THE REALITY OF INNOVATION AND TECHNOLOGY IN THE ARAB WORLD

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THE REALITY OF INNOVATION AND TECHNOLOGY IN THE ARAB WORLD By Dr. Adnan Farhan Al-Jawareen College of Admin.&Econ. University of Basrah Iraq E-Mail:[email protected] Abstract: Arab countries are entering a new phase of economic development with an emphasis on the crucial role of innovation and technology in promoting sustainable development, and close the gaps with the rest of the world as quickly as possible. Technological capabilities and innovation have always been a fundamental component of economic growth and welfare. The word of innovation uses a lot to describe something new, amazing or unique, even we talk about superior ideas or arts, without distinction between these things especially from it's nature, in the fact not every thing new or amazing is called innovation that can make the abilities of industrial firms and whole economy become more strong. The term of innovation was used for the first time by Schumpeter, he was among the first authors to stress the important role of innovation in his book "The Theory of Economic Development" (1934). There, he not only described economic development as the disruption of the regular circular flow caused by the introduction of novelties, but he also dedicated a large part of his presentation to the description of the entrepreneur as the economic actor who kicks off economic development (Hanusch and Pyka, 2006).

Transcript of THE REALITY OF INNOVATION AND TECHNOLOGY IN THE ARAB WORLD

THE REALITY OF INNOVATION AND TECHNOLOGY

IN THE ARAB WORLD

By

Dr. Adnan Farhan Al-Jawareen

College of Admin.&Econ.

University of Basrah

Iraq

E-Mail:[email protected]

Abstract:

Arab countries are entering a new phase ofeconomic development with an emphasis on the crucialrole of innovation and technology in promotingsustainable development, and close the gaps with therest of the world as quickly as possible.Technological capabilities and innovation have alwaysbeen a fundamental component of economic growth andwelfare.The word of innovation uses a lot to describesomething new, amazing or unique, even we talk aboutsuperior ideas or arts, without distinction betweenthese things especially from it's nature, in the factnot every thing new or amazing is called innovationthat can make the abilities of industrial firms andwhole economy become more strong.

The term of innovation was used for the first time bySchumpeter, he was among the first authors to stressthe important role of innovation in his book "TheTheory of Economic Development" (1934).There, he not only described economic developmentas the disruption of the regular circular flowcaused by the introduction of novelties, but healso dedicated a large part of his presentation tothe description of the entrepreneur as the economicactor who kicks off economic development (Hanusch andPyka, 2006).

This study could achieve some results, and suggestthat despite some important achievements in the fieldof the study, there are still big challenges facingthe Arab countries to make a high jump towardsinnovation and technology economies and bettersocieties.To achieve the goals of the study, it's divided to anintroduction and literature review, section 3provides a summary of Socio-economic characteristicsof GCC and Rest of Arab countries.

1. INTRODUCTION

In last two decades, a new economic system hasevolved that is characterized by both globalizationand the revolution of information and communicationtechnologies. This has driven the need fordevelopment in science and technology (S&T), whichhas become more than simply an vital element ofeconomic growth and industrial competitiveness, butis now also essential for improving socialdevelopment, the quality of life and the globalenvironment for any country. “Access to scientific and technologicalknowledge and the ability to exploit it are becomingincreasingly strategic and decisive for the economicperformance of countries and regions in thecompetitive globalized economy. The 50 leading S&Tcountries have enjoyed long-term economic growth muchhigher than the other 130 countries of the rest ofthe world. Between 1986 and 1994 the average growthrate of this heterogeneous group of countries wasaround three times greater than that of the rest ofthe world. The average economic wealth per capita ofthese 50 countries has grown by 1.1% per year. On theother hand, the per capita income of the group of 130countries – which perform less well in education,science and technology – has fallen over the sameperiod by 1.5% per year. These trends prefigure a new

