr
ivat
e se
ctor
; and
(c
) str
engt
heni
ng th
e po
licy
and
anal
ytic
cap
acity
of t
he M
anag
e-m
ent T
rust
Fun
d (M
TF)
Hig
her
and
Tec
hnic
al
Edu
cati
on
Pro
ject
Proj
ect
ID: P
0019
23T
M: P
eter
R. M
oock
Loan
am
ount
:U
S$16
.0 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
o su
p-po
rt t
he g
over
n-m
ent’s
ter
tiary
educ
atio
n pr
ogra
mas
out
lined
in th
e19
91 E
duca
tion
Sect
or M
aste
r Pl
an(E
SMP)
, whi
ch a
imed
to p
rodu
ce th
ehu
man
res
ourc
esre
quir
ed to
sup
port
a m
ore
com
petit
ive
econ
omy
Clo
sed
1999
, 1.
8 ye
ars
ahea
d of
sche
dule
. Tot
al lo
andi
sbur
sed
was
US$
3.1
mill
ion
mat
ion
pres
ente
d by
the
GC
C, t
he a
ggre
gate
gros
s in
com
e of
ER
C p
roje
cts
was
a c
umul
a-tiv
e R
MB7
,225
mill
ion
(US$
870
mill
ion)
.A
dditi
onal
ly, t
he N
atio
nal I
nstit
ute
of M
etro
l-og
y an
d Pr
oduc
tivity
Cen
ter
wer
e es
tabl
ishe
dto
com
plem
ent t
he tr
ansf
orm
atio
n of
the
ERC
s th
roug
h im
prov
ed p
ublic
ser
vice
s. T
hein
stitu
te r
epor
ted
prog
ress
tow
ard
high
er p
ri-
mar
y st
anda
rds
of m
easu
rem
ent a
nd in
est
ab-
lishi
ng n
ew s
tand
ards
for
the
calib
ratio
n of
engi
neer
ing
para
met
ers.
The
Pro
duct
ivity
Cen
-te
r es
tabl
ishe
d an
d im
prov
ed d
atab
ases
and
web
site
s fo
r st
anda
rdiz
atio
n, q
ualit
y m
anag
e-m
ent,
serv
ice
mea
sure
men
t, an
d ex
peri
men
tal
cond
ition
s. T
o da
te, m
ore
than
2,0
00 S
MEs
have
acc
epte
d se
rvic
es fr
om th
e PC
.T
he p
roje
ct s
ucce
ssfu
lly h
elpe
d to
pro
duce
mor
e hi
gh-le
vel a
nd m
id-le
vel p
rofe
ssio
nals
,bu
t th
e ca
paci
ty o
f the
hig
her-
leve
l one
s to
rais
e th
e qu
ality
and
div
ersi
ty o
f Mau
ritiu
s’s
indu
stry
and
ser
vice
sec
tors
is u
ncer
tain
,gi
ven
that
qua
lity
impr
ovem
ents
at
UoM
wer
em
argi
nal.
In t
erm
s of
sta
ff up
grad
ing,
it w
asen
visa
ged
that
120
sta
ff w
ould
und
ergo
tra
in-
ing
to in
crea
se t
he p
erce
ntag
e of
Ph.
D.-
hold
ers
from
25
perc
ent
in 1
994
to 5
5 pe
r-ce
nt b
y 20
06. A
fter
a s
low
sta
rt a
nd t
hree
year
s of
impl
emen
tatio
n, e
ight
sta
ff m
embe
rsha
d ob
tain
ed d
octo
rate
s an
d 17
had
obt
aine
dm
aste
r’s
degr
ees.
The
dev
elop
men
t of
the
libra
ry a
nd t
he F
acul
ty o
f Eng
inee
ring
was
not
achi
eved
, as
a re
sult
of t
he n
eed
to u
nder
take
a sp
ace
audi
t an
d po
or c
omm
unic
atio
ns a
ndco
llabo
ratio
n be
twee
n th
e Ba
nk, U
oM, a
ndth
e M
inis
try
of P
ublic
Infr
astr
uctu
re. E
ffort
sto
impr
ove
labo
r m
arke
t re
leva
nce
wer
em
argi
nally
suc
cess
ful,
and
effo
rts
to e
xpan
dre
sear
ch a
nd li
nk it
with
the
str
ateg
y of
the
Mau
ritiu
s R
esea
rch
Cou
ncil
faile
d: o
nly
four
rese
arch
pro
ject
s w
ere
subm
itted
for
finan
c-
(con
tinue
d)
1996
72 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
ing
and
none
of t
hese
wen
t fo
rwar
d be
caus
eth
e go
vern
men
t w
ould
not
app
rove
the
use
of lo
an fu
nds
for
cons
umab
le m
ater
ials
. The
obje
ctiv
e of
impr
ovin
g qu
ality
and
rel
evan
cew
as a
chie
ved,
with
alm
ost
all s
taff
rece
ivin
gtr
aini
ng in
Sin
gapo
re o
r A
ustr
alia
. Wor
kai
med
at
impr
ovin
g m
anag
emen
t an
d la
bor
mar
ket
linka
ges
was
par
tially
suc
cess
ful.
The
indu
stry
–fac
ulty
adv
isor
y co
mm
ittee
s m
etre
gula
rly
and
poly
tech
nic
stud
ents
wer
e re
ad-
ily a
bsor
bed
into
the
job
mar
ket:
65 p
erce
ntof
Dro
opna
th R
amph
ul g
radu
ates
wer
eem
ploy
ed s
ix m
onth
s af
ter
grad
uatio
n. F
ive
fact
ors
prim
arily
wer
e re
spon
sibl
e fo
r th
eun
satis
fact
ory
resu
lts o
f the
pro
ject
: (a)
un-
real
istic
sta
ff de
velo
pmen
t ta
rget
s; (
b) lo
wle
vels
of c
omm
itmen
t at
UoM
; (c)
lack
of
fam
iliar
ity w
ith B
ank
proc
edur
es; (
d) p
oor
com
mun
icat
ion
betw
een
gove
rnm
ent
agen
-ci
es; a
nd (
e) r
igid
reg
ulat
ions
. At
the
requ
est
of t
he g
over
nmen
t, U
S$12
.0 m
illio
n of
the
loan
was
can
celle
d. T
he g
over
nmen
t an
d th
eBa
nk s
ubse
quen
tly a
gree
d th
at it
wou
ld b
em
ore
effic
ient
to
clos
e th
e lo
an e
arly
and
com
plet
e th
e pr
ojec
t at
a m
ore
real
istic
pac
eus
ing
the
gove
rnm
ent’s
ow
n re
sour
ces.
Ove
rall,
the
pro
ject
met
its
obje
ctiv
es: (
a) a
WT
O in
quir
y po
int
was
est
ablis
hed
and
mad
eop
erat
iona
l on
inte
rnat
iona
l and
Rus
sian
tec
h-ni
cal b
arri
ers
to t
rade
(T
BT)
in g
oods
; (ii)
aso
lid fo
unda
tion
was
laid
for
exte
ndin
g th
efu
nctio
ns o
f the
TBT
inqu
iry
poin
t to
ser
ve a
san
inqu
iry
poin
t fo
r sa
nita
ry a
nd p
hyto
sani
tary
stan
dard
s; (
c) w
ork
was
beg
un o
n th
e ha
rmo-
niza
tion
of R
ussi
an t
echn
ical
sta
ndar
ds fo
rex
port
pro
duct
s w
ith in
tern
atio
nal s
tand
ards
,w
ith a
ppro
xim
atel
y 40
per
cent
of R
ussi
anst
anda
rds
harm
oniz
ed w
ith in
tern
atio
nal s
tan-
Clo
sed
2001
, tw
o ye
ars
afte
r th
esc
hedu
led
clos
ing
date
�Su
ppor
ting
the
crea
tion
of a
Stan
dard
s En
quir
y Po
int
requ
ired
by
the
WT
O. I
t w
ould
act
as a
n el
ectr
onic
cle
arin
gho
use
and
depo
sito
ry fo
r R
uss-
ian
and
inte
rnat
iona
l sta
ndar
ds.
