4- Using and diffusing technology
There are two important elements needed to take full advantage of technologies acquired or transferred from abroad: the capacity to assimilate and the capacity to spread new technologies.
Assimilation is related to the capacity to understand and implement new technologies within a firm. Spread consists on the collective capacity of an industry or sector for adopting a new technology. Tunisian government can pursuit these two factors by creating policies and programs which push local firms to use new technologies. Certifications, standards setting, testing and quality control procedures are typical examples of these policies. The mise-a-niveau program has also provided much of the incentives for upgrading firms' technological level.
The modes of supplying services according to the definition given in the article 1st of the General Agreement on Tariffs and Trade (GATT)
World Trade Organisation
Mode 1: Cross-border supply is defined to cover services flows from the territory of one Member into the territory of another Member (e.g. banking or architectural services transmitted via telecommunications or mail);
Mode 2: Consumption abroad refers to situations where a service consumer (e.g. tourist or patient) moves into another Member's territory to obtain a service;
Mode 3: Commercial presence implies that a service supplier of one Member establishes a territorial presence, including through ownership or lease of premises, in another Member's territory to provide a service (e.g. domestic subsidiaries of foreign insurance companies or hotel chains); and
Mode 4: Presence of natural persons consists of persons of one Member entering the territory of another Member to supply a service (e.g. accountants, doctors or teachers). The Annex on Movement of Natural Persons specifies, however, that Members remain free to operate measures regarding citizenship, residence or access to the employment market on a permanent basis.
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The liberalisation of services plays a direct role in providing access to foreign human and technical resources to implement these programs and policies. The local presence of international firms as well as foreign personnel become critical in bringing consultants, engineers and other specialists with up-to-date knowledge and experience. Knowledge transfer takes place through the direct contact of these professionals with local clients and with suppliers. It is a slow process based on the human interaction at individual level.
5- Improving and developing technology
Although creation ultimately depends on creatively oriented people, the liberalisation of service can play an important role in motivating innovation. As mentioned above, Tunisia's internal market protectionism has removed much of the stimulus for innovation. In developed countries, however, strong rivalry among firms and contact with leading customers has proved to be a catalyser for maximizing the value of innovation as a competitive advantage. Tunisia can take advantage of liberalisation of services to foster these two elements in many ways.
In one hand, open a sector to foreign providers increases the domestic level of competition. The need for surviving and prospering in this new environment pushes local firms to seek for new ways to satisfy customer requirements. The different modes of service supply (see box) are equally important at this stage, and together with a liberalisation policy carefully implemented can provide the necessary push for innovation.
In the other hand, leading clients provide a vital source of new requirements and needs, which help to focus the innovation efforts in areas with high potential profitability. One of the obstacles for innovation in Tunisia is the lack of a critical mass of leading companies with strong business needs. They could provide with projects and funding for local sectors and research institutes to innovate. The liberalisation of key service sectors (as well as the free trade agreement with EU) provides the opportunity for local firms to establish closer ties with foreign clients, a vital element to maintaining technological progressiveness through the time.
| Stages of innovation development |
Mode 1 |
Mode 2 |
Mode 3 |
Mode 4 |
| Acquiring Foreign Technology |
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Local owners must travel abroad to take specific training to operate the firm locally |
Acquire technology through : access to FDI and Foreign licensing |
Moving of foreign personnel to work in setting up and operating a new company, provide assistance implementing a new technology |
Using and diffusing technology |
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Bring consultants, engineers and other specialised professionals with up-to-date knowledge and experience to implement certifications, standards setting, testing and quality control procedures |
| Improving and developing technology |
Open a sector to foreign providers increases the domestics level of rivalry and the value of innovation as competitive advantage.
Leading clients provide a vital source of newrequirements and needs, which help to focus the innovation efforts in areas with high potential profitability |
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The connection between liberalisation of services and innovation -
6- Conclusion
The important issue to think about is that Service Liberalisation, with all its threats and challenges, can provide Tunisian firms with the reason and resources to go through the stages of technology acquisition and assimilation before innovation becomes the next step necessary to compete successfully.
The development of a comprehensive national plan for innovation is a priority. Tunisia should follow the example of many countries, such as Canada, South Africa and Australia, which have well articulated 5/10-year technology strategic plans to boost their innovation systems and development environments. |
