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In a common sense it is
believed that industrialization is the key and critical for economic
development of a nation.  When we trace
back to the history of the developed countries, they mainly focus on
industrialization and invest more resource (man power, capital, knowledge,
infrastructure, and other requirements). Developing countries should also focus
on industrialization to accelerate their economic development. In this 21st century, the
globalization forces nations to develop the technological capability of their
firms to keep them competitive enough and survive in the tough competitive
market. Because it has dominant effect on
the productivity, quality and delivery time of firms. As technological
development is very dynamic, to sustain or improve the existing capacity,
improving the capacity of technological innovativeness is the key. In order to
keep improving in the technological innovativeness of a firm, there should be
proper management of the issue. It may not be difficult for developed countries
compared to developing countries, to manage their technological innovation
capacity of the manufacturing firms. In common
sense, most of the firms in developing countries suffer due to poor
technological innovation management and they are not effective in innovation
management. Most manufacturing firms in developing countries are not equipped
with higher technologies and most of them are small and medium scale firms.
Most of developing countries encourage and strive to attract foreign direct
investment to increase the economic contribution of large industries, to
accelerate their industrialization development. Due to different reasons, the budget
allocated to research and development and linkage with academic and research
institutions is limited. Having these common understanding about developing
countries, it is important to deal with issues of technological innovation
management in developing countries.

Ethiopia, located in east
Africa,  is one of the developing
countries in a fast economic growth towards industrialized led by agriculture
economy. The country is striving at its best level to boost its economy towards
middle-income country by setting first and second growth and transformation
plan. In Ethiopia, the objective to transform from the still dominant agricultural based economy to
the 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 labor
intensive and low-tech industries with linkages
to the agricultural sector. Ethiopia has adopted an active, state driven industrial policy aimed
at incentivizing exports, attracting lead firms
and foreign direct investment (FDI), supporting
local firms, and creating local linkages to promote priority sectors such as apparel and textiles 1.

Out of the efforts that the
company is excreting, the establishment of 
industrial parks under Industrial Parks Development Corporation (IPDC)
established which is established in 2014 by the FDRE regulation number 326/2014
is mile stone 2. it is mentioned that, in 2015, the country
has planned to establish 11 industrial parks in different regions of the
country3. Currently 5 of these industrial parks are
fully functional, and two of them are ready for operation. In 2016, 4 has mentioned that the country has earmarked
1.3 billion US dollars for the development of industrial parks and 12
industrial parks will be built across the country. From the speech of the prime
minister of Federal Democratic Republic of Ethiopia (FDRE) during the inaugural
ceremony of the Hawassa Industrial park, this newsletter mentioned that
building industrial parks have huge contribution in bring economic
transformation in the country by attracting quality foreign direct investments
and shifting small-scale manufactures into a larger scale. The prime minister
also added the industrial parks allow to attain the target set in the industrial
sector and to build the capacity and the competitiveness of local investors. As we can see in table 1, the official website
of the IPDC has published the 12 industrial parks available and planned to be
built 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

Post Author: admin