�Su
ppor
ting
the
harm
oniz
atio
nof
sta
ndar
ds in
a jo
int
effo
rt b
yR
ussi
an a
nd fo
reig
n ex
pert
s to
cond
uct
a ca
se-b
y-ca
se in
spec
-tio
n of
exi
stin
g st
anda
rds
in
Sta
ndar
ds
Dev
elo
pmen
tP
roje
ctPr
ojec
t ID
: P00
8837
TM
: Vla
dim
irD
rebe
ntso
vLo
an a
mou
nt:
US$
24 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
opr
omot
e no
n-
Rus
sia
INNOVATION SYSTEMS 73
area
s m
ost
prom
isin
g fo
r th
em
anuf
actu
re o
f exp
orts
�Su
ppor
ting
cert
ifica
tion
and
accr
edita
tion
by e
nabl
ing
par-
ticip
atin
g en
titie
s to
con
form
with
the
nor
ms
that
hav
e be
enes
tabl
ishe
d in
inte
rnat
iona
lag
enci
es, b
y fin
anci
ng t
he p
ro-
cure
men
t of
equ
ipm
ent
for
test
ing
cent
ers
and
supp
ortin
gan
exc
hang
e pr
ogra
m o
f Rus
s-ia
n an
d fo
reig
n ex
pert
s to
pro
-m
ote
the
mut
ual e
xcha
nge
ofin
form
atio
n an
d re
cogn
ition
,th
e ov
erse
as t
rain
ing
of t
est
engi
neer
s an
d ce
rtifi
catio
n pe
r-so
nnel
in c
ount
erpa
rt O
ECD
envi
ronm
ents
, and
acc
redi
ta-
tion
proc
edur
es
trad
ition
al e
xpor
tsby
faci
litat
ing
Rus
-si
a’s
acce
ssio
n to
the
Wor
ld T
rade
Org
aniz
atio
n(W
TO
)
dard
s by
pro
ject
com
plet
ion
(as
com
pare
d to
18 p
erce
nt a
t la
unch
); an
d (d
) m
oder
niza
tion
of t
he s
elec
ted
Rus
sian
tes
ting/
cert
ifica
tion
cent
ers
was
acc
ompl
ishe
d, fa
cilit
atin
g th
eir
inte
rnat
iona
l acc
redi
tatio
n. T
hese
suc
cess
esto
geth
er c
ontr
ibut
ed t
o th
e in
crea
sing
ope
n-ne
ss o
f Rus
sia’
s tr
ade—
in p
artic
ular
by
faci
li-ta
ting
WT
O a
cces
sion
and
har
mon
izat
ion
ofst
anda
rds—
and
to t
he p
rom
otio
n of
Rus
sia’
sno
ntra
ditio
nal m
anuf
actu
red
expo
rts.
The
proj
ect
was
less
suc
cess
ful i
n m
eetin
g its
revi
sed
obje
ctiv
e of
str
eam
linin
g th
e R
ussi
ansy
stem
of t
estin
g, c
ertifi
catio
n, a
nd a
ccre
dita
-tio
n re
quir
emen
ts fo
r im
port
s, h
owev
er, p
ri-
mar
ily b
ecau
se o
f the
rel
ativ
ely
shor
t tim
epe
riod
allo
wed
for
this
rev
ised
pro
ject
and
low
gov
ernm
ent
com
mitm
ent
to li
bera
lizat
ion
in t
his
area
. Aft
er c
ompl
etio
n of
the
pro
ject
in m
id-2
001,
the
pus
h fo
r ra
dica
l cha
nges
inth
is a
rea
cam
e fr
om a
n ac
cele
ratio
n to
war
dW
TO
acc
essi
on. A
men
ding
dom
estic
law
s on
stan
dard
s an
d te
chni
cal r
egul
atio
ns a
nd c
erti-
ficat
ion
proc
edur
es t
o br
ing
them
into
con
-fo
rmity
with
WT
O r
equi
rem
ents
bec
ame
apr
iori
ty in
the
gov
ernm
ent
plan
of l
egal
wor
kfo
r W
TO
acc
essi
on t
hat
was
app
rove
d in
Aug
ust
2001
. The
dra
ft la
w o
n te
chni
cal r
egu-
latio
ns s
ubm
itted
to
the
cabi
net
in M
arch
2002
env
isag
es a
dra
mat
ic r
educ
tion,
from
abou
t 20
,000
to
100,
in t
he n
umbe
r of
sta
n-da
rds
cont
aini
ng m
anda
tory
req
uire
men
ts.
Like
wis
e, a
flex
ible
sys
tem
of c
onfo
rmity
com
plia
nce
will
sub
stitu
te fo
r th
e cu
rren
tm
anda
tory
pre
mar
ket
cert
ifica
tion
by a
thi
rdpa
rty
of t
he b
ulk
of g
oods
sol
d on
the
dom
es-
tic m
arke
t. T
hese
pro
ject
obj
ectiv
es m
ay t
hus
be r
ealiz
ed a
t a
late
r st
age.
(con
tinue
d)
1997
1998
74 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
ICR
not
ava
ilabl
e
ICR
not
ava
ilabl
e
In p
rogr
ess
In p
rogr
ess
�Su
ppor
ting
qual
ity im
prov
e-m
ent
thro
ugh
finan
cing
an
inst
i-tu
tiona
l dev
elop
men
t pr
ogra
m,
incl
udin
g ov
erse
as a
nd in
-co
untr
y tr
aini
ng, s
tudy
tou
rs,
and
fello
wsh
ip p
rogr
ams
tora
ise
teac
her
qual
ifica
tions
�A
ssis
ting
the
purc
hase
of e
quip
-m
ent,
furn
iture
, and
tea
chin
gm
ater
ials
to
upgr
ade
scie
nce
and
lang
uage
faci
litie
s�
Supp
ortin
g th
e fin
anci
ng o
f civ
ilw
orks
pro
ject
s th
at w
ill r
eha-
bilit
ate
sele
cted
pri
mar
y an
dse
cond
ary
scho
ols
(to
incl
ude
the
fund
ing
of e
quip
men
t-re
late
d O
&M
, pro
ject
man
age-
men
t, an
d m
onito
ring
and
eval
uatio
n). T
he s
elec
tion
ofpr
ojec
t sc
hool
s is
str
ongl
y or
ient
ed t
owar
d ru
ral a
reas
�Im
prov
ing
the
lega
l and
reg
ula-
tory
fram
ewor
k by
pre
pari
ngIP
R-r
elat
ed la
ws
and
regu
la-
tions
, car
ryin
g ou
t po
licy
stud
ies,
and
str
engt
heni
ng t
hesk
ills
of g
over
nmen
t st
aff
�Ex
pand
ing
the
S&T
net
wor
k of
rese
arch
ers
by p
rovi
ding
the
Sec
ond
ary
Edu
cati
on
Qua
lity
Impr
ove
men
tP
roje
ctPr
ojec
t ID
: P04
2259
TM
: n/a
Loan
am
ount
:U
S$19
4.7
mill
ion
Dev
elop
men
tO
bjec
tive
:To
help
rais
e th
e qu
ality
of
seco
ndar
y ed
ucat
ion
in s
cien
ce, m
athe
-m
atic
s, a
nd E
nglis
h.Sp
ecifi
cally
, (a)
tora
ise
the
qual
ity o
fin
-ser
vice
teac
her
trai
ning
in th
e th
ree
criti
cal s
ubje
ct a
reas
;an
d (b
) to
upgr
ade
the
qual
ity o
f pri
-m
ary
and
seco
ndar
ysc
hool
s th
roug
hpr
ovis
ion
of m
oder
nsc
ienc
e an
d la
ngua
getr
aini
ng e
quip
men
tan
d la
bora
tory
fa
cilit
ies
Info
rmat
ion
Infr
astr
uctu
reD
evel
opm
ent
Pro
ject
Proj
ect
ID: P
0421
69T
M: R
ober
tSc
hwar
e
Tha
iland
Indo
nesi
a
INNOVATION SYSTEMS 75
1998
Braz
il
S&T
com
mun
ity w
ith m
ore
cost
-effe
ctiv
e ac
cess
to
R&
Dth
roug
h an
exp
ansi
on o
fIP
TEK
net
�Ex
pand
ing
com
mun
icat
ions
and
info
rmat
ion
netw
orks
, pos
tal
serv
ices
, and
tou
rism
�Su
ppor
ting
tech
nolo
gy d
evel
op-
men
t by
sup
port
ing
coop
era-
tive
prec
ompe
titiv
e re
sear
chai
med
at
fost
erin
g pa
rtne
rshi
psam
ong
indu
stri
es, u
nive
rsiti
es,
tech
nolo
gica
l ins
titut
es, a
ndgo
vern
men
t ag
enci
es; b
y su
p-po
rtin
g a
mat
chin
g gr
ant
faci
l-ity
, pro
vidi
ng t
wo
type
s of
gran
t pr
ogra
ms:
pub
licly
led
coop
erat
ive
proj
ects
to
fost
erpa
rtne
rshi
ps b
etw
een
the
pub-
lic a
nd p
riva
te s
ecto
rs fo
r th
efin
anci
ng a
nd e
xecu
tion
ofR
&D
, and
pri
vate
ly le
d co
oper
-at
ive
proj
ects
to
fost
er c
oope
r-at
ion
betw
een
indi
vidu
al fi
rms
and
publ
ic s
ecto
r R
&D
ent
ities
,w
ith t
he p
urpo
se o
f pro
duci
ngpr
opri
etar
y R
&D
out
puts
; and
by a
ssis
ting
tech
nolo
gy a
dop-
tion
by S
MEs
to
enha
nce
thei
rca
paci
ty t
o in
nova
te�
Supp
ortin
g S&
T r
esea
rch
byaw
ardi
ng g
rant
s fo
r sc
ient
ific
rese
arch
and
for
deve
lopi
ngre
gion
al S
&T
