Science, Technology, and Innovation (STI) policy and legal frameworks within the context

of Regional Innovation System (RIS): Challenges and Opportunities in Ethiopia.

Kassahun Sube1, Tegegn Belay2, Filmon Hando3, and Ashenafi Bayinesagn4
Corresponding author: [email protected]
Introduction
Fostering Science, Technology, and Innovation (STI) is crucial for
accelerating sustainable development and competitiveness. This could be carried out
by developing policies and legal frameworks, implementing institutions, and funding
structures that support entrepreneurship, employability, economic growth, and higher
productivity. Similarly, a nation's ability to achieve and maintain sustainable, vibrant
economic growth is largely determined by how well its institutions and policies foster the
exploration of new knowledge, the progress of technology, and the innovative spirits of its
businesses. Policies on Science, Technology, and Innovation (STI) are therefore essential to
the advancement of a country and are necessary for it to achieve a dynamic, integrated, and
self-sufficient economy.

Accordingly, there are global, regional, and local policies and legal frameworks
drafted to bring about economic development and competitiveness. For instance, the
Sustainable Development Goals (SDG), Agenda 2030, stands for collective action on
economic, social, and environmental dimensions in a stable and integrated manner. Similarly,
the African Union (AU) adopted a long-term Agenda 2063; “The Africa We Want” to foster
inclusive growth and sustainable development at local and regional levels. Both the
abovementioned policies recognize the vital role of Science, Technology, and Innovation
(STI), as universal enablers for achieving the aspirations and goals. It is believed that
strengthening capacity in Science, Technology, and Innovation (STI) for sustainable
development, and harnessing the outcome discoveries, could only be achieved within a
comprehensive framework of Science, Technology, and Innovation (STI) policies and
programs. Concerning this, the African Union (AU) established the Science, Technology, and
Innovation Strategy for Africa 2024 (STISA-2024) in 2014 as the continental framework for
accelerating African transformation towards a knowledge-based, innovation-led economy
within the broader context of the AU Agenda 2063. Corresponding, the African Scientific
Research and Innovation Council (ASRIC), the African Observatory for Science,
Technology, and Innovation (AOSTI), and the Pan-African Intellectual Property
Organization (PAIPO) were among the key African institutions that were established during
this process through the implementation of decisions and legal documents.

Comprehensive Science, Technology, and Innovation (STI) policies are vital for enabling
all essential stakeholders to contribute to economic growth and competitiveness. The Addis
Ababa Action Agenda of the Third International Conference on Financing for Development
emphasized the importance of national STI policies in enabling STIs to serve as a driver and
enabler of meeting the 2030 Agenda for Sustainable Development (Asheim et al., 2020).
Similarly, the African Union's Scientific, Technological, and Innovation Strategy for Africa
2024 prioritizes STI policymaking as one of the four pillars of the first phase of executing
Agenda 2063: The Africa We Want.

Locally, even though the first national plan was drafted in 1957 during the imperial
regime, the first National Science and Technology Policy of the country was issued by the
Transitional Government of Ethiopia in 1993. Consequently, since 2004, the Ethiopian
Peoples Revolutionary Democratic Front (EPRDF) introduced three five-year plans: Plan For
Accelerated and Sustained Development to End Poverity (PASDEP), and the two Growth and
Transformation Plans (GTP I & GTP II). In 2021, the Federal Democratic Republic of
Ethiopia (FDRE) Plan and Development Commission developed the Home-Grown Economic
Reform (HGER) for the enhancement of productivity and competitiveness of the overall
economy and a gradual transition from public to private sector-led growth. The principal
objectives of innovation and technology development of the plan include: developing
national innovation, research, and technological capabilities; building a digital economy and
increasing the benefits to be derived; improving national productivity and competitiveness by
building technology-based industries; and establishing innovation and technology regulatory
systems operating procedures (Planning and Development Commission, 2021).

Besides, Strategic Policy for National Science, Technology, and Mathematics

Education, Investment Proclamation, Intellectual Property Law, National Research and
Development Strategy, Industrial Parks Development Proclamation, and Technology
Incubation and Transfer Policy, Higher Education Proclamation (650/2009) of 2009, the
Intellectual Property (IP) Rights System, the National Science, Technology, and Innovation
(STI) Policy, and the Professional and Programme Mix Policy provide the legal framework
for the operation of Ethiopian national innovation system. Furthermore, the national legal and
policy frameworks support research and innovation that improve knowledge and technology
transfer and mandate that universities conduct research, including joint research projects with
industry, to support the needs of the nation's development.

Consequently, the main objective of this research is to critically evaluate the existing
STI policies and legal framework in light of the Regional Innovation System (RIS).
Afterward, the study examines the current STI policies and legal frameworks, identifying
existing opportunities and barriers, and proposing possible policy alternatives that might need
to be applied to the existing ecosystem. Lastly, the study attempts to address the following
queries:

1. What are the existing Science, Technology, and Innovation (STI) Policies in
Ethiopia?
2. How do the existing Science, Technology, and Innovation (STI) policies and legal
frameworks support Regional Innovation Systems (RIS) in Ethiopia?
3. What are the possible opportunities in Science, Technology, and Innovation (STI)
policies for competitiveness in Ethiopia?
4. What are the challenges in Science, Technology, and Innovation (STI) policies to
foster a Regional Innovation System (RIS) in Ethiopia?
5. What alternative pathways could be implemented to promote a Regional
Innovation System through Science, Technology, and Innovation policies and
legal framework in Ethiopia?

Review of literature

Though definitions of the Regional Innovation System (RIS) vary, some writers
characterize it as a network of public and private entities whose interactions and activities
create, import, modify, and distribute innovative technology (Freeman, 1987). Some others
are defined as elements and linkages that interact in the generation, diffusion, and application
of new and economically beneficial knowledge that are either located within or rooted within
the limits of a nation-state (Lundvall, 1992); furthermore, it could be defined as a collection
of institutions whose interactions determine national enterprises' creative performance
(Nelson & Rosenberg, 1993). Hence, institutional and economic systems that determine the
pace and direction of technological advances in society consist of the Regional Innovation
System (RIS) (Edquist and Lundvall, 1993). The interaction between these elements can be
technical, commercial, legal, social, or financial since the purpose is to develop, protect,
finance, or regulate Science, Innovation, and Technologies (STI) (Niosi et al., 1993). Patel
and Pavitt (1994) state national institutions, incentive structures, and competencies as those
that determine the pace and direction of technological development in a country. Finally,
Metcalfe (1995) presents an interconnected network of institutions that create, conserve, and
transfer the knowledge, skills, and artifacts that constitute new technology.

