WORLD BANK WORKING PAPER NO. 32 NO...US$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

THE WORLD BANK1818 H Street, NW

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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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Administrator

28814



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

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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.

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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.


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


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-


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


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


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.


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.


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.


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


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



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


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.


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


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



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


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.


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


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


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


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


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.


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.


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.


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


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.


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.


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


� 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)


� 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


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


ANNEX B

BANK INNOVATION SUPPORTAND SCIENCE AND

TECHNOLOGY PROJECTS(1980–2003)

45


Fis

cal

Pro

ject

Y

ear

Co

untr

yIn

form

atio

nP

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ct C

om

pone

nts

Sta

tus

Out

com

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1979

Kor

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prov

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tech

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ra-

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sem

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;�

Lead

the

indu

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cqui

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and

deve

lopi

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echn

olog

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out

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D fo

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dust

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and

�Ex

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Ele

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ID: P

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Loan

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are

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elec

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ics

to b

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lled

the

Kor

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Inst

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ics

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to s

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nel

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indu

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mi-

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June

198

6;

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afte

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The

loan

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mad

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the

Rep

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of K

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for

a pr

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out

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KIE

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hich

late

rm

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to a

noth

er in

stitu

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alle

d El

ectr

on-

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and

Tel

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mun

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Res

earc

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stitu

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TR

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’s p

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197

9–81

inth

e ac

quis

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and

dev

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or te

chno

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nd th

e de

mon

stra

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effe

ct it

had

in K

orea

, and

the

trai

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pro

-vi

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by K

IET

to p

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from

pri

vate

ent

rypl

ayed

an

impo

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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

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sem

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The

shi

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curr

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a r

esul

t of w

orld

wid

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ges

in s

emi-

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hich

incr

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of

sem

icon

duct

ors

and

also

sev

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pair

edpr

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t was

then

that

the

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ecid

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vert

ical

ly in

tegr

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and

mov

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tose

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wel

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ccum

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stm

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s in

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om19

74 to

198

1 am

ount

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ear

for

1984

, 198

5 an

d 19

86. A

s a

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lt,K

orea

n fir

ms

man

aged

to a

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ve a

pro

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man

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to s

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KIE

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ecam

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crea

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a br

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, it c

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the

proj

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an

impo

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ship

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(con

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the

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sfir

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incl

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the

pri

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adve

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to p

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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


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


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


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


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


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


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


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


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


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

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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


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


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


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


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


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


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


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:

Ahm

et

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emez

oglu

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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


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


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


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


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


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


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


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


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


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


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


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

sto

ent

ryS

cien

ce a

ndT

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


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


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


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


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

(con

tinue

d)

2000

2001


Fis

cal

Pro

ject

Y

ear

Co

untr

yIn

form

atio

nP

roje

ct C

om

pone

nts

Sta

tus

Out

com

es

stud

ents

(32

fina

nced

fully

by

the

MSI

and

34

par

tially

fund

ed)

and

25 p

ost-

doct

oral

fe

llow

s. D

urin

g pr

ojec

t im

plem

enta

tion,

47

PhD

. dip

lom

as w

ere

gran

ted

to t

hefin

ance

d gr

adua

te s

tude

nts.

In p

rogr

ess

In p

rogr

ess

ery

of in

tern

atio

nal a

dvan

ced

cour

ses;

and

the

dis

sem

inat

ion

of le

sson

s le

arne

d. T

he p

ro-

gram

als

o fin

ance

s th

e re

mu-

nera

tion

of r

esea

rche

rs,

fello

wsh

ips

for

doct

oral

and

post

doct

oral

stu

dent

s, t

rave

lex

pend

iture

s, a

nd p

ublic

atio

ns�

Impr

ovin

g te

achi

ng a

nd le

arni

ngby

enh

anci

ng t

he q

ualit

y of

unde

rgra

duat

e sc

ienc

e an

den

gine

erin

g pr

ogra

ms

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sing

par

tner

ship

s an

d ne

t-w

orks

to

exte

nd r

efor

ms

toth

e w

eake

r pa

rtne

r in

stitu

tions

in p

oor

or in

acce

ssib

le a

reas

�Su

ppor

ting

inst

itutio

nal c

apac

-ity

for

chan

ge b

y st

reng

then

ing

inst

itutio

nal p

lann

ing

and

adm

inis

trat

ion,

cen

tral

coo

rdi-

natio

n, a

nd m

anag

emen

t

�D

evel

opin

g ef

fect

ive

and

incl

u-si

ve b

usin

ess

clus

ters

, by

(a)

unde

rtak

ing

initi

al c

lust

erdi

agno

stic

and

ben

chm

arki

ngas

sess

men

ts; (

b) id

entif

ying

cros

s-cl

uste

r bu

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

herj

eeLo

an a

mou

nt:

US$

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illio

n(L

oan—

US$

20 M

il-lio

n an

d C

redi

t fo

rU

S$50

Mill

ion)

Dev

elo

pmen

tO

bjec

tive

:To

impr

ove

the

qual

ityan

d re

leva

nce

ofun

derg

radu

ate

basi

csc

ienc

e an

d en

gi-

neer

ing

prog

ram

sth

roug

h in

tegr

ated

refo

rms

in c

urri

cu-

lum

and

tea

chin

gm

etho

dolo

gy

Co

mpe

titi

vene

ssL

earn

ing

and

Inno

vati

on

Lo

anP

roje

ctPr

ojec

t ID

: P07

0016

TM

: Mic

hael

aW

eber

Chi

na

Nic

arag

ua


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

the

Cen

ters

of E

xcel

lenc

e(C

Es) a

nd N

ucle

i for

Exc

elle

ntR

esea

rch

(NER

); as

sist

ing

deve

l-op

men

t of

a p

ropo

sal t

o sc

ale

up a

nd in

stitu

tiona

lize

the

pro-

ject

; and

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

U’s

per

sonn

el, a

nd a

dmin

is-

trat

ive

cost

s

Am

ount

: U

S$5.

