Overview of knowledge transfer in MENA countries - The case of Egypt

This paper provides an overview of knowledge transfer and explains the
factors that enable or impede absorption capacity and knowledge transfer
in the MENA countries, with particular reference to the case of Egypt.
We employ the conceptual framework used in the international literature
on absorption capacity and international knowledge transfer channels
including FDI, international trade, ICT, education, human capital
mobility and university-industry linkage, and we examine the factors
that enable or impede absorption capacity and knowledge transfer
channels in the MENA region and Egypt respectively. One interesting
element in our study is that we present a systematic framework for the
factors that enable or impede knowledge transfer in Egypt and the MENA
region. We find that the factors hindering absorption capacity and
knowledge transfer are related to institutions, infrastructure,
macroeconomic environment, higher education and training, goods market
efficiency and labour market efficiency, financial market development,
technological readiness and capacity for innovation. Our results are
consistent with the stylized facts in the MENA literature regarding the
impediment factors hampering the transfer of knowledge in the MENA
region. Our results are also in line with the stylized facts in the
international literature regarding the interaction and linkage between
the different knowledge transfer channels. The major policy implication
from our findings is that knowledge transfer is facilitated by
supporting the linkages between the different knowledge transfer
channels within this systematic framework. Knowledge transfer through
utilization of FDI is facilitated by the sound institutions for the
provision of sufficiently qualified labour, ICT infrastructure, opening
up to international trade, good university-industry cooperation, R&D and
innovation capacity. Knowledge transfer through utilization of
international trade is facilitated by the sound institutions for the
provision of sufficiently qualified labour and ICT infrastructure.
Finally, knowledge transfer through utilization of human capital and ICT
is facilitated by supporting the complementary relationship between
them.

Keywords: Absorption capacity; knowledge transfer; MENA Region; Egypt