Based on the existing literature, Science, Technology, and Innovation (STI) policies
could be discussed in three different ways post World War II (Schot & Steinmueller, 2018).
The first frame, which is referred to as ‘Research and Development’ (R&D), continued until
the 1970s; the second, described as "National Systems of Innovation," peaked around 2010
nonetheless continues to have significant influence; and the third, known as "transformative
change," has been becoming the ground since 2010 due to its focus on finding ways to
address grand societal challenges (Asheim et al., 2019). Accordingly, the second framework
gave rise to the Regional Innovation System (RIS) frame, which gained prominence in the
1990s.
Correspondingly, Lopez-Rubio et.al, (2020) identified three main research trends that
have dominated RIS research since its beginnings to the present day. The first is innovation
systems research (in the 1990s), which focuses on the systemic approach of innovation in
different contexts in terms of institutions, organizations, networks, policies, or regulations.
The second is knowledge management research, which has been prominent since the
beginning of the 2000s; this area includes knowledge creation, knowledge spillovers,
knowledge flows, knowledge-intensive business services (KIBS), and different knowledge
bases. It also considers other knowledge-related activities, processes, and agents such as
R&D, patents, and clusters. The third is entrepreneurial ecosystem research, which has
emerged in the last few years because of the key role of the social and economic context in
local and regional entrepreneurship.

Given the historical data, it appears that there are three major phases of the
development of STIs, which correspond to comparable stages of economic development such
as the pre-industrial, catch-up, and emergence of economies phases (UNECA, 2023). The
first stage is the pre-industrial phase, during which institutional capacity for science and
technology needs to be developed locally. The second stage, known as the "catch-up phase,"
sees local industry trying to adopt, modify, and make use of current technologies. In this
second stage, the growth of the GDP typically exceeds that of more developed nations,
enabling their earnings to "catch up." With a strong central government regulating STI policy
and underdeveloped market systems, most African nations are still in these first two phases.
The emergence of economies is the last phase; to hold onto global competitiveness,
investment is targeted towards emerging technologies at this point, and basic research is
given increased importance.
The Regional Innovation System (RIS) is a popular way of explaining regional
development and competitiveness based on innovation activities and processes. The term
‘Regional Innovation System’ came into policy use in the early 1990s, informed by in-depth
research and experimental policymaking on several European industrial regions (Pinto,
2024). The approach has been influential in the last two decades and continues to influence
the design and implementation of regional innovation policies (Asheim et al., 2020;
Cooke, 1998; González-López et al., 2019). The RIS approach puts Science, Innovation, and
Technology (STI) at the center of development, presenting it as a social process between
different stakeholders, such as universities, industries, governments, and civil societies
(Unger et al., 2020). RISs have made an important contribution to the rationale for policies
promoting regions’ innovativeness and competitiveness. In the RIS approach, regional
innovation policy and legal frameworks mainly address the systemic failures, the support to
effective relations of various actors, in particular firms that constitute a subsystem of
knowledge exploitation, and universities and other research organizations that also constitute
the subsystem of knowledge exploration and are seen as crucial for innovation and new path
development (Cooke, 2008).
Methodology
The researchers have used a document review to assess the existing Science,
Technology, and Innovation (STI) policy and legal frameworks. Global, regional, and local
policies related to Science, Technology, and Innovation (STI) policies were analyzed in light
of the Regional Innovation System (RIS). Various policies and legal frameworks, such as the
Science and Technology Policy, Strategic Policy for National Science, Technology, and
Mathematics Education, Investment Proclamation, Intellectual Property Law, National
Research and Development Strategy, Industrial Parks Development Proclamation, and
Technology Incubation and transfer policy, Developing a digital strategy for Ethiopia,
Technology Incubation and Transfer Policy, and Professional and Program Mix, Higher
Education Proclamation (No 650/2009). The review was conducted between December –
April 2024. Finally, the research sample size was determined by data saturation.

History of Science, Technology, and Innovation (STI) Institution and Policy

Development in Ethiopia
The Dergue regime established the Ethiopia Science and Technology Commission for the
first time in December 1975, intending to initiate, organize, direct, and promote scientific and
technological research and development. The commission was specifically tasked with
developing a National Science and Technology Policy (STP) as early as 1987. Consequently,
right after the establishment of the EPRDF (Ethiopian People's Revolutionary Democratic
Front), the commission was re-established in 1994 by the Transitional Government of
Ethiopia under Proclamation No. 91/1994. It was re-established as an agency a year later.
Acknowledging the increasingly significant role of science and technology in economic
growth and development, the government modified the Agency to the level of a full-fledged
ministry through the Ministry of Science and Technology (MoST) proclamation No.
604/2008. In 2010, the office was restructured under Proclamation No. 691/2010, which
stated the powers and responsibilities of the FDRE's executive organ. After the
implementation of the Growth and Transformation Plan (GTP), aligning the STI policy
became necessary, and it was amended in 2012 to reflect the country's strategic reforms. The
government adopted a National Science, Technology, and Innovation (STI) policy in 2012,
modeling it after the development trajectory of Southeast Asia (Mamo et al., 2014). The
policy sets the national STI vision of the country “to see Ethiopia entrenching the capabilities
which enable rapid learning, adaptation, and utilization of effective foreign technologies by
the year 2022/23” (MoST, 2012). The policy was intended to, among other things,
redefine the national scientific and technology landscape, encourage research focused on
technological learning and adaptation, and strengthen partnerships among all the stakeholders
in the National Innovation System (NIS).
 Concerning research and development and university-industry linkages, it is believed that
the 1994 education and training policy served as the foundation for the introduction and
implementation of numerous legislative frameworks, programs, and strategies by the
Ethiopian government to control the activities in Higher education institutes in Ethiopia
(Mulu, 2016). Also, technology transfer, university-industry linkage, and directions to
strengthen research and technology transfer in Ethiopian universities are among the focus
areas of this national framework, based on the Research and Technology Transfer Conceptual
and Governance Framework of Ethiopian Higher Learning Institutions (MoE, 2016). The
Professional and Program Mix Policy dictates a 70:30 undergraduate professional mix that
favors science and technology over the humanities and social sciences in general (MoE,
2008); this policy has implications for promoting training and research partnerships between
universities and industry. Furthermore, the Ethiopian Intellectual Office was established in
2003, which is when the intellectual property rights system was established (MoE, 2008).
Nevertheless, the most significant issue is the lack of institutional IP policies in public
research and development organizations, public enterprises, and higher education institutions;
in addition, the enterprises are not aware of the value of IP protection (Mulu 2016).