division of the global economy, based on access toknowledge and the ability to exploit it”. (OECD 1997:ix) Hence, within this context, the aim of thispaper is to assess I&T development indicators withinthe Arab world through the International reportsand, in particular, to compare the I&T development ofthose in the GCC countries with the rest of Arabcountries, and to compare them to countries in therest of the world.This paper try to draws some policy implications andrecommendations for ways to enhance I&T performancein the Arab region2. LITERATURE REVIEW A country’s ability to solve problems andinitiate and sustain economic growth depends partlyon its capabilities in science, technology, andinnovation.The simplest definition of innovation is thegeneration, development and implementation of ideasthat result in new products, processes, or services.While the definition of innovation is simple, theprocess is complex and multi-faceted (Young Arableaders Forum, 2007:2) Schumpeter’s concept of innovation as “creativedestruction” highlights this ambiguity: Creativefirms bring new products or better technology intothe economy, but this destroys stagnant firms. The empirical literature on innovation most oftenuses one or more of three quantitative measures ofinnovative activity, these three are:( Morck, andYeung,2001:3-5)

1-Research & Development Spending: Corporate R&D iswidely used as a measure of a firm’s investmentin innovation. The most important criticism forusing R&D spending is that it measures an inputto innovation, not the number or value of theinnovations actually produced.

2-Patents: The number of patents for any countryper year is an important tool to measure the

level of innovation for this country. But thistool can be sometimes misleading for two reasons.First, from an economic standpoint, innovation isabout applying new ideas and technology toimprove human life, not just about having ideas.High patent counts do not necessarily mean a highlevel of innovation. Second, firms that have anew technology and fear that other firms mighttry to steal their technology by findingsuperficially different technological processesthat circumvent the innovator’s patent arethought to engage in patent thickening.

3-Innovation Counts: Innovation counts arecomprehensive lists of innovations made byvarious firms or countries.

A higher rate of innovation in one nation neednot come at the expense of others. Increasing therate of innovation in many nations can improve theirproductivity and prosperity and collectively speedthe rate of world economic growth (Porter & Stern,).More recent literature addresses the contribution toS&T performance of the ‘national systems ofinnovation’; a widely used modern term that reflectsthe link between technical and institutionalinnovative development (Samia Satti, 2005:11).The first one that used the concept ‘national systemof innovation’ was Christopher Freeman in 1982 in hisan unpublished paper titled ‘TechnologicalInfrastructure and International Competitiveness’,was written very much in the spirit of FriedrichList, pointing out the importance of an active rolefor government in promoting technologicalinfrastructure. It also discusses in critical termsunder what circumstances free trade will promoteeconomic development( Johnson,Edquist and Lundvall,2003:3) National system of innovation (NSI) can bedefine as " The elements and relationships whichinteract in the production, diffusion and use of new,

and economically useful knowledge... and are eitherlocated within or rooted inside the borders of anation state” (Lundvall, 1992:). Two other scientistsargue that “The many national interactions (whetherpublic or private) between various institutionsdealing with science and technology as well as withhigher education, innovation and technology diffusionin the much broader sense, have become known as‘national systems of innovation’. A clearunderstanding of such national systemic interactionsprovides an essential bridge when moving from themicro- to the macro-economics of innovation. It isalso essential for comprehending fully the growthdynamics of science and technology and theparticularlystriking way in which such growth dynamics appear todiffer across countries”, (Freeman andSoete 1997, 291). The technological revolution has changed theface of the world, and transformed the life style,beside it makes the world looks as a small villageand every thing happened in any part of the world mayeffect on the other parts of the world. "Innovation and Technology also affects humandevelopment along two ways. First, innovation candirectly increase the ability of existing science,technology, and innovation programs to reduce povertyand expand human capabilities. This is most evidentthrough technological innovations in public health,agriculture, energy use, and ICT. Second, technologycan indirectly affect human well-being by enhancingproductivity and increasing economic growth andincomes. Productivity can be enhanced by increasingthe output of workers, raising agricultural yields,and improving the efficiency of services; higherincomes can help people meet their basic needs.Increased productivity helps overcome the barriers oflow-incomes and weak institutions" (UN MillenniumProject, 2005:31).

