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Geographical Indication (GI) options for Ethiopian Coffee and Ghanaian Cocoa

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Towards University–Industry Innovation Linkages in Ethiopia<br />

economic development <strong>and</strong> change – has yet brought the envisaged change in<br />

industrial innovation <strong>and</strong> economic growth in Ethiopia. Examination of the factors<br />

constraining the contribution of universities to technological capacity building<br />

<strong>and</strong> national competitiveness is a broad research subject that goes beyond the<br />

scope of this study. However, the following subsection outlines capacity-related<br />

constraints that seem to explain the scant collaborative links between universities<br />

<strong>and</strong> industry in Ethiopia.<br />

University research <strong>and</strong> innovation per<strong>for</strong>mance of firms<br />

Over the past 15 years there has been a significant expansion of higher education<br />

in Ethiopia, facilitating improved access to tertiary education <strong>for</strong> many<br />

young people. The number of universities increased from just two in 2000 to 32<br />

in 2011. Undergraduate enrolment increased from 149,694 students in 2005 to<br />

319,217 students in 2009. Postgraduate enrolment increased from 3,884 students<br />

to 10,125 students over the same period (MOE, 2005, 2010, 2011). University<br />

research has not, however, shown parallel growth. Only a h<strong>and</strong>ful of universities,<br />

chiefly Addis Ababa University (AAU), Haramaya University <strong>and</strong> Mekelle<br />

University, are engaged in notable research activities. Furthermore, it was found<br />

that there is a disconnect between the research focus of the universities <strong>and</strong> the<br />

needs of the economy. A situation analysis of research activity at AAU found<br />

that none of the units at the university had set research priorities based on<br />

national development objectives (Lemma et al., 2008). A shortage of qualified<br />

researchers, lack of adequate research funding <strong>and</strong> weak research infrastructure<br />

have also been identified as factors limiting the involvement of universities in<br />

development-oriented research programmes (Belete, 2010; Lemma et al., 2008).<br />

The strength of university–industry links depends not only on the amount<br />

<strong>and</strong> orientation of university research activities, but also on the ability of industrial<br />

firms to identify, assimilate <strong>and</strong> apply knowledge generated in universities.<br />

The absorptive capacity of recipient firms is a major factor in potential<br />

transfer of university knowledge <strong>and</strong> effective university–industry interaction.<br />

Viewed from this perspective, most <strong>Ethiopian</strong> industrial enterprises have weak<br />

absorptive capacity <strong>for</strong> externally generated knowledge. They face problems<br />

related to their lack of in<strong>for</strong>mation on available technological <strong>options</strong>, financial<br />

constraints <strong>and</strong> skill gaps (i.e. differences between the skill requirements of<br />

the enterprise <strong>and</strong> those possessed by graduates) (Belete, 2010). The resulting<br />

lack of required technical skills negatively influences the technological capabilities<br />

of enterprises. Most of the technical staff working in firms are trained<br />

by the Technical <strong>and</strong> Vocational Education <strong>and</strong> Training (TVET) institutes of<br />

Ethiopia. However, in my experience, many TVET graduates do not meet the<br />

323

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