Policy Framework for Innovation and
Entrepreneurship Support in MENA Countries:
The Case of Lebanon
“Promoting Innovation and Entrepreneurship in The Middle East and North Africa:
Strategies and Partnerships”
January 31 to February 3, 2006
Casablanca Technopark, Casablanca, Morocco
Dr. Raymond Khoury
Director, Technical Cooperation Unit
Office of the Minister of State for Administrative Reform (OMSAR), Lebanon
Presentation Outline
The Enabling Policy Framework Pillars and the role of the
Lebanese Public Sector
The lessons learned and challenges faced
Possible common road maps applicable across the region or
adaptable from country to country
The Enabling Policy Framework Pillars
National Innovation, Incubation and Entrepreneurship
Development (NIIED)
Policies and Procedures
Hard
Infrastructure
Telecommunications
Facilities for tech
parks / zones
National ICT policy & strategy
and standards
Soft
Infrastructure
ICT laws and regulations
Human resources
Relaxed/simplified procedures
Capacity building plans
Tax and labor incentives
Entrepreneurship
programs
Investment / capital markets
Local ICT industry
The Enabling Policy Framework Pillars
(Current Situation)
Hard Infrastructure
Telecommunications
Most of the country with state-of-art infrastructure.
MPT is main player in line based voice and data comm.
2 BOT Cellular operators transferred back to
government with two cellular companies managing
their operation; 3rd license option still available.
Government approved plans for privatizing MPT to
create Liban Telecom (Telecom Law 393, July 23, 2002);
work on TRA progressing. Board to be appointed soon.
Internet Access rates are OK, yet dial-up and direct
line recurring costs remain high despite recent reductions.
DSL services to be available in March 2006. International
Internet gateway bandwidth to be increased.
Facilities for tech parks
and zones
Berytech Technopole at USJ campus (opened in 2000)
BETZ project feasibility and design studies
completed; delay in construction.
The Enabling Policy Framework Pillars
(Current Situation)
Policies and Procedures
National ICT policy &
strategy and standards
ICT laws and regulations
Policy and strategy document prepared in 1999.
Ministerial ICT committee appointed by Prime
Minister in early 1998 to handle national ICT matters
with private-public sector partnerships.
Standards guidelines for ICT projects in the public
sector prepared.
E-government strategy document completed in 2003;
phased implementation plan prepared.
National e-Strategy completed in 2004; implementation
plan for national projects prepared. Foundation for
WSIS status and action plan documents.
IPR and online banking laws passed in 1999.
New laws drafted for Electronic Communications, Data
Privacy, and Electronic signature.
Amendments to existing Lebanese Laws for Electronic
contracts, E-commerce and secure e-payments, Cybercrime, Consumer Protection, IPR, and Domain Names.
The Enabling Policy Framework Pillars
(Current Situation)
Policies and Procedures
Institutionalizing needed
reforms
Removal of outdated technical controls and updating
commercial code system.
Work on simplification of all government procedures.
Modernization of national tax system and import tariffs.
Work on new organizational structure of ministries
and autonomous agencies.
New public sector tendering law drafted along with
implementation decrees.
Investment /capital market New IDAL Investment Law 360 provides incentives
(exemptions on income tax and dividends for 10 years)
for ICT investments (Article 14).
Central bank pushing for ICT and SME loan programs.
Soft Infrastructure
Human resources
Good number of BS graduates in Computer and
Communications fields (450 - 500 / annum).
Some expatriates have returned, yet brain drain still a
main factor.
The Enabling Policy Framework Pillars
(Current Situation)
Soft Infrastructure
Capacity building plans
Several universities have launched ICT MS programs
and certified training centers/institutes.
Numerous training institutions are operational with a
diverse range of training courses.
National education curriculum at all levels expanded
to include computer courses.
Abundance of national ICT seminars, conferences and
exhibitions.
Entrepreneurship
program
The Entrepreneurship Network of Lebanon (ENL)
launched at AUB in 2000 with assistance from the MIT
Entrepreneurship Center. Global INLET being prepared.
Local ICT industry
Industry expanding with representation of most global
ICT firms and products.
Prominent software development and hardware
assembly industry clusters.
Local ICT industry working with universities on
coop and internship programs.
The lessons learned and challenges faced
Lessons learned:
Successful and well-coordinated NIIED requires a solid private-public partnership (PPP).
Private sector needs to take a self-regulated lead role in fostering NIIED (technology firms and banking
sector).