When we talk about technology sector weshouldn't forget communication sector, this sectorplays a vital role in building knowledge society,beside it's very important component in economic,financial and cultural development. Communicationsector plays a triple role in development, first it'sa necessary sector in modern economy help in buildingthe individual skills and local export capacity,second it's plays an important role in thedevelopment of other sectors like education,information, health services and industry, third it'senhance competitiveness in the foreign markets whichis depend on speed of connect and delivery.

3. SUMMARY OF SOCIO-ECONOMIC CHARACTERISTICS OF GCC AND RESTOF ARAB COUNTRIES:

Arab World accounted for twenty-two countries with atotal population of about 330 million people, withsurveying (13.04 Million KM2), GDP for all Arabcountries reached (1.9 Trillion Dollars) in 2008, GDPper capita was (5858 US$) ( Statistical Bulletin ofArab Countries,2010:different pages).

Table (1) General socio-economic data for Arab countries 2010

Country Population (Millions)

Type of Human development

Index HDI value

Life expectancy at birth (years)

Mean Years of schooling

GNI per capita($)

GCC CountriesU A E 4.7 Very High 0.815 77.7 9.2 58006Qatar 1.5 Very High 0.803 76.0 7.3 79426Bahrain 0.8 Very High 0.801 76.0 9.4 26664Kuwait 3.1 High 0.771 77.9 6.1 55719Saudi Arabia

26.2 High 0.752 73.3 7.8 24726

Oman 2.9 ….. …. 76.1 …. 25653Rest of Arab CountriesLibyan A. J.

6.5 High 0.755 74.5 7.3 17068

Tunisia 10.4 High 0.683 74.3 6.5 7979

Jordan 6.5 High 0.681 73.1 8.6 5956Algeria 35.4 High 0.677 72.9 7.2 8320Egypt 84.5 Medium 0.620 70.5 6.5 5889Syrian A. R

22.5 Medium 0.589 74.6 4.9 4760

Morocco 32.4 Medium 0.567 71.8 4.4 4628Yemen 24.3 Low 0.439 63.9 2.5 2387Mauritania

3.4 Low 0.433 57.3 3.7 2118

Djibouti 0.9 Low 0.402 56.1 3.8 2471Sudan 43.2 Low 0.379 58.9 2.9 2051Source: UNDP, Human Development Report 2010, USA, 2010 , p. 143-146.

Table (1) shows that GCC countries are in the top of all Arab countries, three countries characterized as very high human development, two as high human development and Oman is not classified. Rest of Arab Countries divided to three types of human development four of them high, three medium andfour low human development, the main reason of GCC tobe at the top of Arab countries is "Oil", these countries have a large amount of oil and it's the main resource of revenues, so because of high revenues and few population the GCC countries could use these revenues to develop their people's health, education and GDP per capita.

human development index (HDI) shows that the GNPper capita is higher for the GCC countries than for Rest of Arab countries, while life expectancy classified as high in five of the GCC countries, the other one is among the medium world countries.From that we can conclude that non-oil Arab countrieshave both large population coupled with low standards of economic development and growth indicators as measured by GNP per capita.

4. I&T INDICATORS IN THE ARAB WORLD

The technological capacity of a country are composed by a different types of sources of knowledge and innovation. (4.1) The Knowledge Economy Index: (KEI) is a comprehensive indicator for innovation and

technology, it's consist of four secondary indicatorswhich are economic incentive regime, innovation, education and information and communication technology (ICT).

