Mr. Taieb HADHRI - Invest in Tunisia, The Foreign Investment ...

REPUBLIC OF TUNISIA***Ministry of Scientific Research, Technologyand Competency DevelopmentStrengthening knowledge policiesin TunisiaProf. Taïeb HADHRIMinister of Scientific Research, Technologyand Competency DevelopmentCarthage Investment Forum 2006Thursday, 15-06-2006

Electoral Program 2004 of the President,ZINE EL ABIDINE BEN ALIAs the knowledge-based economy constitutes a basic componentof the new economy and a crucial factor to achieve higher valueaddedactivities, more competitive and developed services and ahigher employability, and because the knowledge-based economyrepresents a prerequisite for the building of the knowledgesociety, we will seek integration into the global grid of intelligencebased industries and will endeavour to attract foreigninvestments in this field.

Assets of the Tunisian EconomyA continuously growing economy4,2%4,6%5,3%5,5%2,2%Trends in GDP growth1982-1986 1987-1991 1992-1996 1997-2001 2002-2006A Diversified Economy : (Manufacturing 20 % and services for over 54 %)Agriculture and fishingNonmanufacturing industriesManufacturing industries37,6%14,2%11,4%Transport and communicationTourismOther services20,0%6,5%10,3%Breakdown of GDP in 20043

Assets of the Tunisian EconomyAn Economy open to the Outside World(GDP in 2004 = 35149 MTD)Trends in Tunisian exports to theEU (in MTD)63047586 7662834399912000 2001 2002 2003 2004Attractive country for Foreign Direct Investment (FDI)Trends of foreign or jointly-ownedcompanies26591426312424551973 1980 1987 1994 20044

Due to Scarce natural resources and to fructifylong term investment on human resourcesThe challenge is :To build a Knowledge Based Economy (KBE)Pillars of KBE are :• Education and Capacity Building• Research and Innovation• Information and Communication Technologies5

Education and capacity buildingTunisia has invested in education and training• 7% of GDP is devoted to education and training• 99% of six years old kids at schoolGeneral Policies : Adaptability of programs, employability of graduatesand relying on lifelong learningThrough :• Enhancing the ratio of teaching staff per student• Working for the total elimination of the school dropoutphenomenon.• Teaching at least two foreign languages starting fromprimary school.• Meeting the challenge of quality and keeping up withchanges in the field of vocational training6

Education and capacity buildingIn basic and secondary education the average class sizes aredecreasing :School year1st cycleBasic Education2nd cycleSecondary EducationpupilsClassesAverageclass sizepupilsClassesAverageclass sizepupilsClassesAverageclass size1985 - 19861 285 88339 59932.5265 1197 61434.8157 3504 83232.62005 - 20061 120 42446 42224.1571 98617 91131.9503 53116 70130.17

Higher EducationStudents and graduates until 20308

Higher EducationUniversity enrolment rate ( 20- 24 age)9

Higher EducationIn 2004 : 7,4 ‰ graduates in Science & Engineering of theage group 20-29. It will reach 11 ‰ in 2009 .Students in science and engineering10

Higher Education• 13 Universities (including the Virtual University of Tunis)• 178 public institutions of higher education− 17 higher schools of Engineers− 24 higher Institutes of Sciences and Technologies• 20 private institutions of higher education• 16671 higher education teachers• More than 30000 students in computer science and multimedia• 35% of students in sciences and technologies,• Higher education Budget ( 5% of NB / 1.72 % of GDP)11

Research and InnovationObjectives :• Promoting innovation and technology development through supportto innovative enterprises, valorisation of research results,reinforcement of partnership between research structures and firms• Increasing efforts in Federative Research Programs• Enhancing scientific and technological information and culture• Reinforcing international cooperation on bilateral and multilaterallevels12

Research and Innovation1,02 % of GDP in 2005 1,25 % in 2009This budget is allocated to :InfrastructuredevelopmentHuman resourcesdevelopmentResearchProgramsCurrently the national research system is composed of :• High ResearchCouncil headed bythe Prime Minister• National ResearchEvaluation Committee• 31 Research Centres• 139 Research Labs• 624 Research Units• 22 business incubators• 11 technoparks• 14500 Full TimeEquivalentResearchers13

Research and InnovationEvolution of GERD/GDP (in %) 1997 - 2006199719981999 2000 2001 2002 20032004200520062009GERD (in MD)8997 108 122 153 188 234350379430633GDP (en MD)20901 22701 24939 27303 28741 29887 3220335035 372024017850613GERD/GDP0,43% 0,43% 0,43% 0,45% 0,53% 0,63%0,73%1%1,02%1,07%1,25%GERD/GDP1,41,210,80,60,40,201997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2009YearGERD : Gross Expenditure for R&D14

