FOREWORD

The shaded areas of the map indicate ESCAP Members and Associate Members. *The Economic and Social Commission for Asia and the Pacific (ESCAP) is the most inclusive intergovernmental
platform in the Asia-Pacific region. The Commission promotes cooperation among its 53 member States and 9
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The ESCAP secretariat supports inclusive, resilient and sustainable development in the region by generating
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— The Science, Technology and Innovation Ecosystem of Cambodia

FOREWORD

The Science, Technology andInnovation Ecosystem of Cambodia

The Science, Technology and Innovation Ecosystem of Cambodia — i

FOREWORD

United Nations Publication
Copyright © United Nations 2021
All rights reserved
Printed in Bangkok
ST/ESCAP/2948

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ii — The Science, Technology and Innovation Ecosystem of Cambodia

FOREWORD

FOREWORD
Science, technology and innovation (STI) will be pivotal for Cambodia to meet the ambitions of the Sustainable
Development Goals, become an innovation-driven economy, and recover quickly from the COVID-19 pandemic.
However, to fully harness the potential of STI and rebuild strategically, evidence-based policies that move beyond
the economic imperative and drive inclusive, resilient and sustainable development are essential. Equally, policies
that foster a nurturing environment that enables businesses, researchers and innovators to flourish will befundamental to not leaving anyone behind.
This report on The Science, Technology and Innovation Ecosystem of Cambodia was produced by the United
Nations Economic and Social Commission for Asia and the Pacific (ESCAP) in collaboration with the General
Department of Science, Technology & Innovation (GDSTI) of the Ministry of Industry, Science, Technology &Innovation (MISTI) to support the formulation of national STI policies. It examines the current policy frameworks,
key stakeholders, and the strengths and weaknesses of the national innovation system. Based on the assessment,
the report recommends five policy strategies to be considered by policymakers: i) enhance the governancestructure of the STI system, ii) develop the national STI workforce, iii) strengthen research capacity and quality, iv)
increase collaboration and linkages between different actors, and v) foster an enabling environment for
innovation.
Furthermore, this assessment also provides the analytical basis for Cambodia’s Science, Technology & Innovation
Roadmap 2030, which has been developed by the Ministry of Industry, Science, Technology & Innovation withthe support of ESCAP. This Roadmap will guide government officials and other key stakeholders on the criticalactions required to enhance national STI capabilities and nurture a dynamic innovation ecosystem. Multiple
stakeholders have provided valuable insights to this work, including Directors-General from 18 ministries,
directors and rectors of eight leading higher education institutions and research centres, executive directors ofcompanies in various sectors, executives of three accelerator centres, and three international development
partners.
This report is also a celebration of the fruitful partnership between ESCAP and the Ministry of Industry, Science,
Technology & Innovation. The remarkable effort dedicated to this research and the National STI Roadmap 2030
was only made possible through the collaborative work of both institutions.
We hope that this report will be a valuable resource to advance the goal of creating a more prosperous, inclusive,
resilient and sustainable future for Cambodia.

The Science, Technology and Innovation Ecosystem of Cambodia — iii

ACKNOWLEDGEMENTS

ACKNOWLEDGEMENTS
This report was produced by the Trade, Investment and Innovation Division of the United Nations Economic andSocial Commission for Asia and the Pacific (ESCAP). It has been written by Ms. Francie Sadeski, Partner ofTechnopolis Group Paris and Mr. Matthieu Lacave, Managing Partner Technopolis Group, under the supervisionof Ms. Marta Pérez Cusó, Economic Affairs Officer, and with the support of Mr. Rafael Torquato Cruz, Project
Officer, Technology and Innovation Section, ESCAP. Mr. Hul Seingheng, Director General of Science, Technology
and Innovation (STI) at the Ministry of Industry and Science, Technology & Innovation (MISTI) and Mr. Srun
Pagnarith, Director of STI Policy at MISTI, provided the overall direction.
This analytical report was drafted in 2020 to provide background information for the formulation of Cambodia’s
National Science, Technology and Innovation Roadmap 2030. The analysis incorporates insights and data
gathered during the process of co-creating that Roadmap. The report benefited from the insights andperspectives shared by the following experts from MISTI that participated throughout the co-creation process:•Mr. Try Sophal, Deputy Director General of the General Department of STI (GDSTI)•

Ms. Kry Nallis, Deputy Director General of GDSTI•Mr. In Sambo, Deputy Director General of GDSTI•Mr. Ke Bunthoeurn, Director of Department of Technology Transfer•

Ms. Seng Molika, Director of STI Data Management•

Ms. Ly Sokny, Director of STI Cooperation•

Mr. Cheat Sophal, Director of Policy Monitoring Inspection and Evaluation

The co-creation process was facilitated by Mr. Kal Joffres, Chief Executive Officer, Tandemic. The contribution ofmultiple national stakeholders that shared their insights during the national consultation and the round tables isalso acknowledged.
The manuscript was edited by Ms. Mary Ann Perkins. Ms. Phadnalin Ngernlim and Ms. Su-Arjar Lewchalermvongs
provided all the administrative support for producing the report.

iv — The Science, Technology and Innovation Ecosystem of Cambodia

EXECUTIVE SUMMARYEXECUTIVE SUMMARY
Over the past two decades, until the economic shock
brought by COVID-19, Cambodia exhibited strong
economic performance and made great strides
towards sustained and broad-based economic
development and poverty reduction. This strong
performance has been fostered by sensible public
policies that ensure macroeconomic stability and an
open economy.
Progress has been achieved in multiple sectors, andthe economy is steadily industrializing andmodernizing. Cambodia is one of the world’s 10 largest
rice exporters, doubling its exports of milled rice in the
period 2013–2017. The share of the industrial sector in
the gross domestic product had increased to 32.8 percent by 2018. The service sector has also seen strong
annual growth, especially via improved performance indomestic trade and transportation.
Cambodia’s ambitious Vision 2050 seeks to build aprosperous but also socially inclusive andenvironmentally sustainable nation through theachievementoftheCambodia
Sustainable
Development Goals (CSDGs) by 2050.
Science, technology and innovation (STI) will be criticalfor Cambodia to achieve its vision and become an
innovation-driven, high-income country by 2050.
Consequently, the Royal Government of Cambodia has
drafted significant policies to foster research,innovation and entrepreneurship. It has sought topromote science and technology in the Rectangular
Strategy-Phase IV, the National Strategic Development
Plan 2019–2023 and the Industrial Development Policy
2015–2025.
More recently, in 2019, the National Science,
Technology and Innovation Policy 2020–2030 was
adopted to build national capabilities in STI and tostrengthen innovation capacity to respond to thefundamental needs of the nation.
In 2020, the Ministry of Industry, Science, Technology
and Innovation (MISTI) was established to lead andcoordinate STI initiatives that further develop national
capacities in this area, support key stakeholders andcreate favourable framework conditions.

The Cambodian technology start-up ecosystem has
progressed rapidly, with over 300 active technology
start-ups currently operating at various stages ofdevelopment. Private support for innovation is also
growing, as more co-working spaces, incubators, local
angel investors, private equity and venture capitalfunds appear in the market. Higher education
institutions have begun to focus on promoting
entrepreneurship and innovation, with someuniversities establishing their own incubation and startup centres as well as industry linkage offices. The
enactment of several laws, such as the Consumer
Protection Law, the E-Commerce Law and theCompetition Law, has helped to create morefavourable conditions for entrepreneurship and risktaking.
However, the National Innovation System of Cambodia
is still underdeveloped. Cambodia ranked 101 out of
127 countries in the 2018 Global Innovation Index. It
scored particularly low in terms of expenditure on
education, tertiary enrolment and knowledge-intensive
employment. While the new government structure forpromoting STI can provide a strong basis for thedevelopment of the Cambodian National Innovation
System, collaboration among stakeholders (withingovernment and between government, the private
sector and academia) is currently weak. The diffused
responsibility for science and technology across 11 key
ministries presents challenges for effective policy
development and governance, and the mandate of
MISTI as the main coordinating institution is still to beconsolidated.
Awareness about innovation and science in Cambodia
is still limited. Social norms related to gender relations
continue to constrain the development of women’s
potential and hinder their empowerment in economic,
social, public and political life. In addition, risk aversion
in Cambodia constraints innovation. There is a limitedscientific culture and a significant mismatch between
education in science, technology, engineering andmathematics (STEM) and employment. Only a small
percentage of students are studying science,engineering and agriculture – areas of study and skills
considered to be key to foster the growth of theCambodian economy. Furthermore, many small andmedium-sized enterprises (SMEs) in Cambodia are still
reluctant to formalize their statuses, remaining in the

The Science, Technology and Innovation Ecosystem of Cambodia — v

EXECUTIVE SUMMARY
informal sector. And while framework conditions are
improving, the norms and certification system is not
fully operational, limiting enterprises’ opportunities forentering international value chains.
To further strengthen the National Innovation System
of Cambodia, the following policy strategies arerecommended:•

Enhance the governance of the STI system.
Consolidate the mandate of MISTI, clarifying theroles of MISTI and other stakeholders in regard topromoting STI; strengthen awareness andcapacities of the Government to implement the STI
Policy; and monitor and evaluate advances madein the promotion of STI.

•

Build human capital in STI. Teaching STI from avery early age will help create a new generation ofscientists and innovators. STEM skills will also need
to be promoted in higher education. In addition,
there is room for strengthening teaching andcollaboration with the private sector in technicaland vocational education and training institutions.

•

Strengthen research capacity and quality. To
support high quality research and development
activities of national interest it will be critical to do
the following: develop a national research agenda

vi — The Science, Technology and Innovation Ecosystem of Cambodia

with the academic community and in close
collaboration with the private sector; provide
funding to support excellence in science; support
the internationalization of research; and encourage
collaboration with the private sector.
•

Increase collaboration and linkages between
different actors. To support innovation in SMEs
and enhance their absorptive capacities, it will be
critical to promote and sustain incubation andacceleration facilities, technological platforms
open to the private sector and innovative clusters
fostering collaboration.

•

Foster an enabling environment for innovation.
Supporting innovation capabilities and increasing
the absorptive capacities of firms requires thefinancing and promotion of intermediary structuresthat nurture new firms (start-ups), support
technology transfer, and foster domestic
technologies. An enabling environment needs
fostering institutions that provide technology andquality (i.e., norms and certification) services tofirms. It also requires increasing access to financefor innovation activities, including throughleveraging investments from the private sector,
attracting funding from donors and incentivizing
foreign direct investment that supports thebuilding of domestic technological capabilities.

KHMER EXECUTIVE SUMMARYHMER
EXECUTIVE
ខ្លKឹម
សារសង្ខេ
បប្បតិSUMMARYបតតិ
Khmer executive summaryក្នុងរយៈពេលេរី ទសវត្សរក្ន្ល៍ ងពៅពន្េះ ពៅមុន្ពេលមាន្ំ ឺក្ូវ ីដ្-១៩ ប្បពទសក្មពុជាវ ិបត្តពិ សដ្ឋក្ច្ិ ចដដ្លបងកព ងី ពោយជង

ក្មពុជាបាន្ពរៀបច្ំពសច្ក្តប្ី ពាងពោលន្ពោបាយសំខ្ន្់ៗពដ្ីមបី
ជួយជរំ ុញក្លរងារប្សាវប្ជាវ ន្វាន្ុវត្តន្៍ ន្ងិ សហប្គន្ិ ភាេ។រាជរ

ឱ្យក្ត្់សមាាល់ពៅក្នុងក្លរអភិវឌ្ឍពសដ្ឋក្ច្ិ ចប្បក្បពោយច្រី ភាេ ន្ងិដ្ូច្មាន្រ ំពលច្ពៅក្នុងយុទសាធ ស្តសតច្ត្ុពក្លណដ្ំណាក្់ក្លលទី

បាន្រ ំពលច្ព ងធ មមពសដ្ឋក្ិច្ដ្ច ៏ខ្លងំ ក្លលន្ងី ន្ូវសមិទក្ិ វឌ្ឍន្ភាេគួរ

មាន្វ ិសាលភាេក្លន្់ដត្ទូលទំ ូលាយ ក្៏ដ្ូច្ជាក្លរក្លត្់បន្ថយភាេ

ប្ក្ប្ី ក្។ សមទធ មមដ្៏រងមាំិ ក្ឹ ពន្េះអាច្សពប្មច្ពៅបាន្ ពោយសារដត្

មាន្ក្លរជំរុញពោលន្ពោបាយសាធារណៈសមប្បក្ប ដដ្លអាច្

ោឋភិបាលក្៏បាន្ពលីក្ក្មពស់វ ិស័យវ ិទាសាស្តសត

ក្នុងេហុវ ិស័យពសដ្ឋក្ច្ិ ចរបស់ប្បពទសក្៏ក្ំេុងដត្សថិត្ពៅក្នុង
ំដ្ណាក្់ក្លលនន្ក្លរព្វឧ
ន្ងី សាហូបន្យី ក្មមិ ទំពន្បី ក្មមឥត្
ឈប់ឈរ។

ក្មពុជាសថត្ិ ពៅក្នុងច្ំពណាមប្បពទសនាំពច្ញអងករ

ពប្ច្ីន្ជាងពគទំង ១០ ពៅពលេី ិភេពលាក្ ពោយបាន្បពងកីន្ក្លរ

នាំពច្ញអងករពទវដ្ងក្នុងអំ ុងឆ្ន២ំ ០១៣ ដ្ល់ ២០១៧។ ក្លររួម
ច្ំដណក្នន្វ ិស័យឧសាហក្មមពៅក្នុងផលិត្ផលក្នុងប្សុក្សរុប

(ផ.ស.ស.) បាន្ពក្ន្ី ព ងី ដ្ល់ពៅច្ំន្ួន្ ៣២,៨% គត្ិ ប្ត្មឹ ឆ្ន ំ២០១៨។ វ ិស័យពសវាក្មមក្ព៏ ញំ លងំ ក្លលី មាន្ក្ំពណីន្ប្បចំឆ្នខ្
ផងដដ្រ

ជាេពិ សសតាមរយៈសមិទធក្មមដដ្លប្បពសរី នន្ពាណិជជ

ក្មមក្ុ ងប្សុ
នក្ ន្ិងក្លរដ្ឹក្ជញ្ជូ ន្។ច្ក្ខុវ ិស័យក្មពុជាឆ្ន២ំ ០៥០ មាន្មហច្ិ ឆតាក្សាងក្មពុជា

ឱ្យក្លលយពៅជាប្បពទសដដ្លមន្ិ ប្ត្មឹ ដត្មាន្វ ិបុលភាេប៉ាុពណាណេះពទ

ដែមទំងមាន្បរោប័ន្ក្ន ុ ងសងានម ន្ងិិ មាន្ច្រី ភាេបរសាិ ថ ន្ផងដដ្រ
តាមរយៈក្លរសពប្មច្បាន្ន្ូវពោលពៅអភិវឌ្ឍន្៍ប្បក្បពោយ
ច្ីរភាេក្មពុជាប្ត្ឹមឆ្ន២ំ ០៥០។

ន្ពោបាយអភវិ ឌ្ឍន្៍វ ិស័យឧសាហក្មមក្មពុជា

ឆ្ន២ំ ០១៥-

២០២៥។ពៅក្នុងឆ្ន២ំ ០១៩រាជរោឋភបាិ លក្មពុជាបាន្អន្ុម័ត្

ពោលន្ពោបាយជាត្ិសតីេវី ិទាសាស្តសត បពច្ចក្វ ិទា ន្ិងន្វាន្ុវត្តន្៍ ឆ្ន២ំ ០២០-២០៣០ ក្នុងពោលបំណងក្សាងសមត្ថភាេជាត្ិ
ពៅក្នុងវ ិស័យ វ.ប.ន្. ន្ងឹ សមិទធន្វាន្ុវត្តន្៍ សំពៅព្លីយត្បិ េប្ងង
ពៅន្ងឹ ត្ប្មូវក្លរជាមូលោឋន្របស់ជាត្។
ិពៅក្នុងឆ្ន២ំ ០២០ ប្ក្សួងឧសាហក្មម វ ិទាសាស្តសត

