Source: Al-Wafd Newspaper
Prof. Dr. Ali Mohammed Al-Khouri
For a long time, Arab economies were linked to natural resources, trade, services, and government spending. These sectors provided significant sources of income and contributed to building cities, infrastructure, and educational and healthcare institutions, but in most countries, they did not establish a broad base for technology production or ownership. With the increasing global reliance on advanced industries, the need arose to build another economic resource based on knowledge, one that would give Arab economies greater capacity for production, competitiveness, and sustainability.
The knowledge referred to here is not limited to what is taught in universities or published in scientific journals, but rather encompasses what is transformed into a new technology, product, production method, or service. Scientific research acquires its economic value when it moves from the laboratory to the market, and its results become applicable in industry, agriculture, energy, medicine, communications, and services. Patents are part of this process because they protect the rights of the innovator and provide a legal basis for investing in, licensing, or developing a company based on their invention.
Therefore, the value of a patent is linked to its outcomes, not merely its registration. A research institution might register a large number of patents without most of them translating into economic activity, while a single patent could establish a new industry or open up a vast market. This depends on the existence of companies capable of development, funding to bear the risks of the early stages, and legal and commercial expertise to help protect and market the innovation. Without these elements, a patent remains a document that is merely held in reserve and does not contribute to wealth creation or production.
Over the past decades, Arab countries have established universities and research centers, expanded postgraduate and scholarship programs, and now boast a growing number of researchers and specialists. This has contributed to raising the level of education and developing significant scientific expertise. However, the link between these institutions and the economy remains limited in many sectors. Universities operate according to standards of publication and academic promotion, while companies rely on purchasing technology from abroad, and the two only collaborate on isolated projects. Consequently, a large portion of scientific research goes unrealized, lacking a clear path for development or investment.
This gap manifests itself at several stages. A researcher may produce excellent scientific work, but not know if it is legally protected, cannot find an entity to assess its commercial viability, and lacks the resources to produce a prototype. A company may see a practical need within its factory or market, but fail to contact the university capable of developing the solution. Between these two scenarios, opportunities are lost that could transform into valuable products, companies, or intellectual property rights.
Addressing this gap requires institutions that bridge the gap between research and production. Technology transfer offices fulfill this role by evaluating research findings, determining their suitability for patenting, managing the rights of researchers and universities, and seeking industrial partners or investors. Technology incubators and accelerators assist in developing prototypes, testing products, building management teams, and facilitating market entry. These institutions are not successful simply by organizing events or providing workspaces; they must possess the technical, legal, and investment expertise to support projects through to the production stage.
The private sector remains essential to this system. Companies are closest to the market and best positioned to identify problems requiring innovative solutions. When a company funds research directly related to its operations, the likelihood of implementing the results is greater than when research is conducted outside of production needs. Furthermore, establishing research and development units within companies facilitates the accumulation of expertise, reduces complete dependence on imported technology, and opens the door to developing products tailored to local conditions.
Localizing knowledge does not mean closing the market to global technology. Many countries built their industrial capabilities through imports, licensing, and partnerships, then gradually shifted to local development. Crucially, acquiring technology must be accompanied by knowledge transfer, workforce training, participation in design and operation, and the ability to improve the product after it enters the market. Importing solely for use, on the other hand, keeps the knowledge with the supplier and makes the economy dependent on updates and services from abroad.
Arab countries can direct research and innovation toward areas directly related to their needs. Water scarcity opens up opportunities for desalination, reuse, and smart irrigation technologies. The desert environment requires solutions in agriculture, energy, cooling, and heat-resistant materials. The oil and gas, maritime, financial services, and healthcare sectors offer ample opportunities for developing local technologies that can be scaled to other markets. The value of research increases when it stems from an existing problem and finds an entity willing to test and purchase the solution.
Patent management requires a different approach than standard administrative procedures. Registering in multiple countries is costly and requires selecting markets worthy of protection, adhering to legal deadlines, examining similar patents, and ensuring that protection covers the essential elements of the invention. Therefore, simply encouraging researchers to register is insufficient without providing specialized advisors, clear funding, and an investment plan. Furthermore, spending on patents with little potential for development should be halted, and resources redirected toward innovations with greater potential for industrial or commercial application.
Venture capital is another part of this process, particularly for technologies that require years of development before generating revenue. Scientific projects differ from quick commercial applications; they require laboratories, experiments, certifications, and legal regulations. They are difficult to finance with traditional loans because they lack sufficient assets or a stable income stream at the outset. Therefore, they need funds that understand the nature of the technology, accept a longer investment cycle, and can combine financing with managerial expertise and access to partners.
Arab countries have begun investing in artificial intelligence, clean energy, space, biotechnology, and advanced industries. These investments provide a crucial foundation for developing national expertise, especially when linked to universities, local companies, and government procurement programs. The government can support innovation by acting as a primary purchaser of technology, not just a financier. When a local company has the opportunity to test its product in a real-world project, it can refine it, prove its effectiveness, and then expand into other markets.
A knowledge-based economic renaissance depends on sustained effort and the accumulation of expertise. Results don’t materialize in a single year, nor are they measured by the number of initiatives or conferences. Its impact is evident in the rise of technology companies, increased private spending on research and development, a rise in the number of products based on local knowledge, increased university revenue from licensing, and the entry of Arab technologies into international markets.
The Arab world possesses the financial and human resources to build a stronger knowledge base. However, the key lies in how the relationship between researchers, universities, companies, investors, and the state is structured. When knowledge is systematically transferred among these parties, patents transform from isolated academic findings into assets used in industry and commerce, contributing to income diversification and increased productivity. This capacity forms the basis for building an Arab economy that produces a greater share of the technologies it utilizes, transforming available scientific expertise into employment, wealth, and economic stability.
