Chapter 4 examines how effectively Egypt’s scientific and industrial sectors collaborate, highlighting the significant untapped potential for translating research into economic and societal value. It analyses the current levels of co‑operation between firms and knowledge institutions, the structural barriers that limit co‑creation, and the fragmented policy environment supporting technology transfer. The chapter assesses ongoing initiatives, from technology transfer offices and ICT-focused programmes to emerging regional “Alliance and Development” clusters and identifies opportunities to build a more demand‑driven, innovation-oriented system. It concludes with policy directions to strengthen incentives, professionalise support structures, and deepen collaboration so that scientific capabilities can better contribute to Egypt’s industrial upgrading and innovation-led growth.
4. Science-industry linkages in Egypt
Copy link to 4. Science-industry linkages in EgyptAbstract
Key messages
Copy link to Key messagesCo-operation between business and academia for innovation is low. A small share of innovation-active firms collaborates with public research performers (PRPs): over 2017-2019, only 7% of innovation-active SMEs and 3% innovation-active large firms co-operate with academia. A common perception is that engaging in science-industry linkages bears high transaction costs and financial costs, while relevant results may not emerge. Employment of highly skilled researchers in industry is low.
The government is increasingly promoting science-industry linkages in Egypt. PRPs are directed to increase efforts in the commercialisation of research results. This included the creation of knowledge and technology alliances (KTAs) to connect academic research with businesses, as well as the recent Presidential “Alliance and Development” initiative to establish seven regional clusters.
Emphasis on the science-push model, based on the assumption that scientific knowledge will find its way into application, merits reconsideration. The main vehicles for this are the Technology Innovation and Commercialisation Offices in several PRPs. These, however, achieve only modest results, mostly due to insufficient industry involvement in the early stages, which could help guide research towards topics better suited to market demand. Creating opportunities for co-creation will be key to the future success of science-industry linkages.
Egypt needs to continue reforms around intellectual property rights (IPRs). Increased efforts are needed to clarify ownership, management and exploitation of intellectual property. This also includes strengthening the role of PRPs in supporting researchers with handling IPRs. In particular, Bayh-Dole type legislation could help incentivise researchers to patent more frequently. Services provided by PRPs should be an integral part of a support ecosystem.
Synergies among existing support initiatives will be key to the future success of science-industry linkages. Current efforts need to be strengthened. At the system level, better co‑ordination among funding agencies and different ministries is needed to create synergies, and effective monitoring and evaluation mechanisms need to be put in place to identify areas for policy intervention, prioritise resource allocation, and improve or phase out interventions as necessary. In PRPs, technology transfer services in PRPs need to be strengthened, creating also room for greater collaboration among PRPs. Synergies among existing support initiatives will be essential to pool resources and increase the efficiency of services.
4.1. There is potential for increasing science-industry linkages in Egypt
Copy link to 4.1. There is potential for increasing science-industry linkages in EgyptScientific and technological knowledge is a key enabler for innovation and competitiveness, providing firms with the necessary capabilities to assume technological leadership (OECD, 2015[1]). Scientific knowledge encompasses the results of observation, experimentation and analysis, while technological knowledge concerns the practical implementation of scientific know-how to solve specific problems and includes methods and tools.
Science-industry linkages include various forms of collaboration between firms and PRPs, that is, higher education institutions carrying out research and government research centres. The most common way firms access scientific knowledge is through human resources, which they hire either temporarily to meet a specific need (e.g. for consultancy services) or on a longer-term basis, through projects, which can take the shape of contract research, where the private actor is the client, and the PRO is the supplier of research demanded by the client. Another form of collaboration has emerged since the turn of the millennium, in which public and private actors create mixed teams and work together on shared research infrastructure – known as co-creation between industry and academia. Finally, a specific type of linkage occurs through spin-off companies, in which a researcher or a group of researchers creates a private company to commercialise the results of their research. For an overview, see (OECD, 2019[2]).
Science-industry linkages do not happen by default in any innovation system. Even if, in theory, high interest in engaging in these relationships can be assumed as benefits apply to both sides, in practice, there are multiple barriers (Perkmann et al., 2013[3]). Different organisational cultures can be a hindrance as researchers tend to prioritise knowledge creation and dissemination, while enterprises focus on profitability and appropriation. Timelines tend to differ as well: the private sector requires a fast pace to achieve a return on investment, while academics adopt a long-term view to develop deep understanding and knowledge and publish papers, regardless of market relevance. Sharing of IPRs can lead to conflicts, and in contexts with limited experience of science-industry linkages, such as Egypt, both sides can have negative perceptions of each other's capabilities and roles in relation to their own goals.
Generally, academics lack sufficient understanding of the practical problems faced by industry. This can lead to a set of project specifications that focus more on scientific aspects rather than the application side. Creating interest among firms for scientific knowledge and reaching greater certainty about the applicability of proposed solutions may require multiple trials. Industry partners may perceive this process as too slow. The lack of synchronisation and difference in priorities are typical for early-stage science-industry linkages.
One of the starting points for assessing the current state of science-industry linkages in Egypt is a 2013 study, commissioned by the British Council that highlighted success factors of extant practice, including the presence of intramural support structures, strategic funding for industry-relevant projects, involvement of industry in academic committees, efforts to align education and training with industry needs, and opportunities for university students to gain hands-on experience in industry (Maram, Soliman and Kattab, 2013[4]). Interviews conducted in 2024 during the fieldwork for this OECD review confirmed the existence of these success factors and identified several opportunities to develop a comprehensive support system for science-industry linkages in Egypt, which are discussed in this chapter.
4.1.1. Science-industry linkages are in early stages of development
Science-industry linkages in Egypt exist in a variety of formats, most of which are still in the early stages of development. During its fieldwork, the review team visited several research centres, science parks, incubators, and several other facilities that stimulate science-industry linkages. Table 4.1 provides a non-exhaustive overview of the different forms of science-industry linkages, highlighting the extent to which they currently exist in Egypt, and listing key actors. Overall, these nascent forms of science-industry linkages have promising potential to foster the country’s innovation capacity. It is important to move away from a science-push strategy towards co-creation.
Table 4.1. Different forms of science-industry linkages and their relevance for Egypt
Copy link to Table 4.1. Different forms of science-industry linkages and their relevance for Egypt|
Type of linkage |
Description |
Relevance for Egypt |
|---|---|---|
|
Collaborative research |
Jointly designed and executed research projects between universities, research centres and industry, with shared resources, IPRs, risks, and benefits. |
Supported through competitive funding calls. Pioneered under calls linked to the RDI programme and continued through Knowledge Technology Alliances. Will be amplified through the presidential “Alliance and Development” initiative. Strong potential to address national priorities if scaled. |
|
Contract research |
Industry commissions a university or research centre to deliver a research project to predefined specifications, with clear deliverables and timelines. |
Some rare examples exist without government support (e.g. Metallurgical Research Centre). Wider adoption could strengthen applied innovation. For this to occur, more awareness is needed on both sides about the potential benefits. In the case of SRTA City, supported by government funding. |
|
Spin-off enterprises |
Creation of start-ups to commercialise research outputs from PRPs. Often led by researchers or students. |
Enabled by Law 23 (2018), which allows PRPs to establish spin-offs. Nevertheless, researchers can only hold smaller stakes, not own the company outright. Still emerging, but offers high potential for job creation and technology transfer. |
|
Intellectual property (IP) transactions |
Licensing or selling of patents, designs, or other IP from PRPs to industry, enabling commercialisation. |
System needs to be further strengthened with IP legal frameworks and management systems. While the Egyptian Intellectual Property Authority is in the process of being operationalized, additional progress is needed to clarify ownership rules, reinforce IP management capacity, and consolidate legal frameworks. Technology transfer offices exist but have limited success due to insufficient industry involvement in the co-creation process. |
|
Use or joint operation of research facilities |
Industry access to PRO laboratories, testing centres, or specialised equipment, sometimes under joint ownership or fee-based arrangements. |
Increasingly encouraged; fee-based material testing is common. Could be expanded to foster deeper collaboration. |
|
Co-location in science and technology parks |
Physical proximity of PRPs and companies in dedicated innovation zones to encourage informal and formal collaboration. |
Science parks are a recent development in Egypt, with the potential to cluster talent and resources. |
|
Consultancy services |
Academics provide expert advice or problem-solving services to industry, either individually or via institutional consultancy units. |
Longstanding practice under Law No. 49 (1972). Common in engineering, agriculture, and science faculties. |
|
Inter-sectoral mobility |
Temporary or permanent movement of staff between academia and industry to transfer skills and knowledge. |
Limited to necessity-driven assignments for tenured staff. Past inter-sectoral mobility programmes have been discontinued. |
|
Training and continuing education |
Short courses, certificates, or degree programmes offered by universities/PRPs to upskill industry employees. |
Widely available; some tailored to company needs. Potential to better align with emerging industry demands. |
|
Standards setting |
PRPs contribute to the development of technical or quality standards for industry operations. |
Examples include the National Quality Institute. Could be leveraged to improve competitiveness in export markets. |
|
Conferencing and networking |
Formal and informal interactions at conferences, innovation fairs, alumni events, and other networking platforms. |
National events like Cairo ICT, Cairo Innovates, and National Science Week are well-established. |
4.1.2. Co-operation for firm-level innovation has room for improvement
Reliable data on business research and development (R&D) in Egypt and co-operation in firm-level innovation are missing. Available data show that firms in Egypt tend to underinvest in R&D (see Chapter 3). A common perception is that engaging in science-industry linkages is associated with uncertainty of relevant results and potentially high costs.
For the period 2018-2020, the share of innovation-active firms in Egypt co-operating on innovation activities was 7% for small and medium-sized enterprises (SMEs) and 3% for large firms. This is far below the average of countries surveyed (27% and 50%, respectively) (OECD, 2023[5]; Eurostat, 2020[6]).
Figure 4.1. Percentage of firms co-operating on innovation activities (including R&D) by size class: Egypt and selected economies, 2018-2020
Copy link to Figure 4.1. Percentage of firms co-operating on innovation activities (including R&D) by size class: Egypt and selected economies, 2018-2020As a percentage of innovation-active firms of each group
Note: Indicators of business innovation may not fully internationally comparable owing to methodological and other differences between countries. Data for Egypt refer to the 2017-2019 period and cover firms with more than five employees instead of ten as for most other countries. The Egyptian Science, Technology and Innovation Observatory (ESTIO) reports a high non-response rate of collaboration. Please find the coverage information in https://www.oecd.org/en/data/datasets/business-innovation-statistics-and-indicators.html.