Table (2) Knowledge Economy Index for Arab Countries 2009

Rank(Among 145countries)

Country KEI

44 Qatar 6.7345 U.A.E 6.7349 Bahrain 6.0452 Kuwait 5.8562 Jordan 5.5466 Oman 5.3668 Saudi Arabia 5.3176 Lebanon 4.8182 Tunisia 4.4290 Egypt 4.0899 Morocco 3.54105 Algeria 3.22108 Syria 3.09116 Mauritania 2.36121 Yemen 2.20130 Sudan 1.78139 Djibouti 1.47- Western Europe 8.76- East Asia and the

Pacific6.45

Source: http://info.worldbank.org/etools/kam2/KAM_page5.asp.

From the table we can find that there is no any Arab country could reach to the average of Western Europe countries in (KEI), and Just two Arabian Countries (Qatar and U.A.E) could reach to the East Asia and the pacific average. This is a dangerous indicator says that the Arab countries should do their best to be at the top.

(4.2) Innovation Index: These low numbers in (KEI) lead to low numbers in innovation index as it seen infigure (1).

Figure (1) Innovation Index in Arab Countries 2009

Qatar

Bahrain

Jordan

Saudi Arabia

Tunisia

Morocco

Syria

Yemen

Djibouti

East Asia and the Pacific

012345678910

Country

Innovation Index

Source: http://info.worldbank.org/etools/kam2/KAM_page5.asp.

It's very clear that U.A.E and Qatar are thehighest in innovation index between Arab countriesbut they are less than East Asia and the Pacific andin more grade they less that Western Europe. Theinnovation index is the simple average of thenormalized scores on three key variables which theyare (World Bank, 2009):

1-Total Royalty payments and receipts.2-Patents applications Granted by U.S. patent and

trade mark office. The number of patentsregistered in the United States by Arab countriesin 2009 amounted to 147 for Saudi Arabia, 44 forU.A.E.,38 for Kuwait, 36 for Egypt, 14 forLebanon, 12 for Jordan, 6 for Morocco andTunisia, 5 to Qatar, 3 to Bahrain2 for Oman andSyria and 1 for Libya, compared with 23950 forSouth Korea, 4727 for Israel and 3110 for India(U.S. Patent, 2010:13-15), these numbers explainhow the gap is deep between Arab countries andrest of the world.

3-Scientific and technical journal articles. Thetotal of scientific and technical journalarticles in all Arab countries was (4756) in2005, comparing with (44145) in Germany, (8749)in Switzerland and (16396) in South Korea( WorldBank, 2010:340).

(4.3) NRI index: World Economic Forum used to publishedit's annual report (The Global Information TechnologyReport "GITR") since 2002, to evaluate the situationof (ICT) in the world. The Networked Readiness Index(NRI), comprising three subindexes that measure theenvironment for ICT, together with the mainstakeholders’ readiness and usage, with a total ofnine pillars and 71 variables as follows(W.E.Forum,2011:6):1. Environment subindex• Market environment• Political and regulatory environment• Infrastructure environment2. Readiness subindex• Individual readiness• Business readiness• Government readiness3. Usage subindex• Individual usage• Business usage• Government usage The final NRI score is a simple average of thethree composing subindex scores, while eachsubindex’s score is a simple average of those of thecomposing pillars.The GITR 2010-2011 include 15 Arab countries, four ofGCC countries were at the top of Arab countries as itshown in table (3).

Table (3) Rank and Score of Arab Countries in NRI2010-2011

Country Rank ( among 138countries)

Rank amongArab

Score

countriesU.A.E 24 1 4.80Qatar 25 2 4.79Bahrain 30 3 4.64

Saudi Arabia 33 4 4.44Tunisia 35 5 4.35Oman 41 6 4.25Jordan 50 7 4.00Egypt 74 8 3.76Kuwait 75 9 3.74Morocco 83 10 3.57Lebanon 95 11 3.49Algeria 117 12 3.17Syria 124 13 3.06Libya 126 14 3.03

Mauritania 130 15 2.98Source: World economic Forum, The Global Information Technology Report 2010-2011, Geneva, 2011, p. 12-13.