Science, Technology, and Innovation (STI) policy and legal frameworks in Ethiopia
1. National Science and Technology Policy, 2012
The Policy was implemented in 2012 and provides a framework for research,
development, and innovation advancement in the country. The ultimate objective of the
policy is to promote a conducive ecosystem that will support innovation, research, and
technology as engines of economic growth and sustainable development. It describes how the
government designs to promote innovation, collaboration, and knowledge transfer among
Ethiopia's various stakeholders. It emphasizes public-private partnerships in technology
development and commercialization, strengthens the capacity and efficiency of the research
and innovation ecosystem, and creates an environment that is conducive to technology
transfer and intellectual property protection. All these efforts will contribute to the integration
of science and technology into national development priorities.
Based on a review of the national STI situation, the policy has identified eleven critical
issues. The critical issues that have been identified include technology transfer, human
resources development, manufacturing and service enterprises, research, financing, and
incentive schemes, universities, research institutes, TVET institutions and industry
linkages, intellectual property system, national quality infrastructure development, science
and technology information, environmental development and protection and international
cooperation. The Ethiopian government has paid adequate attention to scientific research.
According to the STI Policy, research is an essential part of a strategic plan to effectively
adopt foreign technologies, modify them for the local context, employ them successfully, and
share knowledge through connections between academia and industry (Mamo, et al., (2014).
It is anticipated that the results of research endeavors will impact the nation's progress.

2. Strategic Policy for National Science, Technology, and Mathematics Education, 2016

A STEM Education program was introduced by the Ethiopian Ministry of Education

in 2016 to improve the national academic framework. The primary objective of this program
is to upgrade the standard of instruction in these areas and provide students with the tools
they need to succeed in the modern workforce. The program plays a significant role
in promoting innovation and technological growth in the nation. The program seeks to
educate students in STEM subjects to produce a workforce capable of fostering innovation
and advancing the growth of a knowledge-based economy. This program is in line with the
overarching objective of fostering innovation and entrepreneurship domestically, which will
eventually result in more robust economic growth and enhanced competitiveness abroad.

3. Investment Proclamation (Proclamation No. 1180/2020).

The Ethiopian Investment Commission (EIC) enacted the Investment Proclamation

(2020), which offers incentives, guarantees, and protection to investors to encourage their
investment in various sectors of the Ethiopian economy. The commission's objectives are to
boost the country's economy, generate employment opportunities, and improve the
competitiveness of Ethiopian industries. Furthermore, the commission serves as a liaison
between government agencies and business sectors, offering guidance, support, and
encouragement all through the investment process. Concerning the regional innovation
system, the Investment Proclamation functions as a tool for promoting innovation and
technology transfer by offering incentives for investments in critical areas like technology,
R&D, and innovation. Additionally, the proclamation promotes the creation of creative
companies and the uptake of novel technologies. Collaboration between domestic and foreign
organizations is encouraged as a result, which promotes knowledge sharing, capacity
building, and the development of a dynamic ecosystem that supports the nation's innovation-
driven economic growth and development.

4. Intellectual Property Law (Proclamation No. 320/2003).

Ethiopia's Intellectual Property Law gives researchers, inventors, and business owners the
legal means to safeguard their intellectual property to promote innovation and technological
development. The proclamation guarantees that entrepreneurs and innovators have the sole
right to their projects, including inventions, designs, and works, and it provides the processes
for registering and upholding intellectual property rights in Ethiopia. Henceforth,
the Ethiopian Intellectual Property Law is a key component of the regional innovation
system, as it protects intellectual property rights and incentivizes individuals and
organizations to invest in research and development that results in the development of new
products, technologies, and solutions. Enforcing intellectual property rights guarantees that
innovators can profit from their works and stimulates additional creativity and investment in
the nation, all of which contribute to the formation of a conducive environment for
innovation.

5. National Research and Development Strategy, 2021

Ethiopia passed a National Research and Development Strategy in 2021 to

advance technological development, innovation, and research in several fields. The strategy
describes the top priorities for R&D, which include improving the standard of education,
encouraging industry-academia partnerships, and developing the research infrastructure. By
concentrating on these areas, the ministry hopes to promote competitiveness within the
nation, foster sustainable economic growth, and use research and innovation to address
societal issues.

The National Research and Development Strategy is essential to the Regional innovation
system since it promotes technological advancement and innovation. The strategy offers a
road map for orchestrating R&D activities with national priorities, encouraging
partnerships among stakeholders, and optimizing resources to foster economic growth and
innovation. The strategy promotes the establishment of a conducive ecosystem for research
and development activities, promotes the creation and exchange of knowledge, and
contributes to the commercialization of research findings by articulating defined goals and
plans of action. Employing these initiatives, the ministry strives to strengthen Ethiopia's
innovation ecosystem, cultivate a research and innovation culture, and propel sustainable
growth within the nation.

6. The Industrial Parks Development Proclamation (Proclamation No. 886/2015)

Ethiopia enacted the Industrial Parks Development Proclamation to encourage the

establishment of industrial parks throughout the nation to foster industrialization and
economic growth. The proclamation lays forth guidelines for designing, building, and
operating industrial parks to bring in foreign as well as domestic capital, encouraging local
businesses in their integration into global value chains, and creating employment
opportunities. Beyond and above, the proclamation aspires to promote manufacturing
operations, boost exports, and advance Ethiopia's socio-economic development by offering
incentives and infrastructure support to companies working within industrial parks.
Given its pivotal role in fostering advancement in technology, research, and innovation in the
industrial sector, the Industrial Parks Development Proclamation holds significant relevance
for Ethiopia's National Innovation System. The proclamation establishes an environment that
is conducive to innovation-driven activities including research and development, technology
transfer, and partnerships between universities and industry by constructing industrial parks
that are outfitted with contemporary infrastructure, technology, and services. Industrial parks
are centers for innovation, exchange of knowledge, and development of skills that result in
the development of new products, processes, and technological advancements that can boost
competitiveness and economic growth.