cap
acity
Loan
am
ount
:U
S$34
.5 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oen
hanc
e pr
ivat
ese
ctor
par
ticip
atio
nin
the
pro
visi
on o
fIT
, pos
tal,
and
tour
ism
ser
vice
s,th
roug
h th
ere
mov
al o
f bar
rier
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ent
ryS
cien
ce a
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echn
olo
gyR
efo
rm S
uppo
rt(P
AD
CT
III
) P
roje
ctPr
ojec
t ID
: P03
8947
TM
: Alc
yone
Sal
iba
Loan
am
ount
:U
S$15
5 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oim
prov
e th
e ov
eral
lpe
rfor
man
ce o
f the
scie
nce
and
tech
-no
logy
sec
tor
byun
dert
akin
g ac
tivi-
ties
that
pro
mot
esc
ient
ific
rese
arch
and
tech
nolo
gica
lin
nova
tion
in a
nef
ficie
nt m
anne
r
In p
rogr
ess
ICR
not
ava
ilabl
e
(con
tinue
d)
1999
76 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
In p
rogr
ess
�Fu
ndin
g se
ctor
al s
uppo
rt a
ctiv
i-tie
s to
pro
vide
: (a)
sup
port
to
wor
king
gro
ups
invo
lved
with
sect
oral
ref
orm
; (b)
sup
port
for
the
impr
ovem
ent
of s
ec-
tora
l mon
itori
ng a
nd e
valu
atio
nto
enh
ance
the
qua
lity,
cov
er-
age,
and
acc
essi
bilit
y of
info
r-m
atio
n ab
out
the
perf
orm
ance
of t
he S
&T
sec
tor;
(c)
sup
port
for
the
adm
inis
teri
ng a
nden
forc
emen
t of
the
IPR
reg
ime;
(d)
supp
ort
for
met
rolo
gy a
ndst
anda
rds
serv
ices
; and
(e)
sup
-po
rt fo
r an
inte
rim
fund
to
pro-
vide
for
the
mai
nten
ance
of
scie
ntifi
c eq
uipm
ent
�Pr
ovid
ing
a po
licy
fram
ewor
kan
d su
ppor
ting
capa
city
bui
ldin
gth
roug
h: (a
) enh
ance
men
t of t
hele
gal a
nd r
egul
ator
y fr
amew
ork;
(b) p
olic
y an
d in
stitu
tiona
l cap
ac-
ity b
uild
ing;
(c) e
stab
lishm
ent o
fa
man
agem
ent i
nfor
mat
ion
sys-
tem
; and
(d) p
rom
otio
n of
tech
-ni
cal t
rain
ing
�Pr
ovid
ing
tech
nica
l ass
istan
ce to
he
lp e
stab
lish
min
imum
stan
dard
s an
d ac
cept
able
, rec
ogni
zed
leve
ls in
edu
catio
nal s
ervi
ces
�Su
ppor
ting
inst
itutio
nal fi
nanc
-in
g an
d st
uden
t ai
d st
udie
s by
:(a
) es
tabl
ishi
ng a
pol
icy
for
pub-
lic fu
ndin
g; (
b) in
crea
sing
acco
unta
bilit
y an
d de
velo
ping
an in
stitu
tion-
build
ing
fund
ing
met
hodo
logy
; and
(c)
est
ablis
h-in
g a
com
petit
ive
fund
to
pro-
mot
e qu
ality
and
rel
evan
ce
Hig
her
Edu
cati
on
Impr
ove
men
tP
roje
ctPr
ojec
t ID
: P05
5481
TM
: Lau
ritz
Hol
m-
Nie
lsen
Loan
am
ount
:U
S$14
5.45
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
impr
ove
the
perf
or-
man
ce o
f the
hig
her
educ
atio
n sy
stem
inte
rms
of it
s co
her-
ence
and
effi
cien
cy,
qual
ity a
nd r
ele-
vanc
e, a
nd e
quity
Chi
le
INNOVATION SYSTEMS 77
1999
Mex
ico
�Su
ppor
ting
S&T
res
earc
h by
stim
ulat
ing
rese
arch
in fi
elds
with
sci
entifi
c, e
cono
mic
,an
d/or
soc
ial i
mpo
rtan
ce (
with
an e
mph
asis
on
prom
otin
gqu
ality
in r
esea
rch,
con
solid
at-
ing
and
impr
ovin
g pe
er r
evie
w,
prom
otin
g pa
rtic
ipat
ory
plan
-ni
ng, i
mpr
ovin
g hu
man
reso
urce
s tr
aini
ng, a
nd in
te-
grat
ing
youn
g re
sear
cher
s in
the
syst
em);
and
thro
ugh
inst
i-tu
tiona
l str
engt
heni
ng o
f the
Proj
ect
Dep
uty
Dir
ecto
rate
of
Sci
entifi
c M
anag
emen
tR
esea
rch
of N
atio
nal S
cien
cean
d T
echn
olog
y C
ounc
il,sp
ecifi
cally
in t
he a
reas
of m
on-
itori
ng, e
valu
atio
n, a
nd s
trat
egy
�Su
ppor
ting
join
t ac
tion
betw
een
univ
ersi
ties/
publ
icre
sear
ch in
stitu
tes
and
the
pri-
vate
sec
tor
by: (
a) r
estr
uctu
r-in
g pu
blic
S&
T in
stitu
tes
toin
crea
se c
ost
reco
very
whi
leim
prov
ing
clie
nt o
rien
tatio
nan
d th
e ef
fect
iven
ess
of s
ervi
cepr
ovis
ion
in s
uppo
rt o
f ind
us-
try;
(b)
mat
chin
g gr
ants
for
join
t in
dust
ry–a
cade
mia
pro
-je
cts;
(c)
pro
vidi
ng t
echn
ical
assi
stan
ce t
o in
stitu
tiona
l uni
-ve
rsiti
es t
o cr
eate
and
stre
ngth
en u
nive
rsity
out
reac
hof
fices
�Su
ppor
ting
the
prod
uctiv
ity a
ndco
mpe
titiv
enes
s of
firm
s, p
ar-
ticul
arly
SM
Es, t
hrou
gh (
a) a
tech
nolo
gy m
oder
niza
tion
pro-
gram
to
assi
st t
he u
pgra
ding
of
Kno
wle
dge
and
Inno
vati
on
Pro
ject
Proj
ect
ID: P
0445
31T
M: D
anie
l C
risa
fulli
Loan
am
ount
:U
S$30
0 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
opr
omot
e th
e ge
ner-
atio
n, d
iffus
ion,
and
appl
icat
ion
ofkn
owle
dge
for
inno
-va
tion
in s
uppo
rt o
fec
onom
ic a
nd s
ocia
lde
velo
pmen
t, w
ithem
phas
is o
n th
est
imul
atio
n of
link
-ag
es a
nd t
he e
ffec-
tive
diffu
sion
of
know
ledg
e fo
r in
nova
tion
In p
rogr
ess
(con
tinue
d)
2000
78 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
The
sec
ond
Indu
stri
al T
echn
olog
y Pr
ojec
t in
Tur
key
has
been
ver
y su
cces
sful
and
wel
l-re
ceiv
ed t
hus
far.
The
pro
ject
is a
follo
w-u
pto
the
firs
t T
echn
olog
y D
evel
opm
ent
Proj
ect.
It c
ontin
ues
to s
uppo
rt U
ME,
tra
nsfo
rmin
g it
into
a w
orld
-cla
ss m
etro
logy
inst
itutio
n ca
pa-
ble
of m
eetin
g 80
–90
perc
ent
of T
urki
shin
dust
ry’s
met
rolo
gy n
eeds
tod
ay, a
nd t
heT
echn
olog
y D
evel
opm
ent
Foun
datio
n of
Tur
key,
a p
riva
tely
-man
aged
NG
O s
et u
p as
a
publ
ic-p
riva
te p
artn
ersh
ip. T
he T
TG
V, i
nad
ditio
n to
its
orig
inal
tec
hnol
ogy
finan
cing
man
date
(it
has
finan
ced
abou
t 20
0 pr
ojec
ts),
has
beco
me
a ca
taly
st in
sup
port
ing
VC
fund
s(t
wo
VC
Cs
wer
e se
t up
with
TT
GV
’s e
quity
part
icip
atio
n) a
nd a
lso
supp
orts
tw
ote
chno
park
s (it
has
add
ed a
mat
chin
g gr
ant
sche
me
to it
s op
erat
ions
). T
his
proj
ect
is a
lso
sett
ing
up t
wo
inno
vatio
n ce
nter
s an
d a
star
t-up
cap
ital f
und.
In a
dditi
on, i
ts c
ompe
titiv
eT
echn
olog
y Su
ppor
t Se
rvic
es (
TSS
) gr
ant
sche
me
has
bene
fited
abo
ut 6
00 S
MEs
. The
TT
GV
has
dev
elop
ed in
to a
div
erse
tec
hnol
-og
y fin
anci
ng in
stitu
tion
and
has
chan
ged
the
entir
e te
chno
logy
fina
ncin
g cu
lture
in T
urke
y.M
ost
of it
s pr
ojec
ts h
ave
resu
lted
in t
he c
om-
mer
cial
izat
ion
of R
&D
out
puts
. The
Pro
ject
has
also
sup
port
ed t
he r
estr
uctu
ring
of t
hene
twor
k of
Tur
kish
RD
Is a
nd t
he r
econ
figur
a-
In p
rogr
ess.
