UAE 'attractive destination for talent, capital'
Abu Dhabi, January 6, 2013
The UAE is one of the most attractive destination globally for foreign talent and investment, according to a study.
The report, ‘Measuring Innovation Capabilities of Nations’, prepared by Insead, the leading international business school, under its Innovation & Policy Initiative gives valuable insights into the progress of the UAE in becoming a knowledge-based economy.
The research established five key capabilities economies should develop to innovate: the abilities to access, anchor, diffuse, create and exploit knowledge.
The report findings highlighted the UAE’s particular strength in its capability and performance to anchor knowledge it has attracted in its economy, not least thanks to its relatively investment-friendly environment and ease of doing business.
Although industrialised economies, such as Australia, South Korea and the US lead in terms of diffusing knowledge within its economies, the UAE, along with Saudi Arabia, lead among the resource-rich countries in this regard. The UAE is especially adept at spreading innovative skills and techniques among its rapidly developing human capital, it said.
In terms of accessing the knowledge, the UAE displayed a significant ability to do so due to its cosmopolitan nature, in regard of both talent pool and presence of international enterprises, as well as adopting advanced information and communication technologies (ICT). The UAE therefore joins the rank of leaders, alongside Australia, South Korea and the US among the GFCC countries.
However, in comparison to South Korea, although both, the UAE and Australia, have a high capacity to attract knowledge, the Insead research found that in the case of the latter two countries, performance remains more modest due the high share of natural resource commodities on their international trade books.
The research also showed that the other capability indicator the UAE could strengthen would be the creation of knowledge within the country and on commercially exploiting innovations further. In respect of creating and exploiting new knowledge, the US still emerges as a clear leader. Australia and South Korea aren’t far behind in knowledge creation as such but together with the UAE, they are catching up on exploiting innovation commercially.
Concluding its report, Insead issued a set of general policy guidelines, which could assist countries in determining their weaknesses in terms of innovation indicators and if applied, advance the development of a knowledge - and innovation-rich economy.
The policies firstly call for a strong supportive infrastructure that is capable of accessing the physical, including ICT and financial capital to effectively create, transfer and commercialize knowledge.
The guidelines also advise governments to create vital networks within an economy, such as linking the private sector, training institutions and in-between organisations to produce a positive multiplier effect on government investment in research and development (R&D), as well as on other educational initiatives.
Furthermore, innovation policies should be both, firm-oriented, for example, business support and advice, risk capital, loans and subsidies, as well as innovation system-oriented, for example address network building and brokering through cluster development and other system-enhancing interventions.
Commenting on the need for economies to pursue innovation to create new socio-economic value, Dr Sami Mahroum, director of innovation and policy initiatives at Insead Abu Dhabi, said: “Our new report adds a new member to the family of innovation and technology indices produced by Insead. It emphasizes our commitment as a school to conduct research that is relevant to the world of business and decision-making.”
The report was launched at the prestigious Global Competitiveness Summit entitled: Advancing Prosperity through Innovation. Hosted by the Emirates Competitiveness Council (ECC) and the Competitiveness Office of the Department of Economic Development of Abu Dhabi (COAD), the summit attended by senior policy makers, leaders of industry and academia, was the 3rd annual gathering of the Global Federation of Competitiveness Councils (GFCC) –a global network of leaders from Competitiveness Councils around the world.
The report underlines the UAE government’s commitment to support innovation. Indeed, Abu Dhabi and Dubai also showcased several innovations at the conference. – TradeArabia News Service