7. Developing a digital strategy for Ethiopia, 2021

Creating a digital strategy for Ethiopia is crucial to leveraging the capacity of technology
to boost the national economy, enhance social services, and generate employment. Ethiopia
may capitalize on the incredible promise of digital technologies to drive sustainable
development and raise the standard of living for its people by investing in internet access
networks, giving priority to digital skills training, and creating a supportive regulatory
framework. Developing a digital strategy for Ethiopia involves incorporating the National
Innovation System into account and creating a cooperative ecosystem capable of making
leverage of the advantages enjoyed by the government, industry, universities, and civil
society. Ethiopia has the potential to build a dynamic innovation ecosystem that accelerates
digital transformation and quickens economic progress through promoting collaborations and
knowledge exchange. This strategy entails funding R&D, enabling tech startups, and
encouraging an innovative culture that honors entrepreneurship and inventiveness. By
aligning digital strategies with national priorities and leveraging existing resources, Ethiopia
can position itself as a leader in the digital economy and drive inclusive and sustainable
development for all its citizens.

8. Technology Incubation and Transfer Policy, 2022

To support the growth and flourishing of start-ups and small enterprises in technological
industries, Addis Ababa University developed an innovation and incubation policy for
technology. According to the policy, the incubators offer emerging businesses access to
resources like workspace, funding, networking opportunities, and mentorship in a nourishing
environment. On the other hand, innovation policies provide structures and principles for
advancing entrepreneurship, technology transfer, and research and development. A conducive
setting for innovation, economic growth, and improved global competitiveness is possible to
establish by countries through the combination of technology incubation and robust
innovation policies. Technology incubation and innovation policies play a critical role in
supporting local talent development, university-industry linkage, and technology
transfer. Governments and organizations can build innovative hubs that draw talent,
investment, and expertise by placing technology incubators in significant spots. Furthermore,
regions may foster a business-friendly environment for startups and established enterprises by
putting in place innovation policies to promote R&D, protect intellectual property, and
facilitate technological commercialization. This integrated approach helps to create high-
value jobs and fosters the growth of emerging industries in addition to increasing a region's
overall competitiveness.

9. Professional and Program Mix Policy (MoE, 2008)

The policy offers a comprehensive overview of the professional program mix, annual
intake, and enrollment growth in Ethiopian public higher education institutions. It outlines
thoroughly the 70:30 undergraduate professional balance that favors technology and science
over the arts and social sciences in general. This approach has ramifications for training and
research cooperation between universities and industry. This policy's potential impact on
Ethiopia's national innovation system makes it relevant.

A competent higher education system is essential for producing a skilled labor force,
promoting technical developments, innovation, and research, and driving general economic
growth and competitiveness. Education that is in line with industry and labor market demands
can also help graduates become more employable, encourage entrepreneurship, and spark
innovation in a variety of fields. Ensuring that higher education institutions can create
knowledgeable and talented graduates who can effectively drive innovation and
competitiveness in Ethiopia would make it an indispensable tool for building the country's
innovation system.

10. Higher Education Proclamation (No 650/2009)

The proclamation acts as the national basic legislative framework for the education
system. This legislation describes how higher education institutions are established, operate,
and are subject to national regulations. It establishes guidelines for curricula, procedures for
accreditation, academic freedom, and administration of higher education. The objectives of
the Higher Education Proclamation are to guarantee high-quality education, encourage
innovation and research, and provide a trained labor force that can support the socioeconomic
advancement of the country. The proclamation mandates universities to identify their main
research areas and themes during conversations with key stakeholders, taking into account
the nation's top priorities and the institution's competitive advantages; university partnership
on research projects with other domestic and foreign organizations, research centers, and
businesses is authorized under the proclamation; the proclamation makes it apparent that
collaborations with business are important for research and technology transfer.

The proclamation's relevance and significance for the national innovation system stems
from its ability to reshape the higher education landscape in a way that fosters innovation and
research efforts. To promote innovation, knowledge exploration, and technology transfer
across the country, higher education institutions are vital. The proclamation offers
universities a framework for conducting research and innovation activities that could promote
the building of a resilient national innovation ecosystem by establishing standards for
academic freedom, funding for research, and industrial partnership. Furthermore, the
proclamation encourages international collaboration, strengthens the reputation of local
higher education institutions, and fosters a conducive environment for innovation and
knowledge exploration in the country through the establishment of quality standards and
accreditation procedures.

11. Directives on research, Technology Transfer, university-industry linkage, and community

services for higher education Institutions (Directive No: Research 01/2019)

The directive has been implemented to enhance the research and innovation capabilities
of higher education institutions in Ethiopia. It is clearly stated under preamble as:
‘‘It is mandatory to put in a place and coordinate a well-developed system or research,
technology transfer, university-industry linkage, and community services to contribute in
ensuring sustainable and holistic development across the nation.’’ p1

The directive aim to foster a culture of innovation and collaboration within higher
education institutions, ultimately leading to the development of new technologies, products,
and services that benefit society as a whole by encouraging researchers to work closely with
industry partners and engage with the community, these directives seek to drive economic
growth and enhance the competitiveness of the region. Most importantly, the directive
encourage universities allocate grants and seed money to commercialize inventions in the
their laboratories and academic units.

In the context of the Regional Innovation System, the directive plays a crucial role in
promoting knowledge exchange and collaboration between higher education institutions and
other key stakeholders in the innovation ecosystem. By encouraging technology transfer and
fostering university-industry linkages, these directives help to bridge the gap between
academia and industry, leading to the commercialization of research outcomes and the
creation of innovative products and services. The focus on community services also ensures
that research activities are aligned with the needs and priorities of the local community,
fostering social innovation and sustainable development. Overall, Directive No: Research
01/2019 serves as a key driver of innovation and growth within the regional innovation
system, creating a supportive environment for research and technology development.