បពច្ចក្វ ិទា ន្ិងន្វាន្ុវត្តន្៍ (ឧ.វ.ប.ន្.)ប្ត្ូវបាន្បពងកីត្ព ងីពោយមាន្ភារក្ច្ិ ចដ្ឹក្នាំ ន្ិងសប្មបសប្មួលគំន្ិត្ផតួច្ពផតីមនានា
ពៅក្នុងវ ិស័យ វ.ប.ន្. សំពៅអភវិ ឌ្ឍសមត្ថភាេជាត្បិ ដន្ថមពទៀត្
ក្នុងវ ិស័យពន្េះ

ប្េមទំងផដល់ក្លរោំប្ទដ្ល់ត្ួអងាពាក្់េ័ន្ធ

សំខ្ន្់ៗ ន្ិងបពងកត្ី លក្ខខណឌប្ក្បខណឌអំពណាយផលពផសងៗ។
ពៅក្មពុជា ប្បេ័ន្ពធ អក្ូ ូសុសច មីក្ុ ងនី ប្មាប់បណុ ដ េះ្ុរក្ិច្ែវ ិស័យបពច្ចក្វ ិទាមាន្ក្លររក្ច្ពប្មន្ីី ោ៉ាងឆ្ប់រហ័ស

ក្នុងពនាេះ

្ុរក្ច្ិ ចែមីដផនក្បពច្ចក្វ ិទាដដ្លសក្មមច្ំន្ួន្ជាង ៣០០ គក្ឺ ំេុង
ដ្ំពណីរក្លរពៅក្នុងក្ប្មត្ិ ពផសងៗោន។

ក្លរោំប្ទេីវ ិស័យឯក្ជន្

ច្ំពពាេះន្វាន្ុវត្តន្៍ក្៏ក្ំេុងរក្ដ្ុី េះោលផងដដ្រ ត្ួោ៉ាង ពគសពងកត្
ពវ ិទាសាស្តសត បពច្ចក្វ ិទា ន្ងិ ន្វាន្ុវត្តន្៍ (វ.ប.ន្.) ន្ងឹ៤ដផន្ក្លរយុទសាធ ស្តសតអភិវឌ្ឍន្៍ជាត្ិឆ្ន ំ ២០១៩-២០២៣ ន្ងិ ពោលធានាបាន្ន្ូវសថិរភាេមា៉ាប្ក្ូពសដ្ឋក្ិច្ចន្ិងពសដ្ឋក្ិច្ចពបក្ី ច្ំហ។
ខណៈដដ្លរាជរោឋភិបាលសពប្មច្បាន្វឌ្ឍន្ភាេពៅ

ន្ិងបពច្ចក្វ ិទាីញមាន្វត្តមាន្ពសវាក្មម មួយ ច្ំ ន្ួន្ ពក្ីន្ ពដ្ូច្ជា

ក្ដន្លងព្វក្លី រងាររួមោន

ីងពៅក្នុងទីផារ

(Co-Working

Spaces)ពដ្ីរត្ួនាទោំ ុត្ សប្មាប់ប្បពទសក្មពុជាពដ្ីមបឈា
ន្ី ៉ា ងចំបាច្់បផ
ីមជឈមណឌលភាាស់ (Incubation Centers) វ ិន្ពិ ោគន្ិ ោំប្ទ

ជាប្បពទសដដ្លមាន្ច្ំណូលខពស់ ដដ្លដ្ឹក្នាំត្ប្មង់ទិសពោយ

មូលន្ិ្ិមូល្ន្ឯក្ជន្ (Private Equity Funds) ន្ិងមូល

ពៅសពប្មច្បាន្ន្ូវច្ក្ខុវ ិស័យរបស់ខួ ន្លប្េមទំងដប្បក្លលយពៅ

ន្វាន្ុវត្តន្ព៍ ៅឆ្ន២ំ ០៥០។ ពហត្ុដ្ូពច្នេះពហយី ពទីបរាជរោឋភបាិ លហរិ ញ្ញវត្ថុក្នុងប្សុក្

(LocalAngel

Investors)ន្ិ្ិវ ិន្ិពោគផសងពប្េង (Venture Capital Funds)។ សាថប័ន្The Science, Technology and Innovation Ecosystem of Cambodia — vii

KHMER EXECUTIVE SUMMARYឧត្តមសិក្ាបាន្ចប់ពផតីមពតតត្ក្លរយក្ច្ត្ិ តទុក្ោក្់ពលក្លី រពលក្
ីបពច្ចក្វ ិទា វ ិសវក្មម ន្ិងគណិត្វ ិទា (ដសាម) ន្ិងរវាងទីផារក្លរវ ិទាល័យខលេះបាន្បពងកីត្មជឈមណឌលភាាស់

មុខវ ិជាជវ ិទាសាស្តសត វ ិសវក្មម ន្ិងក្សិក្មម ពពាលគឺជាមុខវ ិជាជសិក្ា

ក្មពស់វ ិស័យសហប្គន្ិ ភាេ ន្ងិ ន្វាន្ុវត្តន្៍ ពោយមាន្សាក្លបណុ ដ េះ្ុរក្ច្
លិ ចែមីតាល់ខួ ន្ន្ិងមជឈមណឌល

ក្៏ដ្ូច្ជាបាន្បពងកីត្ក្លរោល័
យភាជប់
ិទំនាក្់ទំន្ងជាមួយសហប្ោស។

ក្លរអន្ុម័ត្ច្ាប់មយួ ច្ំន្ន្
ួដ្ូច្ជា ច្ាប់សតីេក្ី ិច្ចក្លរពារអនក្ពប្បីប្បាស់ ច្ាប់សដីេីពាណិជជក្មម

តាមប្បេ័ន្ធពអ ច្ិ ប្ត្ូន្ិក្ ន្ិងច្ាប់សតីេីក្លរប្បក្ួត្ប្បដជង បាន្រួម
ច្ំដណក្ជួយបពងកីត្លក្ខខណឌអំពណាយផលដ្ល់សហប្គិន្ភាេ
ន្ងិ ហ៊ាន្ប្បឈមន្ងឹ ហន្ភិ ័យ។ពទេះោ៉ាងណា

ប្បេ័ន្ន្ធ វាន្ុវត្តន្៍ជាត្រិ បស់ប្បពទស

ក្មពុជា ពៅដត្មន្ិ ទន្់មាន្ក្លរពរៀបច្ំពៅពយី ។ ជាក្់ដសតង ពៅក្នុងសន្ាសសន្៍ន្វាន្ុវត្តន្៍សក្ល ឆ្ន២ំ ០១៨ ក្មពុជាជាប់ច្ំណាត្់

ថ្ននក្់ពលខ ១០១ ក្នុងច្ំពណាម ១២៧ ប្បពទស ក្នុងពនាេះក្មពុជា
ទទួលបាន្េន្ាិ ុ ទប

ទក្់ទន្ិ ន្ងឹក្លរច្ំណាយពលីវ ិស័យអប់រ ំក្លរច្ុេះពឈាមេះច្ូលពរៀន្ពៅថ្ននក្់ឧត្តមសិក្ា ន្ងិ ក្លរងារដដ្លេឹង
ដផែក្ខ្លងំ ពលីច្ំពណេះដ្ឹង។

ខណៈដដ្លរច្នាសមព័ន្ធែមីរបស់រាជ

ងារ។ មាន្ន្សិ សត្ិ មួយច្ំន្ួន្ត្ូច្ដត្ប៉ាុពណាណេះដដ្លក្ំេុងសិក្ាពលីន្ិ ងជាជំនាញដដ្លប្ត្ូ វបាន្ចត្់ ទុក្ថ្នជាគន្លេះឹ ដ្៏សំខ្ ន្់ ពដ្ី មបីជំរុញក្ំពណីន្ពសដ្ឋក្ិច្ជាច ត្ិ។ ជាងពន្េះពៅពទៀត្ សហប្ោស្ុន្
ត្ូច្ ន្ិងម្យម ជាពប្ច្ីន្ពៅដត្មាន្ក្លរសាាក្់ពសាីរក្នុងក្លរច្ុេះបញ្ជ ីជាផលូវក្លរ ពោយបន្តសថិត្ពៅពប្ៅផលូវក្លរដ្ដដ្ល។ ពៅពេលដដ្ល
លក្ខខណឌប្ក្បខណឌក្ំេុងមាន្ភាេប្បពសរី ពប្បេ័ន្ធវ ិញ្ហញបន្បប្ត្ក្មមេុំបាន្ដ្ំពណីរក្លរពេញពលញពៅព
ពៅក្នុងដខសប្ច្វា៉ា ក្់ត្នមលអន្តរជាត្ិ។

ពដ្ីមបេធ វាន្ុវត្តន្៍ជាត្ិបដន្ថមពទៀត្ឹ ប្បេ័ន្ន្ី ប្ងង

ពរៀបរាប់ខ្ងពប្ក្លម។
•ត្ួនាទីរបស់ប្ក្សួង ន្ិងត្ួអងាពាក្់េ័ន្ធដ្នទពទៀត្ ទក្់ទង

ក្៏ក្ច្ិ ចន្ង់ រយល់ដ្ង
ឹឹ ក្លរពលក្ី ក្មពសវ់ ិស័យ វ.ប.ន្. ពលក្ី ក្មពសក្ល
ន្ងិ េប្ងឹងសមត្ថភាេរបស់រាជរោឋភបាិ លក្នុងក្លរអន្ុវត្ត

ពោលន្ពោបាយជាត្ិ វ.ប.ន្. ន្ិងប្ត្ួត្េិន្ិត្យ ន្ងិ វាយត្នមល

ពៅដត្មាន្ភាេទន្់ពខាយពៅព យី ។ ក្លរដបងដច្ក្ទំន្ួលខុស
ប្ក្សួង-សាថប័ន្សំខ្ន្់ៗទំង
អភិបាលក្ច្ិ ច១១វឌ្ឍន្ភាេពៅក្នុងក្លរពលីក្ក្មពស់វ ិស័យ វ.ប.ន្.។

ក្នុងច្ំពណាម

គជាឺ បញ្ហាប្បឈមពៅក្នុង

ន្ិងក្លរអភិវឌ្ឍពោលន្ពោបាយឱ្យមាន្ប្បសទិ ធ•ំ ន្់ែមី។
ន្ិងអនក្ន្វាន្ុវត្តជនា

សាថប័ន្ច្មបងក្នុងក្លរសប្មបសប្មួលក្៏ពៅដត្ប្ត្ូវក្លរបប្ងួបបប្ងួម

ពទៀត្ ក្លរេប្ងឹងក្ិច្ចក្លរបពប្ងៀន្ ន្ិងក្ិច្សច ហក្លរជាមួយវ ិស័យឯក្ជន្ពៅតាមសាថប័ន្អប់រ ំបណុ ត េះបណាត បពច្ចក្ពទសន្ងិ វ ិទាសាស្តសតពៅក្មពុជាន្ងិ វ ិជាជជីវៈ (្ពី វត្) គួរប្ត្ូវបាន្គត្ិ គូរេប្ងឹងបដន្ថមពទៀត្។

បទោឋន្សងាមពាក្់េ័ន្ន្ធ ឹងទំនាក្់ទំន្ងពយន្ឌ្័រពៅដត្បន្តជាឧបសគារារាងំ ដ្ល់ក្លរអភិវឌ្ឍ

សក្លតន្ុេលរបស់ស្តសតី ក្៏ដ្ូច្ជារារា ំងក្លរផតលស់ ិទធអណា
ំច្ជូន្េួក្
ោត្់ពដ្ីមបមាី ន្លទធភាេប្ប ូក្ពៅក្នុងវ ិស័យពសដ្ឋក្ច្
ិ ច

សងាម

សាធារណៈ ន្ងិ ន្ពោបាយ។ ពលសី េពី ន្េះពទៀត្ ក្លរបពញ្ច ៀសមិន្ច្ង់ជួបហន្ិភ័យក្៏ជាឧបសគារារា ំងដ្ល់វ ិស័យន្វាន្ុវត្តន្ផ
៍ ង
ដដ្រ។

ំ ញដផនក្ដសាមក្៏ប្ត្ូវក្លរក្លរ
ជនាពលីក្ក្មពស់ពៅក្នុងថ្ននក្់ឧត្តមសិក្ាផងដដ្រ។ ពលីសេពី ន្េះបដន្ថមពទៀត្ដដ្រ។

ពៅមាន្ក្ប្មិត្ពៅព យី ។ក្សាងមូល្ន្មន្ុសសដផនក្ វ.ប.ន្.៖ ក្លរបពប្ងៀន្មុខវ ិជាជវ.ប.ន្. តាំងេីក្ុមារភាេន្ងី ប្ក្ុមអនក្វ ិទាសាស្តសតឹ ជួយបពងកត្ភាេ ក្នុងពនាេះដដ្រ សមត្ថក្ច្ិ រច បស់ប្ក្សួង ឧ.វ.ប.ន្. ក្នុងនាមជា

ក្លរយល់ដ្ឹងអំេន្ី វាន្ុវត្តន្៍

ដក្លមែអភបាិ ចិ លក្ិច្នច ន្ប្បេ័ន្ធ វ.ប.ន្.៖ េប្ងឹងសមត្ថក្ច្
របស់ប្ក្សួង ឧ.វ.ប.ន្. ពោយក្លរក្ំណត្់ឱ្យបាន្ស់លាស់េី

រោឋភិបាល ន្ិងរវាងរោឋភិបាល វ ិស័យឯក្ជន្ ន្ិងប្គេះឹ សាថន្អប់រ ំន្ិងបពច្ចក្វ ិទាយុទធសាស្តសត ពោលន្ពោបាយប្ត្ូ វបាន្ផត ល់ ជា អន្ុ សា សន្៍ ដ្ូ ច្ មាន្សហក្លរោនក្នុងច្ំពណាមត្ួអងាពាក្់េ័ន្ធ ជាអាទិ៍៖ ពៅក្នុងជួររាជ

ប្ត្ូវសប្មាប់វ ិស័យវ ិទាសាស្តសត

យីដដ្លបាន្ក្លត្់បន្ថយឱ្ក្លសសប្មាប់សហប្ោសក្នុងក្លរហក្់ច្ូល

រោឋភិបាលសប្មាប់ពលីក្ក្មពស់វ ិស័យ វ.ប.ន្. អាច្ផតលជា់ មូលោឋន្ដ្៏រងមាំក្ុ ងក្លរអភ
នវិ ឌ្ឍប្បេ័ន្ន្ធ វាន្ុវត្តន្៍ជាត្ក្
ឹ
ិ ដី

ង
ី ប៉ាុដន្តបទោឋន្ន្ង
ិខណៈដដ្លវបប្ម៌វ ិទាសាស្តសតពៅដត្មាន្ក្ប្មិត្

ពគក្៏សពងកត្ព ញី េភាី េមិន្សុីច្ងាវក្់ោនរវាងក្លរអប់រ ំដផនក្វ ិទាសាស្តសត

viii — The Science, Technology and Innovation Ecosystem of Cambodia•េប្ងឹងសមត្ថភាេប្សាវប្ជាវ ន្ងី ប្ំ ទិ គុណភាេ ៖ ពដ្ីមបោ
ដ្ល់ក្លរប្សាវប្ជាវដដ្លមាន្គុណភាេខពស់ ន្ងិ សក្មមភាេ
អភិវឌ្ឍន្៍ដដ្លយក្ផលប្បពោជន្៍ជាត្ិជាច្មបង

ចំបាច្់

ប្ត្ូវអន្ុវត្តសក្មមភាេមួយច្ំន្ួន្ ជាអាទិ៍៖ បពងកត្ី រពបៀបវារៈ
ប្សាវប្ជាវជាត្ជាិ មួយសហគមន្៍អនក្សក្ិ ាប្សាវប្ជាវ
សហក្លរោ៉ាងជិត្សនិទជាធ មួយវ ិស័យឯក្ជន្

ន្ង
ិ

ផតលជា
់

មូលន្ិ្ពិ ដ្ីមបោធ ឹងវ ិទាសាស្តសតី ប្ំ ទសាននដ្ពលច្ពធាលពាក្់េ័ន្ន្

KHMER EXECUTIVE SUMMARYក្លរព្វីអន្តរជាត្ូបន្ីយក្មមក្ិច្ក្លច រប្សាវប្ជាវ ប្េមទំងពលក្
ីទឹក្ច្ិត្តឱ្យមាន្ក្ិច្សច ហក្លរជាមួយវ ិស័យឯក្ជន្។
•បពងកីន្ក្ិច្សច ហក្លរន្ងដ ញរវាងត្ួអងាពាក្់េ័ន្៖ធ ពដ្ីមបីិ បណាោំប្ទដ្ល់ន្វាន្ុវត្តន្៍ពៅក្នុងសហប្ោស្ុន្ត្ូច្ ន្ងិ ម្យម
ន្ិងពដ្ីមបបី ពងកីន្សមត្ថភាេប្សូបយក្់ រក្ល
ក្មពស់ន្ិងប្ទប្ទងបិ ខ ឧបពទសភាាស់