If we divided the 138 countries included in the GITR to four groups, the 1st one will include the countries who ranked between (1- 34), the 2nd group the countries who ranked between (35- 69), the 3rd group included the countries who ranked between (70- 103) and the 4th group included the countries who ranked between (104-138), so according to this dividewe will find four Arab countries in the first group all of it from GCC countries, three in the 2nd group two from GCC countries and one from rest of Arab countries, four in the 3rd group and four in the 4th group.

(4.4) Science and Technology Indicators:

To evaluate the situation of science and technology the researcher used four indicators as it appear in table (4).

Table ( 4) Science and Technology Indicators for ArabCountries

and some Comparison CountriesCountry Researchers Scientific Expenditure High

in R&D (permillionpeople)2000-2007

andTechnicalJournalsArticles2005

for R&D %GDP

2000-2007

Technologyexports %

ofManufactured Exports(2008)

GCC countriesU.A.E - 229 - 3Qatar - - - 0Bahrain - - - -Kuwait 166 233 0.09 0SaudiArabia

- 575 0.05 1

Oman - 111 - 1Rest of Arab countries

Algeria 170 350 0.07 1Egypt 617 1658 0.23 1Jordan - 275 0.34 1Lebanon - 234 - 0Morocco 647 443 0.64 9Sudan - - 0.29 0Syria - 77 - 1Tunisia 1588 571 1.02 5

Some Advanced countriesFinland 7382 4811 3.47 21Germany 3453 44145 2.55 14

Switzerland 3436 8749 2.93 23U.S.A 4663 205320 2.67 27

Some East Asia CountriesKorea, Rep. 4627 16396 3.47 33Malaysia 372 615 0.64 40Singapore 6088 3609 2.61 51

Source, World Bank, World development Indicators 2010, Washington D.C, 2010, pp 340-342.

From the above table we can see the huge gap intechnology between Arab Countries and the advancedcountries, this gap needs a lot of hard work to fillit up, and these needs to raise the numbers ofresearchers which is very few comparing with othercomparison countries and this needs to reform theeducation system and focusing on science andtechnology in the education, this indicator lead toreduce the number of scientific and technicaljournals articles which is one of the dynamic of

research indicators, the number of scientific andtechnical journal articles originating in the Arabworld does not exceed (2.3%) of U.S. articles. Theexpenditure on R&D is less than (1%) in most of Arabcountries as it showed in the table. UNDP reportmentioned that in 2009 the average Arab expenditureon scientific research does not exceed 0.3 per centof Gross Domestic Product (GDP) in most Arabcountries, exceptions being Tunisia, Morocco, andLibya, whose spending rates are in excess of 0.7 percent. However, averages reach 3.8 per cent in Sweden,2.68 per cent in the USA, 3.51 per cent in Finland,and 3.18 percent in Japan. Rarely is averageexpenditure on scientific research lower than 1.8percent of the GDP in the European or the young Asiancountries (UNDP&MRAF,2009:192). In contrast toadvanced countries, if we look to the structure ofexpenditure on scientific research in Arab countries,we will find total control from a single source whichis the government, this amounts to approximately 97per cent of the funding available for scientificresearch in the Arab World (Sasson, 2007:1).So the Arab countries should raise the expenditure onR&D to about (2.5-3%) of GDP as it in the comparisoncountries, this beside concentrate to raise thepercentage of high technology exports from (1%) inmost of Arab countries which is very poor percentageto reach at least (10-15%) from manufactured exports.These indicators improve that the Arab countries hasfailed to build a high- quality research centers andscientists to improve economic self-reliance andcapacity for innovation and technology in thesecountries( Kamel, 2009:1). (4.5) Communication sector indicators:

Arab countries made a big efforts to developit's communication sectors, a lot of these countriesput a strategies to develop the communication andtechnological sector, some of these countriesconcentrate on this sector as a product sector bring

a big revenues so it's put plans to developcommunication industries.

