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Innovation System Diagnosis and STI Strategy
Development in LAO PDR
Presented by: MANOTHONG VONGLOKHAM
Department of Technology and Innovation (DTI)
Contents
1. Country Development Direction & Goals
2. STI Policies and Strategies
3. NIS Diagnosis and Solutions for Lao PDR
4. Issue and Challenge
Country Development Direction & Goals
(NSEDP VII)
 Rapid growth , stability and sustainability
 Comprehensive basic infrastructure, especially in
the rural area, connecting to the region and global
 Improving governance efficiency, transparency,
and solving all obstacles
 Achieving MDGs with a quality
 International integration
 and openness trade
Country Development Goals:
 Ensure continuation of national economic growth with
security, peace and stability, and ensure GDP growth rate
of at least 8 % annually and GDP per capital to be at
least USD 1,700.
 Achieve the MDGs by 2015, and adopt appropriate
technology and skills , and create favorable conditions for
graduating the country from LDC by 2020
 Ensure sustainability of development by emphasizing
economic development with, cultural and social progress,
preserving natural resources and protecting the
environment.
 Ensure political stability, peace and an orderly society.
STI Policies and Strategies
STI Policies and Strategies
There are some STI legislation have been promulgated
for promote and apply technology to across sector such as law on
intellectual property, law on standards, law on metrology , law on
Science and Technology, law on bio safety and Etc.
There are some legislation being drafted as : Law on e commerce , technology transfer decree, STI fund management
decree and high technology decree …….
STI Policies and Strategies(cont.)
The Strategy consist of 6 Action Plans:
(1) Dissemination, create awareness on STI,
(2) Improvement of the organization, systematization of
management mechanism on STI’s activities,
(3) HRD development
(4) Apply R&D in priority area and sectors (IT, Biotech,
Renewable and new material, Machinery and
automation technology)
(5) Provide ST services for society and people in remote
areas, and
(6) Cooperation with international.
Diagnosis of IS and Solutions for Lao
STEPI, APCTT and Lao DIT Cooperation on Innovation
System of Lao PDR

Duration:
End of 2012 - April 2015

Implementing Organization:
- DTI, MOST, LAO PDR
- STEPI and APCTT
 Methodology approach:
- 3C/3A
 Stakeholders:
- Government Institutions
- R&D and HRD
- Industry
 Diagnosis process
- Review of Domestic Policies
-- - Site visit and interview
- Analysis (3C/3A)
Review of Domestic Policies
7th NSEDP 2011
Agriculture
Development
Strategy 2020
Agricultural
Master Plan
2015
investment
Promotion Law
2010
Education Sector
Development Plan
2011-2015
National S&T
Policy 2003
Overarching goals:
•
Achieve MDGs
•
ASEAN Community
Main challenges:
•
Weak economic base (increased competition)
•
Global economic crises (impacted export sector)
•
Pressure from neighboring countries for material
resources
R&D and HRD
Industry
List of Stakeholders Visited
 Industry
 Dao-Heuang Group
– ETL
 Nam Theun 2 Power Co.
– Pharmaceutical Factory No. 2
 Lao National Chamber of Commerce & Industry
 Lao Organic Product Association
 University/Research Institutes
 National University of Laos
 Agriculture & Forestry Research Institute
 National Institute of Public Health
 Water Resource & Environment Research Institute
Institutions
Government
 Ministries
 Science & Technology – Planning & Investment
 Mines & Energy
 Education & Sports
– Industry & Commerce
 Diagnosis of Innovation system of Lao
3C/3A Diagnosis: Bottlenecks & Constraints
R&D/Universities
Low R&D capacity
Limited HRD capacity
Industry
Weak production chain
Resource-dependent
(Unsustainable)
Tech import dependent
Lack of management skills
Domestic Market
Low market demand
Weak infrastructure
Lack of finance market
Global Environment
High competitiveness
IP regime pressures
ODA expectations
Government
Intervention
Goal: Rapid, Sustainable
Economic Growth
Action Plan: Priorities
and Programs
Action Plan
1. Action Planning Rationale
MPI
NSEDP
HRD Steering Committee
MES
MIC
Industrial priorities in agriculture,
automotive parts, garments, construction
& wood products
MEM
CORE CAPACITY BUILDING
General education starting with
primary education
Industrialization Bottleneck:
Lack of scale, coherence, and
relevance
MOST
Technological priorities for ICT, new
materials, biotech, & renewable energy
Industry Platform
(Cluster of related industries)
•
•
•
Priority Setting Alternatives
Driving Mechanism
Strategic Program: STI infrastructure, HRD, governance, & financing
Action Plan
2. Proposed Priorities and Programs
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3. Programs
 Driving mechanism to coordinate various stakeholders to build capacities to
achieve specific technologies and skills necessary for the platform industry
of green vehicles and green energy
 Especially national programs which can accommodate international
consortia to develop and transfer necessary local capacities
 STI Infrastructure to provide R&D, to develop capacities and bridge
missing capabilities and to enable domestic firms to bring overseas
technology (from global power utility providers) and integrate them with
local technologies
 Human Resource Development Program to serve as a framework to labor
forecast demand and devise projects that align the education and training
system to provide the necessary workforce and a mechanism for
coordination, sharing of responsibilities, evaluation, monitoring and raising
awareness
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4. Others
 Consortia of public private partnership with MNCs to develop technologies
and skills are required to be holistically aligned with the inter-ministerial
governance mechanism of Lao government, especially with the new
education initiative led by MES.
 For financing, various funding of ODA, MDB, ASEAN & bilateral
financing and private investment (tourism & platform industries) can be
mobilized, while seed funding for initial projects from Lao government is
critical for continuity and autonomy.
 A few of short-term milestones include identification of relevant domestic
stakeholders of government, industry champions, and researches to create
taskforce team, verification of the proposed project rationale, formulation of
international advisory group, and Lao government initiated master planning.
Issue and Challenge
Issue and Challenge
In Lao PDR, we can say that the technology and
innovation exist is principle, but it is weak and
fragmented. Innovation Linkages among the main
actors of the system are weak. There are various
bottlenecks of the system as a whole and in each group
of organizations, in particular, which are hindering the
contribution of this system in strengthening national
innovation capability.
Challenge:
•
•
•
•
•
The experience, skill and resource for the management
and promotion on STI are insufficient
There are absent of specific policies, and legislation on
the management and promotion of technology and
innovation;
Lack of statistic database of STI
Disseminate the knowledge, experiences and best
practice on STI are limited
Coordination mechanism among main sector is not well
established and acted
Challenge (Cont):
 Universities/ research institutes are still young and
limited on infrastructure development on STI.
 Research activities and applied technology and
innovation are limited not met the demand of society as
well as industrial development.
 Mechanism coordinate and cooperate between
university/research institute and private are not strength.
 Industries access to STI information are limited.
Opportunity
 Science, technology & innovation (STI) issues are recognized
as main factors in contributing to socio - economic development,
which has emphasized on promoting the research and
development of STI to enhance competitiveness business sector
and also the promotion of community’s innovation, for applying
science in teaching and learning, and for the application of
science &technology to business sector.
 Lao government has focus on policies to promote the science,
technology and innovation, to meet the actual demand of the
country.
Opportunity(Cont)
 The government has devoted 1% of the total government’s
investment budget to enhance research and development on
science, technology, Innovation and social development.
 The krabi Initiative was emphasized on promote and
stimulate the ASEAN indigenous capacities for upgrade the
products and services to meet international standards and also
extend to the global markets.
Thank you for attention