Expe
cted
clo
sing
isD
ecem
ber
2004
SMEs
via
a m
atch
ing
gran
tsc
hem
e ad
min
iste
red
by a
dece
ntra
lized
net
wor
k of
loca
lag
ents
; and
(b)
pri
vate
regi
onal
/sec
tora
l ins
titut
iona
lte
chno
logy
sup
port
cen
ters
that
aim
to
stre
ngth
en a
nd p
ro-
mot
e th
e cr
eatio
n of
dem
and-
driv
en s
ervi
ces
�St
reng
then
ing
of IP
R s
ervi
ces;
spec
ifica
lly, b
y as
sist
ing
harm
o-ni
zatio
n of
Tur
key’
s IP
R r
egim
ew
ith b
uild
ing,
WT
O, a
nd E
CU
stan
dard
s�
Stre
ngth
enin
g of
met
rolo
gyse
rvic
es t
hrou
gh in
vest
men
ts in
infr
astr
uctu
re, w
ith t
he g
oals
of
serv
ing
a la
rger
sec
tion
ofT
urki
sh in
dust
ry a
nd g
aini
ngth
e ac
cept
ance
of E
urop
ean
bodi
es.
�Su
ppor
ting
the
rest
ruct
urin
g of
R&
D in
stitu
tions
to
mak
e th
emm
ore
indu
stry
-ori
ente
d�
Supp
ortin
g te
chno
logy
upgr
ades
and
inno
vatio
n by
smal
l firm
s by
pro
vidi
ng m
atch
-in
g lo
ans
for
tech
nolo
gy d
evel
-op
men
t, pr
omot
ing
good
s, a
ndpr
omot
ing
info
rmat
ion
diss
emi-
natio
n to
SM
Es; a
nd b
y ex
plor
-in
g th
e po
ssib
ilitie
s of
tech
nolo
gy s
ervi
ce c
ente
rs,
vent
ure
capi
tal,
and
Tec
hnop
arks
.
Indu
stri
al T
ech-
nolo
gy P
roje
ctPr
ojec
t ID
: P00
9073
TM
: Vin
od K
. Goe
lLo
an a
mou
nt:
US$
155
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
assi
st in
the
har
mo-
niza
tion
of t
hedo
mes
tic t
echn
ol-
ogy
infr
astr
uctu
rew
ith E
urop
ean
Cus
-to
ms
Uni
on (
ECU
)st
anda
rds;
and
to
help
firm
s up
grad
eth
eir
tech
nolo
gica
lca
pabi
litie
s to
impr
ove
the
com
-pe
titiv
enes
s of
indu
stry
, bot
h at
hom
e an
d ov
erse
as
Tur
key
INNOVATION SYSTEMS 79
2000
Chi
le�
Supp
ortin
g m
anag
emen
t st
ruc-
ture
(th
e M
SI D
irec
tora
te)
thro
ugh
the
esta
blis
hmen
t an
dop
erat
ion
of a
boa
rd o
f dir
ec-
tors
, pro
gram
com
mitt
ees,
and
an Im
plem
enta
tion
and
Man
agem
ent
Uni
t (IM
U)
�Su
ppor
ting
mon
itori
ng a
ndev
alua
tion
stud
ies
by fi
nanc
ing
stud
ies,
pub
licat
ions
, rem
uner
-at
ion
of p
rogr
am c
omm
ittee
san
d IM
U p
erso
nnel
, and
adm
in-
istr
ativ
e co
sts
�Su
ppor
ting
com
petit
ive
fund
ing
for
scie
ntifi
c ex
celle
nce
in p
ro-
ject
s to
car
ry o
ut s
cien
tific
rese
arch
; doc
tora
l and
pos
t-do
ctor
al t
rain
ing
prog
ram
s/op
port
uniti
es; a
nd n
etw
orki
ng,
outr
each
, and
oth
er a
ctiv
ities
aim
ed a
t pr
omot
ing
scie
ntifi
cex
celle
nce
�Pr
omot
ing
scie
ntifi
c ex
celle
nce
thro
ugh
rese
arch
vis
its t
oes
tabl
ish
form
al a
nd in
form
alco
nnec
tions
to
top
cent
ers
and
inst
itutio
ns; p
rogr
ams
for
the
exch
ange
of r
esea
rche
rs a
ndpo
st-g
radu
ate
and
grad
uate
stud
ents
; the
des
ign
and
deliv
-
Mill
enni
um
Sci
ence
Ini
tiat
ive
(MS
I)Pr
ojec
t ID
: P06
3386
TM
: Lau
ritz
Hol
m-
Nie
lsen
Loan
am
ount
:U
S$5.
0 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
oim
prov
e pe
rfor
-m
ance
in th
e sc
ienc
ean
d te
chno
logy
sec
-to
r by
sup
port
ing
the
adva
nced
trai
n-in
g of
Chi
lean
sci
en-
tists
by
wor
ld-c
lass
scie
ntis
ts e
ngag
ed in
cu
ttin
g-ed
gere
sear
ch
Clo
sed
2002
tion
of M
AM
(a
grou
p of
eig
ht le
adin
g R
DIs
),an
d ha
s im
prov
ed t
he IP
R r
egim
e th
roug
h th
est
reng
then
ing
of t
he T
urki
sh P
aten
t In
stitu
te(T
PE).
MA
M h
as in
crea
sed
its c
ontr
actu
alre
sear
ch b
ase,
and
was
abo
ut 4
9 pe
rcen
t se
lf-su
ffici
ent
in 2
003,
tar
getin
g 65
–70
perc
ent
self-
suffi
cien
cy b
y 20
06. T
he IP
R r
egim
e is
impr
ovin
g its
alig
nmen
t w
ith E
CU
and
WT
Ore
quir
emen
ts a
nd T
PE is
dev
elop
ing
into
an
inte
rnat
iona
l-lev
el in
stitu
tion.
Scie
nce
and
tech
nolo
gy is
rec
eivi
ng in
crea
sed
atte
ntio
n by
the
GoC
and
oth
er g
over
nmen
tsin
the
regi
on. T
he p
roje
ct h
as e
stab
lishe
d a
fair
, ope
n, a
nd m
erit-
base
d se
lect
ion
proc
ess
whi
ch h
ave
been
ack
now
ledg
ed a
nd a
ccep
ted
by th
e sc
ient
ific
rese
arch
com
mun
ity. T
he p
ro-
ject
has
impr
oved
the
prod
uctiv
ity o
f Chi
le’s
top
rese
arch
ers.
Opp
ortu
nitie
s fo
r an
d th
equ
ality
of a
dvan
ced
trai
ning
hav
e in
crea
sed.
Ase
vera
l for
ms
of c
olla
bora
tion
incr
ease
d si
gnifi
-ca
ntly
und
er th
e pr
ojec
t’s a
uspi
ces.
A m
onito
r-in
g an
d ev
alua
tion
base
is b
eing
bui
lt w
hich
can
serv
e as
a p
latfo
rm fo
r im
prov
ed S
&T
pol
icy.
A li
ght a
nd e
ffect
ive
adm
inis
trat
ive
stru
ctur
efo
r sc
ienc
e fu
ndin
g w
as e
stab
lishe
d. T
his
stru
c-tu
re in
clud
es th
e Bo
ard
of D
irec
tors
, cha
ired
by th
e M
inis
ter
of P
lann
ing,
a P
rogr
am C
om-
mitt
ee c
ompr
ised
of i
nter
natio
nally
-rec
ogni
zed
scie
ntis
ts, a
nd a
n Ex
ecut
ive
Secr
etar
iat s
taffe
dby
com
pete
nt a
nd r
espe
cted
per
sonn
el.