Source: OECD calculations based on custom data provided by the Egyptian Science, Technology and Innovation Observatory (ESTIO) and on the OECD Survey of Business Innovation Statistics, https://www.oecd.org/sti/inno-stats.htm, (accessed on 25 September 2025).
4.1.3. The absorptive capacity of industry could further be improved increasing highly skilled talent
In order for firms to be able to use scientific knowledge to improve their products and processes, they need adequate human resources capable of identifying the right knowledge, acquiring the knowledge and applying it to the specific market and operational environment of the firm.
Egypt aims to increase the levels of skills in priority sectors of the economy. Egypt’s Narrative for Comprehensive Development Reforms for Growth, Jobs and Resilience clearly states this ambition of upskilling in the priority sectors of manufacturing, electronics, chemicals, renewable energy, ICT, automotive and pharmaceuticals.
According to the latest available data in 2018, only 2% of firms employed PhD holders, while the majority of researchers in the private sector have an ISCED 6 qualification, i.e. a bachelor's degree or its equivalent (ASRT, 2019[7]).
There are sector-specific initiatives to promote employment. For example, the Information Technology Industry Development Agency (ITIDA) is subsidising employment in the semiconductor industry through the Egypt Makes Electronics (EME) initiative (MCIT and ITIDA, 2024[8]). At the same time, academic consultancy services are common, and several initiatives offer vouchers, service subsidies, and matchmaking, as discussed in this chapter.
Several efforts are underway to align the development of advanced skills with industry needs. Across all fields of study, regular updates to study programmes include an industry consultation process to increase alignment between skills supply and demand. Furthermore, students are oriented in their choice of study programmes towards high-demand areas. The Academy of Scientific Research and Technology (ASRT) runs the Next Scientists Generation Scholarships (NSC) programme, which supports students pursuing master’s degrees in scientific and technological fields aligned with Egypt’s national development priorities. Scholarship holders receive a monthly financial support and additional funding to attend scientific conferences. In response to the increasing demand for technicians, Egypt introduced technological universities in 2019; several are already in operation.
Exposing students to practical problems in industry has a long tradition in technical programmes through graduate projects. Students work on a “challenge” proposed by industry or by a specific firm (Box 4.1). Small grants are available for students and industry partners. Support is also available to help students turn their graduation projects into start-up companies. Graduate projects have become an integral part of many study programmes.
Box 4.1. Graduate projects to provide innovative solutions to industry challenges in Egypt
Copy link to Box 4.1. Graduate projects to provide innovative solutions to industry challenges in EgyptGraduate projects allow students to solve specific challenges proposed by industry or by a specific firm. Participating companies are required to provide mentorship and equivalent in-kind services. They benefit from collaborating with teams of senior undergraduates who work on projects directly relevant to their business needs, with the potential to recruit these students upon graduation. The process is supervised by an academic staff member, who gains valuable insights into industrial challenges.
By increasing the proximity between industry and academia on a specific question that is treated in academia and has applied relevance, graduate projects can stimulate academic consultancy services and joint research.
The Ministry of Higher Education and Scientific Research oversees this, and the Innovators Support Fund (ISF) and the ASRT implement dedicated programmes, including small grants for students and industry partners.
Source: ISF (2024[9]), iGP Industrial Graduation Projects, https://igp.untapcompete.com/.
In Egypt, graduate projects currently focus on undergraduate students. As these projects can trigger other forms of co-operation, such as joint research projects, stronger anchoring in postgraduate education could be considered. A relevant example in this respect is the Spanish initiative to subsidise temporary employment contracts for doctoral students to participate in industrial R&D activities (Box 4.2).
Box 4.2. Spain’s subsidies for the temporary employment of doctoral students in industry
Copy link to Box 4.2. Spain’s subsidies for the temporary employment of doctoral students in industrySpain’s National Plan for Scientific, Technical and Innovation Research includes a programme to develop, attract and retain talent, through subsidised training of doctoral students in industry companies. Doctoral students are part of the company’s research personnel for the entire doctoral degree programme or for temporary assignments.
Doctoral students participate in an industrial research or experimental development project developed in the company. The project is jointly defined by all parties. The aim is to bridge gaps in scientific knowledge by involving doctoral students who conduct parts of their research in an industrial R&D setting. Industry partners gain access to scientific knowledge and insights into how academia works, and doctoral students can develop highly valued transferable skills to apply research methods to industrial settings.
Source: EC-OECD STIP Compass (2023[10]), Grants for industrial doctorates in Spain, https://stip.oecd.org/stip/interactive-dashboards/policy-initiatives/2023%2Fdata%2FpolicyInitiatives%2F16634; Government of Spain (2022[11]), Grants for contracts for the training of doctors in companies, https://www.aei.gob.es/convocatorias/buscador-convocatorias/ayudas-contratos-formacion-doctores-empresas-doctorados-22.
4.1.4. Egypt has called on PRPs to make greater efforts in the commercialisation of research results
PRPs in Egypt encourage their researchers to look for market applications for their research results and to develop market-ready products and services. To this end, PRPs have begun investing in intramural support services and dedicated infrastructure, in addition to academic consultancy services, which have a longstanding tradition.
Technology transfer services
The first efforts date back to 2010, when, with co-funding from the European Union, four universities established technology transfer offices. The ASRT has since then expanded this through a larger initiative with 56 technology innovation and commercialisation offices (TICOs) as of 2024. TICOs commonly have three sub-structures: 1) a technology transfer office (TTO), often with a special focus on local industry; 2) a technology innovation support centre, which provides assistance with IPRs; and 3) a grants and international collaboration office, which helps researchers apply for competitive funding (Housing and Building National Research Center, n.d.[12]).
TICOs have produced innovation outputs. Table 4.2 provides an overview of patents granted to PRPs during 2014-2021. In the lead was the National Research Centre (NRC), one of the largest PRPs in the country, covering many scientific disciplines. The NRC has an office that assists researchers with the patent application process, provides scientific examination of the patent and covers the cost of patent registration. The priority is now to promote commercialisation through licensing.
Some interviewees felt that the total number of 246 patents granted (4.4 per TICO) (ASRT, 2022[13]), and 128 prototypes (2.5 per office) (Government of Egypt, 2024[14]) was too low a return on public investment. While it is not easy to establish generally applicable benchmarks for technology transfer, as success depends on many factors, for example, the value/licensing potential of the technology, and the absorptive capacity of firms, greater collaboration among PRPs could be a way to achieve greater efficiency in IPR support services. However, patents neither reveal the full spectrum of science-industry linkages nor lead to commercialisation per se; yet they are an indicator which is relatively easy to monitor.
Table 4.2. Patent applications granted to PRPs, 2014-2021
Copy link to Table 4.2. Patent applications granted to PRPs, 2014-2021|
Public research performer (PRP) |
Number of patents granted |
|---|---|
|
National Research Centre (NRC) |
145 |
|
Petroleum Research Institute |
35 |
|
Alexandria University |
14 |
|
Agriculture Research Centre |
11 |
|
City of Scientific Research and Applied Technologies (CRTA City) |
5 |
|
Electronics Research Institute (ERI) |
3 |
|
Central Metallurgical Research Institute (CMRDI) |
3 |
|
Al-Azhar University |
2 |
|
Assiut University |
2 |
|
Beni Suef University |
2 |
|
Mansoura University |
2 |
|
The American University in Cairo |
2 |
|
The Egyptian Japanese University of Science and Technology (E-Just) |
2 |
Source: ASRT (2022[13]).
To support researchers in their efforts to commercialise research results, TICOs play an important role. National counterparts for this review informed that TICOs are currently undergoing restructuring to become offices of technology commercialisation (OCT). As part of this reform, it will be important that the support offered goes beyond the current focus on patents and licensing and involves relevant industry partners early in the process, starting with first brainstorming exercises, to build awareness and interest among the industrial partners and to develop an innovation with market potential.
In going forward, it will be important to further embed existing support services into a technology transfer ecosystem which systematically links the efforts of individual PRPs. Existing initiatives provide promising starting points to move beyond investment in infrastructure, which will require sustained funding, stronger connections to Egypt’s priorities and global technology trends, institutional capacity building, including the creation of support units for industry engagement and start-up support, as well as incentives to encourage academic researchers to collaborate with industry.
Academic consultancy services
Academic consultancy services have a long tradition in Egypt’s public universities. As early as the 1970s, engineering and science faculties established outward-facing service units under Law No. 49 of 1972, offering structured services such as materials testing, chemical and microbiological analysis, textile measurements, and land erosion studies, often aligned with national and international standards. Today, this model has expanded to include business schools and tourism faculties, which are increasingly linked to industry through tailored consultancy and training services.
Funding agencies subsidise academic consultancy services. For example, the ASRT's short-term grants for applied research and technology (STARS), introduced in 2023, involve researchers in technology transfer activities in emerging technologies in Egypt and abroad (European Commission and OECD, 2024[15]). For the last decade, EME has been boosting science-industry linkages in the electronics and semiconductor industry (ITIDA, n.y.[16]). There are several matchmaking efforts to link academia with industry. The "Egyptian Innovation Bank", also an ASRT initiative, is a dedicated online portal (https://eib.eg) that connects innovators with investors and funders (ASRT, 2019[17]).
In practice, consultancy work in Egypt follows three distinct models: 1) structured consulting contracts co‑ordinated through public entities like the Industrial Modernisation Center (IMC), which connects researchers to firms via formal cost-sharing arrangements; 2) matchmaking services facilitated by platforms such as the Industrial Innovation Bank and the Egyptian Innovation Bank, which help firms identify and engage with relevant academic expertise; and 3) individual consulting arrangements, often initiated through personal or professional networks between faculty and industry partners. While these channels offer flexibility and responsiveness to private-sector needs, greater co-ordination and standardisation – particularly regarding intellectual property, liability, and institutional incentives – could enhance the impact and transparency of science-industry collaboration. Additional challenges mentioned in the interviews include the fact that a contract requires the company to provide researchers with open access to its laboratories and manufacturing facilities. Managing relationships can be challenging. For example, when an academic consultant proposes a new solution, it raises questions about compensation and appropriation. These need to be addressed through a comprehensive support system for science-industry linkages, as discussed in section 4.2.
4.1.5. Emphasis on the science-push model merits reconsideration
In Egypt, there are numerous ways to raise awareness of innovation among academia, business, and the general public, for example, through annual awards, innovation competitions, and exhibitions (European Commission and OECD, 2024[15]). The largest event, hosted in 2023 for the seventh time, is the Cairo International Innovation Fair, which every year brings together inventors, technology transfer centres, universities, research centres and companies (Egypt State Information Service, 2023[18]). A well-known TV show in the Arab world is Cairo Innovates, which organises competitions for students, researchers, and entrepreneurs across Egypt. Another example is the "Ebtaker" industrial innovation award, co-organised by the Ministry of Industry, MPED and the German Development Co-operation (GIZ) to recognise innovative companies.