Universities should devote more resources and sponsorships to establish modern graduate school, R&D
and consequently entrepreneurship programs.
Public sector needs to liberalize telecom and other utilities, provide facilitating incentives for ICT
initiatives, and foster an R&D environment.
Government needs to devote more resources in support of advancing NIIED – dedicated NIIED focal
point and enhance IDAL role and incentives.
Challenges faced:
Ever turbulent (unstable) political, and hence economic, conditions in the country.
High national debt that impedes dedicating resources for NIIED initiatives.
NIIED responsibilities spread across several government entities – multitude of irresolute opinions and
support.
Private sector hesitant to take risks required for NIIED initiatives in the prevailing situation.
Education sector and licensing for higher education institutions at overhaul crossroads.
Stock market developing, yet venture capital funds and IPOs too few if not non existent.
Common road maps applicable across
region or adaptable from c-to-c
Hard Infrastructure
Work towards an intra-MENA modern communications network.
Establish a MENA science and technology park association to foster sharing of knowledge and
realizing joint projects between country parks.
Policies and Procedures
Share good practices and lessons learned between MENA countries.
Co-develop required legislation or help those countries in need of such work based on the legal
system at hand (Francophone or Anglo-Saxon).
Work towards establishing and enforcing a MENA IPR charter.
Establish a MENA IIED Fund and network to support relevant joint initiatives between
MENA countries.
Soft Infrastructure
Promote joint R&D programs and hold annual entrepreneurship award competitions between
MENA countries at the level of universities.
Establish visiting professor programs between MENA universities in IIED areas.
Promote establishment of IIED ‘communities of practice’ across MENA region.
Useful web site resources:
http://www.e-gateway.gov.lb
http://www.IDAL.com.lb
http://www.informs.gov.lb
http://www.berytech.org
Dr. Raymond Khoury
Director, Technical Cooperation Unit
rkhoury@OMSAR.gov.lb
Rifaat Mohamed Rifaat
Ministry of Communications &
Information Technology,
Egypt
ITIDA
A Driver for National IT Development
Supporting Innovation & Entrepreneurship
InfoDev – Casablanca
February 2006
Rifaat Mohamed Rifaat
Senior Projects Manager
ITIDA’s Objectives
• Develop and support ICT industry, and turn it to export-oriented
industry;
• Enable & regulate e-business through the implementation of
e-signature law;
• Protect Intellectual Property Rights in the area of original S/W
and database applications; encouraging local investments and
attracting Foreign Direct Investments;
• Position Egypt as the destination of choice for outsourcing ICT
services and S/W development business;
• Support ICT R&D activities and encourage utilization thereof;
• Encourage and develop all entities operating in the ICT field.
Supporting Innovation and
Entrepreneurship
1. Private Sector-Research Centers Collaboration;
2. Innovative Product Development Grants;
3. ICT4SMEs;
4. Access to industry exhibitions for ICT SMEs.
5. SECC initiatives for developing S/W companies.
1. Private Sector-Research
Centers Collaboration
Program Goals
• Leveraging & utilizing academic research capabilities and resources
to support the development of innovative ICT products;
• Bridging the gap between academia, actual ICT industry and market
needs;
• Increasing ICT SMEs capacity and competitiveness.
This Program is managed by a Steering Committee (PSC)
composed of ITIDA, ICT private sector, research centers and
universities.
1. Private Sector-Research
Centers Collaboration
 Advanced Research Projects
Provide grants for research projects proposed by academic
research centers and/or ICT companies and approved by
PSC based on innovation and market need, finance is offered
on cost sharing basis (80% by ITIDA and 20% by an
interested IT company).
 ITIDA Fellowships
Provide grants for a number of innovative subjects selected
by PSC from e-business development priorities, winning
researchers receive full research funding.
 Student Graduation Projects
Provide grants for subjects proposed/selected by ICT
companies and approved by PSC based on innovation and
market need.
2. Innovative Product
Development Grants
 Provide grants for developing innovative products proposed by
ICT companies and approved by PSC based on innovation,
market and society needs.
 Program Goals:
– Encourage innovation within the ICT community;
– Encourage the cooperation between the R&D centers and
ICT SMEs;
– Develop technical know-how and technology transfer.
 First project - “Smart Token for e-business”:
– Developing an Egyptian e-signature tool.
3. ICT4SMEs Program
Program Goals:
 Build capacity of SMEs to leverage Information and
Communication Technologies (ICTs) in order to generate
sustainable growth, increase profitability and create efficient,
better-connected and more competitive enterprises through a
cost sharing model (SMEs 20% and ITIDA 80%).
