Innovation in Papua New Guinea

Innovation, at all levels - technological, industrial, financial, training, staff management - play a crucial role at all levels of development. Innovation could be a stimulus for education, for professional expertise and for the wellbeing of the citizens of Papua New Guinea in general. However, there are important hindering factors that are particularly accentuated in Papua New Guinea.

A survey was done on innovation by UPNG in partnership with UNIDO, University of Naples, IRD of Noumea (institution coordinating the PACE-Net Plus project) and the PNG Science and Technology Secretariat and discussed during the workshop.
Innovation plays an important role in industrial activities in Papua New Guinea. However, it was interesting to note that there was no survey on innovation in PNG or in the neighboring countries, Solomon Islands and Vanuatu to date. Therefore, this project aimed at providing information that could be useful for developers and government departments in Papua New Guinea and the region.
Papua New Guinea has some of the poorest social indicators on the world. Despite over 10% increase in the annual GDP (2012: 15.4%, 2013: 16.2%, 2014: 18.7%, 2015: 24.7%), PNG is not significantly progressing on its development indicators (MDG). According to the survey, there is essentially no transformation industry in PNG and the country is highly dependent on imports. Moreover, most people live below the poverty line, wages are low and there is a lack in social protections.
The survey suggests that the following could be factors to PNG’s insignificant progress in its development indicators (MDG’s).
1.      Government spending on education, health and infrastructure is largely insufficient and necessary investments have not been made.
2.      Cosmetic and politically-driven events have diverted funds that could be used on sustainable projects.
3.      PNG has a two-tiered economy. The local production and major international firms that are operating in the country. Unfortunately, large foreign companies are offered attractive conditions of operation and have financial stature that sometimes overwhelms the country’s capacity. On the same note, the economy largely depends on foreign imports and foreign operators.
 
4.     Unpredictability of economic future. The economy is largely based on non-renewable production (mining, oil, gas, logging activities) and these extractive industries are operated by foreign investors. Agricultural commodities too have fluctuating prices and this weakens local economic capacity and production.
5.      The Kina has been artificially supported by PNGCB for the last two years and investors are reluctant to invest in SMEs.
6.      Many key commercial assets of the country are controlled by the government through a central agency.
Universities and research institutions are the forerunners in research and development in Papua New Guinea. They share a common mandate of conducting researching and developing innovative practices that could lead to economic or social development. However, it is difficult for universities to seek industrial applications and commercialize their findings due to the lack of appropriate funding and the administrative structure of their universities. It can also be noted that contact between research institutions and industry is limited and has proven to be ineffective. Therefore, strengthening cooperation between these two sectors could be a way forward in the promotion of innovation and development.
Papua New Guinea has an encouraging future in research and economic development if funds are made available and policies are developed and implemented. There are numerous research institutions that are diverse and have international partnerships. These institutes have published work that have generated international interest. In addition, the government has showed interest in research by establishing the PNG (Research) Science and Technology Secretariat.
The study further pointed out the following as appropriate niches for Papua New Guinea to capitalize on for economic development and innovation:
 
1.      Small scale agricultural production.
2.      Production requiring traditional knowledge.
3.      Mobile phone communication and spreading of information.
4.      Construction since it represented the largest sector in 2013. On the other hand, manufacturing is a sector that has been overlooked and may present a real opportunity for employment and innovation.
5.      Traditional crafts.
6.      There is an urban ‘middle class’ in PNG that could buy PNG processed products if available and designed to fit expectations of the consumers.
7.      Lobbying to decrease taxes on SMEs
8.      Waste management and recycling.
9.     PNG has a very resilient population which means that people can find economic opportunities in many diverse and challenging contexts.
10. Better cooperation between the local research institutions and the private sector. Unfortunately, most economic and industrial activities view innovation as irrelevant in PNG. Therefore, there is a need to improve the working relationship, dialogue and decision-making amongst the responsible project partners.
11.  The new SMEs bill that is defended by the Department of Trade and Industry.
There are many potential sectors sector that the government should invest in to boost innovation, however, agriculture sector should be given the precedence. Furthermore, education and network capacity are vital mechanisms that need to be strengthened for sustainable innovations and economic development.
Parallel discussions were held on the current situation of innovation in Papua New Guinea.
Definitions of innovations varied according to professions, however, it all narrowed down to the core fact that innovation involves the translation of an idea into a good or service that creates value.
The discussions projected the following problems and also made recommendations to enhancing innovation in Research and Development in industries, manufacturing and agriculture.
The industries and company representatives made mention of the following hindrances to them achieving their full potentials:
·        The lack of Human Resource.
·        Manufacturing challenges, that is, the high cost of power, water, infrastructure, rent and land
·        The import and downstream refinement of raw materials
·        Sustainability of businesses
·        Appropriate scale to relevant scale.
Many stakeholders were of the general opinion that innovation is important for Papua New Guinea’s economic growth. However, since necessity drives innovation, it is important to focus on areas that are essential and appropriate to our country. A good example would be that of the agricultural sector.
Incentives should also be given as a platform for a conducive environment for innovation to happen. Furthermore, a concern was raised that the lack of research and legal infrastructure could be a major hindrances to innovations. Thorough research must be done to ensure that the project is sustainable. Therefore, it was recommended that research must be a made a priority.

 

 

 

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