Morocco's efforts on the knowledge economy Abelkader DJEFLAT Consultant CMI Revised, September 2012 1 List of tables Table n°1: Classification of Mena countries according to KEI level and level of unemployment Table n°2 : Progress made by Morocco in Health and Education Table n°3 : Doing business in Morocco Table n°4 : the Building blocks of the Green Morocco Plan Table n°5: The six resorts benefiting from the Plan Azur (initial plan) Table n°6: Les five resorts planned in the Plan Azur 2020 (revised plan) Table n°7: The main components of the “Maroc Innovation Initiative” Table n°8 : Expected growth and balance of public/private funding of R&D by 2025 List of figures Figure n°1: GDP per capita in constant 2000 PPP adjusted dollars Figure n°2: Composition of output (%) Morocco and comparators Figure n°2b: Various trade agreements of Morocco Figure n°4 : The openness of the economy 1995-2004 Figure n°5: Rate of unemployment and age group (2011) Figure n°6: Percentage of first job seekers (2008) Figure n°7: Diversification Index (2008) Figure n°8: Diversification export index in Mena countries 2006 Figure 9: The HHI exports concentration index for selected countries Figure n°10: Morocco compared to Argentina and Turkey through KEI (KAM 2012) Figure n°11: Elements of the Global Competitiveness index in Morocco (2010 – 2011) Figure n°12: Doing Business Morocco ranking (2011 – 2012) Figure n°13 :Venture Capital Availability (2009-2010) Figure n°14: The Most Problematic Factors for Doing Business Figure n°15 : Scores of the education index (2012) of Morocco and Mena region Figure n°16: Gross Tertiary Enrolment (Per Cent of Relevant Age Group) Figure n°17: Illiteracy Rates (Per Cent of Adult Population, 15+) Figure n°18: Ranking in relation to the quality of research institutions Figure n°19: Number of scientific and engineering articles per million people (2007) Figure n°20 : Number of scientific and engineering articles with foreign co authorship per million people (2008) Figure n°21: Distribution of the Cedos in universities (2008-2009) Figure n°22: The national system of innovation and research (SNRI) of Morocco Figure n°23: Innovation sub-index : KAM 2012 2 Figure n°24: R&D spending as percentage of GDP Figure n°25: Sources of research funding in Morocco Figure n°26: Risk capital as a percentage of GDP in Morocco Figure 27 : Distribution of researchers by sector of activity: 2000 and 2008 Figure n°28: Availability of scientists and engineers (2010 – 2011) Figure n°29: Public procurement of advanced technological products (ranking) Figure n°30: Community Innovation Survey : most innovations are modified Figure n°31 : Number of patents registered by residents and foreign companies Figure n°32: Patents granted by USPTO/million people average 2003 – 2007 Figure n°33: High Tech Exports as percentage of GDP Figure n°34: CNRST as operator and promoter of research, R&D and Innovation Figure n°35: Network readiness index : 2009-2011 Figure n°36: Secure internet services per million people Figure n°37: ICT Price basket (2010) Figure n°38: The Moroccan KE implementation framework Figure n°39: Orientation of the 2025 Research Strategy Figure n°40: Contributing to closing the tech-based value-creation loop Figure n°41: human capital growing critical mass List of boxes Box n°1: The newly introduced PowerCARD by HPS in Morocco Box n°2: Professional associations Box n°3: The Casa-technopark Box n°4: Arcos Technologies Box n°5: Example of an emerging electronic payment cluster List of acronyms ADA: Agence pour le Développement Agricole AKR: Arab Knowledge Report AMO: Assurance Maladie Obligatoire ANAPEC: Agence Nationale de Promotion de l’Emploi et des Compétences ANOC: Association Nationale des Eleveurs Ovins et Caprins 3 ANRT: Agence Nationale de Règlementation des Télécommunications APC : Approche par les Compétences APEBI: Fédération des Technologies de l’Information, des Télécommunications et de l’Offshoring BMCE: Banque Marocaine du Commerce Extérieur BOT: Build-Operate-Transfer Cedocs : Centres d’Etudes Doctorales CCME : Conseil de la Communauté Marocaine à l’Etranger CCRC : Consultative Commission on Constitutional Reform CDG : Caisse de dépôt et de gestion CGEM : Confédération Générale des Entreprises du Maroc CFG: Capital Finance Group CMI : Centre Monétique Interbancaire CMI: Centre de Marseille pour l'Intégration en Méditerranée CNAM: Conservatoire National des Arts et Métiers CNRST: Centre National pour la Recherche Scientifique et Technique COPAG : Coopératives Agricoles CRI : Centre Régional d’Investissement CSE : Casablanca Stock Exchange CT : Casa-technopark DIE : Diversification Index-Export EACCE (Etablissement Autonome pour la Coordination et le Contrôle des Exportations) EIR: Economic and Institutional Regime