ចំបាច្់ប្ត្ូវពលីក្

ន្ងិ េពន្លឿន្្ុរក្ិច្ច

ពវទិក្លបពច្ចក្វ ិទាដដ្លពបីក្ច្ំហដ្ល់វ ិស័យឯក្ជន្បណុ ំត សាថប័ន្ដដ្លមាន្លក្ខណៈន្វាន្ុវត្តន្៍សំពៅជំរុញ

ន្ិងជំរុញប្បេ័ន្ធពអក្ូ
ដ្ល់ន្វាន្ុវត្តន្៍៖ហរិ ញ្ញបបទន្ ន្ិងក្លរពលីក្ក្មពស់រច្នាសមព័ន្ធអន្តរក្លរដដ្ល
ីជួយបណុ ដ េះ្ុរក្ិច្ែច មី (start-ups) ក្៏ដ្ូច្ជាោំប្ទក្លរពផារ

បពច្ចក្វ ិទា ន្ងិ ពលក្ី ក្មពស់បពច្ចក្វ ិទាក្នុងប្សុក្។ ពលសី េីពន្េះពៅពទៀត្

មាន្សមត្ថក្ិច្ចក្ុ ងក្លរផត
នល់ពសវាក្មមបពច្ចក្វ ិទាពណាយផល
ិូសុីដដ្លបងកបរោក្លសអំ

ន្ង
ិ

ន្ិង

គុណភាេ (ដ្ូច្ជា បទោឋន្ន្ិងវ ិញ្ហញបប្ត្ក្មម) ពៅដ្ល់
បណាត ប្ក្ុមហ៊ាុន្។
ន្វាន្ុវត្តន្៍

ពដ្ីមបោី ប្ំ ទសមត្ថភាេន្វាន្ុវត្តន្៍

ពគក្៏ចបាំ ច្់ប្ត្ូវជួយជំរុញសាថប័ន្ណាដដ្ល

មា៉ាងពទៀត្

លទធភាេទទួលបាន្ហរិ ញ្ញបបទន្

ក្ច្ិ ចសហក្លរ ។•បពងកីន្សមត្ថភាេប្សូបយក្របស់ប្ក្ុមហ៊ាុន្ ទមទរឱ្យមាន្

ក្៏ទមទរន្ូវក្លរបពងកន្
ីសប្មាប់សក្មមភាេ

តាមរយៈក្លរពលីក្ក្មពស់ក្លរវ ិន្ិពោគេីវ ិស័យឯក្ជន្ ន្ិងក្លរទក្់ទញប្បភេែវ ិក្លេមាួ ។ ក្លរី ច ស់ជំន្យ

ពលីក្ទឹក្ច្ត្ិ តឱ្យមាន្ក្លរវ ិន្ិពោគតាល់េីបរពទស ដដ្លោំ
ប្ទដ្ល់ក្លរក្សាង សមត្ថភាេបពច្ចក្វ ិទាក្នុងប្សុក្។The Science, Technology and Innovation Ecosystem of Cambodia — ix

CONTENTS

CONTENTSFOREWORD .......................................................................................................................................................... III
ACKNOWLEDGEMENTS ........................................................................................................................................ IVEXECUTIVE SUMMARY .......................................................................................................................................... V
KHMER EXECUTIVE SUMMARY ........................................................................................................................... VII
ABBREVIATIONS ................................................................................................................................................. XII
SOCIOECONOMIC CONTEXT OF CAMBODIA .................................................................................................... 1
1.1 General overview ..............................................................................................................................................1
1.2 Sectoral Structure of the Cambodian economy ............................................................................................3
AMBITIONS FOR 2030 AND 2050 ..................................................................................................................... 6
2.1 National strategies ............................................................................................................................................6
2.2 Sectoral strategies ............................................................................................................................................7
2.3 The role of innovation in achieving Vision 2050 ............................................................................................9
2.4 Priority technologies ...................................................................................................................................... 10
NATIONAL INNOVATION SYSTEM .................................................................................................................. 11
3.1 Conceptual framework .................................................................................................................................. 11
3.2 A nascent national innovation system ......................................................................................................... 13
STRENGTHS OF THE NATIONAL INNOVATION SYSTEM ................................................................................ 15
4.1 An overall favourable government and governance for STI development ............................................. 16
4.2 An emerging innovation infrastructure system ........................................................................................... 18
4.3 A contemporary technology start-up ecosystem on an upward trend .................................................... 20
4.4 A transitioning education and research system ......................................................................................... 22
4.5 Favourable framework conditions ............................................................................................................... 26
WEAKNESSES OF THE NATIONAL INNOVATION SYSTEM .............................................................................. 27
5.1 STI governance faces many difficulties ........................................................................................................ 28
5.2 An unbalanced industrial ecosystem ........................................................................................................... 28
5.3 Lack of scientific and entrepreneurial culture, of professional skills and of excellence in research ..... 29
5.4 Nascent infrastructure and framework conditions to be further strengthened ...................................... 32
CONCLUSIONS AND RECOMMENDATIONS .................................................................................................... 34
REFERENCES ....................................................................................................................................................... 36
APPENDIX ........................................................................................................................................................... 38

x — The Science, Technology and Innovation Ecosystem of Cambodia

CONTENTS

Boxes
Box 1.1. Key socioeconomic indicators, Cambodia ........................................................................................................2
Box 4.1. Measures to boost access to finance in Cambodia ....................................................................................... 19
Box 4.2. Untapped opportunities for digital start-ups in Cambodia .......................................................................... 21
Box 4.3. Support for entrepreneurial activities in universities ..................................................................................... 23
Box 4.4. Key publication trends in Cambodia, 2000–2019 ......................................................................................... 25

FiguresFigure 3.1. National innovation system framework ...................................................................................................... 12
Figure 3.2. Cambodia country profile, Global Innovation Index 2020 ....................................................................... 14
Figure 4.1. Strengths of the national innovation system of Cambodia ...................................................................... 15
Figure 5.1. Weaknesses of the national innovation system of Cambodia ................................................................. 27

TablesTable 3.1. Functions of a national innovation system .................................................................................................. 12
Table 4.1. The organizational structure of MISTI .......................................................................................................... 16
Table 4.2. Members of the National Council of Science, Technology and Innovation ............................................ 16

The Science, Technology and Innovation Ecosystem of Cambodia — xi

ABBREVIATIONSABBREVIATIONSADBAsian Development Bank

ASEAN

Association of Southeast Asian Nations

CDRI

Cambodia Development Resource Institute

CSDG

Cambodia Sustainable Development Goals

ESCAP

Economic and Social Commission for Asia and the Pacific (United Nations)FDI

foreign direct investment

GDPgross domestic product

ICT

information and communication technologies

ITC

Institute of Technology of Cambodia

MEF

Ministry of Economy and Finance

MISTI

Ministry of Industry, Science, Technology and Innovation

MOEYS

Ministry of Education Youth and Sports

MPTC

Ministry of Post and Telecommunications

MSME

micro, small and medium-sized enterprises

NIPTICT

National Institute of Post and Telecommunication and ICT

OECD

Organisation for Economic Co-operation and Development

R&D

research and development

RS-IV

Rectangular Strategy, Phase IV

RUPPRoyal University of Phnom Penh

SME Bank

Small and Medium Enterprise Bank of Cambodia

SMEs

small and medium-size enterprises

STEM

science, technology, engineering and mathematics

STI

science, technology and innovation

TVET

technical and vocational education and training

UICC

University Industry Cooperation Centre

UNESCO

United Nations Educational, Scientific and Cultural Organization

xii — The Science, Technology and Innovation Ecosystem of Cambodia

CHAPTER 1: SOCIOECONOMIC CONTEXT OF CAMBODIA

CHAPTER1

SOCIOECONOMIC
CONTEXT OF
CAMBODIA

1.1 GENERAL OVERVIEW
Cambodia has 25 provinces, including Phnom Penhmunicipality, with varying population distributions andsocioeconomic conditions. Provinces in the far northeast (Ratanakiri, Mondulkiri, Preah Vihear and Stung
Treng) and south-west (Koh Kong) are remote andeither forested or mountainous. Most people live along
two major river systems, the Mekong and Tonlé Sap.
Cambodia’s primary economic corridor runs from thefar south-east to the midpoint of the western borderwith Thailand. 1
0F

After gaining independence in 1953 and facing
political and economic turmoil from the 1960s till the
1990s, the country began rebuilding its economy,
which was principally based on agriculture, including
fishing, forestry and other natural resources (see Box1.1). 2
1F

Cambodia joined the Association of Southeast Asian
Nations (ASEAN) in 1999. Smaller and lesstechnologically advanced than some of the othermember countries, it is still catching up in terms of
institutional reforms and human resources. However,since then, Cambodia has reaped benefits from its
membership through a common trading block that has

1

UNDP 2019.
In 1991, Employment in Agriculture, as a percentage of total
employment, was 78 per cent, against 34.5 per cent in 2019. WorldBank Data. https://data.worldbank.org/country/cambodia.
2

1 — The Science, Technology and Innovation Ecosystem of Cambodia

enlarged its economic prospects and provided asecurity shield in a region with rising tensions and an
opportunity to promote Cambodian culture.
In the past two decades, Cambodia has demonstrated
strong economic performance and made great strides
towards sustained and broad-based economic
development. New industries, such as textiles andtourism, are flourishing with world renowned culturalsites, such as the Angkor Wat Temple and Siem Reap.
Oil was discovered in 2005 in the sea off Cambodia andwas first exploited in early 2021. The service sector has
also seen strong annual growth in recent years.
Cambodia has maintained an average gross domestic
product (GDP) growth rate of over 7 per cent per year
in the past two decades, supported by policies that
ensure strong macroeconomic stability and an open
economy. This has resulted in higher average incomes
and a dramatic reduction in poverty, accompanied byhigh levels of employment and the reduction of
inequality. 3 Domestic revenue is estimated to havereached a record high of 22.3 per cent of GDP in 2018,
thanks to improved tax administration.
2F

3

Government of Cambodia 2019, p. 3.

CHAPTER 1: SOCIOECONOMIC CONTEXT OF CAMBODIABox 1.1. Key socioeconomic indicators, Cambodia•

Area: 181,035 square kilometres•

Population: 15.288 million people•

Capital: Phnom Penh•

Language: Official language is Khmer•

Ethnicity: Khmer (90%), Vietnamese, Cham and Lao•

Religions: Buddhism (97%), Muslim (1.1%), Christian (0.5%), (other religions) 0.6%•

GDP: $24.54 billion (2018)•

GDP per capita: $1,510.32 (2018)•

Economic growth: 7.5% (2018/19). Projection: 2% contraction in 2020 due to COVID-19 followed by
4% growth in 2021*•

Important industry sectors: Agriculture, manufacturing (garment, non-garment and footwear),construction and tourism•

Government budget: -5.10% of GDP (2018)•

Unemployment (percentage of total labour force): 1.05% (2018)•

Share of the workforce in informal/vulnerable employment: 70% (2018)**

Notes*World Bank 2020, Cambodia Economic Update, November 2020: Restrained Recovery.
**Government of Cambodia 2019, Decent Work Country Programme 2019–2023. Available atwww.ilo.org/wcmsp5/groups/public/---ed_mas/---program/documents/genericdocument/wcms_711728.pdf.

With substantial ongoing investment by both the
public and the private sectors, Cambodia’s economy
was forecasted before 2020 to continue growing
robustly, with further structural change in favour ofindustrial development, from 27.7 per cent GDP in2015 to 32.8 per cent in 2018 and 38.2 per cent in
2022. The COVID-19 pandemic led to global economic
perturbations that impacted the Cambodian economy,
which has been forecasted to contract by 2 per cent in2020. However, the World Bank has forecasted thatgrowth will be renewed in 2021 with an estimatedfigure of 4 per cent. The leading manufacturing sector– garments and footwear – continues to grow andsupport positive structural change and growth in valueadded. There has also been some diversification of theindustrial base, notably in automotive parts andelectronics. 4

on average, down to about 13 per cent in 2018 from 48
per cent in 2007. 6 Though impressive gains continued
to be made, the reduction in poverty during 2013–2017
was less than during 2009–2013, mainly because
economic growth benefited the non-poor more, whileurban poverty stagnated compared to the earlier
period. Poverty is overwhelmingly concentrated inrural areas, and the gap appears to be growing as
economic opportunity is concentrated in urban areas(reduced agricultural share of GDP), which is
associated with migration from rural areas.
5F

The percentage of Cambodians living under thenational poverty line 5 fell by around 1 per cent per year

Even though Cambodia still experiences some needs,
essential access to infrastructure is assured in the
country and can be a driver for innovation. Currently,
electrical infrastructure enables to supply electricity to
12,305 villages, representing 86.85 per cent of allvillages in Cambodia. In 2016, 18 per cent of the
population relied primarily on clean fuel andtechnology, in the sense that these do not create

4

6

3F

4F

Government of Cambodia 2019.
KHR 3,871 ($0.95) per day, as defined by the Ministry of Planningin 2013.
5

See https://www.worldbank.org/en/country/cambodia/overview;
See also Asian Development Bank data on poverty in Cambodia.

The Science, Technology and Innovation Ecosystem of Cambodia — 2

CHAPTER 1: SOCIOECONOMIC CONTEXT OF CAMBODIA
pollution within the home. The share of renewableenergy in total energy consumption has not kept pacewith overall consumption. In 2000, it was 81.4 per centbut fell below 68.52 per cent in 2010 and, after somefluctuation, reached 64.92 per cent in 2015. However,renewable energy electricity generation has increased
over the past 16 years, with hydropower being themainrenewableenergysourcein2016.
Telecommuications infrastructure has expanded quite
rapidly in the past two decades. The use of informationand communications technology (ICT) has risen
substantially as reflected in the rise in mobile phone
numbers from 2.7 million in 2012 to 10 million in 2017
according to the Rectangular Strategy-Phase IV (RS-IV).
Internet usage in the country is in rapid development
and now covers 98 per cent of the population. Similarly,
to other frontier markets, it is highly social with 9.7
million Facebook active users (57 per cent of the
population) at the beginning of 2020, a 40 per centincrease from 2018. The majority of businesses withany online presence are on Facebook. The country
might lean on its wide access to electricity and basic
digital tools to support and sustain innovation.
Finally, drawing on this economic progress, theGovernment of Cambodia has improved its tax
administration and benefits from increased publicresources. Direct and indirect taxes increased
significantly during the past several years, partly thanks
to better revenue administration. E-tax services
covering tax returns, tax registrations and e-valueadded tax (VAT), as well as the use of the banking
system for tax payments have been introduced. 7 In
addition, driven by rising imports, trade tax collection
is estimated to have accelerated in 2019, contributing
2.4 per cent of GDP, or a 20 per cent year-on-yearincrease, up from 2.2 per cent in 2017. This happened
despite commitments made under the ASEAN Free
Trade Agreement. 8
6F

7F

1.2 SECTORAL STRUCTURE OF THE CAMBODIANECONOMY
Agricultural sector, still the first sourceof production and employment
Policiesthat
prioritizeindustrialization
andmodernization of the economy have resulted in a
declining share of the agricultural sector in GDP. The
significant migration of workers to industry in urban
centres and abroad has further shifted the balanceaway from the rural economy. Yet, the agricultural
sector remains an important source of production andemployment. Cambodia is one of the world’s 10 largest
rice exporters, doubling its exports of milled rice in the
period 2013–2017. 9
8F

During the past decade or so, there has been some
progress on quality differentiation and branding. As
Cambodia neighbours commodity giants, Malaysia,
Thailand and Viet Nam, the country has strategicallyworked toward quality differentiation (rice, pepper),sustainability premiums (“green”) and improved foodsafety (“clean”), while advancing agro-processing(cashews, starch). In this regard, authorities haveintroduced the “Malys Angkor” rice brand as well as

products with geographical indications, such as
Kampot pepper and Mondulkiri coffee. Cassava
processing plants are being built. However,
diversification toward the production of animal
products and fisheries remains less successful despite
rising demand and prices. Rising income andurbanization with a rapid expansion of the tourism
sector, although temporarily halted by COVID-19, ischanging household food consumption, particularly
the consumption of animal products. This is also truefor exports as the Asian middle class expands,
especially in China. 10
9F

In February 2019 when trade safeguard measures were
fully applied by the European Union, rice exports to theEuropean Union declined by 57.8 per cent month-onmonth. In contrast, rice exports to the Chinese market
grew by 45.6 per cent. As a result, milled rice exports
from Cambodia managed to increase by 2 per centduring the first two months of 2019. Official data showthat Cambodia received $413.5 million from its milled
rice exports in 2018. 11
10F

7

10

8

11

World Bank 2019, p. 18.
Ibid.
9
Government of Cambodia 2019.