While there is great attention on mobilising researchers to engage in science-industry linkages, current efforts seem to largely follow a science-push model from academia to industry, based on the assumption that scientific knowledge will find its way to users. Researchers are encouraged to explore market applications and develop market-ready products and services. However, in a context where collaboration in innovation at the firm level is low, indicating insufficient absorptive capacity, i.e. the ability of a firm to recognise the value of new external information, assimilate it and apply it for commercial purposes (Cohen and Levinthal, 1990[19]), the application of a science-push model is likely to be ineffective (Attalla, 2018[20]).
Current efforts should be reconsidered and directed toward a co-creation process based on close collaboration between PRPs and industry at all stages of translating research results into commercial applications. The main pillars of co-creation are collaborative procedures, iterative development to adapt to changing requirements and new insights, and the involvement of end users in the development process (Guimón, 2019[21]).
4.2. Efforts are underway to establish a comprehensive support system for science-industry linkages
Copy link to 4.2. Efforts are underway to establish a comprehensive support system for science-industry linkagesThe 2023 National Policy for Sustainable Innovation outlined priority actions to strengthen science-industry linkages (Ministry of Higher Education and Scientific Research, 2023[22]). Table 4.3 presents an overview of the announced policy measures and key performance indicators that focus on strengthening the role of PRPs as innovation partners to achieve a geographically balanced distribution of technology start-ups. These policy measures are important pillars to strengthen science-industry linkages in Egypt.
Egypt has made tangible progress in implementing several of the recommended measures to strengthen science–industry linkages and foster a more innovation‑driven economy. Most notably, the government has operationalised the “Alliance and Development” presidential initiative, launching a competitive call in early 2025 and subsequently accrediting nine regional alliances that bring together universities, research centres, industry partners and investors to stimulate innovation in high‑growth sectors and translate research into market‑ready outputs. Complementing this effort, Egypt has also introduced large‑scale human‑capital initiatives, including the “1 Million Qualified Innovators” programme, which establishes new digital training pathways to equip youth with innovation‑relevant skills and strengthen alignment between research, technology development and labour‑market needs. Innovation‑support infrastructure has expanded significantly through the nationwide rollout of Creativa Innovation Hubs and the scaling up of ITIDA’s entrepreneurship programmes, which now provide incubation, seed funding and technical support across a widening network of governorates. These developments indicate that Egypt is beginning to implement a coordinated approach to regional innovation ecosystems, human‑capital upgrading and start‑up support in line with OECD recommendations, even though more specialised instruments—such as innovation vouchers, matching grants and comprehensive IP reforms—have yet to be introduced.
Table 4.3. Policy measures in Egypt to support science-industry linkages
Copy link to Table 4.3. Policy measures in Egypt to support science-industry linkages|
Policy measures |
Key performance indicators |
|---|---|
|
|
Source: Author’s summary based on second subsidiary policy “Enhancing the Developmental Role of Universities and Research Centres and Institutes in Egypt” in Ministry of Higher Education and Scientific Research (2023[22]).
Several of these policy measures have had a start in Egypt’s Research, Development and Innovation (RDI) programme, which ran from 2007 to 2018, and was a promising kickstart for science-industry linkages. Phase I of the RDI programme had a budget of EUR 31 million, co-funded by the European Union for 2007-2015. It aimed to foster innovation through science-industry linkages, particularly in nanotechnology, biotechnology and information technology. Several large projects were launched, with budgets ranging from USD 100 000 to USD 500 000. Phase II of the RDI programme covered 2013-2018. It focused on providing grants to PRPs for collaboration with industry and promoting an innovation culture through awards, competitions and the establishment of technology transfer offices in universities. However, the overall funding per project was much lower.
The RDI programme has successfully promoted international collaboration, particularly in the Mediterranean area. As noted in the interviews for this review, one of the main achievements was establishing national contact points for EU-Egypt co-operation. The evaluation of the RDI programme identified three key areas for further development: 1) establishment of a comprehensive innovation system with national and sub-national/regional tiers; 2) continued efforts to foster an innovation culture in science, industry, and the general public; and 3) capacity building for actors involved in innovation support (Nesta, 2019[23]). Implementation is underway. Egypt’s public funding bodies, the ASRT, the Science and Technology Development Fund (STDF), and the ISF, all carry out relevant programmes, as discussed in this chapter. Since the end of the RDI programme, the ASRT has promoted similar calls on a more modest scale. Nevertheless, the pace of public investment in promoting science-industry linkages has slowed. It will be important to step up efforts again.
There are emerging signs that private investment, particularly through corporate venture capital, could play an increasingly important role in advancing science-industry linkages. Examples such as EdVentures in education technology, supported by the ASRT, and the EVF-eV fintech accelerator, backed by Egypt Ventures, illustrate the potential in priority sectors to channel innovation towards market needs.
4.2.1. Motivated researchers are Egypt’s greatest asset for science-industry linkages
The fieldwork conducted for this review shows that academic researchers in Egypt have a generally positive disposition towards science-industry links. While necessity (low salaries) is a stimulus, the main drivers are curiosity and a commitment to serve the development of their country with scientific knowledge.
Funding agencies have included an international dimension in their capacity building for researchers. This is highly important given the low absorptive capacity in the domestic industry. An example is the Egypt-Spain Innovation Programme of STDF, which was launched in 2025 and covers a broad range of thematic areas, aiming to stimulate industry-driven and market-oriented research projects, as well as joint technological co-operation projects (STDF, 2025[24]). STDF offers similar programmes with a number of countries.
Going forward, it will be important that PRPs fully recognise academics' engagement in science-industry linkages. Interviewees mentioned that their contributions beyond publications and patents are not sufficiently reflected in their performance evaluations. This is a discussion across OECD countries were efforts are underway to promote reforms of research assessment as a critical tool for incentivising and monitoring different aspects of scientific performance in relation to socio-economic transformations; for an overview see Chapter 4 in (OECD, 2025[25]).
4.2.2. Reforms in intellectual property rights
In alignment with international standards, Egypt is reforming its intellectual property (IP) rights framework and regulations. Key milestones have been the establishment of the Egyptian Intellectual Property Agency and the new law of 2023 (see discussion in Chapter 3).
Advanced IP regimes in the wider region have been attracting inventors and entrepreneurs from abroad, including from Egypt. Saudi Arabia, for example, has introduced a unified e-portal system for streamlined application processes, recognition of international IP agreements like the Hague System, extension of design validity, and stricter trademark application requirements. These reforms aim to attract increased domestic and foreign IP filings (FICPI, 2024[26]). Similarly, Qatar has introduced patent annuity payments, simplified trademark filing procedures, and service fees (FICPI, 2024[27]).
To keep pace with regional innovation leaders, Egypt will need to significantly strengthen its intellectual property regime and support framework, and can learn from regional neighbours like Saudi Arabia and the United Arab Emirates across multiple dimensions. The current system needs strengthened administration with more aligned cooperating bodies handling patents, trademarks, and copyrights, to avoid creating procedural inconsistencies.
In contrast, both Saudi Arabia’s and the United Arab Emirates’ Ministry of Economy offer centralised, one-stop IP authorities that integrate policy, registration, and enforcement. This targeted financial and procedural support for applicants, including individuals and micro, SMEs, was found to promote registration of IP rights.
Egypt also faces long procedural delays, with patent approvals taking over 5 years and trademark approvals up to 18 months, compared to 1-3-year timelines in neighbouring countries. Enforcement needs enhancement through strengthening the inspection capacity, effectiveness of penalties, and speeding-up investigations, which are key along with the presence of specialised courts. To address these gaps, Egypt should prioritise harmonising IP governance, investing in digital infrastructure, and building judicial expertise in complex IP cases. It will also be crucial to strengthen the role of PRPs in helping researchers and SMEs navigate IP procedures, raise awareness, and develop effective commercialisation strategies (see Chapter 3).
While Law No. 23 of 2018 has been an important first step, further efforts are needed
In 2018, Egypt introduced Law 23, known as the Science, Technology and Innovation Incentives Law. This is considered a regulatory backbone for science-industry linkages, which seeks to stimulate:
the establishment of technology valleys and technological incubators by universities (Article 2)
the establishment of companies either by a PRO alone or with others (Article 4)
contracts with companies, banks, local and foreign authorities and all concerned parties to manage the necessary needs for research projects (Article 5)
exemptions from paying customs duties and taxes, including value-added tax (VAT), on tools for PRPs (Article 7)
tax exemptions for companies for investment in scientific research projects approved by the competent scientific authority (Article 8)
tax and fee exemptions of remunerations of research teams for scientific R&D projects approved by the competent scientific authority (Article 9).
The law has paved the way for PRPs to establish companies. Institutions can register a company individually or jointly, while researchers can participate as shareholders upon ministerial approval. PRPs may use revenues from commercialisation to reinvest in their activities in accordance with the law.
The law also regulates the remuneration of research teams working on projects, and tax exemptions for research practice. If the project is financed by external grants, once approved by the competent scientific authority, salaries are exempt from all taxes and fees, in accordance with existing regulations. PRPs are exempt from customs duties and taxes, including VAT, on imported tools, equipment, and relevant materials, provided they are necessary for the research activity.
Private enterprises are entitled to finance scientific research projects approved by the competent scientific authority. These contributions can be included as expenses in determining the tax base for the tax on industrial and commercial profits. In addition, individuals who finance these projects may deduct their contributions from their taxable income.
Despite these important developments, the current legal framework does not provide sufficient clarity regarding the roles and incentives of the researcher/inventor, the employing public institution, the funding agency that supported the research output/invention, and private-sector involvement. IP ownership, management and exploitation are handled differently across OECD Member countries. In some countries, university researchers own the IP arising from government-funded research, in others, ownership devolves to the institution and in still others, the government owns title to the invention. Employment laws play an important role in determining the extent to which individual researchers can or cannot own and commercialise the IP generated in the context of their employment. These aspects need to be sufficiently clear, and as review interviewees pointed out, this is where further action is needed.