Concerned Executive bodies for Science, technology, and innovation activities in

Ethiopia (Agu et al., (2021)
The organizational structure of the national STI system in Ethiopia shall have the
following four functional levels. These are: national STI Council; Technical Advisory
Committee of the National STI Council; Ethiopian Science and Technology Agency; and
S&T operational Institutes and Centres
No Concerned Body Description of the role and responsibilities Possible contribution to the National Innovation System (NIS)
.
A.National NSTIC is the highest decision-making body for STI policy The National Science and Innovation Council (NSTIC) plays
Science, and plan of action. Based on the National STI Policy, a pivotal role in shaping the direction of Ethiopia's science,
Technology, and establishes and directs the general framework and strategy technology, and innovation ecosystem. Through its leadership,
Innovation for STI development and determines the role of STIs in the coordination, and advocacy efforts, the Council helps to create
Council (NSTIC) national economy. an enabling environment for research and innovation, drive
The Council shall be chaired by the Prime Minister with the technological advancements, and promote sustainable
General Director of ESTA as its Secretary. The Council 15 development in Ethiopia
meets once every three months and evaluates the
performance of STI activities based on which it issues
guidance, directives, and decisions. Additional meetings can
be held as and when necessary.

B. Technical The Committee is composed of renowned and experienced The Technical Advisory Committee of the National STI
Advisory scientists and engineers drawn from different branches of Council plays a vital role in shaping the direction of Ethiopia's
Committee S&T; chairpersons and secretaries of the sectoral Science innovation ecosystem. Through its technical expertise,
(TAC) of the and Technology Councils, the Director General ESTA, and strategic advice, and collaborative efforts, the TAC
National STI three professionals who are also members of the National contributes to the advancement of science, technology, and
Council STI Council. The Committee is chaired by the Adviser to the innovation in the country and helps to foster a culture of
Prime Minister. creativity, entrepreneurship, and sustainable development in
Its main objective is to undertake the necessary preliminary Ethiopia.
work consolidate matters that will be submitted to the
Council and advise the Council on any technical matters.
The NSTIC may also be assisted by sub-committees,
Technical Committees, Advisory Panels, Expert Panels, and
Consultants, as required.
C. The Ethiopian The Ethiopian Science and Technology Agency is a federal Overall, S&T Operational Institutes play a critical role in
Science and government institution, headed by a Director General and driving innovation, promoting technological advancement,
Technology governed by its regulations. The Agency is accountable to and contributing to economic development in Ethiopia.
Agency (ESTA) the Office of the Prime Minister. It is the central organ Through their research, expertise, and partnerships, these
empowered with responsibilities and mandates to plan, institutes help to strengthen the national innovation system
promote, coordinate, finance, and oversee STI activities of and support sustainable development in the country
the country. It is also responsible for advising the
government on issues of STI, implementing the
government's STI policy, and following up on the
appropriate and immediate application of Research and
Development (R&D) results. The Agency shall have the
mandate to organize different sectoral and/or thematic STI
Councils composed of renowned professionals and
representatives from the relevant economic and service
sectors, to assist in the formulation and implementation of
STI policies and priorities and to screen projects that are
eligible for grants.

D. Science and The Agency shall establish under it science and technology The Science and Technology Operational Institutes are
Technology support services, centers, and Research and Development integral components of the national innovation system,
(S&T) (R&D) units as deemed necessary, particularly in areas contributing to economic growth, social development, and
Operational requiring special attention. The establishments shall either technological advancement in the country. Their activities and
Institutes merge with other relevant organizations or function as initiatives are essential for building a vibrant and sustainable
autonomous bodies when they reach the stage of maturity. innovation ecosystem that drives progress and prosperity

E. Linkage council
Established to oversee linkage activities and comprised of
Higher Education, Technical and Vocational Training and These actors' collective engagement in research and
Research Institutions, Industries, Government and other development, sharing of knowledge, and skill-building
Senior Officials. Members of the Council include the initiatives might strengthen the Regional Innovation System.
following: Leading economic sectors and their reporting These institutions and organizations can promote
entrepreneurship, stimulate innovation, and establish an
institutions; State Owned Enterprises; Higher Education
atmosphere that is conducive to the success of innovative
Institutions; Research Institutions; Technical and Vocational initiatives by combining their resources and areas of expertise.
Training Institutions; Private Manufacturing and Service By collaborating effectively, new technology, products, and
Providing Organizations; Federal and Regional Chamber of services that boost economic growth and competitiveness may
Commerce and Sectoral Associations; Non-governmental be developed.
Local Organizations; and Professional and Civic
Associations.
Following priority areas of the government, set linkage
strategic directions, monitor and evaluate its process and
performance; Identify shared and individual linkage affairs;
monitor and evaluate performances; forward directions on
issues that need further improvement; Compile and share
best practices from the linkage actors; Invite stakeholders
and individuals as deemed necessary to the Council meeting,
and who can share their knowledge and experience, as well
as assist and advice on effective implementation of linkage
activities; Perform other functions that help achieve purpose
of linkage.
 Opportunities for Science, Technology, and Innovation (STI) in Ethiopia

Through science, technology, and innovation, the Ethiopian National Innovation System
has the untapped potential to significantly enhance social development, economic growth,
and global competitiveness. Ethiopia can establish itself as a center for innovation excellence
and propel the innovation landscape of the African continent by capitalizing on its
advantages, tackling its current problems, and encouraging cooperation either inside
or outside the country. Ethiopia is positioned to play a significant role in determining the
direction of science, technology, and innovation in the area through wise investments,
alliances, and laws that encourage entrepreneurship and innovation. Ethiopia has made great
progress toward establishing a conducive ecosystem that is favorable to innovation
employing policies, initiatives, and partnerships that support research, technology transfer,
and knowledge exchange. Establishing research institutes, incubation centers, and innovation
hubs that act as catalysts for entrepreneurship and innovation has resulted in the development
of a solid foundation in science and technology

