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Business News of Monday, 12 August 2013

Source: B&FT

Revisit concept of R&D centres – Prof. Atuahene-Gima

A strong case has been made on the need for African governments to revisit the concept of research and development (R&D) centres as a way of growing innovations.

Prof. Atuahene-Gima was speaking to the B&FT at the closing ceremony of the 1st Annual Africa Innovation Forum held last week under the theme, “Unleashing Innovation Leadership in Africa”.

“Governments do not need to create an entity where people are trained at the national level. What governments could do is to support the R&D centres that have been set up by private institutions to help germinate ideas. Also, governments could replicate approaches to research and development as done in Nordic countries and other places,” he said.

According to Prof. Atuahene-Gima, apart from creating conducive environments to innovations, governments need to take another look at educational curricula which he said do not boost innovative ideas.

“The education system need revamping by changing the curricular and approach to teaching to ensure that people become creative to try new ideas – that is, have project-based education,” he said.

Prof. Atuahene-Gima, who is also a professor of Marketing and Innovation Management at the China Europe International Business School (CEIBS), said any government that wants to boost innovation must first provide the right environment in terms of business laws.

His call came after Bright Simmons, CEO of mPedigree, speaking at the same event, asked for a review of the procurement law to benefit innovative companies and small- and medium-size enterprises to boost growth.

“The procurement law is not structured in a way that is to benefit Ghanaian small- and medium-size enterprises and innovative companies; that is ridiculous! We need to re-check the procurement process,” Mr. Simmons added.

Mr. Dolapo Ogundimu, Managing Director of Access Bank Ghana, who opened the forum, said it has become necessary for Africa to explore its own creative ideas to solve the continent’s age-old social and economic problems -- rather than rely on wholesale importation of ideas.

“The pace of innovation has been so rapid in recent years, and it is hard to imagine how individuals, businesses and countries would have made the giant leaps they have without these technological advancements. What is obvious is that Africa has contributed little or nothing to these innovations that continue to change the way we live our lives and do business.

“Over 90 percent of the world’s most remarkable innovations have come from outside of Africa. These improved products and new innovations from Europe, Asia and the Americas are either sold or shipped wholesale to Africa and have not added value in solving our age-old social and economic problems.”

According to Dr. Glenn Armstrong, Vice President of Business Innovation at Amway, innovation is the only way to drive success. “Even world-class companies with powerful and proven business models eventually discover limits to growth. That’s why they are drawn to continuous innovation. For leaders of companies that are smart enough, fast enough, and agile enough, this forum sets the stage for you to change the rules in Africa to create your future.”