Research and InnovationIntellectual Property and Patents• In 1994 Tunisia adopted a lawdealing with copyrights andintellectual property• In 2000 : promulgation of a new lawon patents• In 2001 Tunisia became a memberof PCT (Patent Cooperation Treaty)Registered InternationalPatentsYear Patents application by Total199619971998199920002001Resident483538652822Non Resident1281802001922291561762152382572571782002 29 74 1032003 34 120 1542004 46 223 2692005 56 282 338Total 401 1784 2185Source : INNORPI15

Research and InnovationSome facts :• 78 % of total research investment is public• 22% from the economic sector and international cooperation• Imbalance between the number of scientific publications and patentsSome challenges :• Increase the private sector investment• Support innovative firms and strengthening partnership between publicresearch structures and firms• Encourage spin-off firms by academics• Drain more international investment in R&D16

Research and InnovationAs an answer to these challenges, one of the main policies :a National Technoparks ProgramIn 2001: promulgation of a law concerning technoparks, to fosterinnovation and competitivenessNew version of this law is ratified (in 2006) in order to provide a moresuitable management framework and to encourage private publicpartnership17

Research and InnovationBizerteJendoubaGafsaMédenineGammarthSidi ThabetElghazalaBorj CédriaSousseMonastirSfaxLocationElghazalaBorj-CédriaSidi-ThabetTunisian TechnoparksNetworkICTAdvanced (2)In progress (6)Just started (3)Main fieldsBiotech, EnergyWater and EnvironmentBiotech & PharmaceuticalSize ofLand65 ha90 ha92 haSousseSfaxMonastirBizerteGammarthMechanics & ElectronicsIT & MultimediaTextile and clothingFood ProcessingCinema industry60 ha60 ha100 ha87 ha1812 ha

Research and InnovationTechnopark’s concept• An environment for scientificresearch and technologicalDynamic relationshipBusiness areainnovation• A facility dedicated to thetransfer of technology from thelaboratory to the marketplace.• A perfect business & investmentlocation with high qualityinfrastructureTechnology/Innovation& ServicesSharedServicesEducationR&D19

Information & CommunicationTechnologiesTo set up a modern, high-quality, high-speed andmultiservice infrastructure• A series of measures were adopted : the introduction of the e-administration,support for private sector investment in IT, promotion of the national softwareindustry and mass dissemination of digital culture,• Modernizing and developing the infrastructure : improving telephone networkcoverage and quality, expanding the capacity of the National Internet Network,• Improving networks for the exchange and dissemination of information forvarious purposes (education, research, industry, service and commerce)20

Information & CommunicationTechnologiesAssets and projections :• 2 Telecom companies (one fully private)• 7 millions connected , a telephone coverage of 70% in 2006 (80% in 2009)• a digital opportunity for all : half a million PCs’ in 2005 ( one millioncomputers in 2009)• opportunities for knowledge in all regions by establishing Internet servicecentres (publinets) : more than 300 in 2005 (one in each village in 2009 ).• Internet for all : a network covering all regions of the country, and increasedconnection capacity to the International Internet network.21

Information & CommunicationTechnologiesAssets and projections :• Elghazala Technopark dedicated to ICT, created in 1999• 5 Cyberparks (Monastir, Gafsa, Kef, Siliana, Kasserine)• 4 public Internet Service Providers (ISP) and 5 private ones• 5 national information networks (RNRT, RNU, RNS, EDUNET, AGRINET)• All these networks are connected to the European Network GEANTthrough Eumedconnect (45 Mb/s)• Free access to 7000 scientific journals and 90 scientific databases(CNUDST / MRSTDC) (a national virtual library in 2007)• Tunisia is a member of EumedGrid project22

Information & CommunicationTechnologiesWSIS : November 2005• Following the Tunisian proposal in 1998• Tunisia has successfully hosted the second phase of the WorldSummit on Information Society on 16-18 November 2005withThe participation of 176 UN membersMore than 30000 participantsMany important decisions to reduce the digital divide23

Concluding remarksBy strengthening its knowledge policies, Tunisia is• Building a knowledge based economy with a businessclimate which fosters entrepreneurship and promotesinvestment and innovation• Paving the way to become an international centre fortrade and services24

Concluding remarks• Tunisia is ranked 40 th , with respect to GrowthCompetitiveness Index, number one in Africa andbetter than 6 EU countries (Davos 2005)• Tunisia is ranked 35 th , with respect to BusinessCompetitiveness Index , before Italy, Turkey, andMorocco (Davos 2005)25

Given all these assetsbesides a good quality of lifeYou are welcome to invest in TunisiaThank you foryour attentionwww.mrstdc.gov.tn