There are several important driving forces behind the national development. First and
foremost, it is unquestionable that Ethiopia is endowed with a variety of natural resources. It
is also strategically located in the Horn of Africa, close to the Middle East and its markets.
The country's rapid economic growth during the previous two decades is evidence of its
economic potential, showing that it can develop a robust economy and realize its goal of
joining the lower-middle-income countries by 2025. The government of Ethiopia has
conducted positive efforts to bring about a regional Innovation System in Ethiopia by drafting
and formulating several Science, Innovation, and Technology (STI) policies and legal
frameworks. The government is committed to R&D and education funding, developing
strong institutions, enhancing the academia-industrial linkage as well as implementing a
workable science, technology, and innovation policy to bolster and diversify the economy
(Muche et. al., 2015). Despite an impoverished economic position and low levels of
innovation, Ethiopia has a strong development potential due to a growing market, significant
GDP growth, and considerable government dedication and efforts (Shkabatur et al., 2022).
Most notably, it is realized that the nation hopes to bring about a sensation development that
will lift a sizable portion of its people out of abject poverty. The Home-grown economic
reform (2019); the 10-year development plan (2021); and the substantial public investments
in science, innovation, & technology infrastructures and Industry Park (IP) developments
could all reveal a lot about the government's aspirations to hasten the pace of development.
Above and beyond, lucrative investments have been made and are ready by regional and
international partners in development to collaborate with the government of Ethiopia.

Structural transformation, industrialization, and urbanization have been promoted in

line with the nation's goal of becoming a middle-income nation by 2025. As a result, the
nation has been able to achieve a substantial expansion of its energy, road, railway, and
telecommunication infrastructure. Massive public infrastructure investment has been at the
center of the nation's economic strategy to address existing infrastructure deficits and provide
conditions needed for subsequent private sector growth (Salmi et al., 2017). Most
significantly, the Ethiopian government has been actively building industrial parks to increase
the country's overall economic growth through the transfer of technology, knowledge, and
skills, the creation of productive jobs for the populace, and the export of manufactured goods
that earn foreign exchange (Jote, 2020).
 Initiatives are also underway to establish linkages between industrial parks and
universities across the nation. To accommodate large-scale industrialization projects, most
present industrial parks have been located adjacent to universities. For instance, the Hawassa
Industrial Park, which was constructed near Hawassa University, is dedicated to significant
domestic and foreign apparel and textile firms with an export revenue target of over US$1
billion and 60,000 employees. Bole Lemi-I and II, as well as Kilinto Industrial Park in the
Addis Ababa suburbs; additionally, this holds for the industrial parks located in Dire Dawa,
Mekelle, Adama, Kombocha, Jimma, Bahir Dar, Debre Birhan, and Aysha Dewalle (Salmi, et
al., 2017). To conclude, the industrial parks in Ethiopia have contributed significantly to the
nation’s industrial development in terms of creating employment, increasing government
revenue and export, diversifying industrial products, attracting Foreign Director Investment,
and attracting foreign exchange (Jote, 2020).