0 m

illio

nD

evel

opm

ent

Obj

ecti

ve:T

o te

stpr

ivat

e–pu

blic

par

t-ne

rshi

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

velo

pmen

t se

r-vi

ces

(BD

Ss)

Mill

enni

um

Sci

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


isca

l P

roje

ct

Yea

rC

oun

try

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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

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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

a30

-per

son

capa

city

for

sync

hro-

nous

vid

eo in

tera

ctio

n (v

ideo

,da

ta, a

nd v

oice

exc

hang

e)be

twee

n lo

cal p

artic

ipan

ts,

rem

ote

cour

se in

stru

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

sori

ngan

d de

velo

pmen

t of

loca

lco

urse

con

tent

and

par

tner

-sh

ips;

and

(d)

fina

ncin

g a

tech

-no

logy

rev

iew

and

upg

rade

the

effe

ctiv

enes

s of

tran

spar

ent,

mer

it-ba

sed

allo

catio

npr

oced

ures

and

inve

stig

ator

aut

on-

omy

in im

prov

ing

the

qual

ity a

nd e

ffi-

cien

cy o

f sci

entifi

cre

sear

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

Indo

nesi

a


2002

2003

Arm

enia

Egyp

t

�Pr

ovid

ing

tele

com

mun

icat

ions

infr

astr

uctu

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

ltr

aini

ng fo

r In

cuba

tor

tena

nts

and

for

othe

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

eir

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

�Su

ppor

ting

gove

rnm

ent

effo

rts

to r

estr

uctu

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

env

iron

-m

ent;

to p

rovi

de

a de

mon

stra

tion

effe

ct o

f the

pos

itive

impa

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

Hig

her

Edu

cati

on

Enh

ance

men

tP

roje

ctPr

ojec

t ID

: P05

6236

TM

: Mae

Chu

Cha

ngLo

an a

mou

nt:

US$

50 m

illio

n

In p

rogr

ess

Und

er p

repa

ratio

n

(con

tinue

d)

2003


isca

l P

roje

ct

Yea

rC

oun

try

Info

rmat

ion

Pro

ject

Co

mpo

nent

sS

tatu

sO

utco

mes

Und

er p

repa

ratio

n

educ

atio

n; (

b) r

atio

naliz

atio

n of

fund

ing

allo

catio

n m

echa

nism

s;(c

) es

tabl

ishm

ent

of a

Nat

iona

lQ

ualit

y A

ssur

ance

Cou

ncil

(NQ

AC

); (d

) ca

paci

ty b

uild

ing

and

man

agem

ent

trai

ning

; (e

) es

tabl

ishm

ent

of a

hig

her

educ

atio

n en

hanc

emen

t pr

ojec

t(H

EEPF

)�

Impr

ovin

g th

e qu

ality

and

rel

e-va

nce

of u

nive

rsity

edu

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

vidi

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

adm

inis

trat

ion

and

man

agem

ent

�Su

ppor

ting

com

petit

ive

fund

ing

for

inst

itutio

n de

velo

pmen

t.W

ell-p

erfo

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

ng h

ighe

r st

anda

rds

ofed

ucat

ion

and

esta

blis

hing

clo

selin

kage

s w

ith in

dust

ry, t

he c

om-

mun

ity, a

nd o

ther

inst

itutio

ns.

The

pro

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

the

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

Indi

a


2003

Ukr

aine

deve

lopm

ent s

ubpr

ojec

t: th

epr

omot

ion

of a

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

ugh

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stin

g (a

) th

e de

velo

pmen

t of

a m

oder

n m

anag

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

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cen

tral

and

part

icip

atin

g st

ate

gove

rn-

men

ts);

(b)

polic

y an

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stem

rese

arch

stu

dies

at

the

stat

ean

d na

tiona

l lev

els;

(c)

the

man

-ag

emen

t of

per

form

ance

,re

form

s, q

ualit

y, a

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ffici

ency

audi

ts; a

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d) t

he e

stab

lish-

men

t of

str

uctu

res

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faci

litie

sfo

r pr

ogra

m m

anag

emen

t at

the

cent

ral a

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tate

leve

ls.

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he E

-Gov

ernm

ent c

ompo

nent

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ides

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lopm

ent a

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trod

uctio

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the

publ

ic E

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-cu

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ent a

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-Doc

umen

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nflo

w m

odel

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med

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ncre

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ncy

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spar

ency

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the

Gov

ernm

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itize

ns w

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n em

phas

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gth

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ork

forc

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d ad

ults

alre

ady

in t

he w

orkf

orce

with

SMEs

to

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ss k

now

ledg

eec

onom

y sk

ills

trai

ning

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rses

;an

d (B

) pr

ovid

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star

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ince

ntiv

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r kn

owle

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econ

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ince

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supp

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rogr

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and

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to

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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

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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.


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Inn

ovation System

sN

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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

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WORLD BANK WORKING PAPER NO. 32 NO...US$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