3 — The Science, Technology and Innovation Ecosystem of Cambodia

World Bank 2019, p. 13–14.
Ibid.

CHAPTER 1: SOCIOECONOMIC CONTEXT OF CAMBODIA

Growing importance of the industrial
and manufacturing sector
The share of the industrial sector in GDP increased
from 27.7 per cent in 2015 to 32.8 per cent, and theindustrial sector employed 23.9 per cent of the labour
force in 2018 and 23.8 per cent in 2017, ahead of thetarget set by the Government. 12 However, themanufacturing sector has increased from 16.0 per centof GDP in 2015 to only 16.8 per cent in 2018, signifying
the slower progress of the core industrial base.
Construction has been the most dynamic sector,
growing by about 9.8 per cent in 2015 and by an
estimated 13.7 per cent in 2018. 13
1F

12F

Investment by the Government of Cambodia,
development partners and the private sector has
continued to target infrastructure, essentially roads,
rail, bridges, ports, hydropower, solar farms, powertransmission lines and irrigation systems. This has, tosome extent, enabled the relocation of garment
factories from the capital to rural areas that are closer
to labour sources and this has relieved some burdens
on urban infrastructure. The Government of Cambodia
formulated the Industrial Development Policy 2015–
2025 with some 100 detailed measures for addressing
a range of priorities, including skill development,
technology,
financing,trade
facilitationandinvestment. Cambodia has continued to receive
significant amounts of foreign direct investment (FDI),
although it has been skewed to real estate and tourism
development in the past few years. Construction andinfrastructure industries are the first beneficiaries of FDI
in the country, followed by textiles, agriculture andtourism. 14
13F"missing middle" in the industrial base. A small
percentage (0.6 per cent) of large enterprises accountfor some 76 per cent of Cambodia's turnover and 63
per cent of employment, while 97 per cent of
microenterprises account for only 12 per cent ofturnover and 30 per cent of employment. 16 Some 80
per cent of large industrial enterprises manufacture
garments, textiles and footwear and more than 63 percent of large manufacturers are driven by FDI andexports. 17 The bulk of Cambodia's export revenue
comes from textiles at nearly 68 per cent of totalexports. 18 By contrast, almost all microenterprises andsmall enterprises in Cambodia are locally owned. 19
15F

16F

17F

18F

The number of informal businesses in Cambodia is veryhigh. The informal sector is estimated to account for an
overwhelming 98.6 per cent of microenterprises, 62.8
per cent of small enterprises, 28.6 per cent of mediumsized enterprises and 7.0 per cent of large
enterprises. 20 A limited number of medium-sized andlarge companies that are formally registeredcontribute the bulk of the Government's revenue fromtaxes. This is mainly caused by the fact thatmicroenterprises account for the vast majority ofbusinesses in Cambodia. Notably, approximately 45
per cent of Cambodian women are self-employed in
the informal sector. 21
19F

20F

An emerging and thriving service sector
The service sector has seen strong annual growth,
especially via better performance in domestic trade
and transportation. Growth in recent years has been
robust in tourism, retail/wholesale and real estate
sectors, which represent major components of
employment and output in the economy. 22
21F

However, Cambodia is still faced with high logistics
costs; relatively weak institutional coordination; and alack of coherent quality infrastructure limiting
producers’ access to market and enterprises’ choice oflocations across the country. Weaknesses in energy,
skill development and technologies, including digitaltechnologies, are constraining the growth of the
manufacturing subsector, and capacity is inadequate
to implement the Industrial Development Policy. 15
14F

Financial services and the banking sector have been
growing sharply in the past decade and more soundly
since 2016, as high credit growth was brought undercontrol. There has been a recent boom in theconstruction and real estate sectors. For example, in
2018, approved residential and commercial
development projects (excluding mega projects of $1
billion or more) amounted to $4.6 billion, representing
a 14 per cent increase from 2017. However, it is unlikely

Cambodia's industrial base remains narrow anduneven with most of its activities concentrated ingarment production and food processing. There is a

12

17

13

18

Government of Cambodia 2019, p. 51.
Government of Cambodia 2019, p. 50.
14
See https://santandertrade.com/en/portal/establishoverseas/cambodia/investing-3.
15
Government of Cambodia 2019, p. 66.
16
Ministry of Industry and Handicraft 2016.

Ibid.
World Bank 2016a.
19
OECD 2018, p. 58.
20
Ministry of Industry and Handicraft 2016.
21
Ministry of Industry and Handicraft 2016; OECD 2018, p. 58.
22
Ibid.

The Science, Technology and Innovation Ecosystem of Cambodia — 4

CHAPTER 1: SOCIOECONOMIC CONTEXT OF CAMBODIA
to be sustainable due to the speculative nature ofbusinesses in those sectors. 23
2F

Recently, domestic credit to the service sector appears
to be rising. This includes credit for wholesale,transport,
telecommunications
andpersonal
consumption purposes. The trend underscores risingconsumption and construction demands, which are
increasingly met by relatively large wholesale
businesses. This can be witnessed through a surge inimports of durable goods such as motor vehicles andconstruction materials.
In contrast, domestic credit to the agriculture sector,
manufacturing activities or retail services (including thefood sector) shrank. 24
23F

Total outstanding loans financed by the banking andmicrofinance sectors reached more than 100 per centof GDP, or 104.2 trillion riels in 2018, of which 80 per
cent was provided by the banking sector and theremaining 20 per cent by the microfinance sector. This,
however, excludes credit provided by the “shadowbanking” system introduced by real estate developers,
rental and leasing firms, pawn shops and informal
lenders. Therefore, the magnitude of total credit
provided to the economy is much greater. 25
24F

23

World Bank 2019.
World Bank 2019, p. 17.
25
Ibid.
26
Kem et al. 2019, p. 8.
24

5 — The Science, Technology and Innovation Ecosystem of Cambodia

Despite sector growth, there are clear needs infinancial services: some 78 per cent of the populationis unbanked, only 3 per cent of the population owns acredit card; and only 13 per cent use any form ofmobile payment. The rise of fintech platforms andproducts that circumvent the traditional banking
system, could represent ‘leapfrog’ solutions in the
Cambodian market. 26
25F

The growth of international tourist arrivals was
sustained at 10.7 per cent year-on-year in 2018, slightly
lower than 11.8 per cent in 2017, thanks mainly to therising number of Chinese visitors. This rising trend,
however, halted following the outbreak of COVID-19,
and the country received 1.26 million foreign visitors
during the first 10 months of 2020, down 76 per centfrom the same period in 2019 according to the Ministryof Tourism. 27
26F

Several initiatives have been introduced to improveand upgrade tourism services such as “clean city–clean
resorts–good services”, street food standards, public
places with free Wi-Fi, and green belt and smart city
initiatives. However, there is a need to invest more
toward providing sufficient and well-functioning public
tourism infrastructure and improving cooperation
between commercial and public entities. 28
27F

27

See www.phnompenhpost.com/national/foreign-tourist-arrivalsdown-761-ministry.
28
World Bank 2019, p. 12.

CHAPTER 2: AMBITIONS FOR 2030 AND 2050

CHAPTER2

AMBITIONS FOR
2030 AND 2050

2.1 NATIONAL STRATEGIES
Rectangular Strategy and national
strategic development plan
The integration of economic, social and environmental
dimensions is key to achieving sustainable
development. The Government of Cambodia
mainstreams these three dimensions into strategicplanning both at the national and subnational levels. At
the national level, RS-IV, endorsed in July 2018,
specifies four policy rectangles: (1) human resource
development; (2) economic diversification; (3) private
sector and market development; and (4) sustainable
and inclusive development. This feeds into the National
Strategic Development Plan 2019–2023, which in turndrives budgeting for sector planning and delivery.
The five-year development plans and three-year rolling
plans at the capital and provincial level have beendeveloped to support RS-IV and have been endorsedby the capital and provincial councils.

Vision 2050: achieving the Cambodia
Sustainable Development Goals
The Government has taken several bold steps topromote sustainable development – Cambodia’s
ambitious Vision 2050 seeks a prosperous but alsosocially inclusive and environmentally sustainable

29

Cambodia through the achievement of the Cambodia
Sustainable Development Goals (CSDGs) by 2050.
Building on the 2030 Agenda and the global
Sustainable Development Goals, the CSDGs include an
additional goal on de-mining. The CSDGs aresupported by 88 targets and 148 indicators, and theframework draws heavily on local data sets and thenational policy approach.
The CSDGs have been integrated in national plans andpolicies, through their inclusion in the National
Strategic Development Plan monitoring and evaluation
framework, where about 40 per cent of the indicators
have been adopted. Additionally, the Government of
Cambodia intends to innovatively use CSDG indicators
as performance measures within ministry and agency
budget strategic plans. This innovation has attracted
some international interest. 29
28F

However, there are still many challenges to overcome,and a more evidence-based approach to supporting
sustainable development is needed. Three major
priorities are to be tackled: enabling effective oversightby strengthening evidence and credible data sources;building thorough management capacity and enacting
governance reforms to support delivery; and financing
the CSDGs. The latter includes finding new resources
to support the CSDGs as official development
assistance and other traditional sources decline andchannelling the role of non-State actors.

Government of Cambodia 2019.

The Science, Technology and Innovation Ecosystem of Cambodia — 6

CHAPTER 2: AMBITIONS FOR 2030 AND 2050

2.2 SECTORAL STRATEGIESIn 2015, the Government of Cambodia adopted theIndustrial Development Policy 2015–2025 with some
100 detailed measures for addressing a range ofpriorities, including skill development, technology,
financing, trade facilitation and investment. The visionof the Government is to transform and modernize
Cambodia’s labour-intensive industrial structure to askill-driven industrial structure by 2025, through thefollowing: connecting to regional and global value
chains; integrating into regional production networks
and developing interconnected production clusters
while working to strengthen competitiveness andenhance productivity of domestic industries; anddeveloping a technology-driven and knowledgebased modern industry. The realization of this vision
should contribute to national economic development,sustainable, inclusive and high economic growth,
employment creation, increased valued-added to theeconomy and increased income for the Cambodian
people.
More recently, in March 2019, a package of 17 reform
measures aimed at improving competitiveness,promoting SMEs and attracting FDI was presented by
the Prime Minister of the Kingdom of Cambodia at theGovernment Private Sector Forum. The measures
range from reducing logistics costs to lowering
electricity tariffs, improving the labour law, increasing
the ability of SMEs to access finance and finalizing theamendment of the Law on Investment and the Law on
Special Economic Zones. There are around 30 special
economic zones where businesses enjoy morefavourable operating conditions. The aim is to enable
the development of industrial clusters and, in turn, newand better-quality employment opportunities for local
populations.
To support SMEs, MISTI promulgated the Five-Year
SME Development Plan in the early 2020 to createsynergies with the current work attached to theIndustrial Development Policy and the ASEAN
Strategic Action Plan on SME Development 2016–2025
that promotes micro, small and medium-sizedenterprises (MSMEs) in the region individually andcollectively.
The Skills Development Fund was set up in 2018 tobridge the skills gaps in the Cambodian economy andfocus on five priority areas, namely, manufacturing,
construction, ICT, electronics and tourism. In the same
year, the Government of Cambodia issued a subdecree
to provide tax breaks to SMEs for up to five years. In
addition, the Small and Medium Enterprise Bank of

7 — The Science, Technology and Innovation Ecosystem of Cambodia

Cambodia (SME Bank) and the Entrepreneurship
Development Fund and Entrepreneurship Promotion
Centre were created by the Ministry of Economy and
Finance (MEF) and began operating from early 2020.
A new investment law is being reviewed by theGovernment and should be approved in 2021. It aims
to increase Cambodia’s competitiveness and tomodernize and increase the productivity of local
industries through greater integration into the regionaland global supply chain. It also seeks to establish an
investment incentive regime that is transparent,
predictable, non-discriminatory and competitive, that
supports socioeconomic policies and safeguards therights and legitimate interests of investors in
Cambodia.
With the Industrial Development Policy and various
supporting strategies in place, the Government of
Cambodia has cooperated with various international
partners to co-implementing various programmes andprojects. These include the Programme for Country
Partnership 2018–2023 with the United Nations
Industrial
Development
Organization,
variousintellectual
property
agencies,theASEAN
Coordinating Committee on Standards and Quality
and the ASEAN Committee on Science, Technology
and Innovation.
In late 2017, MEF set up a Public-Private Partnership
Unit to boost projects that are predominantly financed
by private enterprises. It is expected that contracts
could be drawn between government agencies (suchas line ministries) and private partners in designing,building, operating and maintaining investment
projects,
includingbuild-operate-transfer
andconcession projects.
On the digital front, under the supervision of the
Ministry of Post and Telecommunications (MPTC), theGovernment of Cambodia has adopted the Law on
Telecommunications, the Telecommunications/ICT
Development Policy 2020 and the ICT Master Plan
2020. The Law on Telecommunications aims to ensure
efficient use of infrastructure and networks and theprovision of effective, safe, quality, reliable andaffordable telecommunications services. It encourages
private sector participation in the development of this
sector, ensures fair competition and protects
consumers.
The
Telecommunications/
ICT
Development Policy 2020 sets certain measures andinterventions to develop infrastructure, humancapacity, cybersecurity, e-services and the ICT industry.

CHAPTER 2: AMBITIONS FOR 2030 AND 2050
The ICT Master Plan 2020 has four strategic thrusts:

Academy consists of three institutes: the National
Institute of Digital Technology (Digital Engineering,
Digital Business and Education Center); theNational Institute of Digital Governance (Digital
Governance and Training for Government Officials);
and the National Institute of Digital Research andInnovation (artificial intelligence, Internet of things,
cloud computing, blockchain technology, data
science, digital policy and innovation).

1. “Empowering People” comprises ICT humanresource development and e-awareness.
2. “Ensuring Connectivity” consists of three sectors:
national ICT infrastructure, legal framework andcyber security.
3. “Enhancing Capabilities” is formulated with threesectors: ICT industry, ICT standards, and researchand development (R&D).
4. “Enriching e-Services” includes e-government
services, e-public services, e-economy services
and e-education services.
MPTC has reformed the telecommunication license
regime from single-service licenses to unified (multiservices) licenses and has set up a Universal Service
Obligation fund (2 per cent of telecommunication
gross revenue) and Capacity Building and R&D Fund (1per cent of telecommunication gross revenue). An ICT
Innovation Centre is being constructed to accelerate
the development of the country’s human capital, boost
research and innovation, and multiply the number ofstart-ups in the digital sector. This facility is financed by
the Capacity Building and R&D Fund.
MPTC is currently drafting and preparing the following:• Digital government policy framework and masterplan in order to build a clean, strong and smart
Government based on the development and use ofdigital technology. The draft includes the following:oThree principles: the once-only principle 30,
interoperability as an ecosystem 31, and “landand expand” strategy 32 for efficiency.
31F

oFour policy measures: public service
digitalization, key enablers (digital
infrastructure, laws, industry and R&D), datadriven governance and security frameworkand mechanisms.
Governance framework: institutionalarrangements, leadership and capacitybuilding and mechanism for funding andprocurement.

• A subdecree on transforming the National Instituteof Post, Telecommunications and ICT (NIPTICT) into
the Cambodia Academy of Digital Technology. The

30

MOEYS has streamlined science, technology,
engineering and mathematics (STEM) throughout its
Roadmap and has defined a number of specificindicators to monitor and evaluate STEM education.