Challenges

Meaningful STI policymaking cannot be developed, carried out, monitored, or

modified without an in-depth understanding of the nation’s context, strengths and weaknesses
of the nation's Science, Technology, and Innovation (STI) agents, their interactions, and
incentives as well as barriers that they encounter, all of which are extremely country-specific
(Adenle, et al., 2023). To begin with the existing context of the country, Ethiopia continues to
face serious development problems. Although it has the second largest population in Africa,
it is one of the poorest countries in the world, despite significant improvements over the past
two decades. Ethiopia is ranked as one of the least developed countries according to the UN
Human Development Index, which places Ethiopia at the 173rd position among 189
countries. The level of competitiveness is extremely low, with Ethiopia ranking 126 out of
141 countries (World Economic Forum, 2019). The innovation ranking calculated by the
Global Innovation Index (GII) shows a notably low level of innovation in less developed
countries (as defined by the World Bank classification). In some countries (including
Ethiopia), the level of innovation is notably below expectations for the development level
(GII, 2020).
Ethiopian Science, Technology, and Innovation (STI) policies and legal frameworks
play a vital role in shaping the National Innovation System (NIS). Despite the progress made
in science, technology, and innovation, Ethiopia still faces challenges in scaling up its
innovation ecosystem to meet the demands of a rapidly evolving global market. One of the
most critical challenges is found to be a failure to effectively translate the policy into practice.
This is mainly because of the following reasons: Most policies that come from the top down
to the bottom have implementation issues. As Agu et. al., (2021) the ‘Top-Down’ approach to
policy formulation coupled with limited public awareness of the significance of STI has
curtailed efforts in effectively implementing the policy; also, the absence of programs that
translate STI policy objectives into action contributes to the inefficiencies in the
implementation processes.
Furthermore, there is a huge gap in coordination and collaboration among various
stakeholders in the science, technology, and innovation ecosystem by National Innovation
actors. Despite the effective partnerships between government agencies, research institutions,
academia, and industry are essential to fostering innovation, knowledge exchange, and
technology transfer, the Ethiopian Innovation ecosystem is not conducive and well
orchestrated (UNCTAD, 2020). The STI policy shows the direction and the commitment to
facilitate linkages between the various players but in practice, there is a manifestation of
disconnect. There is immature coordination and collaboration of the STI stakeholders which
was meant to bring about synergy. As Gobena et al (2021) the feeble link in the Triple Helix
(University – Industry – Government ) though improving over time remains a big challenge
in this regard; and the limited understanding of the benefits of STI by the infant
manufacturing sector and the MSEs which lack significant growth have hindered their active
involvement in the system.
Robust advancement in research and development is thought to promote science,
technology, and innovation while also boosting competitiveness and economic growth.
Research leadership and administration (motivation, teamwork, salary, external influence,
political burden, lack of clear vision), communication & outsourcing of research (lack of
funds, lack of communication, lack of industrial linkage, lack of partnership, lack of trained
journalists), and lack of national strategy & policy (lack of information center, lack of funds,
lack of teamwork, lack of national research center) are some of the concerns regarding
research outputs (Tesfa, 2015). Furthermore, Geleta et al. (2022) examined e-commerce in
Ethiopia and noted that the country's business had considerable hurdles, including a lack of
infrastructure, a lack of trust, security risks, and a lack of a regulatory framework. The
barriers facing the Ethiopian industry include information technology, inadequate personnel
training, and expertise, a deficiency in IT infrastructure, customer awareness, and behavior.
Most importantly, the lack of data warehouses and poorly designed websites with little or no
information about the stakeholders makes it hard to grasp developments in the sector
(Gobena et al., 2021). STI infrastructure is crucial for searching for, selecting, learning,
adapting, and disseminating technology. However, outdated laboratory facilities, insufficient
equipment, and above all the poor telecommunication networks in Ethiopia contribute to the
poor performance. The poor institutional culture of monitoring and evaluating programs and
policy implementations also has implications for the overall effectiveness of the
accomplishment of the mission of the STI policy.
The lack of financial resources is the most significant barrier to STI development in
developing countries, and Ethiopia is not an exception. As Gobena et al (2021)identified the
critical challenges related to funding into two: (1) the overreliance on state funding and the
poor engagement of the private sector have also greatly challenged STI activities; (2) the
absence of different nationally developed guidelines and research evaluation models for the
allocation of scant funds is a barrier that adds up to inefficiencies and resource wastages.
The Science Technology and Innovation (STI) policies and legal frameworks show
the direction and the commitment to facilitate linkages between the various players but in
practice, there is a manifestation of disconnect. There is immature coordination and
collaboration of the STI stakeholders which was meant to bring about synergy. As Gobena et
al (2021) the feeble link in the Triple Helix (University – Industry – Government ) though
improving over time remains a big challenge in this regard; and the limited understanding of
the benefits of STI by the infant manufacturing sector and the MSEs which lack significant
growth have hindered their active involvement in the system. The lack of a conducive
regulatory framework and intellectual property rights protection is another pressing challenge
and inadequate legal and regulatory frameworks can hinder the development and
commercialization of innovative ideas and technologies (UNCTAD, 2020).
Concerning the University-industry linkage (Partnership) there are several efforts to
create a conducive learning environment for actors to engage in partnerships. Partnerships
among National Innovation actors, the status of collective learning among actors is very low
in Ethiopia is very low, particularly the roles of R&D institute, TVET College, and
University Industries Linkage are very low in collaboration (Gobena et. al., 2021). Despite
the attempts of the government to strengthen and sustain a fruitful interconnection between
the two sectors, UIL is at its infant stage, and numerous backlogs are waiting to be
accomplished (Degaga et. al., 2021). Lack of a robust and overarching national framework,
limited attention and inadequate funds, inadequate institutional commitment, and support at
all levels, and shortage of capable staff are barriers to a positive link (Mulu (2017). Lack of
clarity on the university procedures and process, the poor tendency of the university’s
orientation on U-I research, lack of quality leadership, inadequate incubation centers, and
poor communication are identified as the obstacles to UIL (Gashahun (2020).
The challenges in creating strong linkage with the industries at the university or
institute level are diverse and depend on each university or institute's circumstances. Low-
level enforcement power of the existing national policy which enforced the university and the
industry to create strong linkage following the national interest, the non-existence of the
University Intellectual Property Right Policy (IPR), and institutional policy for university-
industry linkage are the major challenges that Ethiopian higher education institution faces
(Mulu, 2017). Lack of infrastructure such as laboratories, testing facilities, and qualified and
experienced staff are among the obstacles to university-industry partnership programs in
Ethiopia (Abebe, 2016; Ayenew, 2017). Poor communication from the UIL office, Industries
not responding well, and Lack of motivation from academics are the main sources of weak
linkages (Ayenew, 2015) Gashahun (2020) Besides this, the characteristics of firms, namely
the size and industrial sector, and modes of collaboration influenced collaboration among
stakeholders. Also, the major challenges hindering the growth of UIL in Ethiopia include the
presence of a limited budget for research universities; a mismatch between graduates’
knowledge and skills and industries’ demand; lack of sufficient skills and knowledge on the
part of the staff of both sectors; absence of sound policy implementation strategies and plans;
lack of ownership on the part of officials to implement policies, strategies and plans and
cultural divide between the two parties (Degaga et. al., 2020).
Ethiopian Science Technology and Innovation Policy and Legal Frameworks
Considering Regional Innovation System (RIS)

Establishing an effective national innovation system is not the same as developing a

robust policy framework based on best practices from more developed ecosystems in nations
with more resources. It is unrealistic to assume that companies, financiers, and academic
institutions that comprise an innovation ecosystem will synchronize and establish an
ecosystem that fosters innovation once the right laws are in place. Accordingly, it is highly
supposed that countries in the global South, especially low- and middle-income nations in
Sub-Saharan Africa countries, have largely had to incorporate STIs into their national social
and economic development policies, visions, and strategies to catch up to high-income
nations and more successfully use STIs for development (Twiringiyimana, et al., 2021).

Policy Recommendations to integrate STI policy and legal frameworks with RIS in
Ethiopia
The role that Science, Technology, and Innovation (STI) policies and legal
frameworks play in strengthening Regional Innovation Systems (RIS) and enhancing regional
competitiveness has become realized progressively in recent years. Global, regional, and
national social and economic development is significantly determined by Science,
Technology, and Innovation (STI) policies. Since the second half of the 20th century, this
role has been more formally recognized, due to the increased reliance on knowledge-driven
innovation during this time, linkages between the various ecosystem actors—including
government, universities, research and development organizations, and industry—have
become crucial (Galvao et al., 2019). Most importantly, establishing a strong and adaptable
STI ecosystem is a dynamic process that calls for ongoing partnerships, fine-tuning, and
adaptability. Policymakers must therefore be adaptable, eager to absorb knowledge from
ecosystem players, and prepared to change course when new insight becomes available, or
circumstances warrant it. Agile development of policies is essential to fostering a vibrant
innovation ecosystem in which companies, academics, and investors may work together
productively to advance novel concepts and technology (Ratanawaraha, et. al., 2024).

The Ethiopian government recognizes the key role of Science, Technology, and
Innovation (STI). It has therefore enacted various STI policies over the years and established
institutions, strategies, and programmes across the key priority sectors to provide
opportunities to encourage economic growth. Ethiopia spends about 0.51% of its Gross
Domestic Product (GDP) on STI which is below the African Union’s (AU) recommended
target of 1% for STI spending. Several stakeholders participate in the STI ecosystem in
Ethiopia, with the nature of participation ranging from policy development, regulation, and
implementation of STI programs, initiatives, plans, and projects. The different stakeholders
have different mandates and exert different levels of power and influence across the STI
landscape.