 Build capacity of implementing ICT service providers to address
the SMEs business model and develop innovative solutions
through the provision of full grants.
 Identify, through NGOs, new socio-economic opportunities that
can be leveraged through ICT.
ICT4SMEs Program Model
ICT4SMEs Program
Grant Awarded to Local Business Association
through an RFP
Build capacity of ICTSPs
to address SME markets
Local Service
Providers
Implementing Partner
Awareness, S/W, H/W
& training to SMEs via costsharing
SMEs
Software Engineering Competence
Center Initiatives
1.
Software Process Improvement (SPI) for SMEs Program:
Implementing the Software Process Implementation Guide (SPIG)
developed by SECC on 20 Egyptian software development
companies to help them in their Software Process Improvement
Track.
2.
CMMI Program: (is available for mature S/W companies)
(CMMI) Capability Maturity Model Integration is a method for
evaluating and measuring the maturity of the software
development process of S/W organizations.
Providing CMMI® Level II and Level III related services to 20
Egyptian software development companies on cost sharing basis,
80% by ITIDA.
Software Engineering Competence
Center Initiatives
3. ITIDA-SECC/IBM-Rational Program:
 ITIDA purchased Rational Unified Process (RUP) tools, a S/W
development process framework, to help S/W companies to
develop software effectively using proven techniques optimizing
their effort, cost and schedule. The services are available free to
eligible S/W companies;
 The agreement includes 3 years of technical support, training, and
consultations provided to 80 S/W companies by IBM-Egypt.
Thank you
rifaat@mcit.gov.eg
Track Two:
Innovation and Entrepreneurship in MENA: The Role of the Public Sector
Session V
Moderator:
Mohamed Berkaoui
Speakers:
Amjad Al-Fahoum
Mohammad Maqusi
Laeed Zaghlami
Ahmed Bouzidi
Abdelkader Djeflat
Monder Ben Ayed
President, Hassan II University Casablanca,
Morocco
Academic Center of Excellence, at Yarmouk
University, Jordan
Arab Open University, Kuwait
Université d’alger, Algeria
Fédération des PME PMI, Morocco
Université de Lille, France
TMI, Tunisia
Track Three:
Innovation and Entrepreneurship in MENA: Strategies and Partnerships
Session VI
Moderator:
Ferid Belhaj,
Speakers:
Jamal Dadi
Ulrich Hoecker
Yoslan Nur
Harry de Baecker
Country Manager, World Bank
Rabat Mission, USAID
Advisor, Private Sector Development, GTZ
Science Sector in charge of MENA, UNESCO
Advisor to the European Commission on
ICT4D, EU/EC
Track Three:
Innovation and Entrepreneurship in MENA: Strategies and Partnerships
Session VII
Moderator:
InfoDev and invited Resource Persons
Track Four:
Professional Development for Business Incubators & SMEs
Session VIII
Moderator:
Christian Rey, Director, Marseille Innovation, France
Speakers:
Omar Hamarneh
Habibolah Asghari
Khaled Elloumi
Ali Lahlou
Sheila Robinson
Rafaat El Fouly
The higher council for science and Business
Incubators, Jordan
Rooyesh ICT Incubator, Iran
INSAT, Tunisia
ISN, Morocco
UK
MSAD, Egypt
Track Four:
Professional Development for Business Incubators & SMEs
Session IX
Moderator:
Jose Lopez Calix, World Bank
Speakers:
Ezzatollah Roustazadeh
Abdellatif Moukrim
Mourad Lahmadi
A. Sharafuddine
Julian Webb
Eri Vazquez
Isfahan University of technology, Iran
Incubator Ibnou Zohr, Morocco
Alcatel Incubator, Tunisia
Dean Sanaa University, Yemen
CREEDA, Australia
META Group, Spain
Track Four:
Professional Development for Business Incubators & SMEs
Session X
Moderator:
Nabeel Fayoumi, Vice President, Arab Academy, Jordan
Speakers:
Safa Abdel Rahman
Mohamed Smani
Gaby Deek
Guy Fleuret
A. Alkhaja
PITA, Palestine
R&D Maroc, Morocco
Professional Computing Association, Lebanon
WBI, France
Oasis Investment, Bahrain
Track Four:
Professional Development for Business Incubators & SMEs
Session XI
Moderator:
InfoDev