By TESFAALEM TEKLE
As global competition intensifies, leading deep tech nations are poised to shape the future’s advanced and export-driven job markets.
This year’s Deep Tech Index shows that Nairobi is the deep tech leader in East Africa.
The Deep Tech Index, conducted annually by the European Centre for Entrepreneurship and Policy Reform (ECEPR) with the support of Nordic Capital, maps and evaluates the global deep tech landscape.
North America, Europe and Asia dominate global deep tech, but it is also relevant to point out that important deep tech centres also exists in places such as Africa.
“Nairobi stands out as the deep tech centres of East Africa,” says Nima Sanandaji, CEO of ECEPR.
Growing populations in Africa lead to much development of companies dealing with managing the environmental impact of large population concentrations.
The strength in clean energy is also important, in relation to the strong growth potential in East Africa. A strong link exists between energy supply and prosperity.
It is therefore relevant to stay ahead of energy technology in order to boost long term prosperity growth.
Developing with technology is not only a matter of climbing the technological ladder, increasing national security capabilities and boosting prosperity – it is also related to jobs.
Youth unemployment tends to be lower in countries that have many world leading deep tech companies per million adults.
The report demonstrates that countries with a high density of deep tech firms typically enjoy robust property rights, low capital gains taxes, strong educational outcomes in PISA tests, and prestigious universities specialising in mathematics and engineering disciplines.
“High-quality education that develops technical skills is vital for future competitiveness. Leading countries boast top-tier schools in these fields” says Klas Tikkanen, COO of Nordic Capital Advisors.
“Through targeted educational investments and favourable tax policies, nations can enhance their standing in this sector and attract both domestic and international talent,” Klas Tikkanen added.
This year’s report highlights a link between the number of deep tech firms and a country’s unemployment rate. For each leading company per million adults, unemployment drops by an average of 0.46 percentage points.
These companies, often at the higher end of the value chain, generate substantial export revenues and advanced employment opportunities.
The impact is even more pronounced for youth unemployment, which decreases by 0.78 percentage points for each leading company per million adults.
Boosting deep tech growth tends to create better opportunities on the labour market, is the finding.
