SRO-SA International consultant for the conceptualization and development of a study on “Role of technology incubators in MSME Development in Southern Africa”

Result of Service The main objective of the Study is to investigate the role of technology incubators in MSME development in Southern Africa, focusing on their current and potential role in nurturing high-impact, innovative entrepreneurship needed to enhance economic transformation and inclusive industrialization through trade within the region. More specifically, the study should look at the existing technology incubators within Southern Africa and Africa and analyse their working modalities, including types of support provided, geographic and sectorial coverage of support, as well as their impact on the trajectory of incubated firms. The incubators shall be benchmarked against each other and the overall market practice, and case studies depicting both the successful design of the incubator schemes and the trajectories of graduating firms should be presented. The study should also feature a needs assessment for the expansion of incubator networks in Southern Africa, as well as a set of key recommendations on the desired layout of incubation programs. Comparative experiences with the countries from the Global South should be included with an aim to draw best practices and lessons learnt from experiences in other regions.

Work Location Remote

Expected duration The assignment will be completed and delivered in 5 work months according to the schedule below

Time frame Activity 2 weeks after the signature of the contract Consultant submits to ECA an inception note, detailing the methodology, conceptualization of the study and framework for assessment of incubators, as well as the annotated outline of the study; 1 week after the submission of the inception report The inception report is reviewed by ECA and updated by the consultant and approved 6 weeks after the signature of the contract The consultant submits an interim report featuring a database of incubators, list of interviewees and interview template, for approval by the ECA 7 weeks after signature of the contract The ECA provides comments or validates the proposed approach 12 weeks after the signature of the contract Consultant submits a first draft of the report for comments to ECA. ECA provides comments within two weeks. 16 weeks after the signature of the contract A Validation meeting is held to validate the study 20 weeks after the signature of the contract The report is finalized and sent for editing

Remuneration

The total fees for the assignment will be US$20,000 to be paid in two instalments. The first payment of US$10,000 will be made after the submission of a satisfactory first draft report. The second and final payment of US$10,000 will be made after the submission of a satisfactory final report incorporating the comments/updates.

Duties and Responsibilities Background and justification.

The United Nations (UN) Economic Commission for Africa (ECA) Sub-Regional Office for Southern Africa (SRO-SA) is among the implementing partners of the technical assistance project titled “Global initiative towards post-Covid-19 MSME sector”. The initiative brings together UNCTAD, UN DESA and the UN regional commissions for Africa (ECA), Europe (ECE), Latin America and the Caribbean (ECLAC), Asia and the Pacific (ESCAP), and the Arab region (ESCWA) with funding provided by the UN Development Account. The overall objective of the project is to develop and implement capacity building tools for governments and MSMEs to facilitate resurgence and strengthen resilience of micro, small and medium enterprises (MSMEs) in developing countries and economies in transition to mitigate the economic and social impact of the global Covid-19 crisis and to facilitate the MSMEs contribution to the SDGs implementation. The project proposes a coherent approach towards MSME resurgence reflecting a holistic and comprehensive nature of efforts needed to ensure and facilitate the MSMEs green, resilient and inclusive recovery. UN ECA through its Sub-Regional Office for Southern Africa leads the cluster on access to innovation and technology and participates in the cluster on access to markets. UNECA is focusing its analysis on implications of COVID 19 on MSMEs’ access to markets in Southern Africa, at national and regional level, and the potential role of technology and innovation, including in the context of the blue and green economy, in facilitating such access. One of SRO-SA’s programmed outputs under Phase 3 of the project is to conduct a study on the role of technology incubators for MSMEs development in Southern Africa. In this context, SRO-SA is seeking to recruit an international consultant to undertake the study. MSMEs are the backbone of the Southern African economy; however, with the predominance of informal, low value-added and needs-driven, small businesses, Southern Africa is largely missing the high-impact and opportunity-driven entrepreneurship that can drive economic growth and structural transformation on the continent. Instead it is characterized by “survival entrepreneurship” or entrepreneurship driven by necessity. For economies in the Southern African region to graduate from commodity dependence and undergo structural transformation to achieve middle- and high- income country status, they need to nurture business ventures that operate in the formal sector, and exhibit stronger value addition and higher productivity. Access of businesses to technology and innovation can enable this change. Innovation and the existence of innovation systems are widely considered as critical enablers of productivity growth. However, the Southern African region is lacking some of the critical capacities in terms of science, technology and innovation. One key policy measure which may capacitate firms to reach a higher level of innovativeness are technology incubators. The latter can support the establishment and growth of innovative businesses. Bramann (2017) posits that technology hubs, accelerators and incubators enable the development of a techno-entrepreneurial ecosystem in resource scarce contexts and remain vital to launching technological startups. Such entities may be linked to Universities, focusing on commercialization of the outputs of research work, or driven by private players, nurturing entrepreneurship and the overall ecosystem. The services offered include provision of office/lab space and/or a variety of dedicated services, such as Intellectual Property (IP) advisory, trainings on implementation modalities for innovative projects, business model concept testing and product insight testing, access to Research & Development (R&D) and seed finance among others The landscape of innovation hubs is very dynamic, and difficult to be captured in its entirety. According to a recent 2020 report , the continent harbors about 600 technology hubs, ranging from accelerators and incubators to co-working sites. Britter Bridges (2020) mapped innovation hubs across Africa, coming up with a total of 160 hubs across the SADC region. According to David-West et al (2018) , technology incubators constituted around 20% of innovation support entities in Sub-Saharan Africa, sharing the landscape with technology hubs (41.3 percent), technology labs (17.3 percent) and accelerators (9.2 percent). In the SADC region, most technology incubators and innovation hubs are concentrated in South Africa .