The National Intellectual Property Strategy was presented in 2022 and is expected to improve IPR protection in Egypt in line with global standards (Government of Egypt, 2022[28]) (see Chapter 3). In addition, it will be important to strengthen the role of PRPs in supporting the commercialisation of research results, both through actual technology transfer and by assisting researchers with IPR frameworks and procedures. Increasing clarity around IP ownership, management, and exploitation, and support services in close proximity to researchers, including financial support for patenting costs are important next steps. As the example of the Bayh-Dole Act in the United States shows (Box 4.3), clarity on IP rights can be an important incentive for PRPs to increase the provision of practical support to researchers (see Recommendation 8).
Box 4.3. The evolving influence of the US Bayh-Dole Act
Copy link to Box 4.3. The evolving influence of the US Bayh-Dole ActThe Bayh-Dole Act of 1980 in the United States is often cited as a critical juncture in the shift of state policy to create a conducive environment for science-industry linkages. It allowed universities and research staff to jointly own discoveries supported by federal research grants.
The clarity around ownership, management and exploitation of intellectual property has led to the creation of new strategic tech-transfer offices and policies in universities and research centres, which have raised the interest of leadership and individual researchers in making a leap in commercialising research results.
Since the introduction of the Bayh-Dole Act, universities and research centres in the United States have notably increased their patenting and licensing activities, as well as the number of spin-off businesses. It has also substantially accelerated the interest of state governments and even municipalities in supporting PRPs in new ways to develop support structures and services.
Source: Douglass (2007[29]).
4.2.3. Mapping existing support mechanisms for science-industry linkages
Existing support mechanisms to promote science-industry linkages can be mapped into three functional clusters: 1) research-to-market and technology transfer; 2) focus on information and communication technology (ICT); and 3) industry modernisation and local manufacturing. These are presented briefly in the following, highlighting objectives, target audience and achievements.
Research-to-market and technology transfer initiatives
Egypt has made commendable efforts to promote entrepreneurship as a major driver of economic development and innovation (see Chapter 3). An increasing number of organisations provide support for researchers and students to turn scientific knowledge into business ideas and to start a company. Beyond academia, co-creation competitions have emerged as a promising mechanism to foster a more integrated innovation ecosystem in Egypt. Social entrepreneurship is growing in Egypt. Youth-focused initiatives like the Meshwary Innovation Labs (by UNICEF and the Ministry of Youth and Sports) and the Game Changer Fellowship (by UNDP and Emerson College) promote social entrepreneurship and digital empowerment. In urban areas, community-led projects such as Al Athar Lina and Mozza Street Art apply participatory design to improve informal settlements. The Haya Karima Foundation, launched in 2019, is a flagship government programme improving living conditions in over 4 500 rural villages through infrastructure, education, and job creation (Haya Karima Foundation, n.d.[30]). Several universities participate in these initiatives.
Table 4.4. Research-to-market and technology transfer initiatives
Copy link to Table 4.4. Research-to-market and technology transfer initiatives|
Initiative |
Objectives |
Target audience |
Responsible agency/ministry |
Key achievements |
|---|---|---|---|---|
|
INTILAC |
Seed and incubate green and deep-tech lab ideas |
University researchers |
Academy of Scientific Research and Technology (ASRT) |
• Supported 28 incubators with ~EGP 70 million; over 182 tech ventures launched |
|
EEIC (Egypt Innovation and Entrepreneurship Center) |
Provide training, policy advice, and investor matching |
Cross-sector entrepreneurs |
Ministry of Planning and Economic Development |
• Accredited e-learning courses • Sectoral pre-incubators graduated ~60 ventures |
|
NilePreneurs |
Accelerate SMEs via R&D services and business development |
Manufacturing and agri-tech SMEs |
Central Bank of Egypt (CBE) / Nile University |
• Programme expanded to five universities • “Efham Business” platform launched |
|
TTPD/DLM (Technology Transfer, Product Development and Deepening of Local Manufacturing) |
Transfer foreign technology; develop local products; deepen industrial capacity |
Universities, R&D units, national industries |
Ministry of Industry |
• Call launched for eV battery/chassis tech transfer • Grant covers mould designs and tech fees |
|
MTI TICO and Network |
Provide IP management and tech-transfer support services |
University TTOs, researchers |
Ministry of Industry / Industrial technology centres (ITCs) |
• TTOs/TICOs established at 10+ campuses • WIPO-validated IPR policy adopted in 2022 |
|
ASRT-STARS |
Fellowships for international exposure and technology absorption |
Early-career researchers |
Academy of Scientific Research and Technology (ASRT) |
• Fellowships to global labs launched in 2023 • Inbound knowledge-transfer projects initiated |
Source: Information provided to the OECD by Egyptian counterparts.
Programmes such as ISF’s MOSAIC competition and the eGP-Enactus Programme exemplify how institutional collaboration and student engagement can be embedded in structured co-creation pipelines that span ideation, mentorship, and funding, with initial steps in market validation. These initiatives are reinforced by wider efforts such as INTILAC, which has scaled to over 43 university-based incubators offering seed funding and mentorship, and the Technology Transfer, Product Development and Deepening of Local Manufacturing (TTPD/LM) programme, which targets strategic sectors by requiring consortia of universities and industrial partners to jointly develop locally manufactured technologies. Similarly, the Egypt Innovation and Entrepreneurship Centre (EEIC) offer a range of training programmes while TIEC and NilePreneurs provide targeted support for start-ups. Table 4.4 provides an overview of key initiatives, their target audience, the overseeing agency and stylised key achievements. Several of these initiatives are described in Box 4.4.
Box 4.4. Support for research-to-market and technology transfer initiatives
Copy link to Box 4.4. Support for research-to-market and technology transfer initiativesINTILAC, the national programme for technological incubators
The INTILAC programme (Incubation of Technological and Innovative Ideas through leveraging Local Resources and Acceleration), run by the ASRT, supports Egypt’s national innovation ecosystem through funding and developing university and research institute incubators. Since its launch, INTILAC has been supporting approximately 28 incubators and entrepreneurship centres in Egypt (Ayman, 2022[31]). The programme has invested around EGP 70 million (Egyptian pounds) (~USD 1.4 million) into these incubators, providing seed funding of approximately EGP 200 000 per project (~USD 4 000) and directly funding over 182 start-up companies. Now it supports at least 43 technological incubators nationally with active collaboration from universities, research institutes and development agencies (Mohamed et al., 2024[32]).
Building on its early success, INTILAC’s reach has now expanded to 43 technological incubators across Egypt, growing through collaborations with universities, Research Centres, and development partners. Notable participants include the Dragon Incubator at E‑JUST, which offers up to EGP 200 000 (USD 4 040) in seed funding, alongside co-working space, mentoring, administrative support, and training to help researchers and students transform prototypes into market-ready offerings. The programme has even extended into specialised domains. For example, the Egyptian Space Agency’s Space Startup Hub launched its second cycle under INTILAC.
The TTPD/LM programme
The TTPD/DLM programme was launched by the ASRT in 2023 as a national initiative to support the localisation and industrialisation of high-priority technologies in Egypt. The programme targets sectors such as electric vehicles (eVs), agri-machinery, renewable energy, water desalination and biotechnology. It is open to consortia composed of universities, research institutes and industrial entities, provided that each proposal includes a committed industrial partner. The programme provides funding across all stages of product development, such as prototyping, certification, licensing, and approval processes, to help bridge the gap between applied research and commercialisation.
Recent calls for proposals have been focused on eV battery and chassis technology, aligning with Egypt’s national STI Strategy 2030 by aiming to reduce import dependency, enhance domestic manufacturing capabilities and promote technology transfer. Proposals are evaluated for their technical merit, implementation potential and ability of industrial partners to absorb and scale the transferred technology.
EEIC
The EEIC was launched in June 2023 by the National Institute for Governance and Sustainable Development, an affiliated body of the Ministry of Planning and Economic Development. With an initial allocation of EGP 60 million (~USD 1.22 million), the EEIC was established to act as Egypt’s central hub for fostering inclusive, innovation-driven entrepreneurship. Its services span pre-incubation programmes, e-learning and certification courses, policy advice, investor matchmaking, and institutional capacity building. One of its flagship outreach efforts, “EEIC on Wheels,” has delivered mobile ideation bootcamps to at least seven university campuses, including Suez Canal and Alexandria Universities, engaging more than 350 students in 2024. Moreover, it has certified over 85 incubation managers through its “Certified Incubation Management” programme and delivered 72 accredited training courses in entrepreneurship and digital transformation (National Institute for Governance and Sustainable Development, 2024[33]).
Technology innovation and entrepreneurship centres (TIEC)
TIEC are the technology innovation and entrepreneurship centres funded by ITIDA, of the Ministry of Communications and Information Technology, which support start-ups in fields such as healthcare, education, e-commerce and clean technology, for one year. Projects must be ICT-based, innovative, have a prototype, be entrepreneur-led, address a real problem, and be commercially viable and scalable (ITIDA and TIEC, 2019[34]).
NilePreneurs
NilePreneurs was founded in 2019 with funding from the Central Bank of Egypt as a university-based service to support start-ups through advisory services, capacity building and incubation. Initiated by Nile University, it maintains partnerships with several universities in Cairo, including Ain Shams University, the Arab Academy for Science, Technology and Maritime Transport, Cairo University, and Al-Azhar University. On the board of trustees of NilePreneurs are representatives from the Ministry of Planning, the Ministry of Higher Education and Scientific Research, and the Micro, Small and Medium Enterprises Development Agency.
The incubation support from NilePreneurs is organised in partnership with several domestic private banks. The accelerator programme is implemented in partnership with HSBC Bank Egypt. A complete set of support services is offered for female entrepreneurs. The development of entrepreneurial skills is supported through a comprehensive training programme for start-ups and managers of existing firms. NilePreneurs also offers export consultation for late-stage start-up firms and existing SMEs in manufacturing, agriculture, and digital transformation, and its services also include a specialised value chain development centre (Nile University, 2024[35]).
MTI TICO
As part of Egypt’s broader TICO network, MTI TICO (Technology Innovation and Commercialisation Office at the Ministry of Trade and Industry) serves as a strategic platform to bridge the gap between scientific research and industrial application in Egypt. Hosted within the Ministry’s ecosystem, MTI TICO plays a central role in identifying promising research outputs from universities, research centres, and industrial entities, and guiding them toward commercialisation.
The office supports technology transfer, patent filing, prototype development, and market linkage, with a strong focus on aligning innovation with Egypt’s national industrial priorities, including textiles, chemicals, electronics and sustainable manufacturing. MTI TICO is uniquely positioned to facilitate public-private collaboration by connecting innovators with industrial partners, investors, and regulatory bodies. It acts as a convener of multidisciplinary actors, offering policy support, mentorship, and funding navigation to accelerate the journey from lab to market.
