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Investment in Science and Technology,The Role of Yachay Science Park in Ecuador´s economic growth an

Investment in Science and Technology,The Role of Yachay Science Park in Ecuador´s economic growth an : 작성자, 카테고리, 작성일, 조회수, 원문,출처, 정보 제공
작성자 관리자 카테고리 전문가 인사이트
작성일 2016-11-11 조회수 5,618
원문
출처

Investment in Science and Technology,
The Role of Yachay Science Park in Ecuador´s economic growth and development.

전문가
Esteban Ortiz Prado
GPKOL위원
컨설팅 분야
  • R&D Planning
  • Clinical Trial
  • GMP, GCP and Regulatory Affairs
  • Project management
주요 약력
  • 2015-Present: TID/ Chief research and development executive officer
  • 2013-2015: ENFARMA/Manager
  • 2012-2013: Minister of Higher Education/ Senior Adviser
  • 2011-2012: Tom Banker Cancer Centre/ Clinical Research Coordinator
  • 2006-2010: University of Galgary/Department of Radiology/Research Associate

ABSTRACT

Objectives:

There is a lack of information about the role of technological clusters and science parks in less developed countries’ economies, especially those in South America. This paper aims to share the Ecuadorian experience regarding changing the country’s economic model, from a primarily exporter based economy, to a new highly rentable, knowledge-based economy.

Methods:

This is a descriptive explorative analysis based on secondary source data retrieval from the international journals and books databases. A complete literature review was made and data was display using descriptive statistics.

Results:

Investment in science and technology has increased significantly. Total research and development expenditures increased from less than 0.05% in 2002 to almost 0.7% of the total country GDP in 2014. The amount of scholarships available for Ecuadorians increased over 4300% in the last 8 years.

Conclusions:

Data suggests that investments in scholarships, reverse engineering, innovation, equipment and infrastructure would positively contribute to overcome Ecuador´s dependency in basic industry products, not only generating a regional technological hub, but also connecting the needs of the population with directed problem-solving research. The city of Yachay is a technological hub intended to facilitate knowledge based economy development.

Keywords:

Yachay, technology parks, Technology Business Incubators, The knowledge-based economy, Ecuador

INTRODUCTION

The main problem in developing countries is poverty(1,2). Although poverty is distributed worldwide, the southern hemisphere has been historically more affected(3). In modern history, countries with earlier industrialization have better economic profiles than those with later industrialization (4,5), being the countries with later industrialization, such as South American, African and some Asian nations, are mostly dependant in non-renewable sources of income(6–11). Globally, several countries have experienced economic booms due to the richness of their lands, exporting wood, charcoal, emeralds, diamonds, gold and petroleum as the main source of income(12–14), however, exploiting natural resources can lead to devastation, poverty and poorly distributed wealth among citizens(4,5).

In South America, economic growth began with the arrival of merchants who traded natural goods such as cotton, rubber, cocoa and minerals in general(15–17). In the majority of Latin-American countries, colonization created hubs of development based on primary exportable goods, returning profits to the owners of the lands and poverty to the indigenous people and slaves who worked for those markets(18–20). This type of economic growth continued for several decades, immersing the majority of people in poverty, developing few industries and segregating populations by classes.

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In Ecuador, economy has flourished massively at least two times in the last 100 years. The first economic boom raised when Cacao was the main source of income in 1910, and the second one occurred when oil boosted Ecuadorian economy around the 1970´s (21–24). Although Ecuador improved their economy, the majority of the working class offered the services to the new bureaucratic mass, indirectly affecting local industry development. Having an economy based on a late industrialization model, placed Ecuador in a uncertain and highly dependent type of economy, with very unstable economic and political periods, due to unpayable external debts, variable oil prices and poorly developed local industry(23,25). During these stages, major investment was designated to build highways, governmental infrastructure and to promote some local industries, especially those related with the oil and gas industry(23). On the other hand, textile, pharmaceutical, technological and automotive industries were not incentivised, causing a lack of innovation in those fields, causing an actual dependency in such a products(26,27). The petroleum boom indirectly cause a late industrialization, which placed Ecuador in a risky and highly dependent type of economy. These factors added to a very historical unstable economy and political periods, unpayable external debts, variable oil prices and poorly developed local industry cause that Ecuador is now importing mostly of the first hand products and exporting non-renewal resources(11,28–30).

A change in paradigm started in 2006 when the current government used a correct political timing and the high prices of crude to invest in a different type of economic model. Investing significantly more than previous governments in infrastructure, education, research and technology as a “new way” to oversee Ecuadorians’ economic needs. This model is based on the fact that non-renewable resources are limited and fluctuant, heavily dependent on world-stability(31,32), and also the desire for Ecuador to become independent by utilizing an economic base of knowledge, technology and industry that will lead Ecuador to export added value goods and other commodities(33,34). We analysed the efforts of the current public policy regarding investing in knowledge as the new economic model to overcome primary products dependency, incentivizing entrepreneurship, innovation and problem solving applied research.