EMI : Ecole Mohammadia d’ingénieurs ENSIAS: École Nationale Supérieure d'Informatique et d'Analyse des Systèmes ERC: Equity and Reconciliation Commission EU : European Union FDI: Foreign Direct Investment FEMIP: Facility for Euro-Mediterranean Investment and Partnership (FEMIP) FIT : finishing-dyeing-printing GAFTA : Greater Arab Free Trade Agreement GCC: Gulf Cooperation Council GDP: Gross Domestic Product GFCF: Gross Fixed Capital Formulation GGGI : Global Gender Gap Index GIP : Groupement d’Intérêt Public GPBM : Moroccan Professional Association of Banks 4 HPS : High Powered Systems IFC : International Finance Corporation IIT : Intra industrial trade IKED: International Organisation for Knowledge Economy and Enterprise Development IMME: Industries Métallurgiques, Mécanique, Electronique INDH: Initiative National pour le Développement Humain IPR: Intellectual Property Rights IT : Information Technology ITU: International Telecommunication Union IUR: International University of Rabat KBE : Knowledge Based Economy KEI : Knowledge Economy Index KAM: Knowledge Assessment Methodology KSA: Kingdom of Saudi Arabia LTD: Lead Tech Design MENA: Middle East and North Africa MENESFCR: Ministère de l’Enseignement Supérieur, de la Recherche Scientifique et de la Formation des Cadres MITC : Moroccan Information Technopark Company MPV : Maroc Plan Vert OFPPT: Office de la Formation Professionnelle et de la Promotion du Travail OMPIC : Office Marocain de la Propriété Industrielle et Commerciale ONA : Omnium North Africa PACTE: Programme d'Accès généralisé aux Télécommunications PGI : Parity Gender Index P2I : Plateforme Industrielle Intégrée ROSC: Report on the observance of Standards and Codes SAU: Surface Agricole Utile S&E: Science & Engineering SME: Small and Medium Enterprises SNRA: Système National de Recherche Agronomique TFP: Tax on professional training OPCVM TIMSS: Trends in International Mathematics and Science Study TNC: Transnational Corporations TYLCV: Tomato Yellow Leaf Curl Virus UAE: United Arab Emirates 5 USPTO : United States Patent and Trademark Office VC: Venture Capital WBI: World Bank Institute WTO: World Trade Organization WEF: World Economic Forum 6 Outline List of tables List of figures List of boxes List of acronyms Introduction …………………………………………………………………….. 8 General background…………………………………………………………….9 I - Morocco efforts in the Knowledge Economy pillars……………………….16 1.1. EIR…………………………………………………………………...19 1.2. Education and training……………………………………………….24 1.3. National System of Innovation………………………………………..30 1.4. ICTs…………………………………………………………………..44 II - Initiatives that are taking place on the KE in the various plans………………….49 2.1. Sector specific plans…………………………………………………………….50 2.1.1. National Pact for Industrial Emergence (2009 – 2015)………………………50 2.1.2. The Maroc Plan Vert………………………………………………………...55 2.1.3. The Plan Halieutis…………………………………………………………...58 2.1.4. The “Vision 2020” and the Plan Azur……………………………………….60 2.2. Function specific plans…………………………………………………………63 2.2.1. Initiative Maroc Innovation……………………………………………….....63 2.2.2. Maroc Numeric 2013………………………………………………………..71 2.2.3. The Plan d’Urgence for Education: 2009-2012……………………………....73 2.3. Territory specific programmes ………………………………………………...76 Conclusion………………………………………………………………………...80 Summary of main results…………………………………………………………..81 References……………………..…………………………………………………..87 7 Introduction In a global economy that is increasingly characterized by rapid, non-linear changes from unexpected sources, the success of individuals, firms, regions and national economies is based on their capability to learn by entering virtuous circles while rapidly extricating themselves from vicious circle ones. Knowledge does make a difference and he interface between the various institutions involved in knowledge and innovation (University, Government, Industry, and Diaspora) is central to this process. The focus of the policy discussion is how to get the process of knowledge-based transformation going rather than listing the preconditions for the knowledge economy, with China, India and to certain extent Turkey as major paragons to follow. Morocco has embarked in the implementation of knowledge approach and principle before a full scale knowledge economy plan was figured out, unlike some other countries in the Mena region. The four pillars have nonetheless benefitted from long terms plans and programs. Morocco has thus developed a vision Maroc Numeric following the national IT (Information Technology) policy (2009-2013). The education system has undergone important expansion and consecutive reforms to bring it to increase quality and give higher chances of graduate finding jobs. On the EIR, the mise à niveau du tissu économique national program1 added to privatization