TICO network
The TICO network is a national initiative led by Egypt’s ASRT to strengthen the country’s innovation ecosystem by bridging the gap between research, industry, and the market. Established within universities, research institutes, and key ministries, TICOs serve as innovation hubs that support researchers, entrepreneurs, and technology developers in transforming scientific outputs into commercially viable products and services. Their core functions include intellectual property management, technology transfer, start-up incubation, and industry engagement – ensuring that R&D is aligned with societal and economic needs. With over 50 TICOs distributed across Egypt, the network operates as a decentralised but co-ordinated system to facilitate public-private partnerships, foster applied research, and promote a culture of entrepreneurship and innovation.
ISF activities
Established in 2019, the ISF plays a key role in promoting entrepreneurship and applied research across Egypt’s scientific community. Through a range of programmes – including the Accelerating Performance Programme, Virtual Incubator, and national competitions like the Olympiad of Innovation – ISF supports innovators from early-stage ideation through to market readiness, offering both financial and in-kind assistance. The Fund also works directly with universities by appointing local co-ordinators to strengthen institutional engagement. Notably, initiatives such as MOSAIC and eGP-Enactus aim to embed co-creation practices within PRPs, fostering collaboration between students, researchers, and industry partners. These efforts collectively contribute to building a more integrated innovation ecosystem that links academic research with real-world industrial challenges.
MOSAIC competition
The Monitoring of Scientific Academia-Industry Cooperation (MOSAIC) competition invites public and private universities and research centres to submit collaborative innovation projects that address industry needs. The initiative incentivises institutional engagement by rewarding not just individual innovators, but also the systems and structures that support collaborative R&D.
eGP-Enactus programme
The eGP-Enactus programme targets final-year university students, offering both funding and structured mentorship to help them transform their graduation projects into viable start-ups with support of up to EGP 120 000 (~USD 2 424) and in-kind services, The programme promotes co-creation by bringing together students, business mentors, and innovation ecosystem actors such as university entrepreneurship centres and local incubators to jointly develop solutions with commercial or social impact. Beyond supporting individual student ventures, the programme fosters the creation of support structures within universities that link academic research to entrepreneurial pathways, contributing to a more innovation-oriented institutional culture.
Source: Information provided to the OECD by Egyptian counterparts.
Support for science-industry linkages in ICT
For Egypt’s economy, ICT is a key priority sector, and several dedicated mechanisms have been established to stimulate science-industry collaboration in this domain. The IT Academia Collaboration (ITAC) programme, launched by ITIDA under the Ministry of Communications and Information Technology, plays a central role by funding collaborative R&D projects between Egyptian universities and ICT firms. ITAC targets both strategic national challenges and emerging global technology trends – such as artificial intelligence (AI), cybersecurity, embedded systems, and quantum computing – helping bridge the gap between academic research and commercial application.
Complementing this, the TIEC supports over 70 ICT-based start-ups annually, providing incubation services, mentoring, and investor matchmaking. Meanwhile, Creativa Innovation Hubs, established in 19 governorates, act as decentralised innovation spaces that offer co-working environments, prototyping labs, and digital skills training. These hubs also host the InnovEgypt programme, which has trained over 20 000 university students and recent graduates in innovation and entrepreneurship since 2013. Together, these initiatives form a co-ordinated ecosystem that fosters digital entrepreneurship and strengthens Egypt’s capacity to generate and scale ICT innovations.
Table 4.5. Support for science-industry linkages in ICT
Copy link to Table 4.5. Support for science-industry linkages in ICT|
Initiative |
Objectives |
Target audience |
Responsible agency/ministry |
Key achievements |
|---|---|---|---|---|
|
TIEC |
Build end-to-end ICT pipeline from ideation to investment |
ICT start-ups and entrepreneurs |
MCIT / Technology innovation and entrepreneurship centre (TIEC) |
• 70+ start-ups supported annually • “Entlaq” investor reports published semi-annually |
|
CREATIVA |
Host innovation hubs, design sprints, and digital labs |
Students, freelance developers |
MCIT / ITIDA |
• Eighteen hubs in 6 governorates |
|
ITAC |
Fund collaborative R&D from proof-of-concept to prototype |
ICT firms and academic teams |
Ministry of Communications and Information Technology (MCIT) / ITIDA |
• Supports PRP/PDP projects (proof-of-concept to product) |
Source: Information provided to the OECD by Egyptian counterparts.
Beyond ICT, Egypt’s broader industrial innovation system is supported by the Technology and Innovation Industrial Council (TIIC), which focuses on aligning applied research with national manufacturing priorities and enabling technology transfer in sectors such as textiles, chemicals, and electronics. Table 4.5 provides an overview of key initiatives, their target audience, the overseeing agency, and stylised key achievements. Several of these initiatives are described in Box 4.5.
Box 4.5. Support for science-industry linkages in ICT
Copy link to Box 4.5. Support for science-industry linkages in ICTTIEC
TIEC are funded by ITIDA, of the Ministry of Communications and Information Technology (MCIT), which supports start-ups in fields such as healthcare, education, e-commerce and clean technology, for one year. Projects must be ICT-based, innovative, have a prototype, be entrepreneur-led, address a real problem, and be commercially viable and scalable.
Creativa Hubs
The MCIT and the ITIDA have established 23 Creativa Hubs in 19 governorates by 2025 to foster science-industry linkages and promote technology innovation and entrepreneurship. Several universities host a Creativa Hub, including Cairo University, Aswan University and Mansoura University.
The Creativa Hubs provide co-working spaces and locations for networking events and workshops, offer mentorship, and provide resources for product testing and validation, prototyping, and digital fabrication facilities. The hubs also host the InnovEgypt programme, an initiative of TIEC, which started in 2013, and has had more than 20 000 graduates, with a focus on university students and recent graduates in the field of ICT.
ITAC
ITAC is part of ITIDA. As such, it has been operating since 2006 as a public-private partnership between the MCIT and the private sector. Proposals can be submitted in a range of areas, which are regularly updated based on global developments and national needs, such as:
Strategic areas: Wireless and cyber security; electronics and embedded systems for ICT applications; ICT for homeland security; ICT for transportation; ICT for health; ICT for agriculture; ICT for people with disabilities; ICT for education; ICT for energy, Industry 4.0; and digital transformation.
Technology-trend areas: Mobile applications and computing; cloud computing; data analytics and big data; Internet of Things; gamification; cognitive computing; smart machines; blockchain; virtual and augmented reality; AI and machine learning; hyper automation and robotics; and quantum computing.
Project funding can be used to pay salaries for academic staff and industry employees according to set ceilings. Principal investigators must have a doctoral degree and a publication or patent in the proposal topic. All academics on the research team must be employed at an Egyptian university or a public research centre. Eligible industrial partners are companies active in ICT, registered in Egypt and listed in the ITIDA database. For product development projects that target electronics designed for mass production, enterprises can apply without academic partners.
Source: Information provided to the OECD by Egyptian counterparts.
Industry clusters and science parks
A third group of initiatives has evolved around sector-based platforms seeking to involve mature industries in supporting science-industry linkages. This also includes industrial clusters with research centres, geographic and sectoral concentrations in various fields, such as textiles and ready-made garments, food processing, and creative industries. Examples include:
Furniture cluster in Damietta, where firms have developed shared services in design, quality certification, and market access.
Engineering industries cluster in Borg El Arab, with concentrations of firms in machinery, equipment, and metal products, situated near key science and technology institutions.
Textile and ready-made garments cluster in 10th of Ramadan City, supported by specialised training centres and export promotion programmes.
These clusters represent a promising platform for labs, prototyping facilities, and infrastructure to support industry-driven R&D, technology validation, and high-tech incubation. In going forward, it will be important to strengthen synergies and widen the use by industry (Berytech, 2025[36]).
Egypt has focused on creating co-location spaces, which, on the one hand, serve as incubation spaces for new firms and seek to increase proximity between science and industry. To this end, investment in science parks has gained renewed attention, with the aim of strengthening science-industry linkages.
The first effort in this direction was the creation of the City of Scientific Research and Technological Applications (SRTA City) by Presidential Decree in 1993, inaugurated in 2000 (Sheta, 2013[37]). It was Egypt’s first science and technology park and research and technology organisation (RTO), positioned to serve as a direct link between applied research and industry. SRTA City was tasked with supporting industrial development through technology transfer, innovation services, incubating technology-based enterprises, and addressing the R&D challenges of Egyptian industry. SRTA City was designed as a multidisciplinary hub combining research institutes in advanced materials, biotechnology, arid land agriculture, ICT, environmental sciences, and other applied fields. It was expected to serve as a demand-driven RTO where companies could access technical expertise, advanced laboratories, and tailored R&D services on a commercial basis. The model aimed to encourage private-sector investment in R&D through direct partnerships and commissioned projects. However, it has not evolved into the demand-driven RTO originally envisioned. Its research and innovation activities are predominantly funded through government programmes or international grants. Links with industry remain limited to participation in publicly funded projects, with little evidence that demand for R&D services on a fee basis remains low.
More recently, the ERI Science Park by Egypt’s Electronics Research Institute (ERI) seeks to become a national hub for science-industry linkages related to electronics, embedded systems, and emerging digital technologies. Investments are underway in a large-scale infrastructure that will host specialised labs and provide incubation services to support start-ups in high-value sectors. Also, smaller-scale facilities such as Fab Labs and Maker Spaces have emerged to foster closer ties among academia, start-ups and technical communities. ERI is a research centre affiliated with the Ministry of Higher Education and Scientific Research.
Table 4.6. Industry clusters and science parks
Copy link to Table 4.6. Industry clusters and science parks|
Initiative |
Objectives |
Target audience |
Responsible agency/ministry |
Key achievements |
|---|---|---|---|---|
|
Industrial Modernisation Center (IMC) and Technology and Innovation Industrial Council (TIIC) |
Support SME upgrading through advisory and cost-sharing |
Small and medium industrial firms |
Ministry of Industry |
|
|
CIT Digitising 1000 Factories |
Promote Industry 4.0 among manufacturing SMEs |
Factory owners and managers |
Chamber of Information Technology and Telecommunications (CIT) / MCIT |
|
|
SRTA City |
Link applied research to industrial innovation |
Industry partners and researchers |
Ministry of Higher Education and Scientific Research |
|
|
ERI Science Park (STPERI) |
Provide electronics prototyping, incubation, and training |
Electronics firms and start-ups |
Ministry of Military Production / ERI |
|
Source: Information provided to the OECD by Egyptian counterparts.