Soon
afte
r pr
ojec
t ef
fect
iven
ess,
the
firs
tro
und
of c
ompe
titiv
e fu
ndin
g w
as v
ery
effi-
cien
tly c
ompl
eted
. Thr
ee s
cien
tific
inst
itute
san
d fiv
e sc
ient
ific
nucl
ei (s
elec
ted
from
amon
gst
75 a
pplic
ants
) wer
e es
tabl
ishe
d an
dar
e op
erat
ing
for
two
year
s.O
ver
150
key
rese
arch
wor
kers
incl
udin
gso
me
of t
he b
est
Chi
lean
sci
entis
ts, a
redi
rect
ly fu
nded
und
er t
he In
stitu
tes
and
Nuc
lei g
rant
s. T
hese
incl
ude
66 g
radu
ate
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tinue
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2000
2001
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Fis
cal
Pro
ject
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Co
untr
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form
atio
nP
roje
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om
pone
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ents
(32
fina
nced
fully
by
the
MSI
and
34
par
tially
fund
ed)
and
25 p
ost-
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fe
llow
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plem
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47
PhD
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ere
gran
ted
to t
hefin
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d gr
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tude
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In p
rogr
ess
In p
rogr
ess
ery
of in
tern
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nal a
dvan
ced
cour
ses;
and
the
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sem
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o fin
ance
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e re
mu-
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of r
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stu
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s, a
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atio
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Impr
ovin
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achi
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arni
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enh
anci
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he q
ualit
y of
unde
rgra
duat
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ienc
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den
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ogra
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�U
sing
par
tner
ship
s an
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t-w
orks
to
exte
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efor
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toth
e w
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rtne
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tions
in p
oor
or in
acce
ssib
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�Su
ppor
ting
inst
itutio
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apac
-ity
for
chan
ge b
y st
reng
then
ing
inst
itutio
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lann
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inis
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tral
coo
rdi-
natio
n, a
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anag
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�D
evel
opin
g ef
fect
ive
and
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u-si
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usin
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ters
, by
(a)
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ing
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lust
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and
ben
chm
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entif
ying
cros
s-cl
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sine
ss e
nvir
on-
men
t co
nstr
aint
s an
d re
form
Hig
her
Edu
cati
on
Ref
orm
Pro
ject
Proj
ect
ID: P
0460
51T
M: H
ena
Muk
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an a
mou
nt:
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Dev
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pmen
tO
bjec
tive
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ityan
d re
leva
nce
ofun
derg
radu
ate
basi
csc
ienc
e an
d en
gi-
neer
ing
prog
ram
sth
roug
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tegr
ated
refo
rms
in c
urri
cu-
lum
and
tea
chin
gm
etho
dolo
gy
Co
mpe
titi
vene
ssL
earn
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and
Inno
vati
on
Lo
anP
roje
ctPr
ojec
t ID
: P07
0016
TM
: Mic
hael
aW
eber
Chi
na
Nic
arag
ua
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2001
Ven
ezue
la
prop
osal
s; (
c) im
prov
ing
the
prod
ucti
vity
, qua
lity,
and
effic
ienc
y of
the
sec
tors
re
pres
ente
d in
the
clu
ster
s;
(d)
cont
inui
ng t
he b
road
pro
-m
otio
n an
d di
ssem
inat
ion
ofan
d tr
aini
ng in
the
met
hodo
l-og
y; a
nd (
e) e
stab
lishi
ng c
lust
erin
form
atio
n ne
twor
ks�
Pilo
ting
refo
rms
for
com
peti-
tiven
ess
polic
ies,
inst
itutio
ns,
and
adm
inis
trat
ive
proc
edur
esre
late
d to
pri
vate
sec
tor
deve
l-op
men
t by
str
engt
heni
ng t
hepa
rtic
ipat
ion
of t
he p
riva
te
sect
or in
pol
icy
refo
rm�
Incr
easi
ng m
anag
emen
t ca
pac-
ity t
o de
velo
p a
cons
ensu
s on
com
petit
iven
ess
polic
y w
ithpu
blic
–pri
vate
par
tner
ship
s�
Supp
ortin
g ca
paci
ty b
uild
ing
ofth
e ne
w M
inis
try
of S
cien
ce a
ndT
echn
olog
y th
roug
h as
sist
ing
the
esta
blis
hmen
t an
d op
era-
tions
of t
he b
oard
of d
irec
tors
,th
e pr
ogra
m c
omm
ittee
, and
the
Impl
emen
tatio
n an
d M
an-
agem
ent
Uni
t (IM
U);
prov
idin
gte
chni
cal a
ssis
tanc
e in
sel
ectio
nof
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Cen
ters
of E
xcel
lenc
e(C
Es) a
nd N
ucle
i for
Exc
elle
ntR
esea
rch
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); as
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ing
deve
l-op
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t of
a p
ropo
sal t
o sc
ale
up a
nd in
stitu
tiona
lize
the
pro-
ject
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ass
istin
g M
&E
stud
ies.
Und
er t
his
com
pone
nt t
he p
ro-
gram
will
fina
nce
stud
ies,
pub
li-ca
tions
, the
rem
uner
atio
n of
the
prog
ram
com
mitt
ee a
nd t
heIM
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per
sonn
el, a
nd a
dmin
is-
trat
ive
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Am
ount
: U
S$5.
0 m
illio
nD
evel
opm
ent
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ecti
ve:T
o te
stpr
ivat
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blic
par
t-ne
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ps fo
r th
eir
abili
ty t
o de
velo
pco
nsen
sus
and
intr
oduc
e re
form
on b
usin
ess
envi
-ro
nmen
t is
sues
; and
to p
ilot
sust
aina
ble
IT-b
ased
bus
ines
sde
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pmen
t se
r-vi
ces
(BD
Ss)
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enni
um
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ence
Ini
tiat
ive
Proj
ect
ID: P
0667
49T
M: L
auri
tz B
.H
olm
-Nie
lson
Loan
am
ount
: U
S$5
mill
ion
Dev
elo
pmen
tO
bjec
tive
:To
stre
ngth
en R
&D
capa
city
so
that
the
coun
try
can
gain
acce
ss t
o gl
obal
know
ledg
e an
dim
prov
e its
kno
wl-
edge
bas
e in
are
asth
at a
re k
ey t
o its
econ
omic
and
soci
al d
evel
opm
ent;
and
to d
emon
stra
te
In p
rogr
ess
(con
tinue
d)
2002
82 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
In p
rogr
ess
�Su
ppor
ting
the
com
petit
ive
fund
for
scie
ntifi
c ex
celle
nce
by a
ssis
ting
the
fund
ing
ofre
sear
ch p
roje
cts
at t
he t
hree
CEs
and
8–1
2 N
ERs
�Su
ppor
ting
the
netw
ork
for
the
prom
otio
n of
sci
entifi
cex
celle
nce
�Es
tabl
ishi
ng, r
etro
fittin
g, a
ndeq
uipp
ing
the
mai
n G
DLN
cen
-te
r an
d th
e th
ree
subc
ente
rs.
The
GD
LN c
ente
r w
ill in
clud
e a
vide
o co
nfer
enci
ng r
oom
with
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son
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for
sync
hro-
nous
vid
eo in
tera
ctio
n (v
ideo
,da
ta, a
nd v
oice
exc
hang
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twee
n lo
cal p
artic
ipan
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rem
ote
cour
se in
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ctor
s,
and
inte
rnat
iona
l par
ticip
ants
�Su
ppor
ting
the
oper
atio
n of
th
e ce
nter
and
sub
cent
ers
by(a
) fin
anci
ng o
pera
tion
cost
s on
a d
ecre
asin
g ba
sis
over
the
four
yea
rs o
f im
plem
enta
tion;
(b)
prov
idin
g te
chni
cal a
ssis
-ta
nce
for
the
trai
ning
of D
is-
tanc
e Le
arni
ng C
ente
r st
aff,
peri
odic
eva
luat
ion
of t
heir
O&
M e
ffect
iven
ess,
and
est
ab-
lishm
ent
of fi
nanc
ial a
ccou
nts
and
an a
nnua
l aud
it; (
c) p
rovi
d-in
g fu
nds
for
the
spon
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ngan
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velo
pmen
t of
loca
lco
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con
tent
and
par
tner
-sh
ips;
and
(d)
fina
ncin
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tech
-no
logy
rev
iew
and
upg
rade
the
effe
ctiv
enes
s of
tran
spar
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mer
it-ba
sed
allo
catio
npr
oced
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inve
stig
ator
aut
on-
omy
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prov
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qual
ity a
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cy o
f sci
entifi
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ch a
nd tr
aini
ng
Glo
bal D
ista
nce
Lea
rnin
g N
et-
wo
rk P
roje
ctPr
ojec
t ID
: P07
3970
TM
: Jer
ry G
. St
rudw
ick
Loan
am
ount
:U
S$2.
6 m
illio
nD
evel
opm
ent
Obj
ecti
ve:T
o te
stth
e po
tent
ial e
ffec-
tiven
ess
and
sus-
tain
abili
ty o
f the
Glo
bal D
evel
op-
men
t Le
arni
ng N
et-
wor
k (G
DLN
); an
dto
dev
elop
app
ro-
pria
te t
echn
olog
ies
to li
nk t
he Ja
kart
a-ba
sed
GD
LN c
ente
rto
thr
ee r
egio
nal
univ
ersi
ty c
ente
rs in
the
wes
tern
, cen
-tr
al, a
nd e
aste
rnre
gion
s
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nesi
a
INNOVATION SYSTEMS 83
2002
2003
Arm
enia
Egyp
t
�Pr
ovid
ing
tele
com
mun
icat
ions
infr
astr
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re a
nd o
ffice
spa
cefo
r le
ase
to IT
and
hig
h-te
chco
mpa
nies
alr
eady
ope
ratin
g or
fina
nced
for
star
t-up
�Pr
ovid
ing
busi
ness
dev
elop
-m
ent
serv
ices
to
clie
nts,
mos
tlylo
cally
ow
ned
soft
war
e co
mpa
-ni
es w
ith t
ypic
ally
poo
r m
an-
agem
ent
and
mar
ketin
g sk
ills.
