5.3 Developing ICT Businesses
5.3.1 Setting the Context
Source: Global Innovation Index Report: 2013, 2012 & 2011
Global Innovation Rank
120
This pillar focuses on developing the information and communication
industry through the creation of new businesses that produce products and services that will contribute to jobs and economic development. The pillar has been divided into three areas: technology innovation, IT enabled services (ITES) and development of the ICT sector.
a)
Technology I nnovation
Technology innovation aims to develop a creative and innovative ICT
sector. This shall entail creation of appropriate policies and infrastructure necessary to foster creativity and innovation at all levels. The
widely recognized Global Innovation Index (GII) categorizes countries
and regions according to their innovative capacity. Innovations are the
bedrock of entrepreneurship which translates these innovations into
businesses, wealth and high standards of living for a country. This is
the reason the top ten countries in the innovation index are rich with
high GDPs.
Figure 14 shows the ranking of Kenya in GII, in comparison to the five
countries in the various economic levels. Although Kenya has been
sliding in the last three years, it is still within the LMIC.
100
99
94
96
80
60
58
64
2013
34
40
2012
Figure 14:
Global
Innovation Rank
Comparison
2011
20
0
Figure 7 showed Kenya’s capacity for innovation compared with two
countries in the lower middle income, two countries in the upper middle income and one country in high income. It showed Kenya’s capacity for innovation is comparable to that of both UMICs and HICs. Kenya
needs to build on this capacity to develop and nurture ICT innovations.
In the recent past, Kenya has generated very many ICT innovations,
and hence the relatively good ranking in capacity to innovate (Graham
and Mann 2013). What however is missing is converting the new innovations into commercial products run by successful businesses. This
should be one of the focus areas for the Master Plan.
b)
I T Enabled Services (I TES)
‘Innovations are
the bedrock of
entrepreneurship
which translates
these innovations
into businesses,
wealth and high
standards of
living for a
country.’
Business process outsourcing (BPO) was identified as a key economic
sector under the economic pillar of Vision 2030 in the first MTP. According to a recent study (Graham and Waema, 2014), although the
country has been moderately successful in attracting foreign BPO
technological innovations in the medical industry
..84
.................................................................................................................Towards
...............a...Digital
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85
Towards a Digital Kenya
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