These initiatives provide a foundation for a more demand-driven, collaborative innovation ecosystem, though realising their potential requires stronger links to universities and R&D institutes, dedicated funding, and mechanisms to ensure applied research addresses industrial challenges. Table 4.6 provides an overview of key initiatives, their target audience, the overseeing agency, and stylised key achievements. Several of these initiatives are described in Box 4.6.
Box 4.6. Industry clusters as platforms for science-industry collaboration
Copy link to Box 4.6. Industry clusters as platforms for science-industry collaborationIndustrial technology centres supporting SME innovation
Egypt’s industrial technology centres (ITCs), under the Ministry of Trade and Industry, form a national network of sector-focused institutions that provide technical services to support industrial upgrading and SME competitiveness. The ITCs offer testing, certification, prototyping, consultancy and training services across a range of sectors, including food processing, engineering industries, textiles, furniture and building materials. The ITCs represent an important mechanism to bridge the gap between industry needs and technology solutions, particularly for SMEs that lack in-house R&D capacities.
Food Technology Centre: Provides services related to quality assurance, food safety, and product development.
Engineering Industries Development Centre: Offers SMEs access to prototyping facilities, reverse engineering, and technical problem-solving support.
Furniture Technology Centre: Supports firms in design, testing, and compliance with export standards.
Egypt’s IMC facilitates science-industry linkages
Since 2002, the IMC has operated under the Ministry of Industry. It provides business development services in a wide range of sectors, from construction to food processing, primarily using the intellectual services of academics.
Companies in construction, metallurgy, textiles and ready-made garments, agribusiness and food processing, and other sectors use IMC's services, which include access to finance, productivity improvement, international trade and greening business operations. IMC also certifies, on behalf of the International Organisation for Standardisation, four general standards – customer satisfaction (ISO 9001), environmental sustainability (ISO 14001), workplace safety (ISO 45001) and energy efficiency (ISO 50001) – as well as various standard specifications for specific sectors such as packaging materials, food and medical devices.
IMC's services are delivered through 15 branches across Egypt, which serve approximately 400 companies annually and provide approximately 800 services. When a company requests consultancy services, IMC conducts a maturity assessment, prepares a business plan and selects a consultant to work with the company.
The IMC currently has about 300 employees, including engineers, business experts, and trainers, and about 200 external consultants, of whom about 80% are employees of Egypt's PRPs. To improve the matchmaking process, the IMC established a special unit in 2018 to integrate scientific research findings into business development services. The Tawasol programme with ASRT seeks to promote applied research in collaboration with industry. Furthermore, IMC collaborates with international development agencies to further develop science-industry links in Egypt.
TIIC
The TIIC is Egypt’s national body responsible for co-ordinating industrial technology and innovation policy. TIIC was formerly operating under the Ministry of Trade and Industry (MTI) and now functions under the Ministry of Industry following recent institutional restructuring.
TIIC brings together representatives from industry associations, government agencies, research centres, universities, and ITCs, fostering dialogue and collaboration across the innovation ecosystem. The council and its centres provide a range of services to support industrial upgrading and innovation, including:
technical assistance, incubation, and mentoring services for SMEs and start-ups
facilities for product development, prototyping and validation
linkages to funding sources and financial instruments to support technology adoption and industrial modernisation.
TIIC plays a critical role in aligning industrial technology initiatives with Egypt’s national development objectives. It serves as a bridge between industry and science by linking firms with universities and Research Centres, and by co-ordinating donor and government programmes aimed at promoting industrial innovation.
CIT Digitising 1000 Factories
The CIT Digitising 1000 Factories initiative is a national flagship programme launched by the Centre for Innovation and Technology (CIT) to accelerate the digital transformation of Egypt’s manufacturing sector. The programme aims to modernise 1 000 industrial factories, particularly SMEs, by equipping them with digital technologies, smart production systems, and data-driven capabilities. By targeting operational efficiency, quality control, and supply chain integration, the initiative helps factories adopt Industry 4.0 standards. It also aligns with Egypt’s broader goals of boosting industrial competitiveness, creating high-skilled jobs, and increasing exports.
Through collaboration with tech providers, universities, policy bodies, and international development partners, CIT ensures that factories receive tailored support ranging from digital diagnostics to workforce upskilling. The programme creates opportunities for local start-ups and solution providers to co-develop applications for real industry problems, fostering a homegrown innovation ecosystem. Ultimately, "Digitising 1000 Factories" is a critical step toward a smarter, more resilient Egyptian industrial base.
Source: Information provided to the OECD by Egyptian counterparts.
There are examples of university-linked research centres that demonstrate how targeted institutional design, private and philanthropic funding, and international partnerships can foster high-potential innovation platforms. Two notable examples include Nile University, a private non-profit university with applied research centres in nanotechnology and electronics, and the Egypt-IBM Nanotechnology Research Centre, a joint venture between academia and global industry focused on advanced materials and nanoelectronics (Box 4.7).
Box 4.7. Science parks and university-based innovation hubs: Linking research with industry needs
Copy link to Box 4.7. Science parks and university-based innovation hubs: Linking research with industry needsEgypt is home to emerging examples of university-linked science parks and research centres that illustrate how co-located infrastructure and strong institutional missions can enhance collaboration between academia and industry.
Two illustrative cases are Nile University and the Egypt-IBM Nanotechnology Research Center (EGNC).
Nile University, established in 2006 by the Egyptian Foundation for Technological Education Development, operates as a private non-profit university with a distinctive focus on applied research. It hosts two flagship centres, the Center for Nanotechnology and the Nanoelectronics Integrated Systems Center, that engage in demand-driven R&D, including microelectronics and smart systems, in collaboration with industrial partners. Nile University also spearheads the NilePreneurs initiative, which supports university entrepreneurship centres and start-up incubation across Egypt. As such, it demonstrates how academic institutions can act as innovation anchors within regional clusters by offering shared infrastructure, talent, and pathways for commercialisation.
The EGNC, launched in 2008 within Cairo’s Smart Village, is another prominent example of an innovation facility designed to connect global expertise with local R&D needs. Jointly developed by the Ministry of Communications and Information Technology (MCIT) and IBM Research, EGNC was envisioned as a science park offering access to cleanrooms, simulation tools, and advanced laboratories to support nanotechnology applications in electronics, energy, and materials. While industrial uptake has been limited, the centre remains a critical model of multinational partnership and high-end R&D capability.
Source: Alfeeli et al. (2013[38]).
4.3. Opportunities for boosting science-industry linkages
Copy link to 4.3. Opportunities for boosting science-industry linkagesThe current policy approach to promoting science-industry linkages in Egypt often relies on researcher-led engagement. The National Policy for Sustainable Innovation (2023) recognises this gap and calls for more structured institutional engagement by PRPs, supported by long-term planning, performance metrics, and cross-sector co-ordination. Moving forward, greater emphasis should be placed on developing a unified strategy with clear KPIs to align fragmented initiatives, leverage institutional capabilities, and maximise the systemic impact of science-industry collaboration (Ministry of Higher Education and Scientific Research, 2023[22]).
Co-creation, also termed as open innovation, requires a long-term commitment of resources and a robust system for integrating market intelligence into innovation processes. PRPs will need to invest in professionalising their intramural support services. Scaling up these services could also be achieved through greater collaboration among PRPs. There are promising starting points for this in Egypt, as discussed in the previous section. These initiatives can be scaled up through interventions at two levels.
At the institutional level, better co-ordination of existing policies and practices is necessary to foster synergies. This also requires the establishment of robust monitoring and evaluation mechanisms to identify areas for policy intervention, prioritise resource allocation, expand successful practices, and refine or discontinue interventions as needed. Such monitoring and evaluation mechanisms help identify areas for improvement and capacity-building needs (e.g. training for technology transfer employees). They also shed light on existing examples of good practice that other key stakeholders in the innovation system can learn from. See also the discussion in Chapter 7.
At the research system level, additional efforts are required to enhance the understanding of academics of industry's challenges and needs, including tailor-made support for researchers who want to become entrepreneurs. To this end, strengthening technology transfer services in PRPs will be essential, recognising that greater collaboration among PRPs could help pool resources and increase the efficiency of support services for science-industry linkages.
These two aspects are discussed below by analysing examples of promising practice in Egypt and selected examples of how OECD Member countries have combined system-level interventions with the development of practices in PRPs. The examples highlight the importance of: 1) a policy mix; 2) long-term programmes and participatory governance structures to secure the commitment of industry partners; 3) strengthening regional science-industry linkages; and 4) supporting academic entrepreneurs. Egypt has taken promising first steps in all these areas, and the examples from OECD Member countries offer insights into how these can be taken to the next level.
These two aspects are discussed below by analysing examples of promising practice in Egypt and selected examples of how OECD Member countries have combined system-level interventions with the development of practices in PRPs. The examples highlight the importance of: 1) a policy mix; 2) long-term programmes and participatory governance structures to secure the commitment of industry partners; 3) strengthening regional science-industry linkages; and 4) supporting academic entrepreneurs. Egypt has taken promising first steps in all these areas, and the examples from OECD Member countries offer insights into how these can be taken to the next level.
4.3.1. Policy mix to stimulate science-industry linkages
Effective innovation ecosystems rely on a policy mix to bridge the gap between researchers, inventors, and businesses, increase accessibility for firms to scientific knowledge and technologies, assist with IPR and compliance with regulations, facilitate funding and investment, and support co-creation processes more widely. Austria offers an example of how intermediary structures operate in an innovation ecosystem (Box 4.9). Particularly relevant for Egypt is Austria’s achievement of notably increasing the proportion of innovation-active firms participating in science-industry linkages within a decade. This was aided by a policy mix that combined long-term programmes and skill development with intermediary structures and incentives for firms.
The example also shows the importance of intermediary structures which have management and oversight functions, and act as brokers, boundary spanners and conveners. They can be either an integral part of a single PRO or offered jointly by multiple organisations. Since intermediary structures are part of a wider innovation support ecosystem, co-ordination is essential. Intermediary structures can increase proximity between academia and industry. This is particularly relevant for Egypt where businesses tend to perceive collaboration with universities as slowing down the process. Intermediary structures that span across different PRPs could help to increase efficiency of support services by pooling scientific knowledge and industry needs. This could be a way to further develop current approaches that rely largely on intramural positions overseeing community services or intramural innovation centres.