A
Bus
ines
s Se
rvic
es C
ente
r w
illes
tabl
ish
busi
ness
con
nect
ions
betw
een
loca
l IT
com
pani
es,
fore
ign
inve
stor
s, a
nd c
lient
s�
Prov
idin
g on
-dem
and
tech
nica
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aini
ng fo
r In
cuba
tor
tena
nts
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for
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r cl
ient
s, in
clud
ing
univ
ersi
ty u
nder
grad
uate
and
grad
uate
stu
dent
s, a
t a
skill
sde
velo
pmen
t fa
cilit
y. T
his
com
-po
nent
will
als
o pr
ovid
e en
tre-
pren
eurs
hip
gran
ts t
o IT
prof
essi
onal
s an
d st
uden
ts t
ohe
lp t
hem
tur
n th
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idea
s in
tobu
sine
sses
�Su
ppor
ting
IT b
usin
ess
surv
eys
to b
iann
ually
mon
itor
the
regu
-la
tory
env
iron
men
t fo
r th
e IT
clus
ter
firm
s
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ppor
ting
gove
rnm
ent
effo
rts
to r
estr
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re s
yste
m g
over
-na
nce
and
man
agem
ent
such
that
con
ditio
ns e
nabl
e gr
eate
rse
ctor
effi
cien
cy a
nd q
ualit
y.Sp
ecifi
c ac
tiviti
es t
o be
sup
-po
rted
incl
ude:
(a)
ref
orm
of
legi
slat
ion
gove
rnin
g hi
gher
Ent
erpr
ise
Incu
bato
r P
roje
ctPr
ojec
t ID
: P04
4852
TM
: Vla
dim
ir G
.K
reac
icLo
an a
mou
nt:
US$
5.0
mill
ion
Dev
elop
men
tO
bjec
tive
:To
pro-
vide
a d
emon
stra
-tio
n ef
fect
of
com
pany
form
atio
nin
an
inho
spita
ble
busi
ness
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iron
-m
ent;
to p
rovi
de
a de
mon
stra
tion
effe
ct o
f the
pos
itive
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ct o
f for
eign
dire
ct in
vest
men
t(F
DI)
in t
he IT
indu
stry
; and
to
pilo
t de
man
d-dr
iven
mec
hani
sms
for
the
cont
inuo
us u
pgra
d-in
g of
IT s
kills
of
prof
essi
onal
s, t
hird
-ye
ar s
tude
nts,
and
wor
k fo
rce
and
ente
rpri
se m
anag
ers
and
empl
oyee
s
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her
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cati
on
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ance
men
tP
roje
ctPr
ojec
t ID
: P05
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nt:
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illio
n
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rogr
ess
Und
er p
repa
ratio
n
(con
tinue
d)
2003
84 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
utco
mes
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er p
repa
ratio
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educ
atio
n; (
b) r
atio
naliz
atio
n of
fund
ing
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catio
n m
echa
nism
s;(c
) es
tabl
ishm
ent
of a
Nat
iona
lQ
ualit
y A
ssur
ance
Cou
ncil
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AC
); (d
) ca
paci
ty b
uild
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man
agem
ent
trai
ning
; (e
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ent
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hanc
emen
t pr
ojec
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ovin
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e qu
ality
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e-va
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nive
rsity
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catio
n.T
he a
ctiv
ities
sup
port
ed u
nder
this
com
pone
nt a
im t
o ad
dres
squ
ality
con
cern
s by
res
pond
ing
to t
he n
eed
for
new
lear
ning
tech
nolo
gies
and
equ
ipm
ent
�Su
ppor
ting
effo
rts
to im
prov
eth
e qu
ality
and
rel
evan
ce o
fin
stitu
tions
pro
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ng m
id-le
vel
tech
nica
l edu
catio
n th
roug
has
sist
ing
cons
olid
atio
n of
the
mid
dle
tech
nica
l ins
titut
es in
tote
chni
cal c
olle
ges;
ass
istin
g cu
r-ri
culu
m d
esig
n an
d in
stru
ctor
trai
ning
; and
hel
ping
str
engt
hen
acad
emic
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inis
trat
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man
agem
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ppor
ting
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petit
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itutio
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pmen
t.W
ell-p
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rmin
g en
gine
erin
gin
stitu
tions
, bot
h pu
blic
and
pri
-va
te, w
ould
be
sele
cted
thro
ugh
open
com
petit
ion
for
assi
stan
cein
att
aini
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ighe
r st
anda
rds
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ucat
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blis
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clo
selin
kage
s w
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ry, t
he c
om-
mun
ity, a
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ther
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itutio
ns.
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gram
wou
ld s
uppo
rt th
efo
llow
ing
in e
ach
inst
itutio
nal
Dev
elop
men
tO
bjec
tive
:To
cre-
ate
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cond
ition
ses
sent
ial f
or im
prov
-in
g th
e qu
ality
and
effic
ienc
y of
the
high
er e
duca
tion
syst
em; t
o be
achi
eved
thro
ugh
legi
slat
ive
refo
rm,
inst
itutio
nal r
estr
uc-
turi
ng, a
nd th
ees
tabl
ishm
ent o
fin
depe
nden
t qua
lity
assu
ranc
e m
echa
-ni
sms
and
mon
itor-
ing
syst
ems
Tec
hnic
al
Eng
inee
ring
E
duca
tio
n Q
ualit
y Im
pro
vem
ent
Pro
ject
Proj
ect
ID: P
0721
23T
M: S
hash
i K.
Shri
vast
ava
Loan
am
ount
:U
S$25
0 m
illio
n
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a
INNOVATION SYSTEMS 85
2003
Ukr
aine
deve
lopm
ent s
ubpr
ojec
t: th
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omot
ion
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cade
mic
exc
el-
lenc
e, th
e ne
twor
king
of i
nstit
u-tio
ns fo
r qu
ality
enh
ance
men
tan
d re
sour
ce s
hari
ng, a
nden
hanc
emen
t of t
he q
ualit
y an
dre
ach
of s
ervi
ces
to th
e co
mm
u-ni
ty a
nd th
e ec
onom
y�
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ortin
g sy
stem
man
agem
ent
capa
city
impr
ovem
ent
thro
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stin
g (a
) th
e de
velo
pmen
t of
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oder
n m
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emen
t st
yle
(thr
ough
the
tra
inin
g of
pol
icy
plan
ners
, man
ager
s, a
nd a
dmin
-is
trat
ors
from
the
cen
tral
and
part
icip
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ate
gove
rn-
men
ts);
(b)
polic
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d sy
stem
rese
arch
stu
dies
at
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ean
d na
tiona
l lev
els;
(c)
the
man
-ag
emen
t of
per
form
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,re
form
s, q
ualit
y, a
nd e
ffici
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audi
ts; a
nd (
d) t
he e
stab
lish-
men
t of
str
uctu
res
and
faci
litie
sfo
r pr
ogra
m m
anag
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the
cent
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nd s
tate
leve
ls.
�T
he E
-Gov
ernm
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ompo
nent
prov
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for
deve
lopm
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ndin
trod
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the
publ
ic E
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-cu
rem
ent a
nd E
-Doc
umen
tatio
nflo
w m
odel
s ai
med
at i
ncre
asin
gef
ficie
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and
tran
spar
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of
the
Gov
ernm
ent a
ctio
ns.
�T
he E
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viro
nmen
tco
mpo
nent
will
ass
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mai
nbo
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neck
s in
cur
rent
legi
slatio
nth
at h
ampe
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busin
ess
grow
th.
Legi
slativ
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onna
tive
and
regu
la-
tory
env
iron
men
t ade
quat
e to
acce
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nabl
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on-li
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ill b
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ped.
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tive
:To
sup-
port
the
dev
elop
-m
ent
of t
echn
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prof
essi
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sth
roug
h re
form
s in
the
tech
nica
l/eng
i-ne
erin
g ed
ucat
ion
syst
em, w
ith t
hego
al o
f rai
sing
pr
oduc
tivity
and
com
petit
iven
ess
eDev
elo
pmen
tP
roje
ctPr
ojec
t ID
: P07
4885
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rei
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am
ount
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:enh
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akin
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oces
sfo
r pu
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cure
-m
ent a
nd d
ocum
en-
(con
tinue
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2003
86 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
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tatu
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publ
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utho
ri-
ties
and
repr
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tativ
es o
f pri
-va
te s
ecto
r an
d ci
vil s
ocie
ty a
tth
e na
tiona
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reg
iona
l lev
els.
Intr
oduc
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of t
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too
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i) im
prov
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sec
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tran
spar
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, and
ii)
stre
ngth
enth
e ro
le a
nd in
volv
emen
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civi
l soc
iety
in t
he g
over
nanc
epr
oces
s. T
he c
ompo
nent
will
stre
ngth
en t
he U
krai
nian
NG
Os
and
priv
ate
sect
or
repr
esen
tativ
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publ
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te p
artn
ersh
ip.