29F

30 F

o

Pursuant to goal 4 of the CSDGs, the Ministry of
Education, Youth and Sports (MOEYS) developed andadopted the National Higher Education 2030
Roadmap, which provides the overarching framework
for a long-term holistic sector-wide approach for thedevelopment and delivery of education services andsets priorities and strategies on how Cambodia willachieve these targets. Improved general education,
vocational and competence skills, entrepreneurship,
creativity and innovation, and a healthy lifestyle arecore components in Rectangle 1 of the RS-IV. Goal 4 of
the CSDGs is well aligned with the priorities in RS-IV.
Side 1 of Rectangle 1 is the strengthening of the qualityof education, science and technology with theobjective of “quality, equitable and inclusive education
system”. Side 2 touches on technical training with an
aim to ensure that “each individual youth specializes inat least one skill in life”. Side 4 is on gender equity andsocial protection to enhance the social and economic
situation of women and strengthen the role of women.

Citizens, institutions, and companies only have to provide certain
standard information to the authorities and administrations one
time
31
Maximising the ability to transfer and render useful data andother information across systems, applications, or components

Building on ICT policy and strategies, MOEYS
published the Master Plan for ICT in Education 2009–2013. Achievements under the Master Plan are
currently being reviewed and a successor to it is being
developed. 33 In 2015, MOEYS published thecurriculum framework for general education andtechnical education to guide other stakeholders indeveloping relevant and significant documents such as
student textbooks, teaching-learning aids, guidelines
for teaching and learning methods and indicators ofstudent learning outcomes. Among other things, theframework incorporates ICT into the curriculum from
grade 4 through grade 12 and introduces themodernization of the teaching methodology in alllevels of education. 34
32F

3F

32

“Land” users with small applications, and then “expand” to moreproducts and services
33
Konrad-Adenauer-Stiftung Cambodia 2019, p. 31.
34
Ibid.

The Science, Technology and Innovation Ecosystem of Cambodia — 8

CHAPTER 2: AMBITIONS FOR 2030 AND 2050
To address ICT infrastructure in education, MOEYS
published the New Generation School Policy in 2016 toprovide guidance to educators and students on new
methods of learning, enhance educational innovation
throughout the school system and empower theeducation system to be competitive in the ASEAN
region, where there is an urgent need for a work force
with twenty-first century skills. According to the ICT
Development Policy 2020, the Government also aims
to develop ICT human resources by increasing thepercentage of students finishing high school who havebasic ICT skills and the percentage of the workforce
having professional skills in ICT. 35
34F

On technical and vocational education and training(TVET), the Ministry of Labour and Vocational Training
is implementing the National Policy Framework on
Technical and Vocational Training 2017–2025, theCambodia Qualification Framework, the National
Competency Standards and Competency-based

Curriculum. Consistent with the objectives set in the
National Strategic Development Plan 2019–2023, theMinistry is focusing on improving the quality of the
TVET centres (training the teachers, accreditation,
curricula design, equipment); enhancing attractivenessof TVET programmes to students and families;
strengthening public and private collaboration within
TVET; improving the governance of TVET centres; anddeveloping entrepreneurship and innovation culture
within TVET centres.
The Ministry of Agriculture, Forestry and Fisheries
developed the Agriculture Development Strategic Plan
2020–2025 to accelerate agriculture development,
includingenhancedagricultural
productivity,
diversification and commercialization, promotion of
livestock farming and aquaculture, land reform andsustainable management of natural resources. 36 It
identifies specific efforts within technology, education
and research.
35F

2.3 THE ROLE OF INNOVATION IN ACHIEVING VISION
2050
There is wide recognition of STI as an engine to achieve
the Sustainable Development Goals. Cambodia hasrecognized the role of innovation to achieve SDGs in its
RS-IV as well as its Vision 2050.
Cambodia’s long-term Vision 2050 promotes scientificand technological development and innovation,
focusing on:
•

•

35

Strengthening the foundation, including:oInstitutionalization of national science andtechnology framework and legal framework;oCultivation of science and technology humanresources; andoSystemization of science and technology
financial support.

Creating a science and technology environment
which is necessary to efficiently secure R&D:oEnhancement of public awareness andsupport;oPromotion of science and technology
information systems; andIbid.

9 — The Science, Technology and Innovation Ecosystem of CambodiaoDeveloping a monitoring and evaluation
system.

Vision 2050 will be supported by the implementationof the National STI Policy 2020–2030, approved in
2019. The STI Policy strengthens the STI foundation
and builds national STI capability to do the following:create potential technologies for development;
strengthen innovation capacity in response to
fundamental needs of the nation; improve the qualityof people’s lives; increase national wealth; develop
competitive national industrial foundation; andimprove STI governance.
These two major long-term guiding policy documents
illustrate the reform agenda around STI in Cambodia
and are fundamental tools to push forward
socioeconomic development towards a newsustainable phase. These policy documents aim atachieving the national development agenda.
Moreover, the Government of Cambodia has begun tomainstream technologies, in addition to gender andclimate change adaptation, in development projects
financed by development partners.

36

Government of Cambodia 2019, p. 51.

CHAPTER 2: AMBITIONS FOR 2030 AND 2050

2.4 PRIORITY TECHNOLOGIESThe National STI Policy 2020–2030, approved by thePrime Minister of the Kingdom of Cambodia in
December 2019, focuses on five scientific andtechnological domains:•

Agricultural yield increase, produce diversification
and agro-processing;Three technologies
priorities:

wereidentified

asprimary•

Agricultural processing (highest priority);•

Software and digital content technology; and•Biotechnology.

•

Modern production and engineering;•

Health and biomedical;•

Material science and engineering; and•Agricultural engineering technology; and•Services and digital economy, including artificial
intelligence, and space and spatial technology.

•

Electronics and electricity technology.

Two other technologies are considered as additional
priorities:

These five domains are aligned with the key targeted
economic sectors prioritized in the Industrial
Development Plan.
In order to achieve national development goals andpromote national economic growth in accordance with
the Rectangular Strategy, the General Secretariat of the
National Science and Technology Council conducted asurvey to identify national priority technologies. The
findings of the survey suggest 10 priority technologies
to help improve the competitiveness of the economy. 37

Five other technologies should be considered for the
long-term:•Household utilities;•

Renewable energies;•

Medical and health technologies;•

Tourism technologies; and•Technologies of material design.

36F

37

General Secretariat of the National Science and Technology
Council 2019.

The Science, Technology and Innovation Ecosystem of Cambodia — 10

CHAPTER 3: NATIONAL INNOVATION SYSTEM

CHAPTER3

NATIONAL

INNOVATION SYSTEM

3.1 CONCEPTUAL FRAMEWORKThe National Innovation System (NIS) conceptual
framework can help policymakers to systemically
identify interventions to promote innovation. The
concept of ‘national innovation systems’ 38 is now
commonly used by governments and global financeand development organizations, such as theOrganisation for Economic Co-operation andDevelopment (OECD), the United Nations and theWorld Bank, to examine how STI takes place or may bepromoted. Unlike the older ‘linear model’ ofinnovation, which assumed that research somehow
produces innovations, the concept of NIS considers
that innovation is co-produced by networks of actors
and can potentially be stimulated anywhere in thesystem (by research centres, businesses, government
action, etc.). Research can help satisfy needs andresearch can itself be initiated following theidentification of needs. This type of research
particularly occurs in organizations that have“absorptive capacity”, 39 that is, the ability to specify
scientific and technological problems, seek solutions
and apply them to business opportunities.
37F

38F

higher education system, the production system, thelinks between the two and various other contextual
conditions, such as demand, innovation infrastructuresand framework conditions as well as government andgovernance more broadly.
The interdependence of the various components
implies that a well-functioning NIS needs every
subsystem to work at a reasonable level of efficiency
and effectiveness and – since innovation is largely coproduced – the links among the components need tofunction well. Hence, the policy mix needs to be
designed in a way that achieves this and there isbalance among the different components. For
example, there should be some consistency between
the supply and demand for graduates, PhDs andresearchers; national thematic research priorities
should be consistent with the needs of government
and industry and so on. To achieve this, it is often
advantageous to have a national policy ‘arena’ such asa research and innovation policy council that monitors
the NIS and provides advice and coordination to
government. 40
39F

Figure 3.1 provides a conventional representation of a
NIS and its components, including the research and38
39

Freeman 1987; Lundvall 1992; Nelson 1993.
Cohen and Levinthal 1990.

11 — The Science, Technology and Innovation Ecosystem of Cambodia

40

Schwaag-Serger et al. 2015.

CHAPTER 3: NATIONAL INNOVATION SYSTEM

Figure 3.1. National innovation system framework
Framework conditions
Financial environment; taxation andincentives; propensity to innovation andentrepreneurship; mobility

DemandConsumers (final demand)
Producers (intermediate demand)

Business system

Education and researchsystemLarge companies

Professional
education, training
Intermediaryinstitutions
Research
institutes
Brokers

Mature SMEs

Higher education
and research

New technologybased firms

Public sector
research

Political system

Government

GovernanceResearch,technology anddevelopment
policies

Infrastructure
Banking,
venture capitalIntellectual property,
information services

Innovation
supportStandards andnorms

Source: S. Kuhlmann and E. Arnold, 2001, RCN in the Norwegian Research and Innovation System, Background Report No. 12 in the Evaluationof the Research Council of Norway. Oslo: Royal Norwegian Ministry of Education, Research and Church Affairs.

Because different parts of the NIS work together, theytend to co-evolve into specific patterns. Therefore,
policies need to be specifically designed for thenational context and not directly copied from
elsewhere.

of the research point to the need for the State to carryout ambitious programmes that develop the NIS and
improve its policymaking capabilities as well as its
ability to implement research and innovation policies
via new agencies.

According to World Bank research, 41 the observed low
level of technological adoption in developing
countries is a rational response of firms to theconditions they face, including barriers toaccumulating physical and human capital, low firm
capabilities and weak government capacity. Findings

A well performing NIS provides a number of functions:encourages entrepreneurial activities as well as
knowledge development and diffusion, provides
directionality and mobilizes adequate resources,
enables market formation and provides legitimacy (seetable 3.1).

40F

Table 3.1. Functions of a national innovation system
Component

41

Explanation

Entrepreneurial activities

Entrepreneurs are essential for a well-functioning innovation system. This function
can be analysed by mapping the number of new entrants, the number ofdiversification activities of incumbent actors and the number of experiments with
the new technology.

Knowledge
development

Knowledge development encompasses learning by searching and learning by
doing. Three typical indicators to map this function over time are: 1) R&D projects;

Cicera and Maloney 2017.

The Science, Technology and Innovation Ecosystem of Cambodia — 12

CHAPTER 3: NATIONAL INNOVATION SYSTEM

2) patents; and 3) investments in R&D. While these indicators map the effort put
into knowledge development, one might also map the increase in technological
performance by means of so-called learning curves.
Knowledge diffusion
through networks,
including policy
networks

Here policy decisions (standards, long term targets) should be consistent with thelatest technological insights and, at the same time, R&D agendas should be
affected by changing norms and values. This function can be analysed by mapping
the number of workshops and conferences devoted to a specific technology topic
and mapping the network size and intensity over time.

Directionality

Since resources are almost always limited, it is important that, when various
technological options exist, specific foci are chosen for further investments. Without
this selection there will be insufficient resources left for the individual options. Thisfunction can be analysed by mapping specific targets set by governments orindustries regarding the use of a specific technology and by mapping the numberof articles in professional journals that raise expectations about new technologicaldevelopments.

Market formation

New technology often has difficulty to compete with embedded technologies. It isthen important to create specific spaces for technologies. This function can beanalysed by mapping the number of niche markets that have been introduced,
specific tax regimes for new technologies and new environmental standards that
improve the chances for new environmental technologies.

Resource mobilization

For a specific technology, the allocation of sufficient resources is necessary to makeknowledge production possible. This function is difficult to map by means ofspecific indicators over time.

Creation oflegitimacy/counteracting
resistance to change

In order to develop well, a new technology has to become part of an incumbent
regime, or it must overthrow it. Parties with vested interests will often oppose theforce of creative destruction. In that case, advocacy coalitions can function as acatalyst; they put a new technology on the agenda and lobby for resources andfavourable tax regimes. By doing so they create legitimacy for a new technologicaltrajectory. This function can be analysed by mapping the rise and growth of interest
groups and their lobby actions.

Source: M.P. Hekkerta, R.A.A. Suursa, S.O. Negroa, S. Kuhlmanna, R.E.H.M. Smits (2007). “Functions of innovation systems: A
new approach for analysing technological change”, in Technological Forecasting and Social Change, 74, pp. 413–432.

3.2 A NASCENT NATIONAL INNOVATION SYSTEM
Cambodia has a relatively weaker NIS as reflected in
the Global Innovation Index 2020. Cambodia is ranked
110 out of 131 countries and is third from the lastamong the included ASEAN countries. Cambodia has
particularly low scores on expenditure on education,
tertiary
enrolment
andknowledge-intensive
employment. Notably, Cambodia scores well relative
to ASEAN competitors on FDI net inflows, suggesting

42

World Bank 2018, p. 20.

13 — The Science, Technology and Innovation Ecosystem of Cambodiathat FDI, could lead to technology absorption andinnovation in Cambodia. Figure 3.2 shows the ranking
of Cambodia on some innovation drivers measured in
the Global Competitiveness Report of the World
Economic Forum. 42
41F

The following two chapters explore in more detail thestrengths and weaknesses of the NIS of Cambodia.

CHAPTER 3: NATIONAL INNOVATION SYSTEM

Figure 3.2. Cambodia country profile, Global Innovation Index 2020

Source: Cornell University, INSEAD, WIPO. Global Innovation Index 2020. Available atwww.wipo.int/edocs/pubdocs/en/wipo_pub_gii_2020.pdf.

The Science, Technology and Innovation Ecosystem of Cambodia — 14

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM

CHAPTER

4

STRENGTHS OF THE

NATIONAL
INNOVATION SYSTEM

The development of the NIS of Cambodia has
progressed considerably in the past six years, and theGovernment of Cambodia has a number of initiatives

upon which to continue building in the next 10 years(figure 4.1).

Figure 4.1. Strengths of the national innovation system of Cambodia
Framework conditions
Financial environment; taxation andincentives; propensity to innovationand entrepreneurship; mobility

DemandConsumers (final demand)
Producers (intermediate demand)

Business system

Education andresearch system

Largecompanies

Professional
education,
training

Mature SMEs

Intermediaryinstitutions
Research
institutes
Brokers

Highereducation andresearchNew
technologybased firms

Public sector
research

Political system

Government

GovernanceResearch,technology anddevelopment
policies

Special economic
zones
Techo Startup
CenterNascent
initiatives

Khmer Entreprise
SME Bank

Higher Education
Improvement Project
Skills Development
Fund
Investment law(forthcoming)
MISTI
National Institute of
Science, Technology
and Innovation

Infrastructure
Banking,
venturecapitalIntellectual
property,
information
services

Innovation
supportRestructuring of
NCSTI
Standards andnorms

15 — The Science, Technology and Innovation Ecosystem of Cambodia

ASEAN Committee
on STICHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM

4.1 AN OVERALL FAVOURABLE GOVERNMENT AND
GOVERNANCE FOR STI DEVELOPMENT
still needs increased coordination and effective
actions.

A recently restructured Ministry to steer
STI

Following the signature of the Law on the
Establishment of the Ministry of Industry, Science,
Technology and Innovation in March 2020, MISTI
replaced the previous Ministry of Industry andHandicraft. MISTI is composed of the departments
listed below (table 4.1).

The new government structure, including the new
Ministry of Industry, Science, Technology andInnovation and the interministerial National Council of
Science, Technology and Innovation, provides a strong
basis for the development of the NIS, even though it

Table 4.1. The organizational structure of MISTI
Minister, Secretary of State and Under-Secretary of State

Minister's Cabinet
General Department of General Affairs
General Department of Industry
General Department of SMEs and Handicraft
General Department of Potable Water
General Department of Science, Technology & Innovation
Institute of Standards of Cambodia
National Institute of Science, Technology & Innovation
National Metrology Center
General Department of Inspection
Department of Internal Audit
Provincial Department of Industry, Science, Technology & Innovation

Concerning coordination with other line ministries, theinterministerial National Science and Technology
Council was established in 2014 under Ministry ofPlanning. In 2020 it was renamed the National Councilof Science, Technology and Innovation under MISTI,
and it is composed of the members listed below (Table
4.2).