Box 4.8. Austria’s policy mix to stimulate science-industry linkages
Copy link to Box 4.8. Austria’s policy mix to stimulate science-industry linkagesAustria significantly increased its share of innovation-active firms involved in science-industry linkages from over the past 2 decades. While only 10.4% of large firms and 5.4% in SMEs engaged in such co-operation in 2002, in 2020 it was 58% of large firms and co-operating with universities and other higher education institutions. A key stimulus was a balanced policy mix that favoured science-industry linkages in a context that combines a highly diversified research landscape with a strong industry focus on manufacturing. Austria’s policy mix to promote science-industry linkages with four main pillars: intermediary structures, long-term programmes, skill development and incentives for firms.
Intermediary structures include clusters and looser forms of networks (BRIDGE, COIN and Research Studios Austria), initiatives such as AplusB and Knowledge Transfer Centres that promote academic entrepreneurship, as well as co-operative research centres for interdisciplinary and transdisciplinary research, such as the Laura Bassi Centres of Expertise, under the leadership of highly qualified female scientists. A dedicated task force was established at the national level to enhance co-ordination among these entities to build synergies and sustain a concerted and comprehensive system.
Large and long-term programmes were particularly important, such as Competence Centres for Excellent Technologies, which aims to develop long-term research co-operation, and the Christian Doppler Research Association (CDG), which integrated industry in research infrastructure at both research universities and universities of applied sciences (also see Box 4.11).
Industry played an important role in the regular updating of study programmes, including upskilling and reskilling of incumbent employees. This allowed companies to address their skill gaps that were due their increased activity in specific technology niches and aspiration to global market leadership.
Incentives targeted at firms were a key success factor. A research premium in Austria is available to all companies that conduct R&D activities, regardless of size and sector, including both in-house R&D and contract research. The premium incentivises business investment in R&D through a tax credit. The research premium has significantly increased from 3% in 2002 to 14% by 2018 and has remained at that level until the time of writing in 2025.
Source: Ecker, B., C. Reinder and G. Gogola (2019[39]). OECD, based on the 2023 OECD survey of Business Innovation Statistics and the Eurostat’s Community Innovation Survey (CIS-2020), https://www.oecd.org/sti/inno-stats.htm, accessed on 27 March 2026.
A second relevant aspect of Austria’s example is skills development. Egypt has been very active in promoting higher levels of vocational education and training as an alternative to university education in fields with high industry demand for a technical workforce (OECD, forthcoming[40]). Efforts focused on modernising curricula to meet industry needs, particularly in terms of the development of advanced digital skills, and exploring dual-education models, where students gain both academic knowledge and hands-on industry experience. Technological universities offer degrees and certifications in collaboration with industry leaders, increasing the employability of graduates in priority fields such as manufacturing, renewable energy, construction, and ICT.
Egypt has undertaken several steps to improve healthcare through innovation. These are promising and hold potential, for example, telemedicine to reduce costs and increase access to services, particularly in underserved areas, preventive measures (e.g. vaccination, healthy lifestyles), and early-intervention programmes. To offer affordable services on a large scale and in remote areas, university hospitals and research centres provide community services. Egypt also aims to increase high-value medical services for patients from abroad. This has become a priority for several countries in the wider region. The United Arab Emirates (UAE Ministry of Economy, 2022[41]), Saudi Arabia (Government of Saudi Arabia, 2024[42]), and Qatar (AlBaz, 2024[43]) have dedicated government strategies for developing medical tourism, prioritising healthcare infrastructure, medical innovation and international partnerships to develop specialised services for international patients.
Building on significant progress in scientific research and publications in medical sciences, the Egyptian Drug Authority has facilitated R&D partnerships with private companies to bring scientific discoveries to market. Collaboration was particularly important during the COVID-19 pandemic, funded through STDF, which increased the domestic production of ventilators and other technical equipment. Technology incubators support start-ups, helping transform research findings into commercial healthcare solutions. Another relevant example of a policy mix approach to boost science-industry linkages is the Pôles de compétitivité, launched in France in 2004 (Box 4.9). A key success factor is the strategic collaboration among PRPs. Science-industry linkages are essential for the pôles to remain competitive and to avoid becoming locked into outdated technologies.
Box 4.9. France’s Pôles de compétitivité policy
Copy link to Box 4.9. France’s <em>Pôles de compétitivité</em> policyThe Pôles de compétitivité policy was launched in 2004 to enhance competitiveness through innovation and drive growth and employment in key industries. These clusters unite businesses of all sizes, research laboratories, and educational institutions within specific regions and sectors. It was initiated by a call for proposals inviting regions and sectors to submit plans to create competitiveness clusters. 67 projects were selected, based on their potential to drive innovation, economic development, and job creation. This eventually led to the establishment of 55 clusters, which then received financial support for collaborative R&D projects. Implementation proceeded in phases, and each phase was evaluated, and adequately steered to adapt to changing competitive conditions. The budget was EUR 1.5 billion (USD 1.88 billion) for the initial launch period from 2006-2008.
The core function of the pôles is to support collaborative R&D projects and bring innovative products, services, or processes to market. Key drivers for industry participation are expert-backed certification for projects, use of research infrastructure, and facilitated access to public funding and subsidies. Services include intellectual property advisory, business support, HR and skills, internationalisation, and industrial modernization.
In the fifth phase of the Poles de Compétitivtié (2023-2026) there are fifty-five poles with a network of 18500 innovative enterprises, a membership growing essentially in less-developed regions (Grand Est, Hauts de France, Pays de Loire and Nouvelle Aquitaine).
A 2023 evaluation by the Directorate-General for Enterprises showed that SMEs within the programme have increased their R&D spending by three times more than the subsidies received. Employment in such enterprises has increased by 24% and the sales figures by 36%, an effect superior to that of other innovation policy instruments in France. Overall satisfaction of enterprises is high, with 85% joining for reasons of networking, 74% to access public funding, 69% to get support for collaborative R&D projects.
Source: MINEFI (2024[44]) and (Biotech, 2018[45]).https://biotechinfo.fr/article/les-sept-poles-de-competitivite-en-sante-francais-se-constituent-en-reseau/
4.3.2. Industry involvement in research infrastructure
In 2019, the ASRT launched the first call for KTAs in priority areas of Egypt’s economy. Fifteen alliances were established, among others, the National Desalination Alliance, the National Alliance for Renewable Energy, the Petrochemicals and Pharmaceutical Industry Alliance, and the Textile Industry and Space Science Applications Alliance. These alliances involved 135 companies, 55 universities and research centres, 18 ministries and government agencies, and 20 civil society organisations.
A second call for KTAs was launched in 2023. The expectation is that consortia will “address national challenges in research, innovation and technical education” (ASRT, 2023[46]), and have at least one partner from industry. The focus is on stimulating local manufacturing and introducing new technologies, such as improved non-traditional oil recovery methods in industry. KTAs hold great promise in boosting collaboration between academia and industry (see Box 4.10).
Box 4.10. The ASRT’s KTAs
Copy link to Box 4.10. The ASRT’s KTAsThe KTAs, launched by the ASRT, are competitive funding cycles designed to accelerate university-industry collaboration through translational R&D projects. The programmes aim to address Egypt’s prioritised industrial and societal challenges by supporting consortia composed of PRPs, universities, and private-sector partners.
Key features
Multi-cycle, co-funded model: KTAs have been implemented in multiple rounds (second cycle in 2023, third cycle in 2025), with each requiring matching resources from participating industry contributors.
Targeted support: Funding envelopes cover prototyping, testing, standardisation, and pilot production that are prioritised across sectors, including agritech, energy, environment, ICT, and notably medical technology.
The most successful KTAs to date have occurred in the medical technology domain, delivering functional prototypes and pilot systems such as:
blood‑glucose monitoring devices
pulse oximeters
oxygen generators
UV-visible spectrophotometers
ultrasound therapy devices
educational laboratory equipment for technical universities.
Source: KTA-Second-Cycle-program.pdf and KTA-Third-Cycle-program.pdf.
Going forward, it will be important to clarify the roles and responsibilities of industry and academic partners, and to generate greater commitment for co-creation.
4.3.3. Long-term programmes
Egypt has promoted the creation of centres of excellence that pool resources to support researchers in both scientific advancement and applied research. The STDF currently funds around 80 centres of excellence, designed to foster collaborative research and strengthen institutional capacity. Proposals are assessed by an independent evaluation committee within STDF based on three key criteria: relevance of the research area to national priorities; the ability to serve one or more PRPs; and the potential to attract external funding.
Centre of Excellence for Energy (COE/E) received co-funding from the United States Agency for International Development to develop the capacity of Egyptian universities in energy research and to boost market-ready products and services that can position the country as a regional leader in energy innovation (Centre for Excellence for Energy, n.d.[47]; Applied Research, n.d.[48]). In 2023, the COE/E introduced a joint research grant programme targeted at multidisciplinary energy research projects, advanced laboratory equipment, faculty and postgraduate exchanges. All projects need to have research partners from Egypt and the United States. The Research and Policy Committee, the governing body of the COE/E includes representatives from Arizona State University, Ain Shams University, Mansoura University, Aswan University, the energy industry, and Egyptian government representatives.
Complementing this, the TTPD-DLM programme – launched by the ASRT – focuses on building research consortia that include industrial partners to localise high-priority technologies. It funds applied research and product development in sectors such as EVs, agri-machinery, renewable energy, and biotechnology, offering a structured path from research to commercial application.
In going forward, it will be critical to strengthen industry involvement. In general, collaborations between academics tend to develop quickly through mutually beneficial exchanges and the pursuit of joint publications. In contrast, cross-sector collaborations between academics and industry partners take longer to initiate and grow. The example of Norway’s Scheme for Research-Based Innovation (SFI) highlights this by showing the importance of a long-term horizon for developing collaborative research with industry and the need to establish a common understanding of expectations and capabilities as a starting point for collaboration (Box 4.12). The SFI scheme substantially impacted science-industry linkages (Damvad Analytics, 2018[49]). It contributed to nearly 300 innovations and 200 commercialisations, and is noted for its strong international collaboration, with 44% of research articles co-authored with international authors.
Box 4.11. Norway’s Scheme for Research-Based Innovation (SFI)
Copy link to Box 4.11. Norway’s Scheme for Research-Based Innovation (SFI)Norway’s SFI started in 2006 to foster innovation and internationalisation, co-operation between an innovative business community and prominent research groups, and support long-term research and innovation projects. Three SFI generations have been initiated since then, each lasting eight years. Each SFI generation varies in terms of partners, sectoral focus, host type and funding sources.
