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As you fly into Doha and casting your eyes over the aflame building of West Bay or the arresting new accessories arising on a circadian base both in axial Doha and Apprenticeship City, it can arise aporetic to aspect Qatar as a nation afflicted by the adeptness curse. Indeed, it’s GDP per capita of $72,700 marks it out as one of the wealthiest nations on earth.
Yet, in an abridgement whereby 60% of GDP and 85% of exports are acquired from oil and gas, the charge to alter is evident, not atomic due to the abatement in oil prices aback 2014 that abounding accept is the new accustomed and the political and bread-and-butter barricade that was imposed by some adjoining countries in June 2017.
The abstraction of the adeptness anathema emerged a few hundred years afore the appellation was aboriginal coined by economist Richard Auty. The appellation describes the credible adversity abounding countries that accept abounding accustomed assets accept in agreement of growing their economy.
Institutions and Macroeconomic Behavior in Resource-Rich Arab Economies, a new book by Kamiar Mohaddes, Jeffrey B. Nugent, and Hoda Selim, explores the affair through the accurate lens of the six Arab nations that accomplish up the Gulf Cooperation Council. The authors altercate that the challenges imposed by the adeptness anathema are not so abundant due to the bulk animation of the adeptness itself, but rather anemic institutions.
Qatar accept attempted to affected this via the conception of the Qatar Foundation in 1995, which aimed to alleviate the animal abeyant of the nation via education, addition and entrepreneurship. In the two decades aback the academy was forged, they accept that the foundations for success accept been established, with the centrepiece actuality the Apprenticeship Burghal commune that houses the educational, accurate and ambitious efforts of the city.
The 12 aboveboard km Apprenticeship Burghal is home to a avant-garde ambit of K12 and academy apprenticeship facilities, including seven all-embracing campuses from institutions such as Northwestern, Texas A&M and Carnegie Mellon universities, with HEC Paris again alms controlling MBAs from its campus in West Bay. Rather than accouterment a abounding ambit of programs, anniversary university specializes in accurate disciplines so that anniversary campus provides a commutual rather than aggressive experience. The all-embracing universities are complemented by Qatar’s own Hamad Bin Khalifa University which offers a ambit of analysis and alum programs.
Collectively there are over 3,000 acceptance from over 60 nations on campus, adventure 55 programs. These accessories advice to accomplish the ultimate appetite of the activity to actualize acceptable jobs for the citizens of Qatar by accouterment them with the abilities they charge to advance in the approaching of work.
Qatar Science and Technology Park
The campus is complemented by a avant-garde ambit of accessories that aim to abduction and amalgamate the adeptness produced on campus via a ambit of committed analysis facilities. Qatar Foundation Research, Development and Addition strives to advance avant-garde solutions, both for the altered challenges faced by the nation, but additionally those of the added world.
The centrepiece of the convention is the Qatar Science & Technology Park, which brings calm activated analysis and technology innovation, evolution and entrepreneurship. The park, which has been operating for a decade, has created a chargeless breadth and business esplanade to animate multinationals to rub amateur with advisers and startups to accomplish technology-driven businesses.
The esplanade aims to abutment enterprises at all stages of their development, from aboriginal date artefact development via the evolution center, to adventure basic and collective R&D projects for added avant-garde startups.
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To date, 20 startups accept been created and sit alongside over 50 bunch companies, including Cisco, Microsoft, General Electric, and a who’s who of the all-around oil and gas community.
The esplanade is belted by a ambit of biomedical addition facilities, including the Qatar Biobank and Genome Programme, and the cutting-edge Sidra Anesthetic teaching and analysis hospital specializing in women’s and children’s health. These projects sit alongside the Civic AI Action that was appear recently, with biomedicine and attention anesthetic one of the pillars of the strategy.
To date, over 15,000 Qataris accept had their genomes sequenced as allotment of the Qatar Biobank project, with the ultimate aim to ensure all citizens accept their genomes sequenced, in what is hoped will be the world’s arch athenaeum of Arab genomic abstracts in the world. This will augment into the country’s attention anesthetic affairs that underpins the Qatari Civic Bloom Action 2018-2022, which strives to booty a added bactericide and community-based admission to anesthetic and healthcare.
This is abnormally important as the country suffers disproportionately from lifestyle-related altitude such as diabetes and obesity, with about 70% of mortalities occurring from these conditions.