CHANGING PARADIGMS

The new Ecuadorian model that have been postulated is focused primarily in giving people higher importance than to the capital(11). It is a knowledge-based model, dynamic, socially focused, efficient and goal-driven, by increasing investment in education, problem solving and population-needs by research in order to overcome dependency. The government is currently looking forward to approve the new Organic Code for the Social Knowledge and Innovation Economy of Ecuador(SENESCYT, 2014), a well-known model used worldwide that uses knowledge and innovation as a source of economic growth(36–38).

In Ecuador, this model has already increased investment in education, research and technology. For instance, the amount of scholarships available for Ecuadorians increased over 4300% in the last 8 years (Figure 1) converting Ecuador the country with the highest number of government-funded scholarship in the region. Total research and development expenditures increased from less than 0.05% in 2002 to almost 0.7% of the total country GDP in 2014. The number of projects funded by the government and the total number of researchers have tripled in the last two years(39,40).

Figure 1. Scholarships offered by year in Ecuador

RESEARCH POLICY IN ECUADOR

Ecuador has changed dramatically in the last 8 years, emerging from one of the worst economic and politically chaotic times in it’s history(25,41,42). The current administration, led by academic professor and economist, has improved education, health access, research funding and the higher education system(39,40,43,44). The Organic Code for the Social Knowledge and Innovation Economy of Ecuador and the research and development public policy sector will help to diversify the economy. This policy will contribute to overcome the dependency in exports of fruits, vegetables, seafood and non-renewable commodities such as oil or gold, converting it in a more knowledge-based economy, with improved textile, agriculture, pharmaceutical and petroleum industries among others sources of income(35,45). The National Secretary for Higher Education, Science, Technology and Innovation (SENESCYT) has invested in an extensive scholarship programs, currently with more than 10,000 students receiving fully funded stipends, with the goal of having the highly trained citizens return to Ecuador and fill existing educational gaps. In addition, to help fulfill academic deficiencies for the short-term, SENESCYT leads the “Prometeo” program, which brings recognized professors from all over the world to teach, investigate, advise and start his or her own labs in prestigious public Ecuadorian universities and other institutions dedicated to research. Prometeo or Prometheus are Ecuadorian or foreign highly trained researchers with a broad experience in creating research, networking, teaching activities and excellent scientific writing skills. They are invited or assigned to any public or government partially funded universities, polytechnic schools, technical and technological institutes as well some administrative institutions where decision-making is fundamental. This project contemplates terms of at least 2 to 12 months of commitment and some resources allocation in order to create new research centers within academic and investigational institutions. With one of the worldwide top scholarship programs, SENESCYT promotes the development of human talent and applied advanced research, innovation and technology transfer where it is most needed. Some of the most interesting areas for academics that have been prioritized to strengthen the current plan of development, including physical sciences, applied mathematics, biomedical and clinical sciences, Information and communication technologies, Aerospatiale innovation, drug discovery, bio-prospection, sustainable agriculture, biotechnology and genetics, among others. Another important contribution to the science and development Ecuadorian infrastructure was the approval of the organic Code of Higher Education, which contemplates several legal dispositions to the Universities in Ecuador. Some of these dispositions include higher investment from public and private universities the research and developments, having at least 60% of PhD´s among the total number of principal professor, accredited laboratories as well as fully functioning libraries (figure 2).

Figure 2. Teachers with Master´s or PhD Degree raised a 23% in Ecuador in the last 6 years

In 2009, 14 universities were closed within Ecuador, not because of the lack of students but the lack of quality. Using a self-developed criteria, all the 54 Universities in Ecuador were deeply analyzed, starting from the infrastructure available for the students to use up to the library accesses or the professors syllabus. That analysis offered for the first time in the region (and probably worldwide) a deep and comprehensive overview of the quality of education in the country leading to closing 14 of the last ranked universities. Despite limited resources, investment in research, higher education and innovation has increased dramatically when compared with previous years (figure 3).

