Using micro-data to understand the interactions within the research and innovation ecosystem in Ethiopia

High-quality data is vital in the push to build strong national research and innovation ecosystems across Africa. This policy paper, produced by AUDA-NEPAD and supported by the Science Granting Councils Initiative (SGCI), explores how Ethiopia uses micro-level data to understand and improve its research and innovation ecosystem. The study shows that detailed data, especially from the smallest units like individual researchers or firms, can give deep insight into how a country’s science, technology, and innovation (STI) systems actually function.

Why Focus on Micro-Data?

Micro-data refers to detailed information about specific individuals, institutions, or activities. Unlike broader national statistics, micro-data helps answer targeted questions like: Who is conducting research? Where is funding coming from? What types of research are being prioritized?

For Ethiopia, the Technology Innovation Institute provided such data, allowing for a deep analysis of the performance and challenges in the country’s STI system. This approach provides valuable lessons for Science Granting Councils (SGCs) across Africa.

The Role of SGCs in Data-Driven Innovation

SGCs are government bodies that manage funding and policy for scientific research. The paper stresses that these councils must strengthen their ability to collect and analyse data. In doing so, they can better decide where to invest, which sectors to prioritize, and how to measure results. Using micro- and macro-level data enables SGCs to track progress, allocate resources, and ensure research aligns with national development goals.

Ethiopia’s Research and Innovation Ecosystem at a Glance

Ethiopia’s STI system includes universities, research centres, innovation hubs, and government ministries. The Ministry of Innovation and Technology provides policy direction, while leadership from the Prime Minister’s Office ensures alignment with national priorities. However, the system’s effectiveness relies heavily on well-informed decisions, underscoring the need for strong data collection and analysis practices.

Key Findings from Ethiopia’s 2014 R&D Survey

The paper highlights Ethiopia’s research spending and performance using data from a 2014 survey. At that time:

• Gross Expenditure on R&D was $780 million, or 0.62% of GDP, just short of the African Union’s target of 1%.
• Government was the primary funder, contributing 97% of the total. The business sector contributed only 1%.
• Most spending (50%) went to experimental development, suggesting a focus on applying research to real-world solutions.
• The higher education sector conducted the most R&D, especially in applied and experimental research.

Who Are Ethiopia’s R&D Workers?

In 2014, Ethiopia employed over 18,000 R&D personnel. Nearly half were researchers, with others working as technicians or support staff. The government was the largest employer, followed by universities. Notably, gender imbalance was a concern—men overwhelmingly held research positions.

Research mainly focused on agriculture, health, and social sciences. These are crucial sectors for Ethiopia’s development, but the low representation of women highlights the need for more inclusive policies.

How Innovative Are Ethiopian Firms?

The study looked at firms across mining, manufacturing, construction, and services to assess innovation. From 2012 to 2014:

• 59.4% of firms were considered innovative, with larger firms leading.
• The manufacturing sector had the highest innovation rate (68%), while construction lagged.
• Interestingly, 91% of innovative firms did not conduct formal R&D, relying instead on internal knowledge or suppliers for new ideas.

Universities and public research institutions had minimal influence on firm-level innovation. Just 1.8% of firms considered universities essential sources of innovation information. This weak university-industry link is a critical gap.

Barriers to Innovation

Several factors held back innovation in Ethiopia. The most significant barriers included:

• Lack of internal funding, especially for small and medium firms.
• Difficulty accessing external finance.
• Shortage of skilled personnel.
• Market dominance by large firms.
• Uncertain demand for new products.

These challenges call for targeted policies that support small businesses, improve access to finance, and encourage stronger collaboration between industry and research institutions.

Policy Recommendations

To strengthen Ethiopia’s research and innovation ecosystem—and help other African countries follow suit—the paper recommends:

1. Developing national training programmes on R&D data management, especially for government officials.
2. Improving data collection tools to ensure ongoing, high-quality surveys of research and innovation activities.
3. Setting up Communities of Practice to share lessons and best practices across countries.

In Summary

This case study makes it clear: good data leads to good decisions. By investing in micro-data systems and improving their ability to analyse and apply that data, SGCs in Africa can build stronger research systems, better align research with national goals, and ultimately drive economic growth. Ethiopia’s experience offers valuable lessons on the power and challenges of using micro-data to shape science and innovation policy.