Most significantly, it is critical to comprehend the context since establishing an

effective national innovation system is not the same as developing a robust policy framework
based on best practices from more developed ecosystems in nations with more resources. It is
unrealistic to assume that companies, financiers, and academic institutions that comprise an
innovation ecosystem will synchronize and establish an ecosystem that fosters innovation
once the right laws are in place. Accordingly, it is highly supposed that countries in the global
South, especially low- and middle-income nations in Sub-Saharan Africa countries, have
largely had to incorporate STIs into their national social and economic development policies,
visions, and strategies to catch up to high-income nations and more successfully use STIs for
development (Twiringiyimana, et al., 2021).

Emerging economies rely on both technological catch-up and domestic innovation to

position their national innovation system and policy environment to fully benefit from global
knowledge transfer for STI collaboration. This is because many of these nations want to
achieve economic growth and competitiveness. Industry, academic institutions, and research
centers must change to build mutually beneficial partnerships and complement each other's
strengths to achieve the goals of STI cooperation. These partnerships should be created in key
areas like institutional policy and governance structure, higher education in science and
technology, entrepreneurship, research infrastructure, legal frameworks, and technology
transfer (Adenle et al., 2023).

Shkabatur et al. (2022) developed five core directions for innovation and
entrepreneurship policy guidelines; these are (1) adoption and adaptation of incremental
innovations, which may have a significant multiplier effect in generating jobs, affecting
numerous consumers and enterprises, and enhancing economic growth; (2) Priority should be
given to innovation types in sectors that can lead to major economic impacts and boost
productivity and employment—for example, in agriculture, traditional industry, and small
and medium-sized enterprises (SMEs); (3) demand-oriented innovation. Demand-oriented
innovation, rather than supply-oriented innovation, focuses on market needs; (4) spatial
innovation that adopts the concept of “concentrated dispersal” of innovation activities by
providing special grants or funds to SMEs in specific regions or supporting impact
investments in priority regions; and (5) a governmental coordination platform that would set
up development priorities, strengthens coordination and collaboration among the ecosystem
factors, and provides appropriate regulations, infrastructure, and financial and legal services.
The key to maximizing the effectiveness of the national innovation system is to
strengthen research by creating substantial and long-term funding sources, safeguarding the
research council already in place, endorsing the professional association, and figuring out
how to leverage the tremendous amount of knowledge and expertise held by professionals
from Ethiopia's diaspora (Tesfa, 2015). To promote economic growth and optimize Ethiopia's
economy's competitiveness, the national innovation actors ought to be motivated to engage in
R&D and learning initiatives, whether by creating new ones or modifying existing ones
(Gobena et al., 2022).
Concerning research and development (R&D) innovation, policymakers in Ethiopia
should focus on increasing the number of citable journals, promoting patent registration, and
encouraging technology exports to boost economic growth (Agezew, 2024). Increasing
research expenditure alone may not be enough to stimulate economic growth unless it is
accompanied by other specific R&D activities that directly impact the economy. It highlights
the need for policies that promote collaboration between the government, universities, and the
private sector to foster innovation and technology transfer. Supportive policy environment,
the proliferation of industries, the issuance of intellectual property rights protection laws, the
growing economy, the establishment of science and technology universities, the construction
of industrial parks, and relative improvements in infrastructure could be considered major
opportunities (Degaga et al., 2020). Concerted government, universities, industries, and other
pertinent stakeholders need to be implemented to overcome the challenges mentioned above
and reinvigorate UIL. Moreover, the emerging opportunities delineated above need to be
capitalized on, and creating an enabling environment for UIL to flourish ought to be
reinforced with greater momentum.

Overall, optimizing the application of Science, Technology, and Innovation (STI)

policies in the nation is a crucial step toward economic development and competitiveness that
would be achieved by increasing productivity, reducing expenses, and improving efficiency,
STI policies have the potential to produce large returns for the entire economy. Therefore,
and this is very important, Ethiopia needs to make an effort to maximize STI's potential
to accelerate both its economic growth and social well-being. Despite the previously
mentioned initiatives to formulate all-encompassing policies on Science, Technology, and
Innovation (STI) and to institute a Regional Innovation System (RIS), the current situation
suggests a discrepancy in the efficient execution of the policies.

Conclusion
Science, Technology, and Innovation (STI) policies and legal frameworks are
essential for Ethiopia to realize economic growth, innovation, and competitiveness since they
create a conducive environment for collective learning, entrepreneurship, research,
and technology transfer. For the Ethiopian National Innovation System to function, a strong
policy and legal framework is provided by the extant policies, which include the National
Science and Technology Policy, the Strategic Policy for National Science, Technology, and
Mathematics Education, the Investment Proclamation, the Intellectual Property Law, the
National Research and Development Strategy, the Industrial Parks Development
Proclamation, the Digital Strategy for Ethiopia, the Technology Incubation and Transfer
Policy, the Professional and Program Mix Policy, and the Higher Education Proclamation.
Ethiopia can improve its Science, Technology, and Innovation (STI) policies to support a
Regional Innovation System that drives economic growth, technological advancement, and
sustainable development by assessing current opportunities, addressing challenges, and
proposing alternative policies.

The study pinpoints all possible opportunities to develop a Regional Innovation

System (RIS) and improve competitiveness within the Ethiopian existing STI policy and legal
frameworks. It is underlined that there is a chance to promote innovation and economic
growth through collaborative efforts amongst many stakeholders, such as universities,
industry, government, research centers, and civil societies. Moreover, the significance of
fostering an innovative and entrepreneurial culture is underscored.

On the other hand, the study investigated existing barriers in the ecosystem; Ethiopia
faces challenges in creating comprehensive STI policies and successfully implementing them
into practice. It emphasizes how important it is to harness the outcomes of innovations within
a strong policy framework and how STI capacity-building is necessary for sustainable
development. Among the issues that must be resolved are policy gaps and the requirement for
more robust institutional assistance.

Finally, the study forwards possible recommendations for possible alterations to

policies to deal with issues and take advantage of opportunities in the National Innovation
System. It proposes that the main areas of policy intervention should focus on technology
transfer, human resource development, industrial and service businesses, research financing,
and incentives. It is highlighted how crucial it is to strengthen collaborations among National
Innovation System actors and how important it is to create a conducive ecosystem for
technology transfer and intellectual property protection. The study attempts to shed light on
the ways that Ethiopia's STI policy and legal framework could be improved in the framework
of a regional innovation system.
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