Duties and Responsibilities

The principal consultant will work under the direct supervision of the SROSA Economic Affairs Officer (project manager) and under the overall guidance of the Chief of the Sub-regional initiatives Section. The consultant will also work closely with the secondary consultant, other members of the project team and project steering committee members to ensure a successful and timely delivery.

Issues to be analyzed and discussed

In terms of literature review and conceptual/analytical framework, the study should include the following elements: - A critical discussion based on academic and non-academic sources on the role that technology incubators can play in fostering survival, growth and development of MSMEs especially high-impact entrepreneurship and “opportunity-driven” entrepreneurship with case examples from Africa, Southern Africa and the Global South. - An explanation of the differences or similarities, if any, between technology incubators, technology hubs, and technological parks and the implications of these concepts for innovation within MSMEs and the industrialization process. - Related to the above, a detailed review of general academic and practitioner sources on the types of incubators and their working modalities, distinguishing them from other types of business support institutions. The analysis should review their organizational form / status, links to external entities (Universities, big firms, etc), type of support offered, etc. Based on the review, a structure for a comparative analysis of technology incubators to be developed; - Compelling arguments as to whether and how technology incubators can support the emergence of a national innovation system that can in turn accelerate the structural transformation and industrialization process of African and developing countries. - A critical and well-articulated discussion of the interface between technology incubators, competitiveness, national innovation systems, development of a dynamic and vibrant business ecosystem, innovation and structural transformation and industrialization in developing countries including Africa and Southern Africa. An explanation of these concepts and their linkages within a unifying analytical framework will be expected. - A review of the experiences of countries from the Global South on the use of technology incubators to develop high-impact entrepreneurship and a vibrant, dynamic business ecosystem and the lessons learned from these experiences that can be of relevance to Southern Africa, including attention to how the technology incubators emerged, were designed and evolved over time, and the challenges encountered; - A desk research and comparative analysis of technology incubators in Africa and Southern Africa, including a dedicated mapping of technology incubators and their interventions for each country in the Southern Africa sub-region, highlighting best practices, lessons learnt and to the extent possible, analyzing how these technology incubators supported the development of start-ups over time and their contributions to innovation and entrepreneurship in the countries of the sub-region; - Related to the above, a set of case studies featuring both the successful design of the incubator schemes or otherwise and the trajectories of graduating firms, highlighting opportunities and challenges and the factors that inhibited or promoted the effectiveness of the incubator schemes; - With the aid of case examples, a critical analysis of whether technology incubators have been an effective tool for promoting innovation and development of MSMEs in Southern Africa, Africa and the Global South and the emergence of national innovation ecosystems. - A discussion as to how the impact of technology incubators on MSME development can be assessed and suggestions of potential indicators and the development of a monitoring and evaluation framework for assessing their impact. - A critical assessment of the extent to which technology incubators are embedded in existing development policies and contribute to their implementation (e.g. entrepreneurship, MSME development, investment, industrial, trade). - An analysis of how technology incubators in Southern Africa could contribute to the building of green, blue and digital economies. - A set of policy recommendations as to how to improve the effectiveness of technology incubators in Southern Africa as drivers of innovation and entrepreneurship to promote inclusive industrialization and structural transformation, with attention to reforms needed in terms of policies, incentives, and institutional support and the need to embed incubators within the national innovation and business ecosystem.