Figure 3. Research and development expenditure in Ecuador (% of GDP)

Ecuador has found different ways to generate and fund research and development (R+D) projects and programs. The only two main requirements for the projects are currently the sectorial need and its contribution to the economy, giving priority to those projects that link universities and public or government funded companies. Expenditure in R+D is usually limited in developing countries; however, in Ecuador beside the political will and clear goals, funding programs and projects were not enough. In 2009, Ecuador created the first draft of a planned city, a place where technology and innovation will amalgamate with public and private companies and universities, creating a technological hub, where human talent and infrastructure find the perfect environment for innovation. That project was called Yachay, the city of knowledge, a place conceived to generate an adequate environment and equilibrium within the national system of science and innovation. In 2002, the International Association of Science Parks (IASP) defined a technological hub as an organization directed by highly trained professionals, promoting the culture of innovation and competitiveness of its associated businesses and knowledge-based institutions(46,47). In 1951 the first science and technology park was established at Stanford University(48), soon after, other Universities followed the model of technology transfer and entrepreneurship. Silicon Valley and afterwards Sophia Antipolis in France and Tsukuba Science City in Japan created the origin of this economic model of development, where an appropriate environment for mutual collaboration among the dwellers, scientists, industry, academia and government contribute to the regional economy growth(49,50). Worldwide there are more than 400 science parks, mostly of them in developed countries or emerging economies such as Brazil, China or India(51–53). However, in developing countries and due to many variables, the knowledge-based economy model took longer. UNESCO reported that Brazil have three, Ecuador, Panama and Dominican Republic one, however, the Inter-American Development Bank (BID) in 2012 reported at least 64 science parks are present in the region (figure 3) (54,55).

Figure 4. Science parks in the Region

In Ecuador, the main concept started in a very small scale in Guayaquil, the country’s largest city. The ESPOL University started a technology park called PARCON-ESPOL. Although this park was the first of its kind in Ecuador, the main objective was to create infrastructure for innovation and technological development in the coastal city. This hub has already applied science to banana production plants, and is currently the leader in biotechnology development in Ecuador(56). This successful history lead the current government to create an impressive plan to build a city of knowledge, where innovation and technological development is fostered by state of the art research centers, public institutes of research, a world class University, a brand new FDA-EMA approved pharmaceutical complex, and an industrial park in a region with enviable weather and climatic conditions. Although research and development policy strategies have implemented a better framework for innovation, technology transfer and knowledge based economic development, connecting universities and public institutes of research with industry is crucial. One of the most important roles of the National Secretary of Higher Education and Research is to contribute from the Universities and the public institutes of research to the create a structure for innovation, stimulating the creation of start-up companies, reverse engineering facilities and investing in new technologies. As part of this project, the government designed and it is currently building the only technological hub in Ecuador, where knowledge and problem-solving research meets the strategic sector’s needs.

YACHAY, ECUADOR MOST AMBITIOUS PROJECT IN THE LAST 100 YEARS

Yachay, the Kichwa word for "knowledge”, will be the first planned city of its kind in Ecuador, becoming the most ambitious project undertaken during the last century. This planned city will lead Ecuadorian economy change from a primary export model to other based on developing knowledge-based industries, all of them relevant for our regional economy. Yachay clusters public institutes of research, a world-class university and high-technology companies and industries. This hub will create the synergy needed to produce and supply goods and services of high added value, important combination to overcome poverty(51,52,57,57,58).

Located in Urcuquí, a small town in the province of Imbabura, Yachay encompasses more than 4,500 hectares with an extraordinary weather, water supply and pollution free air, making this location suitable for investors and newcomers. Yachay embodies the consolidation of a profound process of transformation at public policy level related to science and technology development in Ecuador, which prioritizes public investment for training of highly qualified human talent, developing networks for R&D nationwide in strategic areas. In urban areas, Yachay will accommodate approximately 80,000 people within a period of 30 years, within a planned, environmental friendly city, with unique morphological codes, which provides guidelines for urban development of the city. The first major local investment was already arranged to be the 130 million $ USD state of the art pharmaceutical production complex for the National Pharmaceutical Company, Enfarma EP. Accounting with the beginning of the project, more than 6,000 direct and indirect jobs have been created, offering an interesting future to the region once you count the 1 billon $ USD for the upcoming years. YACHAY project is an initiative of high priority for the country. The Ecuadorian government counts with the cooperation and technical assistance from countries such as South Korea, United States, Italy, Germany and China, among others. The master plan of Yachay was conceived to offer a platform to develop five different zones. The knowledge zone, that includes a university, the public institutes of research and other high tech facilities; an industrial park, to foster high tech industry production; an area for experimental agriculture and biotechnology; a component dedicated to tourism and other one for culture related activities. It is important to notice that the whole perimeter of Yachay is currently a Special Zone for Economic Development (ZEDE) that gives tributary and non-tributary incentives to companies located in the city. Yachay Tech, the university, is already in place within Yachay. This technological oriented university offers undergraduate and graduate programs in areas such as, life sciences, nanoscience, petrochemical, energy, and Information and Communication Technologies. The knowledge area within the city is have an integrated network of four clusters to develop knowledge and technology. 13 Public Institutes of Research Ecuador and more than 15 technological services centers are already moving in to the city, all aimed to connect knowledge with production.