In the last decade the Arab countries couldachieve a good development in communication and table(5) explain that.

Table (5) Some Communication Indicators 2010Country Fixed

telephone linesper 100inhabita

nts

Mobilecellularsubscriptions per

100inhabitan

ts

Internetusers

per 100inhabita

nts

Fixedbroadbandsubscriptions per

100inhabitan

ts

Rank ofICT

DevelopmentIndex2008(among159

countries)

GCC CountriesU.A.E 19.70 145.45 78.00 10.47 29Qatar 16.95 132.43 69.00 9.17 45

Bahrain 18.07 124.18 55.00 12.21 33Kuwait 20.69 160.78 38.25 1.68 65SaudiArabia

15.18 187.86 41.00 5.45 52

Oman 10.20 165.54 62.60 1.89 71Rest of Arab CountriesAlgeria 8.24 92.42 12.50 2.54 100Egypt 11.86 87.11 26.74 1.82 96

Iraq 5.05 75.78 5.60 - -Jordan 7.84 106.99 38.0 3.18 74Lebanon 21.00 68.00 31.00 4.77 82Libya 19.33 171.52 14.00 1.15 78

Mauritania

2.07 79.34 3.00 0.19 126

Morocco 11.73 100.10 49.00 1.56 97Tunisia 12.30 106.04 36.80 4.60 85Yemen 4.35 46.09 10.85 0.33 129

Some Advanced countriesFinland 23.30 156.40 86.89 29.07 12Germany 55.41 127.04 81.85 31.59 13Switzerla

nd58.56 123.62 83.90 38.16 7

U.S.A 48.70 89.86 79.00 26.34 19Some East Asia CountriesKorea,Rep.

59.24 105.36 83.70 36.63 3

Malaysia 16.10 121.32 55.3 7.32 56Singapore 39.00 143.66 70.00 24.72 14Source:1. Columns from 1-4 from: International Telecommunication Union Website:

http://www.itu.int/ITU-D/ICTEYE/Indicators/Indicators.aspx

2.Column 5 from: International telecommunicationUnion, Measuring the information society 2010, Geneva2010, p.10.

From table (5) we can find that:

1-In Fixed telephone lines per 100 inhabitantsindicator the average of GCC countries was (16.8)and the rest of Arab countries was (10.37) whilein the comparison advanced countries the averagewas (46.5) and in East Asia countries the averagewas (38.1), which mean that the advanced and eastAsia countries better than Arab countries.

2-The average of GCC countries in Mobile cellularsubscriptions per 100 inhabitants was ( 152.7)and the average of the rest of Arab countrieswas (93.33).

3-In internet users index the best performancebetween Arab countries was U.A.E which it'saverage was close to USA average, Mauritania was

the worst with poor average (3.0) person per 100inhabitants. The average of GCC countries was(57.3) while for the rest of Arab countries itwas (22.7), and for advanced countries theaverage was (82.9), and in Some East AsiaCountries the average was (69.6).

4-neither the GCC countries nor the rest of Arabcountries reached to the level of Advanced andEast Asia countries in the Fixed broadbandsubscriptions per 100 inhabitants indicator.

5-In the ICT development index there just threeArab countries – among sixteen- were at the top50 countries, this reflect the poor level of Arabcountries in this index.

5. Conclusions:

Innovation and technology has become one of the mostimportant sources of advance and development in bothadvanced and advancing economies, and building innovative and technology capacity has a strong relationship to a country’s overall sustainable development and level of prosperity. From the last analysis we can conclude that theGCC countries performance in the I&T is better thanthe rest of Arab countries, but in general all Arabcountries has failed to achieve the desireddevelopment in the innovation and technology. Thisfailure can be attributed to several main factors asfollows:

1-The state policy point at researches and researchcenters: Most of the Arab Countries give about(0.5%) of it's GDP for R&D activities, and thislead to a negative impact on Arab innovationperformance. In most Arab Countries scientificresearch centers are attached to Ministry ofHigher Education systems rather than toproduction and services sector as they are in theindustrial countries (UNDP& MRAF, 2009:184). Theworst thing is that a big percentage ofresearches throw on the shelves of the libraries

without taking advantage of theses researches indevelop the economic and social sectors.