�Su
ppor
ting
the
gove
rnm
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nde
velo
ping
(a) a
str
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dm
ediu
m-t
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dev
elop
men
t pla
nfo
r th
e se
ctor
and
(b) a
legi
sla-
tive
and
inst
itutio
nal f
ram
ewor
kpr
omot
ing
impr
oved
gov
er-
nanc
e an
d m
anag
emen
t�
Supp
ortin
g th
e pr
oces
s of
fina
n-ci
al d
eleg
atio
n to
Yem
en’s
two
univ
ersi
ties
thro
ugh:
(a) t
here
desi
gn o
f bud
get s
truc
ture
san
d pr
oced
ures
to fa
cilit
ate
flexi
ble
allo
catio
n of
res
ourc
esan
d ef
ficie
nt e
xpen
ditu
re, a
ndth
roug
h pr
ogra
m b
udge
ts w
ithco
ntra
ctua
l obl
igat
ions
in te
rms
of o
bjec
tives
and
per
form
ance
indi
cato
rs; (
b) th
e de
velo
pmen
tof
an
equi
tabl
e fu
ndin
g m
echa
-ni
sm fo
r un
iver
sitie
s, p
rom
otin
gco
mpe
titio
n an
d th
e ac
hiev
e-m
ent o
f pri
ority
obj
ectiv
es, s
uch
tatio
n flo
w, f
oste
rpr
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ctor
de
velo
pmen
t, an
dst
reng
then
civ
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ciet
y in
Ukr
aine
thro
ugh
the
intr
o-du
ctio
n of
inno
va-
tive
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of IC
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cati
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nova
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6183
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men
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pre
pari
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refo
rm s
trat
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and
to p
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the
initi
alph
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of i
ts im
ple-
men
tatio
n by
hel
p-in
g de
velo
p ca
paci
tyin
the
new
ly
crea
ted
Min
istr
y of
Yem
en
INNOVATION SYSTEMS 87as
the
part
icip
atio
n of
gir
ls a
ndgr
eate
r di
vers
ifica
tion
ofin
com
e, th
roug
h ta
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man
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s an
d se
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es;
and
(c) t
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cqui
sitio
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d ad
ap-
tatio
n, in
clud
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rela
ted
trai
ning
,of
an
inte
grat
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e tim
ely
trac
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nanc
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tran
sact
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itutio
nal m
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HES
Ran
d th
e tw
o un
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sitie
s�
Impr
ovin
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arni
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pgra
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port
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es fo
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uden
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ndfa
culty
in s
elec
ted
facu
lties
by
pilo
ting
stra
tegi
c in
itiat
ives
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rega
rd to
: (a)
the
eval
uatio
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niza
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ofpr
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evel
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men
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rari
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cilit
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gfa
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stu
dent
exc
hang
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a an
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anet
and
pro
vidi
ngac
cess
to th
e re
sour
ces
of th
eIn
tern
et; (
c) a
ssist
ance
to th
etw
o un
iver
sitie
s in
initi
atin
g a
proc
ess
of s
elf-e
valu
atio
n an
dim
prov
emen
t and
the
deve
lop-
men
t of a
gree
d st
anda
rds
that
coul
d be
app
lied
by o
ther
pub
licse
ctor
uni
vers
ities
as
a ba
sis fo
rfu
ture
acc
redi
tatio
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(d) p
repa
ratio
n fo
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e ea
rly
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nsio
n of
acc
redi
tatio
n to
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en’s
priv
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univ
ersit
ies
Hig
her
Educ
atio
nan
d Sc
ient
ific
Res
earc
h (M
HES
R)
(con
tinue
d)
2004
88 WORLD BANK WORKING PAPER
Fis
cal
Pro
ject
Y
ear
Co
untr
yIn
form
atio
nP
roje
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pone
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time
take
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cos
t of b
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ess
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xpor
t, an
d op
erat
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the
redu
ctio
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ovem
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fco
nsum
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tros
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vacio
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to im
prov
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a r
evie
w o
f exi
stin
gtr
aini
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w a
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egul
atio
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0700
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am
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S$28
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st-
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Hon
dura
s
INNOVATION SYSTEMS 89
2004
Dem
ocra
ticR
epub
lic o
fC
ongo
(e)
the
mat
chin
g of
fund
s fo
rfir
ms
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inte
nd to
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info
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mpa
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to p
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the
bene
fits
oftr
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str
engt
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nter
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titiv
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rate
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calit
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unch
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nca
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on b
road
the
mes
rela
ted
to c
ompe
titiv
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s�
Stre
ngth
enin
g pr
ojec
t im
ple-
men
tatio
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sup
port
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ject
impl
emen
-ta
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unit,
fina
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ploy
men
t of
spe
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and
cons
ulta
nts
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uppo
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, and
fund
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xpen
ses,
trai
ning
, and
som
e eq
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prov
ing
the
inve
stm
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cli-
mat
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str
engt
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he ju
di-
ciar
y an
d im
prov
ing
the
lega
lan
d fis
cal f
ram
ewor
k, b
y es
tab-
lishi
ng a
pri
vate
nat
iona
l arb
i-tr
atio
n ce
nter
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nanc
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uppo
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ee c
omm
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ribu
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min
at-
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lega
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orm
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n�
Impl
emen
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para
stat
al r
efor
mby
str
engt
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ng r
egul
ator
yau
thor
ity in
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tel
ecom
mun
i-ca
tions
, tra
nspo
rtat
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and
Pri
vate
Sec
tor
Dev
elo
pmen
tan
d C
om
peti
tive
-ne
ss P
roje
ctPr
ojec
t ID
: P07
1144
TM
: Iva
n R
ossi
gnol
Loan
am
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S$12
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evel
opm
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m-
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ntri
bute
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cono
mic
gro
wth
Und
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repa
ratio
n
(con
tinue
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2004
90 WORLD BANK WORKING PAPERF
isca
l P
roje
ct
Yea
rC
oun
try
Info
rmat
ion
Pro
ject
Co
mpo
nent
sS
tatu
sO
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repa
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ista
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trai
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at
incr
easi
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inin
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renc
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amin
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r ot
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t�
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se a
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ic d
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men
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roug
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com
peti-
tive
prog
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s th
at a
im t
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aliz
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celle
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in s
cien
ce,
adva
nced
hum
an c
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dim
prov
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t of
the
res
earc
hin
fras
truc
ture
. The
pro
ject
will
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rant
s, s
chol
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ips,
and
the
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blis
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t of
a p
rogr
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r m
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sci
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uipm
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ence
for
the
Kno
wle
dge
Eco
nom
y P
roje
ctPr
ojec
t ID
: P07
7282
TM
: Lau
ritz
H
olm
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lson
Loan
am
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S$25
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Dev
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deve
lop
an e
ffect
ive
inno
vatio
n sy
stem
by
esta
blish
ing
a st
rong
and
cohe
rent
pol
icy
fram
ewor
k, p
rom
ot-
ing
high
-qua
lity
S&T
activ
ities
, and
by
supp
ortin
g ke
y in
ter-
face
s in
the
inno
va-
tion
syst
em; a
nd to
impr
ove
the
stoc
k of
hum
an c
apita
l in
the
Chi
le
INNOVATION SYSTEMS 91
2004
Cro
atia
�Su
ppor
ting
activ
ities
tha
tst
reng
then
link
ages
bet
wee
nth
e sc
ient
ific
com
mun
ity, i
ndus
-tr
y, a
nd p
ublic
sec
tor
user
s of
rese
arch
find
ings
; and
bui
ldin
gpr
ivat
e se
ctor
res
earc
h ca
pac-
ity t
hrou
gh t
he e
stab
lishm
ent
of c
ompe
titiv
e pr
ogra
ms
for
coop
erat
ive
rese
arch
con
sor-
tia; r
esea
rche
rs in
indu
stry
, and
inte
rnat
iona
l coo
pera
tion
inre
sear
ch�
Supp
ortin
g th
e re
stru
ctur
ing
ofpu
blic
RD
Is t
o st
reng
then
the
irca
paci
ty a
nd r
eori
ent
thei
rre
sear
ch in
fras
truc
ture
to
serv
e th
e ec
onom
y th
roug
hap
plie
d re
sear
ch�
Supp
ortin
g th
e up
grad
ing
of t
hete
chno
logi
cal c
apab
ilitie
s of
smal
l firm
s by
hel
ping
pri
vate
ente
rpri
ses
and
rese
arch
ers
use,
dev
elop
, and
com
mer
cial
-iz
e ne
w t
echn
olog
ies;
sup
port
-in
g th
e st
reng
then
ing
and
capa
city
bui
ldin
g of
the
Bus
i-ne
ss In
nova
tion
Cen
ter
ofC
roat
ia (
BIC
RO
), th
e C
roat
ian
tech
nolo
gy fi
nanc
ing
inst
itutio
n;an
d as
sist
ing
with
the
spe
cific
prog
ram
s th
at it
will
man
age,
incl
udin
g th
e gr
antin
g of
fina
n-ci
al s
uppo
rt t
o kn
owle
dge-
base
d fir
ms
and
to t
hePr
oduc
tivity
and
Qua
lity
Faci
lity
(a m
atch
ing
smal
l gra
nt s
chem
efo
r SM
Es),
to V
C fu
nds;
and
to
the
sett
ing
up a
nd u
pgra
ding
of
tech
nolo
gy a
nd R
&D
cen
ters
.
S&T
sec
tor,
a c
ritic
alpr
econ
ditio
n fo
res
tabl
ishm
ent o
f aco
mpe
titiv
e kn
owl-
edge
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econ
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ence
and
Tec
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logy
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roje
ctPr
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artic
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stre
ngth
en a
ndre
stru
ctur
ere
sear
ch a
nd d
evel
-op
men
t in
stitu
tions
(RD
Is)
and
prom
ote
com
mer
cial
izat
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of t
heir
res
earc
hou
tput
s); a
nd t
oup
grad
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terp
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nder
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er p
repa
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he p
roje
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er p
repa
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n. T
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scal
200
4.
