Bangladesh is abundant in one resource alone, human capital, and it is vital for the government to take steps towards technological advancement. This development can be expedited through using experiences of other countries. One country that has become the powerhouse of major research and development with incredible success is Israel. Israel’s much of the progress is due to innovative abilities in the applied sciences and technology. As a country almost bereft of natural resources, Israel placed special emphasis from the beginning, on the need for advanced education and scientific research. Today it has the 21st highest per-capita GDP in the world; a United Nations report ranked it 23rd worldwide in its standard of living, based on per capita income, life expectancy and educational standards.

Research and development is carried out primarily at the universities. As everywhere, the advancement of basic scientific knowledge is the chief objective of researchers at Israel’s universities.

Information available on the web indicates, 105,000 students are enrolled in Israel’s universities, with about 21 percent of all undergraduate students and 50 percent of all Ph.D. candidates specializing in the sciences or medicine. Another 13 percent of all undergraduate students and 8 percent of all graduate students specialize in engineering and architecture. Relative to the size of its labor force, Israel has a significantly larger number of publishing authors in the natural sciences, engineering, agriculture and medicine than any other country. Statistics also show that Israel has a larger share of publications co-authored by Israeli and foreign scientists than any other country, indicating prolific international scientific cooperation. Altogether, Israel spends $260 million annually on academic research, most of the money coming from the government and administered by the Council for Higher Education’s Planning and Budgeting Committee. In addition, research authorities within the universities help faculty members locate, apply for and administer external research grants. There are at least 300 such sources, including ten large foundations, most of which involve foreign donors and require collaboration with foreign scientists. All in all, grant programs support about 2,000 research projects at an annual cost of $70 million.

University research and development foundations, the first of which was established in 1952 by the Technion, are responsible for the interaction between researchers and the world of industry; they facilitate the commercialization of the innovative abilities and industrial know-how of the universities’ personnel. A recent study shows that the universities are Israel’s leading patentees at home and abroad, and that the relative size of their patenting activity far exceeds that of higher education sectors in other countries.

R&D in industry

Research and development also takes place in industry; in fact, studies have shown that R&D-intensive companies have been a major source of growth in industrial employment and exports. Thus, in 1968, the government decided to establish an office of a chief scientist in the Ministries of Agriculture, Communications, Defense, Energy (today the Ministry of National Infra- structure), Health and Industry & Trade in order to promote and encourage science-based high-tech industries. Each chief scientist acts as advisor to the minister on matters of industrial R&D and implements government and ministerial decisions in this area. The chief scientist is also responsible for providing financial aid to worthy R&D projects, as well as guidance and training to new enterprises and funding for industrial and technological incubators. The Law for the Encouragement of Industrial Research and Development (1984) is aimed at developing science-based export-oriented industries, capable of creating employment and improving the country’s balance of payments. The chief scientist of the Ministry of Industry and Trade is responsible for implementing this law, and provides suitable R&D grants to industries seeking to export their products. If a project fails, the government’s money is lost; if it succeeds, the entrepreneur pays back three percent of the grant yearly until the sum is repaid.

Hi-tech manufacturing

For many years, Israel’s industry was strong in research and innovation, but weak in finance and marketing. One of the tasks of the chief scientist was to encourage the commercial sale of innovative technology. One way of doing so was the creation of science-based industrial parks, which are often located near major university campuses.

The parks provide initial services and facilities to fledgling science-based industries, which are carefully screened before being accepted. The government often provides investment incentives, loans, grants and tax benefits to industries moving into the parks. Where universities are involved, the parks also benefit from the expertise of academic staff and from the advantages of joint purchasing of materials. Conversely, the park’s industries often provide supplementary jobs and subcontracts for university faculty and graduates.

In addition to these parks, technological incubators were introduced in 1991 to encourage the development of innovative ideas by individual entrepreneurs, whose companies were too small or whose ideas were too risky to fit into the Ministry of Industry & Trade’s regular research and development program.

The task of the incubator, which is an independent, non-profit entity, is to assist entrepreneurs to complete their projects and turn them into commercially viable ventures. It provides assistance in recruiting R&D staff, performs marketing and feasibility studies, and provides physical facilities, professional and managerial guidance and assistance in recruiting investment capital.

Today, there are 26 incubators throughout the country, in which over 200 projects are being conducted. More than 300 projects have already graduated from the program, including 173 which completed their goals and have continued on their own after the incubation period. Of these, 123 have signed agreements with investment, commercial or strategic partners, with capital investments ranging from $50,000 to $5.2 million. Virtually all the products are export-oriented, as the ultimate aim of the incubators is to increase Israel’s exports of goods - today some $20 billion annually.

Bangladesh today faces some of the similar challenges in development that Israel faced in 1950’s. Detailed study on Israel’s solutions to the issues towards development of Hi-tech industries can be helpful in Bangladesh’s endeavor.

Acknowledgement Dan Izenberg’s article on web.

CJ WEB

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