In a common sense it isbelieved that industrialization is the key and critical for economicdevelopment of a nation.
When we traceback to the history of the developed countries, they mainly focus onindustrialization and invest more resource (man power, capital, knowledge,infrastructure, and other requirements). Developing countries should also focuson industrialization to accelerate their economic development. In this 21st century, theglobalization forces nations to develop the technological capability of theirfirms to keep them competitive enough and survive in the tough competitivemarket. Because it has dominant effect onthe productivity, quality and delivery time of firms.
As technologicaldevelopment is very dynamic, to sustain or improve the existing capacity,improving the capacity of technological innovativeness is the key. In order tokeep improving in the technological innovativeness of a firm, there should beproper management of the issue. It may not be difficult for developed countriescompared to developing countries, to manage their technological innovationcapacity of the manufacturing firms. In commonsense, most of the firms in developing countries suffer due to poortechnological innovation management and they are not effective in innovationmanagement. Most manufacturing firms in developing countries are not equippedwith higher technologies and most of them are small and medium scale firms.
Most of developing countries encourage and strive to attract foreign directinvestment to increase the economic contribution of large industries, toaccelerate their industrialization development. Due to different reasons, the budgetallocated to research and development and linkage with academic and researchinstitutions is limited. Having these common understanding about developingcountries, it is important to deal with issues of technological innovationmanagement in developing countries.Ethiopia, located in eastAfrica, is one of the developingcountries in a fast economic growth towards industrialized led by agricultureeconomy. The country is striving at its best level to boost its economy towardsmiddle-income country by setting first and second growth and transformationplan. In Ethiopia, the objective to transform from the still dominant agricultural based economy tothe industrial based economy is paramount in policies.
Agricultural development led industrialization (ADLI) was developed as the main guiding principle of Ethiopia’s development process. The underlying idea was that Ethiopia’s manufacturing sector should complement the growth of the country’s dominant agricultural economy, focusing on laborintensive and low-tech industries with linkagesto the agricultural sector. Ethiopia has adopted an active, state driven industrial policy aimedat incentivizing exports, attracting lead firmsand foreign direct investment (FDI), supportinglocal firms, and creating local linkages to promote priority sectors such as apparel and textiles 1.Out of the efforts that thecompany is excreting, the establishment of industrial parks under Industrial Parks Development Corporation (IPDC)established which is established in 2014 by the FDRE regulation number 326/2014is mile stone 2.
it is mentioned that, in 2015, the countryhas planned to establish 11 industrial parks in different regions of thecountry3. Currently 5 of these industrial parks arefully functional, and two of them are ready for operation. In 2016, 4 has mentioned that the country has earmarked1.3 billion US dollars for the development of industrial parks and 12industrial parks will be built across the country. From the speech of the primeminister of Federal Democratic Republic of Ethiopia (FDRE) during the inauguralceremony of the Hawassa Industrial park, this newsletter mentioned thatbuilding industrial parks have huge contribution in bring economictransformation in the country by attracting quality foreign direct investmentsand shifting small-scale manufactures into a larger scale. The prime ministeralso added the industrial parks allow to attain the target set in the industrialsector and to build the capacity and the competitiveness of local investors.
As we can see in table 1, the official websiteof the IPDC has published the 12 industrial parks available and planned to bebuilt in the country 5. Table 1: Industrial Parks planned to be built from 2015-2019G.C (Source:IPDC website) Name of park Location from Addis Ababa Kms from Addis Ababa Proximity to the port (Djibouti) Total delimited land (hectare) Eligible Industries Completion period Addis Industrial Village Addis Ababa 860 8.7 Apparel Operational since 1980’s Bole Lemi Industrial Park Phase I Addis Ababa 860 178 Apparel Operational Since 2014 Hawassa South 275 998 1000 Textile and apparel Operational Mekelle North 760 750 1000 Textile and apparel Feb, 2017 Kombolcha Nort-East 380 480 700 Textile and apparel Feb, 2017 Adama South-East 74 678 2000 Machinery equipment, Textile and apparel. April 2017 Bole Lemi II Addis Ababa Addis Ababa 860 171 Textile and apparel June 2017 Kilinto Addis Ababa Addis Ababa 860 279 Pharmaceutical, food and beverage June 2017 Dire Dawa East 473 380 4000 Machinery equipment, Textile and apparel.
June 2017 Bahir Dar North-West 578 985 1000 Textile and apparel June 2017 Jimma South-West 346 1200 1000 Textile and apparel June 2017 Air Lines Logistics park Addis Ababa Addis Ababa 863 200 Logistics service 2019