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The implementation of Yachay was conceived in three strategic phases. The initial phase goes from 2013 – 2017 where the University of experimental technology research will provide a framework for the development of the entire City of Knowledge, forming knowledge based research and Development within an industrial complex. The phase two from 2017-2020 will have the milestone of completing the University and the city of Knowledge through the expansion of housing infrastructure, education, culture, health care and international business. Lastly, phase three from 2020-2035 will consolidate a large metropolitan area for Yachay through the development of the surrounding areas, the introduction of national and foreign companies as well as many other research institutes, start up companies and innovation centers. Some of the most representative facilities that are already planned and in execution are the following: A Bio-factory that will have the capacity to produce genetically improved plants using the newer biotechnological techniques available, fostering research and production on plant species of economical relevance for Ecuadorian economy. The products generated by the Bio-factory will benefit the agricultural sector nearby Yachay and from other parts of the country, improving production rates and the acceptance of Ecuadorian products in foreign markets given its high quality and traceability. A national animal research center that will provide animal models and other biological models in different research endeavors, offering the support that the biomedical field needs while undertaking applied research. Animal will be also breed and offered to regional markets, having several models to investigate new treatments, such as drugs or vaccines. The Center for Genetic Resources, which was planned to the preservation, promotion and use of biological and genetic resources to innovate in different productive sectors, such as omic and proteomic research, food development, degradable biomaterials or renewable energies as well as drug targeting. This center will hold the national network of seed conservation, the biggest germplasms bank in the region from the entire local and regional flora, the Ecuadorian genetic information of every animal found in Ecuador. A Center for Technology Adaptation and Innovation: It is a laboratory aimed to carry out technology unbundling and reverse engineering. The main services provided by the Center include metrology, rapid prototyping, reverse engineering and standards assessment. This Center will help accelerate the technology catching up that is needed to boost the industry in the country. The Center aims to determine the core and peripheral technologies, raw materials used, capital goods and infrastructure required to generate inputs to develop the domestic industry. The Technology Transfer Office that will enhance public and private investment in the development of products and services coming from research and development of universities and research centers, for commercialization and application in the society. This is achieved through mechanisms like licensing to industry or creation of new technology-based companies. The Office will also provide advice on issues of technology development and market analysis to firms and organization in order to generate innovation in the Ecuadorian industry supported by technology.

INCENTIVES STRATEGIES

This Knowledge-based planned city was conceived to be the future of local and regional business. A global city where communication and exchanges between world-class companies will take Place. This goal was connected with the administrative support of the “One Stop Service system” where agile process will foster sustainable development for investments; optimize the communication between investor companies and the city administration, through an efficient and systematic management to boost the attraction of foreign investors. Some of these incentives are: YACHAY is established as a ZEDE. This means it is a customs destination within the national territory, with particular management regime and a system of privileges and tax incentives to strengthen productive development with the establishment of new investments. The authorization to operate the ZEDE may detail the incentives that apply to each particular case for both administrators and operators including a 5% reduction of income taxes, fee 0% VAT on imports of capital goods and raw materials,VAT tax credit, exemption from duties on foreign goods entering these areas to fulfill those authorized for both administrators and operators processes and exemption from tax on foreign exchange outflows on payments made abroad for amortization of principal and interest on loans and to pay for imports. These measures will incentive investors from all over the world as well as enterprises and companies dedicated to produce highly desirable goods with low taxes impact for the first years of establishment.

CONCLUSIONS

Ecuador is currently investing in a different economic model, one based in reinforcing productive capabilities and innovation by creating a proper environment for those professionals who are trained in world-class universities worldwide, and who will become an indispensable part of the innovation-production cycle. Ecuador already broke paradigms, after several decades of political instability; a socialist based government have implemented a new tax reform, obtaining important income for social, educational and research and development programs. These programs already produced thousands of highly trained students who are constantly returning to Ecuador, transferring their knowledge to a better stablish higher education model. In areas where there is a clear lack of local expertise, foreign scientist are recruited to contribute to the local innovative “leapfrogging” implementing high-tech laboratories in the most recognized universities in Ecuador. As the number of projects raised significantly, Yachay, the city of knowledge was conceive to be the center of the knowledge based economy, facilitating patent registration, quick and efficient technology transfer, generating resources for pour industry and for potential exportations. Finally, Ecuador is currently leading the knowledge based economic model in the region, generating positive expectations worldwide, following successful international examples such as the Korean, Malaysian, the Japanese or the Taiwanese experience to obtain social benefits.

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