(con
tinue
d)
2004
92 WORLD BANK WORKING PAPER
Fis
cal
Pro
ject
Y
ear
Co
untr
yIn
form
atio
nP
roje
ct C
om
pone
nts
Sta
tus
Out
com
es
Und
er p
repa
ratio
n�
Supp
ort
to E
nter
pris
e In
nova
-tio
n: T
his
com
pone
nt a
ims
tobu
ild o
n an
d ex
pand
the
suc
-ce
ssfu
l exp
erie
nce
accu
mul
ated
by t
he p
revi
ous
Indu
stri
al t
ech-
nolo
gy P
roje
cts
in T
urke
y by
:(i)
sca
le-u
p en
terp
rise
inno
va-
tion
activ
ities
, in
part
icul
ar t
heid
entifi
catio
n of
pot
entia
llyin
nova
tive
SMEs
and
the
pro
vi-
sion
of t
echn
ical
and
fina
ncia
lsu
ppor
t at
the
reg
iona
l lev
el;
(ii)
to p
ilot
dece
ntra
lized
appr
oach
es in
pro
vidi
ng in
nova
-tio
n su
ppor
t se
rvic
es t
o SM
Es,
invo
lvin
g pr
ivat
e an
d pu
blic
acto
rs (
e.g.
cha
mbe
rs o
f com
-m
erce
and
/or
indu
stry
, uni
ver-
sitie
s, N
GO
s, m
unic
ipal
ities
,et
c); a
nd (
iii)
to s
eek
way
s to
incr
ease
uni
vers
ity a
nd e
nter
-pr
ise
colla
bora
tion
thro
ugh
the
desi
gn o
f rel
evan
t pr
ogra
ms.
�In
form
atio
n So
ciet
y D
evel
opm
ent:
inte
grat
ed
in G
over
nmen
t’s “
Tur
key
e-T
rans
form
atio
n Pr
ojec
t” t
his
com
pris
es: (
1) e
xpan
ding
acce
ss t
o IC
T fo
r ci
tizen
s an
den
terp
rise
s by
sup
port
ing
the
oper
atio
ns o
f a u
nive
rsal
acc
ess
fund
and
pilo
ting
appr
oach
es t
ote
lece
nter
s; (
2) p
rovi
ding
e-
deve
lopm
ent
capa
city
bui
ldin
gto
Sta
te P
lann
ing
Org
aniz
atio
n(S
PO)
and
othe
r G
over
nmen
tag
enci
es in
impl
emen
ting
the
Gov
ernm
ent’s
“e-
Tra
nsfo
rma-
Kno
wle
dge
and
Inno
vati
on
Pro
ject
Proj
ect
ID: P
0839
85T
M: S
ever
in
Kod
deri
tzsc
hLo
an a
mou
nt:
$100
mill
ion
(Und
er p
repa
ratio
n)
Tur
key
INNOVATION SYSTEMS 93
tion
Proj
ect”
; and
(3)
laun
chin
ge-
deve
lopm
ent
pilo
t ap
plic
a-tio
ns (
e-pr
ocur
emen
t, on
-line
regi
stra
tion
of c
itize
ns a
ndbu
sine
sses
, e-c
omm
erce
pl
atfo
rm, e
tc).
�D
evel
opin
g Sk
ills
for
the
Kno
wle
dge
Econ
omy:
Thi
sco
mpo
nent
wou
ld (
A)
stim
u-la
te a
nd fi
nanc
e de
man
d fo
rkn
owle
dge
econ
omy
skill
sth
roug
h a
gran
t pr
ogra
m t
ohe
lp c
itize
ns w
ith a
n em
phas
ison
you
ng a
dults
just
ent
erin
gth
e w
ork
forc
e an
d ad
ults
alre
ady
in t
he w
orkf
orce
with
SMEs
to
acce
ss k
now
ledg
eec
onom
y sk
ills
trai
ning
cou
rses
;an
d (B
) pr
ovid
ing
star
t-up
ince
ntiv
es fo
r kn
owle
dge
econ
-om
y sk
ill p
rovi
ders
by
crea
ting
ince
ntiv
es fo
r a
vari
ety
of p
ub-
lic a
nd p
riva
te t
rain
ing
supp
liers
to d
evel
op fl
exib
le, m
odul
ar,
com
pete
ncy
base
d tr
aini
ngco
nten
t ne
eded
to
deve
lop
new
kno
wle
dge
econ
omy
skill
str
aini
ng p
rogr
ams
and
mar
ket
them
to
the
dem
and-
side
finan
ced
trai
nees
with
an
emph
asis
on
SMEs
.
Crawford and Brezenoff. 2000. “Review of World Bank Lending for Science and Technology(1980–1999).” Washington, D.C.: World Bank.
Dahlman, Carl. 1999. The Four Pillars of the Knowledge Economy. Washington, D.C.: World BankInstitute.
De Ferranti, Perry, Gill, Guasch, Maloney, Sanchez-Paramo, and Schady. 2003. “Closing the Gapin Education and Technology.” Washington, D.C.: World Bank.
Draft Project Appraisal Document (2003) for Croatia Science and Technology Project.Draft Turkey Knowledge Economy Assessment Study report (2003).Finnish Forest Industries Federation, 2002 (2003). http://english.forestindustries.fi/publications/
pocketsize.htmlImplementation Completion Report (1989) for Korea Program for Science and Technical Educa-
tion Project.Implementation Completion Report (1993) for Mexico Industrial Technology Development
Project.Implementation Completion Report (1993, 1994, 1994) for Korea Technology Advancement
Projects (First, Second and Third).Implementation Completion Report (1995) for Korea Universities Science and Technology
research Project.Implementation Completion Report (1997) for China Rural Industrial Technology (Spark)
Project.Implementation Completion Report (1997) for Korea Science Education and Libraries Computer-
ization Project.Implementation Completion Report (1998) for India Industrial Technology Development Project.Implementation Completion Report (1998) for Mexico Science and Technology Infrastructure
Project.Implementation Completion Report (1998) for Turkey Technology Development Project 1.Implementation Completion Reports (1986, 1989, 1992) for Korea Technology Development
Projects (First, Second and Third).
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95
OECD. 2003. Science, Technology and Industry Scorecard 2003. Paris.Project Appraisal Document (1995) for China Technology Development Project.Project Appraisal Document (1998) for Mexico Knowledge Innovation Project.Project Appraisal Document (1999) for Chile Millennium Science.Project Appraisal Document (1999) for Turkey Industrial Technology Project.Project Appraisal Document (2003) for India Technical Engineering Quality Improvement Project.Project Concept Notes (2003) for Chile Science for the Knowledge Economy.Various Back-to-Office and Project Status Reports.Venezuela Supreme Court Modernization Project website: http://www.tsj.gov.ve/World Bank. 1999. World Development Report 1998/99: Knowledge for Development. Washington,
DC. http://www.worldbank.org/wdr/wdr98/ppt.htm———. 2000. China’s Development Strategy: The Knowledge and Innovation Perspective. Washington.
D.C.———. 2003. Lifelong Learning for the Knowledge Economy. World Bank Group, Education Sector.
96 WORLD BANK WORKING PAPER
THE WORLD BANK1818 H Street, NW
Washington, DC 20433 USA
Telephone: 202 473-1000
Internet: www.worldbank.org
E-mail: [email protected]
ISBN 0-8213-5837-5
THE WORLD BANK
Vinod K. GoelEkaterina KoryukinMohini BhatiaPriyanka Agarwal
W O R L D B A N K W O R K I N G P A P E R N O . 3 2
Inn
ovation System
sN
O.
32 Innovation Systems
World Bank Support of Science andTechnology Development
Innovation Systems is part of the World Bank Working Paper
series. These papers are published to communicate the
results of the Bank’s ongoing research and to stimulate public
discussion.
The World Bank has gained significant experience and has an
important role to play in supporting innovation systems proj-
ects. This paper reviews the innovation systems support proj-
ects financed by the Bank during 1990-2003, together with a
few successful earlier examples, covering some 51 projects
involving over US$4.2 billion in Bank support.
The Bank’s role typically has been to facilitate and augment
reform efforts around the world and to play the role of an hon-
est broker between the productive and S&T sectors, facilitat-
ing the reform process by bringing together relevant partners.
This enhances the effectiveness of the design and delivery of
services and the sustainability of these activities. The Bank’s
involvement also encourages difficult measures to be taken,
including the raising of institutional accountability. Prudent
market texts are applied to the various available interventions
and fiscal discipline is imposed on institutions that are in the
process of restructuring. Drawing on its experience, the Bank
can provide the long-term support, advice, and leverage need-
ed during the restructuring phase for institutions that seek to
attain greater fiscal independence and to enhance the quality
of their services and their contribution to the national econo-
my.
World Bank Working Papers are available individually or by
subscription, both in print and online.
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