Table 4.2. Members of the National Council of Science, Technology and Innovation
Position
Honorary Chairman
Chairman
Deputy Chairmen

Membership
Prime Minister of the Kingdom of Cambodia
Minister of Industry, Science, Technology & Innovation
Minister of Planning
Minister of Health
Minister of Mines and Energy
Minister of Agriculture, Forestry, and Fisheries
Minister of Education, Youth, and Sport
Minister of Post and Telecommunication

The Science, Technology and Innovation Ecosystem of Cambodia — 16

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM

Permanent Deputy
ChairmanMembers

Secretary of State, Ministry of Industry, Science, Technology & Innovation (one person)
Secretary of State, Office of the Council of Ministers (one person)
Secretary of State, Ministry of Interior (one person)
Secretary of State, Ministry of Economy and Finance (one person)
Secretary of State, Ministry of Commerce (one person)
Secretary of State, Ministry of Information (one person)
Secretary of State, Ministry of Public Works and Transport (one person)
Secretary of State, Ministry of Justice (one person)
Secretary of State, Ministry of Labour and Vocational Training (one person)
Secretary of State, Ministry of Environment (one person)
Secretary of State, Ministry of Land Management, Urban Planning and Construction (one person)
Secretary of State, Ministry of Water Resources and Meteorology (one person)
Secretary of State, Ministry of Culture and Fine Arts (one person)
Secretary of State, Ministry of Rural Development (one person)
Secretary of State of the Ministry of Tourism (one person)
Secretary of State of the State Secretariat of Civil Aviation (one person)
Deputy Secretary General of the Sub-Committee on Rehabilitation and Development of
Cambodia (one person)
Vice Chairman of the Supreme National Economic Council (one person)
Representatives of research institutes related to science, technology and innovation
Representative of Cambodia Chamber of Commerce (one person)
Director General of Institute of the National Institute of Science, Technology & Innovation

Permanent Member

Director General of the General Department of Science, Technology & Innovation

Furthermore, Cambodia participates in the ASEAN
Committee on Science, Technology and Innovation.
The Committee supports ASEAN cooperation in STI
and promotes the implementation of programmes andactivities in the areas defined in the ASEAN Plan of
Action on Science, Technology and Innovation 2016–2025. In Cambodia, the ASEAN Committee on Science,
Technology and Innovation is under the supervision of
MISTI.

Concrete opportunities to channel theswift development of the country
towards STI
Cambodia’s rapid development has been a catalyst for
the transformation of the economy. The economy issteadily industrializing and modernizing, including the
agricultural sector. With appropriate support, thistrend will facilitate the increase of R&D efforts in the
country.
In line with economic development, domestic credit to
the service sector appears to be rising. This includes

17 — The Science, Technology and Innovation Ecosystem of Cambodia

credit for wholesale, transport, telecommunications
and personal consumption purposes. The trend
underscores rising consumption and construction
demands, which are increasingly met by relatively large
wholesale businesses. This can be witnessed through asurge in imports of durable goods such as motor
vehicles and construction materials. This risingconsumption must be channelled towards innovationand new products and is an important resource forencouraging innovation.
The effective implementation of the national STI Policy
will be an important opportunity for the developmentof STI in the country. Cambodia’s extensive planningand analysis led to the identification of key areas ofintervention. For example, among the prioritized
technologies submitted and supplemented by the line
ministries (see section 9), three were identified as key
areas: agricultural processing technology, softwareand digital contents technology; and biotechnology.
The Roadmap is an opportunity to channel resources
to areas where needs are most urgent and improvegovernment intervention.

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM

4.2 AN EMERGING INNOVATION INFRASTRUCTURE
SYSTEM
Innovation support is thriving
Co-working space and incubators are in rapid
development in the country. Excluding those that are
offering only a temporary desk and Internet, there areover 17 seed-stage co-working spaces, 14 in Phnom
Penh and 3 in Siem Reap, with an estimated capacity ofover 500 desks. Most of the spaces are privately
owned, and only a few have non-profit funding. Most ofthem were recently created.
A handful of co-working spaces have community
managers who facilitate some level of support service
and programming. These cover a range of activities
fromcommunity-building
eventstotraining
workshops, mentorship and investor networking.
Although relatively new to Cambodia, in line with therise of co-working spaces, a number of regional or
corporate early-stage incubator or accelerator
programmes have emerged. These usually include
pitching competitions along with a component ofbusiness development over a short-term period (days,
weeks, or months) or a series of cohort-based
bootcamps with limited associated funding. These
programmes are concentrated primarily in Phnom
Penh, and to a much lesser extent in Siem Reap andBattambang.
A few local accelerator programmes emerged in recent
years with the focus on supporting ready-to-scalebusinesses, but none cater specifically to technology
start-ups.
Regional acceleration programmes have also
developed recently: TigerMekong accelerator,
Echelon Top100 APAC, Mekong Business Initiative andSeedstars Bootcamp. Cambodian start-ups can also be
exposed to new ideas, network and increase theirvisibility and funding through participation in regional
competitions and events.
Over the past three years, the Government has drawn
significant policy initiatives and discourse aroundpropelling the technology sector and developing thestart-up ecosystem. This includes setting out an initialvision for what Cambodia’s digital economy aspires tobecome in RS-IV. This is the first time the digital
economy has been included explicitly in the national
development plan.
The MPTC has kick-started public engagement
through the introduction of broad-based awarenesscampaigns, such as the annual Cambodia ICT Awards
and Women in Tech Awards, that raise the profile oflocal start-ups and entrepreneurs. These are critical forrole-modelling and media exposure for the sector. Thisis bolstered by the support of incubator programmes
and pitching competitions driven by industry, such as
SmartStart, Echelon Top100 APAC and Seedstars
Bootcamp, with increasing presence in universities andmedia coverage. MPTC is also expected to release theCambodia start-up policy, the first of its kind in thisregion, after having a series of consultations with theentrepreneur community and private sector.
Cooperating with the Ministry of Commerce, MISTI had
also supported highly visible initiatives, such as
Cambodian Young Entrepreneur of the Year Awards inassociation with Young Entrepreneurs Association of
Cambodia and Junior Chamber International.
Spearheaded by MEF, the Skills Development Fund,with aggregate capital of $5 million, seeks to bridge
the mismatch between university curricula, existing
entrepreneur capabilities and market needs. The Fund
will yield more technically trained talent and increaseprivate sector partnerships that ensure talent meets theneeds of employers, especially SMEs and start-ups. A
second $5 million fund, the Entrepreneurship
Development Fund, will contribute to engendering
mindsets that encourage innovation and careers
beyond more traditional professional pathways. This
may include support for incubators and projects that
do capacity-building in the ecosystem.

Innovation with purpose
Business innovation is critical to provide livelihood
opportunities as well as goods and services that
address social needs. Cambodia has a large social
enterprise sector (e.g., a large number of small social
enterprises addressing social and environmental
needs), unfortunately the sector still depends largely
on grants.
There is vast potential in Cambodia to support
innovative businesses that address key social andenvironmental needs, including in the following areas:
health; education, training and job placement;
insurance; access to renewable energy; and access toclean and reliable water. This can be done byencouraging both social enterprises (which tend towork at small scale and depend more on grants) andinclusive businesses (larger firms that provide solutions
on a commercial basis at scale). There are good

The Science, Technology and Innovation Ecosystem of Cambodia — 18

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM
examples of these types of firms in Cambodia,
particularly in agribusiness (such as Amru Rice or Lyly
Foods) and also in energy (ACE solar cooking, Khmer
Green Charcoal, Okra Solar, Sun-eee), handicrafts(Artisans d’Ankor), water supply (Khmer Water Supply
Holding), fintech (BanhJi), insurance (Forte Insurance,
Prevoir) and housing (My Dream Home, World Bridges
Social housing). 43
42F

MISTI is in the process of adopting a strategy forpromoting an enabling environment for inclusive
business in Cambodia. The strategy seeks to raiseawareness on inclusive businesses, establish an
inclusive business accreditation system, provide
business coaching services and facilitate funding forthis type of business. 44
43F

Access to finance is steadily improving
The investment landscape in Cambodia is growing withan increasing number of local angel investors, private
equity and venture capital funds available in themarket. Significant development over the past few
years spans the spectrum of financial deals, including
investments and support structures from the earliest
stage all the way to preparing for an initial public
offering. Significant opportunities exist for strategic
investors at all levels.
A number of government initiatives have beenlaunched to improve access to finance, including a
specialized state-owned bank for SMEs (SME Bank)
launched in early 2020, and the Government
Entrepreneurship Development Fund (see box 4.1).

Box 4.1. Measures to boost access to finance in Cambodia
Small and Medium Enterprise Bank of Cambodia (SME Bank) established with an initial capital of$100 million
The Small and Medium Enterprise Bank of Cambodia (SME Bank) is under the supervision of MEF. With an
initial capital of $100 million, the SME Bank provides financing and commercial banking services to support
local small and medium-sized enterproses (SMEs) with an objective to increase economic diversificationand expand export volume. This builds upon a joint venture between SME Bank and 23 commercial banks,
two specialized banks, seven microfinance institutions – of which five are microfinance deposit-taking
institutions. SMEs can borrow $200,000 for working capital and $300,000 for investment capital, at a 7 percent annual interest rate and a four-year period of payment. The collateral depends on the criteria of thefinancial institution. All SMEs can apply for a loan, but they must be registered with MEF. Due to COVID, theoperation of the SME Bank has been focused on providing emergency fund for SMEs, having difficulty toborrow money from commercial banks. The SME Bank, which became operational in April 2020, has alreadybenefited 752 SMEs across Cambodia. The SME financing scheme was launched on 1 April and was fully
subscribed by 16 October 2020. The main sectoral focuses are: agriculture; food production andprocessing; manufacturing of local products; manufacturing of souvenirs and handicrafts for tourists; waste
processing; assembling and information technology; and research and development (including
information technology management services).
The Government Entrepreneurship Development Fund boosts start-ups with an annual budget of $5
million.
Established in 2019, operational since the start of 2020, this is a $5 million annual fund to support
entrepreneurs, innovative start-ups, potential SMEs and partnering institutions to implement any innovative
activity and create economic value-added in Cambodia’s economy. The Entrepreneurship Development
Fund provide grants and equity match funding to enterprise and incubation facilities, plus services toentrepreneurs and start-ups. The first call for proposals was launched at the start of 2020, but due to COVID19, the support has been mainly targeted towards traditional SMEs instead of innovative start-ups andSMEs. Four key priority sectors are targeted: ICT (including fintech); service (i.e., tourism); agro-processing;and manufacturing (agriculture for export) (industrial cluster and import substitution). Interestingly, theEntrepreneurship Development Fund is managed by a public-private partnership, and the board comprises
both public authorities (the Minister of Economy and Finance is the Chairman), and the private sector.

43

ESCAP and iBAN 2021.

19 — The Science, Technology and Innovation Ecosystem of Cambodia

44

Ibid.

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEMMPTC also aspires to do more through one of the mostambitious policy initiatives thus far – the Capacity
Building and R&D Fund, resourced through a 1 per
centservicerevenuecontributionbytelecommunications companies from 2017. The
Capacity Building and R&D Fund has alreadyintroduced many initiatives in partnership with theprivate sector to promote start-ups and technology
entrepreneurship in the country.
Overall, it is expected that the investment landscapewill improve due to currency stability, ease of capitalflow and market openness. 45
4FIntellectual property rights andinformation services are on the rightpath
Patent requests are generally registered with
Cambodia’s Ministry of Industry and Handicraft (MIH,now MISTI); copyrights may be registered with the
Ministry of Culture and Fine Arts. A partnership with theIntellectual Property Office of Singapore allows patent
owners and applicants in Singapore to register withMISTI. Fast-track procedures are also established with
the Japanese intellectual property authorities. Since
December 2016, patent protection may also be sought
under the framework of the Patent Cooperation
Treaty. 46 These initiatives clearly reflect efforts toimprove registration processes. Continuing efforts toimprove the functioning of the court system, would also
benefit intellectual property rights holders byfacilitating the enforcement of intellectual property
rights.
45F

Cambodia’s intellectual property laws are relatively
more advanced than those of other members of
ASEAN. The law has encouraged foreign firms tointroduce technological improvements to theironshore production systems. 47
46F

4.3 A CONTEMPORARY TECHNOLOGY START-UP
ECOSYSTEM ON AN UPWARD TREND
The Cambodian technology start-up ecosystem has
progressed rapidly over the past three to five years.
There are over 300 active technology start-ups
operating at various stages of development. These
start-ups largely relate to establishing early digitalplatforms and infrastructure, marketplaces andbusinesses concentrated on consumer technology. In
these markets, early movers combined with good
operators can capture a sizeable market share.
Cambodia presents multiple opportunities for digital
start-ups (see box 4.2).
A potential opportunity for the development of STI in
the country is the diversification and expansion of its
manufacturing base by moving away from labourintensive industries – mainly the cut, trim and makesector in the garment industry – to those that demanda more skilled workforce, more advanced
technologies, and higher value-added.
Another potential opportunity exists in the limited
presence of deep technology of any kind (machinelearning or big data) at this time, which leaves the door
open to those with the necessary drive and skills.

The number of start-ups operating in Cambodia isestimated to double between 2019 and 2022, notably
because of increasing awareness of basic digital needs(e-commerce, fintech, logistics etc.) and the natural
growth of market opportunities related to the digital
economy as consumers become more tech-savvy andas the impulse towards digital transformations
continues to be impacted by COVID-19. Global orregional technology companies continually entering
an increasingly open Cambodia create market
opportunities and training for prospective start-up
founders. Entrepreneurship is becoming a career
option, according to a large research study on
Cambodia’s technology start-up ecosystem. 48 In
addition, some regional start-ups will likely expand into
Cambodia in search of new consumers andexperimentation, and an increase in tech-oriented
trade visits from regional technology communities has
already been witnessed. Finally, the development of
incubators and accelerators in the country will most
likely contribute to the growth of viable start-ups.
47F

45

47

46

48

Kem et al. 2019.
See www.southeastasiaiprhelpdesk.eu/sites/default/files/bean_files/cambodia_factsheet.p
df.

UNESCO 2015, p. 711.
Kem et al. 2019.

The Science, Technology and Innovation Ecosystem of Cambodia — 20

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM

Box 4.2. Untapped opportunities for digital start-ups in Cambodia
As Cambodia’s early start-ups are able to establish their prominence within their respective segment,
research indicates significant untapped opportunities.
• Development services: While current capacity and client demands largely centre on consumer
technology such as web and application development, future development demand will require both
updated technical knowledge as well as deep technology applications including automation,
blockchain, and AR/VR. Although existing agencies may not yet have the capacity to create newplatforms and standard protocols, the most successful development service firms will be able tocustomize and tailor solutions using more advanced development platforms. In order to capture thismarket, they must continue to invest in evolving both in terms of technical skills and delivery culture.
• E-commerce and logistics: Social selling is made possible due to the proliferation of social channels,
aided by the availability of logistics and delivery services with accessible online store platforms. Payment
is likely to be frictionless in the very near future allowing more seamless transactions for both buyers andsellers. Existing platforms for last-mile delivery can be improved by leveraging ‘shared economy’
infrastructure. Additional opportunities in logistics delivery infrastructure also exist on a macro-level,
nationwide.
• Digital financial services (fintech): A large unbanked, underserved population will eventually transition
into formal financial systems, a significant portion of which will ‘leapfrog’ to some form of fintech solution,delivered at multiple levels. Simultaneously, banks and microfinance institutions need to address
consumer demand for online banking tools while continuously finding ways to reduce costs, operate
efficiently and reduce risks with innovative enterprise software. Enterprise-level software-as-a-service,virtual banks, non-traditional credit assessment and digital lending platforms all present significant
opportunities as reported in several interviews with industry and other stakeholders. Major questions
remain open on how to create an integrated banking ecosystem (across financial institutions, consumers,
merchants, regulators). While the National Bank of Cambodia has been progressively minded about
recent innovations like blockchain, they are continuing to explore the appropriate legal framework andcompliance, including consumer protection law (which is reported to be currently under development),
institutional management, and systematic risk mitigation.
• Digital marketplaces: Existing marketplaces, such as classifieds, have facilitated transactions as an
information platform to date. However, through opportunities in socialised data and predictive
algorithms, searches can be increasingly personalised and targeted. This enhances the potential of suchplatforms and marketplaces in exponentially increasing transaction volume, whilst providing a level oftrust as a third party.
• Digital media and advertising: Along the global trend of consumers transitioning from watching
televisions to accessing news and entertainment online, companies have the opportunity to dominate
the market through localised content and online media. Successful media companies must be content
focused and take advantage of existing social media platforms (versus competing head-to-head).
• Digital disruptor: While competition is evolving in transport such as the ever-visible ride-hailing
platforms in Phnom Penh and first-tier cities, there are many untapped market opportunities outside of
the country’s capital. For example, education technology and agricultural technology start-ups have thepotential to serve consumers in highly remote areas in the country (comprising the majority of thecountry’s population). There are few agricultural technology start-ups that have reached significant scale
across the market yet, in any advanced technologies related to data (cultivation and yield-oriented) or
supply chain (communication or transaction between farmers and buyers). Given the proportion of GDP
in Cambodia represented by agriculture, this is naturally identified as a huge untapped opportunity.
Equally health technology start-ups can address awareness and early detection through healthcare
information platforms, mirroring very successful solutions in other rural and emerging markets recently
rolled out in West Africa.
Source: CDRI 2019.