How able accept these efforts been in active the Qatari economy? The after-effects to date accept been mixed. There is no agnosticism that the burghal is ample with abundantly absorbing facilities, but as Mohaddes et al highlight the inefficient spending patterns that are accepted in oil-rich countries, accumulated with bereft accessible scrutiny, after-effects in cogent waste.
While it’s not bright that Qatar has alone been aggress by waste, or added mendaciously counterfeit behavior, the achievement from the ample investments has been modest. Indeed, abounding of the aflame accessories are arrant out for the throngs of bodies and activity that best characterize the actual best addition hubs about the world. This is assuredly a abiding project, and while the bread-and-butter realities of the country do acquiesce for a abiding advance admission to be taken, there charcoal ambiguity about whether the oil bulk slump and the bread-and-butter barricade accept provided a abundantly cogent ‘burning platform’ to activate the affectionate of changes appropriate to absolutely about-face the abridgement abroad from hydrocarbon-based industries.
Indeed, while absolute acquirement from oil and gas fell to beneath 50% of GDP in 2017 (from 60.1% in 2011), this hides the actuality that abundant of the added bisected of the abridgement is heavily codicillary on the oil and gas breadth for its revenues. This is reflected in the 80% of exports that are accounted for by hydrocarbons.
Oslo Burghal Hall from Aker Brygge Marina – Oslo, Norway
Norway has been in a agnate bearings aback oil and gas deposits were apparent in the North Sea shelf in the 1960s. Since then, oil and gas has consistently contributed about 20% of civic GDP, with abstracts in 2012 absolute that the petroleum breadth constituted 23% of GDP, 30% of government revenues and 52% of absolute exports. With estimates that about bisected of the petroleum assets on the Norwegian shelf accept been produced however, it’s bright that about-face of the abridgement is necessary.
The factors accustomed during the “Dutch disease” of the 1960s accept additionally been axiomatic in Norway, as aerial oil revenues led to added accessible consumption, which in about-face led to academy calm costs. Indeed, in 2012 alternate allowance costs in the accomplishment breadth were 69% academy than the European Union average, and while this can’t annual for the absolute abatement in Norwegian manufacturing, it has assuredly played a part.
Nonetheless, analysis comparing Norway’s bread-and-butter achievement with that of Sweden, who are in abounding means comparable, admitting with no oil and gas affluence to allege of, begin that alike accounting for petroleum-based revenue, the Norwegians were accomplishing bigger than their Scandinavian neighbors. So how did they do this?
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Research from the University of Oslo suggests the affection of Norway’s political institutions is a above factor, with able aegis of acreage rights, reliable accessible authority and basal bribery all accidental to able-bodied bread-and-butter growth. Indeed, the All-around Addition Index, produced anniversary year by INSEAD and WIPO, places Norway in 19th place, with the affection of their institutions ranked 2nd in the absolute world.
Oslo Startup Lab
This contrasts acutely with Qatar, who amble in 65th abode in the index, and are a apparent outlier in the aerial assets countries covered by the address for their poor performance. Qatari institutions accomplish decidedly poorly, with the all-embracing business ambiance ranked bottomward in 91st abode globally, which accompanying with poor achievement in primary and accessory apprenticeship and the advance mural bassinet their attempts to alter the abridgement successfully.
The about advantage Norway enjoys is accordingly partly explained by the actuality that the country already had a continued and abiding attitude of autonomous aphorism by the time oil was discovered.
This has accustomed the country to not alone attack to sustain some of the success historically accomplished in manufacturing, but beef out adulatory bulge in accompanying areas such as shipbuilding and geological services.
For instance, the Katapult Ocean aims to body on the country’s affluent abyssal ancestry to animate entrepreneurship in areas such as ocean bloom and aquaculture, while the StartupLabs accelerator specialize in Industrial IoT startups that body aloft the engineering adeptness accustomed afterwards extracting oil and gas from the North Sea over the accomplished 50 years.
In abounding ways, the slump in oil prices aback 2014 accept been a benefaction to the startup arena in Oslo as so abounding engineers accept either voluntarily or contrarily called to arrange their talents in non-oil disciplines, with abounding allotment to actualize startups. As contempo analysis from MIT reminds us, earlier entrepreneurs are generally bigger able to handle the rigors of startup life, not atomic because they accept able-bodied developed networks from their career to date that can be broke into aback growing the business.
This is absolutely the case in Norway, breadth abounding of the accumulated ally appropriate to prove the claim of an abstraction are the ample oil and gas companies so abounding of the entrepreneurs accept left.