2-The education system: In the Arab world there aremany obstacles in the educational systems andthese are often related to economic, social andpolitical problems, and funding, teachingmethods, quality of education, and absence offreedom and democracy are the most importantobstacles. Although the Arab World achieve agood development in on all indicators ofeducation like literacy, number of schools anduniversities, number of teachers and high ratesof enrollment in primary and secondary schools.But basic literacy is no longer sufficient. Theneed now is for scientifically andtechnologically literate individuals who canfunction in a global village characterized byintense competition and the rapid production ofknowledge (UNESCO, 2003:3).

3-The level of social and economical development inthe Arab World: in this point the high rates ofilliteracy, unemployment, and poverty in someArabian countries are unhelpful elements tocreate a suitable climate to develop hightechnology and innovation. UNESCO reportsindicate that literacy rates for adults in theArab World is (71.1%) comparing with (83.9%) forWorld, (97.5%) for Central and Eastern Europe,(98.5%) for Central Asia and (99.4%) for NorthAmerica and Western Europe (UNESCO, 2009: 193).The unemployment rate was the highest in theMiddle East & North Africa region during theperiod (2005-2008) and reached (10.6%), comparingwith (4.7%) in East Asia & Pacific, (6.9%) inEurope & Central Asia and ( 7.5%0 in Euro area(World Bank, 2010:80)

4-The absence of freedom which prevent theresearchers to have the data they needs to thereresearches and to write and analyze what theythink and conclude. Beside that the lack of

interest in technology and innovation by Arabpolitical leaders, who they are devote a largenumbers to military expenditure and very smallnumber to education and R&D.

5-Low quality of higher education in the Arab worldis very important reason, the main evidence oflow quality is that there is just two Arabuniversities- among more that 280 Arabuniversities- were at the top 500 worlduniversities, and just five universities amongthe 1000 top universities, and this is becauseof (Kamel,2009:5):

a- Most of Arab universities suffer from politicaland ideological stress imposed by government.

b- The universities lack quality faculty members.Many university professors come from a singleuniversity system, having obtained theirundergraduate and graduate degrees from theuniversity that employs them. As a consequence,their academic vision in teaching and researchoften does not extend beyond the universityborder.

c- Higher education in the Arab world facing aconsiderable shortage of teachers. The ratio ofthe student-teacher was 25:1, compared to theglobal average of 16:1 in 2005.And according toavailable data the Arab student-teacher ratio isthe highest among all regions of the world,including sub Saharan Africa (UNDP&MRAF,2009:114).

To develop I&T sector and fill up the gapbetween Arab countries and advanced countrieseducational reform is very important to preparepeople for the knowledge economy and globalization,and transfer it's economies to knowledge-driven andinterdependent. Beside that transfer from depends onimport technology to home produce innovation andtechnology.Such reform need at first Recommendations:

1-To catch up the level of advanced countries ininnovation and technology the Arab countriesshould put comprehensive strategies to developthis sector and before that there should be agovernmental desire to do that.

2-Reform the education systems in the Arabcountries and make it suitable with labormarkets, concentrate in building knowledgesocieties and reduce the percentage ofilliteracy in computer.

3-Raise the percentage of expenditure on R&D, andbuild a modern research centers has every thingthe researchers need to do their research toencouragement the innovation.

4-Give incentives to researchers and academic staffto make a patent.

5-Reduce the costs of communication and internetservices to be suitable for purchasing power ofArab people.

6-Encourage researchers and academic staff topublish their research in Internationalperiodical magazine and participate inInternational conferences and workshops to havegood experience.

References:

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