21 — The Science, Technology and Innovation Ecosystem of Cambodia

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM
Even though traditional Cambodian education andvalues do not incentivise risk-taking and start-up
creation, a generational shift is observed that canencourage further innovation in the coming years.
Bustling start-up events (more than 20 held in 2018
alone), 25 innovation and co-working spaces, thepopularization of start-up entrepreneurship via social
media and traditional media and the success stories ofentrepreneurs and business role models, are allindicative of a shift in the mindset of Cambodian youth.
As mentioned above, entrepreneurship is becoming acareer option. 49
48FTo diversify the labour market, there is an opportunity
is to link repatriated Cambodians (with international
education and professional experience) withtechnology start-ups in the local market. To close thetechnical skill gap and build entrepreneurial culture,
the majority of Cambodian technology start-ups haveallocated resources for internal training programmes,

and they are willing to finance certified trainings fortheir staff, although such training is scarce in the
country. 50
49F

Industry professionals noted another major trend in theincreasing amount of young people willing to start theirown companies and join start-ups immediately upon
graduation from tertiary (or even secondary)education. Given the development stage of the digital
economy, there is a still a significant gap between
industry needs and skilled technical professionals. In
addition to domestically trained talent (estimated at2,000–5,000 new technology graduates per year andincreasing), the high-skilled talent gap is likely to bepartially bridged by an increase in the number offoreign expatriates and digital nomads. Numerous
technology start-ups are founded by and/or employ
expatriate technology talents and returning overseas
Cambodians.

4.4 A TRANSITIONING EDUCATION AND RESEARCHSYSTEM
Basic education is in progress and canbe built on for the development ofinnovation in the next 10 years
Available data suggest that Cambodia has achieved
significant progress on many fronts in the education
sector. Education completion rates have been
increasing from 2015 to 2018. For example, at the
primary level, completion increased from 80.0 to 86.1
per cent, at the secondary level it increased from 39.0
to 47.6 per cent. The proportion of grade 1 students
who passed through all early childhood education
programmes increased from 62.0 to 72 per cent.
Similarly, Cambodia has achieved gender parity interms of gross enrolment rate, and the balance began
to tilt in the favour of girls in recent years.
In 2010, MOEYS implemented a tracking system
between science and social science and nearly 80 per
cent of upper secondary school students are choosing
the science track. This indicates a strong foundation forenrolment in STEM-related majors in higher education.
This is furthered by more recent policies such as the
National Education 2030 Roadmap and the New
Generation School Policy aiming at enhancing thepresence of educational innovation throughout the49
50

Kem et al. 2019.
Ibid.

school system and empowering the education system
to effectively compete with other education systems in
the ASEAN region.
However, while impressive progress continues, anumber of challenges remain to be addressed,
including: equitable and inclusive access for children
to all levels of education and training; the transition
from primary to lower-secondary and high drop-out
rates at the lower-secondary levels; quality issues frompre-primary to tertiary educators; and life-longlearning.
Furthermore, although MOEYS long published a
Master Plan for ICT in Education, Cambodia still lags
behind in ICT infrastructure in education due to the lackof ICT trainers, network infrastructure andtechnological equipment. According to the Global
Education Monitoring Report in 2014, only 8 per centof public primary and secondary schools have accessto stable electricity to support ICT integration inclassrooms and only 7 per cent are connected to theInternet. Moreover, Cambodia also has a very low
learner-to-computer ratio, where 500 or moresecondary pupils shared a computer. 51
50F

51

Konrad-Adenauer-Stiftung Cambodia 2019, p. 31.

The Science, Technology and Innovation Ecosystem of Cambodia — 22

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM

Higher education institutions havestarted focusing on entrepreneurshipand innovation

Contrary to some perceptions and a large body ofliterature, 53 there have been significant developments
on improving the entrepreneurial ecosystems within
the university environment, notably at RUPP and NUM(see box 4.3). 54 Both universities have important rolesin the national education ecosystem. Universities are
exploring different models for supporting student
learnings and projects. Four universities, namely NUM,
ITC, Paragon University (previously Zaman University)and University of Puthisastra, established on-campus
innovation labs with the purpose of spurring
entrepreneurial mindsets amongst students. However,
the incubator of the ITC is considered, by far, the mostadvanced and to be taken as a model.
52F

53F

Most of the 118 higher educational institutions in
Cambodia, both public and private, offer businessrelated courses, and about 30 per cent offer
information technology and engineering programmes.
Although business is one of the most popular majors,
the emphasis on entrepreneurship education is a fairly
recent phenomenon. In recent years, in response toincreasing interest in technology business, a few
leading universities in Phnom Penh have taken steps tobridge entrepreneurship and technology education. 52
51F

Many significant initiatives have been enabled in recent
years. Some universities, such as the Royal University ofPhnom Penh (RUPP), the National University ofManagement (NUM), the Institute of Technology
Cambodia (ITC) and NIPTICT established universitybased incubation and start-up centres as well as
industry linkage offices.

The National University of Management has beenrunning annual business competitions, a start-up
simulator for university students and recent graduatessince 2006. ITC, Norton University, and NIPTICT
partner with Emerald Hub and SmallWorld Ventures toimplement start-up bootcamps for students. Universityof Puthisastra partnered with Trybe to extend the coworking space and innovation lab space into a student
innovation centre.

Box 4.3. Support for entrepreneurial activities in universities
Development of the entrepreneurial ecosystem at the Royal University of Phnom Penh (RUPP)

52
53

•

2011: The Faculty of Development Studies establishes several courses on social entrepreneurship andinnovation for its master’s degree programme.

•

2013: The Faculty of Engineering introduces several formal entrepreneurship courses – Technology
Entrepreneurship, Business Management, and Entrepreneurship – and internships in industry forundergraduates. The faculty and its three departments establish good foundations for industry
engagement in research, curriculum development and internship.

•

2017: Under the Southeast Asia Social Innovation Project, the Social Innovation Support Unit (SISU) is
established as “a hub for research, education and training, incubation and dialogue on social
enterprise, cooperatives, social innovation, corporate social responsibility and broader social economy
organizations in Cambodia and the region.” The mission of SISU is to help social entrepreneurs andother social changemakers (including government, non-government and private sector actors) tocontribute to a sustainable and inclusive economy in Cambodia. SISU is managed and hosted by the
Faculty of Development Studies. The Faculty of Development Studies introduces undergraduate
courses on entrepreneurship and cooperatives.

•

2019: The Techo Startup Centre is launched as a national agency to serve as an incubator, accelerator,
research and development centre, and internship programme. Located on RUPP campus but serving
all universities by linking them with industry, this Centre serves as a venue for students to do internship,
research and have access to mentors. In addition to students, small and medium enterprises also standto benefit from the centre’s services. In the same year, the University-Industry Cooperation Centre(UICC), funded by the European Union, is established. The aim of UICC is to equip students “withentrepreneurship skills, innovation skills, cross-cultural competence, and employability skills” andestablish comprehensive university-industry linkages in Cambodia.

Kem et al. 2019, p. 20.
Sam and Dahles 201723 — The Science, Technology and Innovation Ecosystem of Cambodia

54

CDRI 2019.

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM
The entrepreneurial ecosystem at the National University of Management
The vision of the National University of Management is to be the leading university in Cambodia inentrepreneurship and innovation. To that end, it has launched two new academic programmes – a four-year
undergraduate programme on entrepreneurship and innovation, and a one-year master’s programme on
global innovation management –and established partnerships with multinational companies throughseminars and training on innovation.
•

The innovation lab (iLab) serves as an incubator and a venue for the National Business Model
Competition. It offers state-of-the-art office space and technologies, including 3D printing for rapid
prototyping and virtual reality for teaching and learning. Part of the regional network of the Social
Innovation Support Unit, it is an example of a public-private partnership between the National
University of Management and Smart Axiata, a major telecom company.

•

iLab hosts several start-ups. Book Bank was started by MSK, a second-year student in International
Business. Her aim was to promote the culture of reading across the country by providing a book loan
and delivery service. Multi-award winning Demine Robotics was developed by RCY during his 4th year
design project to make demining work in Cambodia safe and more efficient. This robotic solution is
now being used in Canada and Cambodia.

•

The National Business Model Competition is an entrepreneurship competition for university students
and recent graduates in the fields of technology, medicine/healthcare, education, agriculture andgeneral business. The event is one of the longest running competitions in Cambodia and has raised
awareness and excitement among many undergraduates in Phnom Penh.

In 2018 alone, more than 20 start-up programmes foruniversity students and graduates were organized.
Moreover, due to better external, public and private
sector funding, university-industry linkages havegained interest and commitment from institutional
leaders. In particular, formal and active partnerships
betweenacademic
institutions,intermediaryorganizations and the private sector (ITC-SmallWorld,
RUPP-Impact Hub, National University of ManagementSmart Axiata) in curriculum development, networking
and resource sharing. These partnerships build bothformal and informal networks for entrepreneurship.
Intermediary organizations (e.g., SmallWorld, Impact
Hub, incubation and start-up centres, industryuniversity relations offices) provide technology andentrepreneurial support services, help bridge
communication gaps and forge partnerships between
education and business institutions.
Corporate funding, most notably from Smart Axiata
and EZECOM, and other development partners, suchas the United States Agency for International
Development (USAID) and the European Union, havemade it possible for universities to offer a dedicatedon-campus facility such as innovation labs for students
to work for technology projects. Between 2013 and2019, Development Innovations was a USAID-funded
project that helped civil society organizations,
technology companies, social enterprises and young
innovators to design and use ICT solutions and employ
innovative
processes
totackleCambodia’s
development challenges. The services and activities

55

funded by Development Innovations ranged fromdigital skills courses to business incubators andaccelerators, and social media campaigns to youth
professional
development
programmes.
With
universities in the country generally failing to teachresearch skills and promote innovation, these new
initiatives seek to fill gaps in students’ academic andprofessional formation, particularly for R&D, innovationand the promotion of entrepreneurial and start-up
culture. 55
54F

In 2018, the World Bank allocated $92.5 million
through the Higher Education Improvement Project toimprove the quality and relevance of higher education
and research mainly in STEM and agriculture. This
programme is composed of four components:
improving teaching and learning capacity, improving
research in STEM and agriculture, strengthening
sectoral governance and project management and acontingent emergency response. The project will end
in 2024.

Recent achievements in technical andvocational education and training
In recent years, there have been some achievements
such as the implementation of the National Policy
Framework on Technical and Vocational Training
2017–2025, the Cambodia Qualification Framework,
National Competency Standards and Competency-

Konrad-Adenauer-Stiftung Cambodia 2019, p. 31.

The Science, Technology and Innovation Ecosystem of Cambodia — 24

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM
based Curriculum, framework for accrediting students
from TVET moving to higher education institutions; theestablishment of model centres for technical training inmany places and the national technical and vocational
training day (TVET day).
These actions are an opportunity for the developmentof new skills and the diversification of the Cambodian
labour market. Other actions will most likely be
implemented until 2024 in the context of the Higher
Education Improvement Project.

Research has improved over the past
twenty years
Research in Cambodia is mainly concentrated inuniversities and public research institutes, that produce
scientific publications. This production is dynamic andfollowing an upward trend (albeit from a small base),from little to no publications before the year 2000 toaround 500 publications a year in 2018, 80 per cent of
which being scientific articles. Box 4.4 summarizes the
publication trends for Cambodia in the past 20 years.

Box 4.4. Key publication trends in Cambodia, 2000–2019
There were nearly 5,000 scientific publications (articles, book chapters, ...) in the past 20 years with authors
or co-authors affiliated to Cambodian research institutions. Some 80 per cent of the documents arearticles.*•Cambodia ranks twenty-third in Asia based on scientific documents published in 2019 (and nineteenth
if considering medical publications only).**•RUPP is one of the top 10 research institutions, in terms of publications with authors or co-authors
affiliated to Cambodian research institutions (2000–2019), and the only Cambodian one.

•

The top 10 research areas (2000–2019) are medicine, agricultural and biological sciences, immunology
and microbiology, social sciences, environmental sciences, biochemistry, genetics and molecularbiology, engineering, earth and planetary sciences, nursing and multidisciplinary.

•Among the top 10 researchers, in terms of publications, affiliated to Cambodian research institutions(2000–2019), two are Cambodian (D. Socheat and V. Saphonn). ***Notes* Elsevier's Scopus, the largest abstract and citation database of peer-reviewed literature.
** The SCImago Journal and Country Rank is a publicly available portal that includes the journals and country
scientific indicators developed from the information contained in the Scopus® database (Elsevier B.V.). These
indicators can be used to assess and analyze scientific domains.
*** Elsevier's Scopus, the largest abstract and citation database of peer-reviewed literature.

Cambodia is extremely connected to (and reliant on)international research collaboration. Between 2008
and 2013, 96 per cent of Cambodian articles involved
at least one international co-author, a trend which may
explain the high citation rate. Cambodians count both
Asian (Thailand and Japan) and Western scientists(United States, United Kingdom and France) among
their closest collaborators. 56
5F

56

UNESCO 2015, p. 711.

25 — The Science, Technology and Innovation Ecosystem of Cambodia

In terms of connectivity, CamREN is the country’s
National Research and Education Network (aspecialized Internet service dedicated to supporting
the needs of the research and education communities
within the country). The Network Operation Center of
CamREN is located at ITC. By law, representatives from
the Ministry of Culture and Fine Arts, MOEYS, MEF andthe Ministry of Mines and Energy are members of theboard.

CHAPTER 4: STRENGTHS OF THE NATIONAL INNOVATION SYSTEM

4.5 FAVOURABLE FRAMEWORK CONDITIONS
Following the 2018 general election, MEF beganrolling out new initiatives to support the start-up andMSME sector with input from General Department of
Taxation. A highly anticipated policy change was
implemented in October 2018 with tax breaks for
SMEs, including ICT as one of six priority sectors. All
newly registered SMEs are eligible for the three-year
tax break. To be eligible for the five-year break, newly
registered SMEs must use at least 60 per cent local raw
material, increase the number of employees by 20 per
cent or be located in the SME cluster zone.
To note also, the Ministry of Commerce enacted theConsumer Protection Law, the E-Commerce Law and
the Competition Law in 2019 to support thedevelopment of e-commerce activity within Cambodia
and regionally, by providing greater legal certainty anddeepening consumer protection in the country.
The Institute of Standards of Cambodia is the national
standards body responsible for the preparation andpublication of Cambodian standards and guidelines
for products, commodities, materials, services andoperations. The main functions and duties of ISC are as
follows:
i. To prepare national standards for products,
commodities, materials and services;

iii. To establish and maintain laboratories, libraries
and other equipment to promote standardizationand quality;
iv. To certify the conformity and safety of products,
commodities, substances, materials andequipment for local consumption and export; tocertify the conformity of production and services
management systems;
v. To provide training and consultancy services topromote standardization and quality;
vi. To recognize laboratories, facilities and otherequipment locally and abroad ;vii. To assist and protect consumers in safety andquality of goods and services ; andviii. To cooperate with local authorities, industries,
commercial and trade sectors to ensure
implementation of standards.
The Institute of Standards of Cambodia participates in
the International Electrotechnical Commission Affiliate
Country Programme, and it is a member of the ASEAN
Consultative Committee on Standards and Quality.
Cambodia became a subscriber member of ISO in
January 1995 and a correspondence member in 2016.

ii. To operate conformity assessment schemes inaccordance with provisions set out by law;

The Science, Technology and Innovation Ecosystem of Cambodia — 26

CHAPTER 5: WEAKNESSES OF
THE NATIONAL INNOVATION SYSTEM

CHAPTER

5

WEAKNESSES OF

THE NATIONALINNOVATION SYSTEMThe NIS of Cambodia presents a number of
weaknesses, such as challenges in the governance of
STI, an unbalanced industrial ecosystem andinsufficient human resources and knowledge

generation (see figure 5.1). Such weaknesses could
limit the impact of policy interventions, therefore,
initiatives to address them must be prioritized in thenext 10 years.