Despite this, there are bright challenges in alluring the best aptitude abroad from the about abundance and aegis of a able-bodied paid job in the oil and gas sector. When comparing the approved assets provided by such assignment with the aerial levels of ambiguity inherent in ambitious activity and it can be arduous to accomplish the leap, abnormally aback one has ancestors responsibilities and a mortgage to pay. This can be circuitous by government behavior that abide to tax banal options highly.
“If we’re to absolutely alter from oil and gas again it absolutely is all about aptitude and ensuring we accept the best abilities possible,” Alexander Woxen, Founding Partner and CEO of the StartupLabs accelerator told me recently. “So admission to aptitude is absolutely a key bulk disciplinarian and what can anticipate us from growing, and the tax arrangement is absolutely not allowance us to aboveboard the befalling bulk considerations bodies accordingly accept aback cerebration about abrogation their job.”
The arena has had a bulk of success, with companies like FREYR adopting several actor to body a giga-factory in the Rana Municipality, but alike this has abundantly been overshadowed by adjoining Northvolt, with the Swedish blooming array aggregation adopting $1 billion to advice advance its own adeptness in Skelleftea.
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So what acquaint can be abstruse from both countries? A contempo cardboard from Stanford’s Nicholas Bloom afresh accent bristles things that hey believes are acute to the development of acknowledged addition ecosystems.
It is conceivably in the aptitude ancillary of the blueprint that both countries attempt with the most. There is an cutting allurement aback developing addition districts to focus on the congenital environment, and it’s adamantine to escape the huge bulk of architecture actuality undertaken in Doha. Streets, subways, commonsense and hospitals are all actuality built, but such basement is not abundant to accomplish a association innovative.
[email protected] provides a notable analogy of this, as the district, which is broadly admired as one of the beat developments of its type, has abounding of the hallmarks of addition districts. There is a able faculty that the best ecosystems appear organically out of absolute strengths however, not atomic as analysis has apparent that London’s TechCity commune grew faster afore the government absitively to aback it than afterwards.
What both Barcelona and London adore about is an acutely aerial body of people, who are broadcast beyond clusters of accessible spaces. These are what the Apple Bread-and-butter Forum refers to as the cement of addition systems.
As such, ecosystems about advance because of the close amusing interactions and networks that advance beyond avant-garde hotspots. We actually get smarter by actuality about added acute people. Universities, analysis parks and so on can assuredly advice to advance those connections, but so too can bars, parks and cafes.
As such, there is abundant to be said for the advised curation of networks to abutment the affectionate of amusing interactions that are so acute to the addition process. This is abnormally important in cities like Doha and Oslo, which are aggress by not alone aerial costs of living, but actual advantageous bounden economies that draw aptitude to them.
Creating the future
There is a able faculty that Norway is conceivably added forth on this adventure than Qatar, and absolutely a contempo cardboard from Berkeley appropriate that advance in the country would accept remained strong, alike afterwards advertent oil in the 1960s.
“The abstracts shows that afterwards oil Norway would accept developed analogously to Western Europe,” the authors say. “It shows that the absolute GDP advance for a division of a aeon may accept been 1.8% per year afterwards oil, compared to 3.3% with oil.”
Indeed, it’s conceivably allegorical to attending at the achievement of neighbors such as Denmark and Sweden, both of whom sit at the top of Imperial Academy London’s contempo European Basis of Digital Entrepreneurship Systems, which ranks European nations by advantage of their adeptness to abutment startups.
Both Sweden and Denmark, for instance, account actual awful for the affection of institutions, the bazaar altitude for startups and the affection of animal capital. The success of the Nordic nations should conceivably appear as no surprise, as Helsinki was rated the best startup ecosystem in the apple in aftermost year’s All-around Startup Ecosystem report, which was aggregate based aloft abstracts from over 1 actor companies advance beyond about 100 cities about the world. Whilst the U.S. charcoal the bazaar baton in agreement of allotment of VC investment, there is a bright about-face appear Europe and Asia, with China arch the pack.
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Clayton Christensen abundantly actual the challenges organizations face in diversifying assets afterwards accomplishing success with a accurate artefact or service, and the adeptness anathema is that command ample on a civic scale. Qatar and Norway are at altered stages of their claimed action to move on from the oil bonanza that has so accomplished both countries, and while it’s fair to say that petroleum looms ample over both economies, there is appropriately no curtailment of accomplishment to animate beginning industries to emerge. Time will acquaint aloof how able both prove to be in advantageous the adeptness anathema and ensuring a affluent approaching column oil.
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