The study should allow for the following questions to be answered: - How do technology incubators contribute towards MSME development in general and in Southern Africa? What are the pros and cons for their existence as a development tool? What does the evidence say? How to assess their impact on MSME development? - What incubators are operational as of today in Southern Africa, where are they located, in which sectors, who are the target beneficiaries, what linkages exist, if any, with other support structures and what types of support they offer? - What are the most important aspects of the support they offer and how effective has been the support so far? - How to assess the effectiveness of technology incubators as a development tool? What indicators to use? - What are the key (additional) support measures that technology incubators should provide to achieve optimal impact for MSMEs in terms of competitiveness, profitability and their survival and growth? - What complementary measures need to be in place for technology incubators to impactfully deliver support to startups and ensure their growth? - How to embed technology incubators within national and regional innovation systems that support the emergence of national and regional business eco-system? - How to ensure sustainability (including financial) of technology incubators in Southern Africa? - How to build and sustain linkages between the Science, Technology and Innovation (STI) community including incubators, MSMEs and governments to ensure that STI is a critical lever for MSME competitiveness in Southern Africa? - How to reconcile the need for building a critical mass in leading innovation hubs and the ambition to “leave no one behind”? - What are special constraints faced by women and youth to access technology incubator services? - To what extent are technology incubators embedded in existing development policies (entrepreneurship, MSME development, investment, industrial, trade) and implications of any disconnect? - How can technology incubators in Southern Africa contribute to the building of green, blue and digital economies? - What are the best practices and lessons learnt from the Global South in terms of using technology incubators to drive entrepreneurship and enterprise and industrial development?

Scope of work and main tasks of the consultant

The consultant is expected to produce a high-quality, analytical, and well researched study that satisfies the requirements of the consultancy. He or she is expected to present the report at a Validation meeting and support the organization of the meeting. The work on the study will include a literature review, desk research and interviews on the role of technology incubators for MSME development in Southern Africa. The review should cover the necessary background in terms of role of technology incubators in spurring innovation and growth among MSMEs and support industrialization and structural transformation in developing countries, and clustering effects leading to the development of key technology hubs. The review should also refer to possible best practices and lessons learned from the Global South (notably South-East Asia). The desk research should allow for a compilation of the list of incubators and the key aspects of their functioning, based on a framework developed through literature review. The findings from secondary sources are to be complemented with outcomes of in-depth interviews including with the representatives of incubators and firms which graduated from incubator support. The findings should include country profiles for each of the 11 countries of the Sub-region, and should form the basis for case studies to be compiled (of both successful incubators and firms-graduates of the incubation programs).

Deliverables

(i) Inception report: The Consultant will submit to ECA an inception report detailing the conceptualization of the assignment that strongly demonstrates a clear understanding and interpretation of the objectives and tasks; includes a conceptual/analytical framework; the methodology, including data and information collection and analysis, and an annotated outline of the report and a work plan. The inception report should also contain a list of proposed interviewees and interview questions for review by the ECA; (ii) Draft report – A high-quality, analytical and well-researched report on “Role of technology incubators in MSME Development in Southern Africa”. The report will be prepared using both quantitative and qualitative information. It shall cover the issues and questions as identified under Sections 3-5. It will include an executive summary, a list of acronyms, glossary of terms used, key messages, introduction, a section featuring the analytical/conceptual framework for the report, references and annexes. It will contain a literature review, definition of key concepts and terms and the outcomes of the desk research/interviews, with specific chapters dedicated to each country; an aggregate analysis of the findings; and policy recommendations. (iii) Final report – incorporating comments, inputs and recommendations provided at the Validation workshop p and by ECA, its partners and other stakeholders; (iv) Power point presentation to be delivered at the Validation meeting; (v) Report of the Validation meeting; (vi) Database of analysed incubators (with contact information)

Other key deliverables/ provisions

i. The Consultant shall provide ECA with the datasets (preferably in Excel format) used to generate the charts, graphs and other figures presented in the study report as well as the charts/figures/graphs in an editable format.

ii. All the written outputs shall be prepared in English. Except for the power point presentation, all outputs shall be prepared using single line spacing, times new roman 12 font size, contain page numbering, list of acronyms, a table of contents, foot notes, references, relevant annexes and appendices.

iii. All work submitted must be the original work of the consultant, and contain proper citation and recognition of reference documents and data sources.

iv. Meetings will be held regularly between the consultants, ECA and the project steering committee members. Consultants are expected to participate and prepare for the meetings.

Qualifications/special skills Academic Qualifications: An advanced University in economics, industrial economics, international development, or any of the relevant social science fields is required. A first -level University Degree in combination with Two years qualifying experience may be accepted in Lieu of an advanced university degree. PHD is an advantage. Experience: Ten (10) years professional experience in any of the following industrialization, regional integration, international trade, international development, science, technology and innovation, economic development in Southern Africa with extensive knowledge and understanding of innovation systems and MSMEs is required. Demonstrated knowledge of innovation support measures for industrial-based MSMEs and knowledge of the SADC region;

Language: English and French are the working languages of the United Nations ,for this consultancy fluency in English is required .Knowledge of the other is an advantage .

No Fee THE UNITED NATIONS DOES NOT CHARGE A FEE AT ANY STAGE OF THE RECRUITMENT PROCESS (APPLICATION, INTERVIEW MEETING, PROCESSING, OR TRAINING). THE UNITED NATIONS DOES NOT CONCERN ITSELF WITH INFORMATION ON APPLICANTS’ BANK ACCOUNTS.