Partners often stayed on; for example, 17 partners from SFI-I continued into SFI-II, and 23 partners from SFI-II continued into SFI-III. In SFI-III, 69 partners (24%) have experience from earlier generations. About one-third of all business partners in SFI-III come from earlier generations. The three strongest sectors for all three generations are NACE (Statistical Classification of Economic Activities in the European Community) sectors: manufacturing, professional, scientific and technical services, and mining and quarrying, electricity and gas, which together account for over 60% of the industry involved in each SFI generation. Overall, industry partners account for the majority, with 77% in SFI-I, 62% in SFI-II, and 71% in SFI-III, indicating strong collaboration between research and industry.
The annual average funding for SFI-III is NOK 28.9 million (Norwegian krone) (~USD 2.87 million), NOK 31.4 million (~USD 3.11 million), and NOK 26.2 million (~USD 2.60 million), respectively. In-cash contributions are primarily financed by the Research Council of Norway and business partners, and in-kind contributions come from host institutions’ research partners and business partners.
Measuring the scheme's impact on firm-level innovation is more complex than measuring the impact of SFI’s internationalisation dimension, even though a major emphasis has been placed on measuring it through co-publications. Around one-third (34%) of researchers use the scheme to publish articles with companies, compared to 13% of industry partners. This was assessed as indicating a gap in collaborative publishing efforts, also as the level of industry co-authorship in publications has remained relatively low, with no clear trend over time, compared to similar schemes in Denmark and Sweden.
Researchers involved in SFI have noted that, while satisfaction is high, there are challenges with industry participation in the SFI scheme. The researchers recommended:
Clearer goal formulation: There is a need for a stronger and clearer formulation of the goals related to research versus innovation. This would help guide participants more effectively and align their efforts towards common objectives.
Enhancing innovation perspectives: Researchers have noted challenges related to the innovation perspective and research competence of companies. Improving these aspects could foster more effective collaboration and innovation. At the same time, enhancing the market understanding among researchers is important. This includes improving their ability to identify commercial opportunities and understand market mechanisms, thereby enabling more effective collaboration with industry partners.
Source: EC-OECD STIP Compass (2023[50]), (The Research Council of Norway, 2025[51]), and (Damvad Analytics, 2018[49]).
4.3.4. Strengthening regional science-industry linkages
From an innovation system perspective, redefining regions can help to include less-developed areas with innovation potential that lack the necessary financial, human and infrastructural resources. Egypt has done this.
Box 4.12. Alliance and Development Initiative
Copy link to Box 4.12. Alliance and Development InitiativeLaunched in February 2025 under Egypt’s National Policy for Sustainable Innovation, the “Alliance and Development” initiative aims to enhance scientific research, accelerate technological innovation, and strengthen links between academia, industry, and government. Led by the Ministry of Higher Education and Scientific Research, the initiative is backed by EGP 1 billion (~USD 20.4 million) and aligns closely with Egypt Vision 2030 and the National Strategy for Higher Education and Scientific Research.
The initiative is built on four strategic pillars: talent development, technology transfer, access to funding, and enhancing the research environment. These are supported by efforts to improve R&D capabilities, bridge the gap between research and innovation, and promote national innovation capacity.
Implementation is centred on forming regional alliances between universities, research institutions, industrial leaders, investors, and government agencies. Each alliance focuses on a high-growth economic sector and receives between EGP 90-150 million (~USD 1.84-3.06 million) over three years, with annual support ranging from EGP 25-60 million (~USD 510 000-1.22 million) through grants and co-investments.
Alliances are selected competitively based on clear strategic plans, defined economic goals, and sustainability models. Key performance indicators (KPIs) include job creation, export growth, start-up success, patents, and research commercialisation. Advisory teams provide technical support to ensure results and alignment with national priorities.
Source: State Information Service (2024[52]).
The aim of the Alliance and Development Initiative is to bring together education, scientific research, community service and entrepreneurship as means for sustainable development, building on the objectives laid out in Egypt’s Vision 2030 and the Higher Education and Scientific Research Strategy 2030. In seven designated regions of the country, academic entities, including public universities, national universities, private universities, technological universities, and government research centres, are expected to collaborate with industrial partners and government entities in their respective regions. The plan is to pool different funding sources, including government funding, the above-listed academic entities, international donors, and private-sector sources, to establish regional entrepreneurship and innovation hubs, eventually forming regional alliances (Box 4.13). It will be important to generate and sustain commitment from academia and industry to allocate resources to make this initiative work. Europe’s Research and Innovation Strategies for Smart Specialisation (RIS3) (Box 4.14) provides relevant lessons for Egypt.
Box 4.13. Europe’s Research and Innovation Strategies for Smart Specialisation (RIS3)
Copy link to Box 4.13. Europe’s Research and Innovation Strategies for Smart Specialisation (RIS3)RIS3 represents a significant advancement in the history of regional innovation policy in the European Union. It was designed to address each region's unique challenges and opportunities based on their historical, economic and social contexts. It remains a crucial framework for supporting the place-based deployment and diffusion of new technologies, especially in less-developed regions.
Key design principles of RIS3 strategies include:
Entrepreneurial discovery process (EDP): This dynamic and interactive process engages entrepreneurs, businesses, researchers and policymakers to collaboratively discover and prioritise areas with the highest potential for innovation and economic transformation. EDP emphasises the unique challenges and opportunities of each region. It considers a region's history, existing specialisations, and socio-economic structures to tailor strategies that leverage these unique attributes. EDP facilitates the continuous revision and adaptation of priorities, allowing regions to respond to new opportunities and challenges. This adaptability is crucial for maintaining the relevance and effectiveness of RIS3 strategies over time.
Integration and co-ordination: RIS3 requires the integration of various policy domains, such as cohesion, R&I and industrial policies, to create a cohesive strategy. This contrasts with traditional strategies that might address these domains separately without considering their interconnections.
Narrow and interconnected priorities: RIS3 focuses on narrow priority areas to ensure projects are interconnected, enhancing synergies and spillovers. Traditional strategies might have broader focus areas, potentially diluting the impact and critical mass needed for significant innovation.
Experimental and adaptive governance: The place-based approach in RIS3 is experimental and adaptive, allowing for adjustments based on regional feedback and changing conditions. The role of institutional context and capacities is crucial, as is the experimental nature of RIS3 and its governance implications. These factors influence the effectiveness of RIS3 implementation.
Monitoring and evaluation: Regular monitoring and evaluation enhance accountability by providing clear evidence of outcomes and impacts, fostering trust and engagement in the RIS3 process, allowing for data-driven decision making and continuous improvement, and ensuring that strategies remain relevant, effective, and aligned with regional goals.
Source: Foray, D., K. Morgan and S. Radosevic (2018[53]).
Going forward, in supporting less-developed areas with innovation potential, a resourceful example is the Research and Innovation Strategies for Smart Specialisation (RIS3; Box 4.14). RIS3 involves a wide range of actors from industry, research, education and training, government, and civil society in a process of entrepreneurial discovery, based on robust monitoring and evaluation mechanisms.
4.3.5. Researchers who want to create spin-off companies need tailor-made support
Egypt considers entrepreneurship a major driver for economic development and innovation (see Chapter 3). There is increasing attention on academic entrepreneurship. The emphasis of current efforts is on signposting entrepreneurs to existing support services, for example, EgyptInnovate, an online networking opportunity and news portal.
Interviewees mentioned that incubator hopping is common; that is, start-up firms participate in multiple incubator programmes consecutively or concurrently, making use of financial resources, mentorship and networking opportunities. This suggests the presence of a highly connected community of practice and a well-functioning information flow (ElHoussamy, Weheba and Rizk, 2020[54]). A highly connected community of entrepreneurship support practitioners holds great promise to further develop existing services in a co-ordinated and seamless support system that is tailored to the specific needs of tech entrepreneurs that emerge from and within PRPs. A relevant example is Leuven Research & Development in Belgium (Box 4.15), which highlights the advantages of a one-stop-shop approach to IPR protection and access to financing, both of which are increasingly relevant for Egypt. A highly connected community of entrepreneurship support practitioners holds great promise to further develop existing services in a co-ordinated and seamless support system that is tailored to the specific needs of tech entrepreneurs that emerge from and within PRPs.
Box 4.14. Leuven Research & Development
Copy link to Box 4.14. Leuven Research & DevelopmentLeuven Research & Development (LRD) is the technology transfer office of KU Leuven in Belgium, established in 1972 as one of the first such offices in Europe. Its primary mission is to bridge the gap between academic research and industry by commercialising research in ways that benefit researchers. LRD works closely with local and regional governments to create a conducive environment for technology-driven entrepreneurship.
LRD has a dedicated IP management unit that assists researchers in protecting their IP and devising strategies for transferring it to industry. According to LRD, 900 out of 1 400 professors at KU Leuven collaborate with LRD in some capacity.
The Gemma Frisius Fund is a seed capital fund established in 1997 as a joint venture between KU Leuven, KBC Private Equity, and BNP Paribas Fortis Private Equity. Its primary objective is to stimulate the creation and growth of KU Leuven spin-off companies by providing seed capital in their early stages. The fund is not restricted to a specific technology domain and primarily focuses on first-round financing, with a typical investment period of seven to ten years. The fund has an advisory board for evaluation and business plan fine-tuning and a board of directors for final approval. The fund also supports student entrepreneurship through KU Leuven KICK, offering convertible loans of up to EUR 20 000 to promising young entrepreneurs. As of 2024, the fund had invested in at least 49 spin-off companies across various sectors.
Source: Science | Business Network (2013[55]), (Leuven MindGate, 2025[56]) and (LRD, 2020[57]).
4.4. Conclusion
Copy link to 4.4. ConclusionA variety of science-industry linkages exist in nascent formats, holding promising potential to boost innovation. In contexts where academia and industry have limited experience working together, it is common for both sides to hold negative perceptions of each other's capabilities and roles in relation to their own goals, hindering science-industry linkages. Public policy can facilitate trust-building mechanisms by supporting initial forms of collaboration that increase proximity.
Table 4.7. Egypt’s main achievements and challenges related to science-industry linkages
Copy link to Table 4.7. Egypt’s main achievements and challenges related to science-industry linkages|
Achievements |
Challenges |
|---|---|
|
|
|
|
Going forward, it will be important to support academics in engaging with industry and to strengthen the role of PRPs as innovation partners. This will require interventions at two levels. At the research system level, better co-ordination of existing policies and practices is necessary to foster synergies. This also requires the establishment of robust monitoring and evaluation mechanisms to identify areas for policy intervention and to prioritise resource allocation. At the institutional level, additional efforts are required to enhance academics' understanding of industry's challenges and needs, including tailored support for researchers who want to become entrepreneurs. To this end, strengthening technology transfer services in PRPs will be essential, recognising that greater collaboration among PRPs could help pool resources and increase the efficiency of support services for science-industry linkages.
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