Ethiopia Unveils STI Policy to Boost Innovation and Drive Sustainable Growth

A new Science, Technology, and Innovation Policy aims to boost the country’s innovation rankings and drive sustainable growth. It’s an ambitious strategy focusing on top national priorities such as human capital, research, local innovation, and more.

Ethiopia has finalized its Science, Technology, and Innovation (STI) Policy Implementation Strategy, marking a critical step in empowering the country’s home-grown economy and innovation efforts. Approved in 2022 by the Council of Ministers, the strategy aligns with national priorities, including Digital Ethiopia 2025. It was developed through a collaborative process, with support from the International Trade Centre’s Netherlands Trust Fund V (NTF V), which looks at driving systemic change in the country’s innovation ecosystem.

Boosting innovation and driving action

Ethiopia’s position in the 2024 Global Innovation Index dropped by five places to 130th, with room for improvement in human capital, research, and market sophistication. The rankings highlight the need for stronger innovation infrastructure, better research funding, and improved private sector engagement.

The NTF V project played a pivotal role in developing the STI Implementation Strategy. Over the course of a year, the project leads engaged more than 100 stakeholders, conducted workshops, and incorporated inputs from government, academia, and private sector representatives. The process also produced three sector-specific case studies and outlined mechanisms for measuring policy impact.

During the validation workshop, Belete Mola, Minister of Innovation&Technology, stressed the importance of leveraging the STI to improve the lives of Ethiopians, He pinned the success of the country’s economic plans to the close alignment of the government’s economic agenda and the accelerated expansion of the STI.

‘The STI policy is a call to action for all sectors,’ says Solomon Belay Tessema, Innovation Advisor to the FDRE Ministry of Innovation and Technology. ‘By integrating Indigenous knowledge in modern research and aligning efforts across government, academia, and industry, we can create a system that drives innovation and addresses Ethiopia’s unique challenges. Our role at the Ministry is to ensure this integration is seamless and impactful.’

Insights from the co-creation process

The strategy was shaped by a participatory approach.

The co-creation approach was essential. It ensured that Ethiopia’s priorities and challenges were reflected in the strategy, which is aligned with the country’s economic, social, and environmental goals. The commitment from the Ministry and other stakeholders ensured that we could move forward effectively. Unlike many African countries, Ethiopia has shown its intent to move beyond policy into action.

– Chux Daniels, an International STI Expert

Strategic pillars and global best practices

The STI policy is built on eight pillars, including human resource development, research infrastructure, technology innovation, and intellectual property frameworks. Global best practices, such as increased investment in R&D, stronger industry-academia collaboration, and better governance of National Systems of Innovation, informed its development.

Daniels pointed to the need to address systemic gaps in funding and capacity.

Ethiopia invests less than 0.3% of its GDP in R&D, far below the African Union’s target of 1%. This has a direct impact on the country’s ability to innovate and grow. Increasing R&D investment and improving coordination across sectors are critical steps.

– Chux Daniels, an International STI Expert

The policy also integrates lessons from other countries, such as establishing a National Research Foundation and aligning educational curricula with innovation priorities. This can create a stronger innovation ecosystem and address Ethiopia’s reliance on imported technologies. ‘Local innovation can help Ethiopia reduce unemployment, build economic resilience, and address environmental challenges,’ Daniels adds.

Measuring impact

The strategy outlines a comprehensive monitoring and evaluation framework, with indicators across economic, social, and environmental domains. These measures are designed to track progress and ensure accountability.

However, challenges remain. ‘Innovation requires sustained effort and investment. Patience and consistent funding are key to success,’ says Daniels.

Advancing national and global goals

The STI strategy directly supports several United Nations Sustainable Development Goals (SDGs), including SDG 9, SDG 4, and SDG 17.

While the STI Implementation Strategy provides a robust framework, success depends on addressing resource constraints, increasing private sector participation, and ensuring strong governance. ‘This policy is underpinned by the latest thinking in innovation studies,’ Daniels says. ‘Effective implementation will elevate Ethiopia’s innovation ranking, enhance industrial competitiveness, and contribute to long-term economic and social transformation.’