Figure 5.1. Weaknesses of the national innovation system of Cambodia
Framework conditions
Financial environment; taxation andincentives; propensity to innovationand entrepreneurship; mobility

DemandConsumers (final demand)
Producers (intermediate demand)

Science &innovation culture
and skills in STEM
Knowledge
generation

Business system

Education andresearch system

Largecompanies

Professional
education,
training

Mature SMEs

Intermediaryinstitutions
Research
institutes
Brokers

Highereducation andresearchNew
technologybased firms

Public sector
research

Infrastructure
Banking,
venturecapitalIntellectual
property,
information
services

Innovation
supportStandards andnorms

Note: A darker shade of red indicates a relatively weaker component.

27 — The Science, Technology and Innovation Ecosystem of Cambodia

Political system

Government

GovernanceResearch,technology anddevelopment
policies

Persistentgaps

Innovation
capabilities of SMEs
STI collaboration,
networks

Governance & M&E

Skills Development
FundCHAPTER 5: WEAKNESSES OF
THE NATIONAL INNOVATION SYSTEM

5.1 STI GOVERNANCE FACES MANY DIFFICULTIESThe lack of culture of coordination
between government offices

Enterprises of Cambodia, there are an estimated530,000 SMEs in the country. 58 However, lowcompliance with regulations and uneven regulatory
enforcement has meant that only 39,141 SMEs had
registered with the Ministry of Industry and Handicraftat the end of 2016. 59 This low rate of compliance withregulations can potentially lead to difficulties insupporting SMEs and limit the effect of public action on
private innovation and R&D. Specifically, it will bedifficult to tailor SMEs support instrument andprogrammes to the needs of SMEs that are not wellknown.
57F

Innovation comes from networking, collaboration andthe exchange of ideas, scientific knowledge, people
and actions across organizations and sectors. However,
government bodies in Cambodia seldom coordinate.
Interviewed ministries reported about the difficulty ofproperly communicating among ministries. The
diffused responsibility for science and technology
across 11 key ministries presents challenges for
effective policy development and governance.
Although there is evidence of growing collaboration
across some key agricultural institutions, such as the
Cambodian Agricultural Research and Development
Institute and the Royal University of Agriculture,difficulties persist in extending this type ofcollaboration to a broader range of institutions. 57
56F

The governance of the national innovation system in
Cambodia remains fragmented between the different
ministries and the roles of MISTI, of the NCSTI and of
ASEAN Committee on Science, Technology andInnovation are yet to be appropriated by government
stakeholders.

Informality of SMEs remains achallenge

58F

A recent shift in industrial development
benefiting the non-poor
While poverty continues to decline in Cambodia, thedrivers of poverty reduction are changing. Though
impressive gains continued to be made in recent years,
the reduction in poverty during 2013–2017 was lessthan during 2009–2013, mainly because economic
growth benefited the non-poor more, while the rate ofurban poverty stagnated compared to the earlier
period. Consumption per capita by income groupduring 2013–2017 grew at 13 per cent for the bottom
40 per cent, while it expanded at 22 per cent for the top
60 per cent. The non-agricultural wage played a moresignificant role in reducing poverty during 2013–2017
compared to 2009–2013 when household agriculture
was the primary driver of poverty reduction. 60
59F

Many SMEs in Cambodia are still reluctant to formalize
their statuses (they remain in informality). Hence there
is little data available about them and their needs,
which hampers public sector interventions. According
to the Federation of Associations for Small and Medium

Increased investment in NIS, mainly concentrated inurban areas, can lead to greater inequality between
urban and rural populations and an increase ingeographic imbalances.

5.2 AN UNBALANCED INDUSTRIAL ECOSYSTEMIn Cambodia the industrial base is characterized by the
missing middle: a small percentage of large
enterprises account for the majority of turnover andemployment. The number of informal businesses in
Cambodia is very high.
Most SMEs in Cambodia are traditional and will face
tremendous difficulties in modernizing. Compared toneighbouring countries, digital adoption bybusinesses is at a nascent stage in Cambodia. 61 In thiscontext, public policies should focus on promoting a
new generation of entrepreneurs, digitizing SMEs andproviding an enabling business environment. On the
490,000 SMEs in Cambodia, there are about 200–300
active technology start-ups.
60F

57

60

58

61

Ibid.
Phnom Penh Post 2017.
59
Ministry of Industry and Handicraft 2016.

World Bank 2019, p 13–14.
Pidor 2018.

The Science, Technology and Innovation Ecosystem of Cambodia — 28

CHAPTER 5: WEAKNESSES OF
THE NATIONAL INNOVATION SYSTEM
Additionally, there is a strong rural predominance inCambodia, as about 80 per cent of the population livein rural areas. Structurally, innovation develops around
R&D infrastructure, networks and clusters that are more
often found in cities, thus a mismatch between theurban aspect of R&D and the rural aspect of most of the
population hinders STI development.
Peripheral regions of Cambodia, which lack access tomarkets, generally lag behind others. Phnom Penh andits neighbouring core provinces are the mosteconomically vibrant areas by some margin. Provinceswith high trade potential and an ability to benefit froman open economy – such as those on the south-east
Vietnamese border, those close to the Sihanoukvilleport and others on the Thai border – have also grown
rapidly in recent years.
A dissociation between start-ups and the Cambodian
economy would be a threat. The vast majority of startups are working on urban solutions, with very few
products aimed at mass or rural markets. This is also
true for solutions that target lower socioeconomic
market segments, in spite of high smartphone
penetration and cheap data rates. This represents anadditional opportunity considering future market
participation. Although several platforms, apps andservices are bilingual or fully Khmer language, themajority still use Anglophone solutions.

Diversity in the technology ecosystem is equallychallenging in Cambodia. Of all the technology startup founders who voluntarily participated in Mekong
Strategic Partners and Raintree Development researchon the Cambodian technology ecosystem, over 80 per
cent were male. While they did not survey full teamgender diversity, it is likely that this gender bias is evenstronger in start-up teams.
Finally, external influences (FDI, donor countries) areoften significant to Cambodian society.
While these dynamics may not be surprising, they
represent real long-term commercial challenges if
Cambodia aspires to truly build its digital economy. In
order to be sustainable and create true value in thedomestic economy, the technology ecosystem needs
to actively build local talent to avoid dynamics likethose found in sub-Saharan Africa, where a mere 9 percent of all venture capital funds are awarded tofounders native to the region (versus expatriate
founders building start-ups in those markets).
Overcoming these challenges will require public andprivate sector solutions driven by potential
partnerships, to achieve truly optimal commercial
environment.

5.3 LACK OF SCIENTIFIC AND ENTREPRENEURIAL
CULTURE, OF PROFESSIONAL SKILLS AND OF
EXCELLENCE IN RESEARCH
Science, digital and entrepreneurship
culture is weak
Awareness about innovation and science in Cambodia
is still limited. Furthermore, social norms related togender relations continue to constrain thedevelopment of women’s potential and hinder theirempowerment in economic, social, public and politicallife. Women are more engaged than men in the formal
labour market (about 56 per cent of paid employees
are women). This is partly because women represent
85 per cent of the garment sector labour force. 62

However, there are major gender gaps in earnings andjob quality. Most women in the garment sector are
engaged in assembly, while the higher-paying quality
control and supervision work is done by men. In 2014,
the gender earnings gap was up to 30 per cent among
those with low education. 63 The general attitude ofrural parents towards the education of their daughtersresults in low participation of girls in STEM fields.
62F

People in Cambodia are often risk-averse, mainly
because traditional Cambodian approaches toparenting and education do not necessarily encourageasking questions and risk-taking behaviour. Studies

61F

62

International Labour Organization, 2019.

29 — The Science, Technology and Innovation Ecosystem of Cambodia

63

World Bank 2016b.

CHAPTER 5: WEAKNESSES OF
THE NATIONAL INNOVATION SYSTEM
have also indicated that this risk aversion constrainsinnovation. Indeed, research found innovation and risk
appetite to be the exception, rather than the rule,
across Cambodia. 64 There is a general “avoidance ofrisky enterprise in favour of expansive social
investments and … higher education through which
one moves into the professions rather than business”. 65
63F

64F

had difficulty recruiting staff, followed by logistics,
warehousing and transportation (64.1 per cent), health(58.3 per cent), education (53.0 per cent), food andbeverage (51.7 per cent), finance and insurance (50.7
per cent). The least affected by recruitment difficulties
were ICT (36.5 per cent), construction (34.4 per cent),
garment, footwear and apparel (29 per cent), andrubber and plastics (7.3 per cent). 67
6F

To prepare for the digital economy, most firms say they
are likely to invest in improving their existing products
and services and in improving the capacity of their staff.
However, almost half of the firms say they do not havea clear training plan and around 30 per cent say they
will provide on-the-job training. Almost everyone
expresses a concern that their staff will leave thecompany after receiving training. 66 Therefore, it is to be
anticipated that firms will not invest sufficiently intraining and skills development for Cambodia to reachits full innovative potential.
65F

Higher education system does notprovide enough graduates with required
skills
The current situation in higher education reveals an
alarming
mismatchbetweeneducation
andemployment and a lack of scientific culture. According
to various reports, the areas of study that are popularamong Cambodian university students are social
sciences and business-related majors. Only a small
percentage of students are studying science,engineering and agriculture; areas of study considered
to be key skills to foster the growth of the Cambodian
economy. Further, there are concerns about the qualityof higher education provision across the country.
The lack of skills in the labour market has risen steadily
in recent years. A survey conducted by the National
Employment Agency in 2017 found that 47.5 per centemployers experienced recruitment difficulties, ofwhich around half were caused by a low number ofapplicants with required skilled and the lack of work
experience or qualification.
Recruitment difficulties are most pronounced in theaccommodation
sector(including
short-term
accommodation activities and camping parks), 77.9
per cent of accommodation employers stated that they

When it comes to skills that employers look for, foreign
languages (especially English), technical or practicalskills, customer handling, oral communication,
problem-solving and teamwork skills come out on top.
Jobseekers who do not possess one or several skills
demanded by employers will find it particularly difficult
to find a job.
Almost all participants in the 2019 study “Innovationand Entrepreneurship Ecosystem in Cambodia: The
Roles of Academic Institutions” recognized that manybusinesses struggle to find workers and managers withthe right skills and talents, as well as the difficulty ofaddressing this issue. 68 In the words of an academic,“industry wants us to produce qualified graduates, but
it does not want to have any involvement. It just waits torecruit qualified graduates”. 69 The lack of dialogue
between education and training providers, industry
leaders and employers results in both a lack of skilled
graduates in some occupations and an oversupply inothers. The Cambodian education system also needs
behavioural development among graduates, such as
specific risk-taking training to encourage graduates to
get out of their comfort zone.
67F

68F

As of 2019, the majority of the 50,000 Cambodian
workers with strong digital skills were employed inlarge traditional companies (banks, retailers,industrials, etc.). Those who are not mostly provide
information technology services for web andapplications companies. 70
69F

Universities and support programmes report growinginterest among young people, especially recent
graduates, who are excited about the idea of building
their own start-ups immediately upon graduating,rather than working for another company.

64

68

65

69

Lyne, Ngin and Santoyo-Rio 2013.
Smith-Hefner 1999.
66
Konrad-Adenauer-Stiftung Cambodia 2019.
67
National Employment Agency 2017.

See CDRI 2019. Similar findings are revealed in Kem et al. 2019.
Sam and Dahles 2017, p. 17.
70
See Cambodian_Tech_Startup_Report_Final_150319.pdf(squarespace.com).

The Science, Technology and Innovation Ecosystem of Cambodia — 30

CHAPTER 5: WEAKNESSES OF
THE NATIONAL INNOVATION SYSTEM
In the job market or after launching a start-up,
developing new skills can be difficult if there is noaccess to mentorship opportunities.

TVET faces pressing challenges toincrease technology capacities in SMEs

The roles of networks, mentorship and role models,
worker talent and investment capital are key in thedevelopment of STI. In Cambodia, although young
local entrepreneurial role models and innovation
centres have provided some support, including
mentorship and apprenticeship for university students
and would-be entrepreneurs, coaching support islimited in scale and structure.

Another pressing challenge for Cambodia will be todevelop human resources at the vocational andtechnical level to enhance the technological capacity ofthe many SMEs active in agriculture, engineering andthe natural sciences. Large foreign enterprises in
Cambodia that are the main source of value-addedexports tend to specialize in electrical machinery andtelecommunications. Technology transfer from theselarge operators towards small enterprises and acrossother sectors is currently incomplete and facilitating
this type of technology transfer would increase skills
and innovation capability in the country. 75

Despite some forms of active partnerships among
education institutions, such as universities working
together for annual business plan competitions,
universities mention the lack of meaningful
partnerships with other stakeholders in the technology
start-up ecosystem. 71
70F

Public universities note that challenges lie inprogramme development, personnel with experiencein building meaningful communities and managing
innovation space, and financing support for
programmes and student projects. 72

74F

Along with important achievements, TVET in
Cambodia still faces major challenges as indicated bynational stakeholders interviewed in the context of thisreport:•Insufficient technical training at both intermediate
and advanced levels;•

Skills, curriculum, professionalism and the leveland quality of technical training cannot fully
respond to the market demand; and•Private sector involvement in the technical andvocational trainings remains limited.

71F

More generally, Cambodia faces a skills shortage in
STEM. Cambodia has only 17 science and technology
researchers and 13 technicians per million
inhabitants. 73 College graduates specializing inbusiness, finance, foreign languages and liberal arts
account for more than 70 per cent of Cambodian
higher education graduates. In addition, the quality ofscience and mathematics in Cambodia is hindered by
a combination of a lack of qualified teachers for scienceand mathematics, poor teaching and learning facilities
in upper secondary schools and lower interest andattitudes of the students towards science andmathematics. 74 As a consequence, Cambodia wasranked eighty-sixth by the World Economic Forumamong 100 countries with regards to having skilledhuman resources in digital, science and management
ready for the fourth industrial revolution.
72F

73F

Lack of attractiveness and excellence inresearch
Knowledge generation in Cambodia remains limited.
While the Government has focused investments on
supporting innovation at the enterprise level so far,investment in research activities is still low,
coordination across national research institutions andministries on the research agenda is weak, and links
between research institutions and the private sector
are still nascent.

71

74

72

75

Kem et al. 2019, p. 20.
Ibid.
73
Government of Cambodia 2013.

31 — The Science, Technology and Innovation Ecosystem of Cambodia

Ministry of Education, Youth and Sports 2016.
See De la Pena and Taruno, 2012 and UNESCO 2015, p. 711.

CHAPTER 5: WEAKNESSES OF
THE NATIONAL INNOVATION SYSTEM

5.4 NASCENT INFRASTRUCTURE AND FRAMEWORKCONDITIONS TO BE FURTHER STRENGTHENED
Incubation facilities and access tofinance for early-stage companies are
not optimal
While programmes supporting businesses in earlystage of development are becoming more available,
there are limited incubators and accelerators for midstage start-ups.
Stakeholders identified access to investment capitaland funding as a major challenge for start-up founders.
In general, there is a low level of understanding of theneeds of early-stage and growing start-ups among
investors, including co-investors and angel investors.
The low level of sophistication in doing business andthe lack of extensive experience of founders is achallenge for the development of innovation in the
country. Investors observe that early-stage start-ups
pitch to them before even talking to customers or
gaining strong consumer insight. Founders who
attended accelerator or mentoring programmes often
overly focus on fulfilling competition requirements andless on creating sustainable business progress after the
programme.

Legal and financial systems are often complex andambiguous for start-ups and SMEs. Simplified
regulations and policies, particularly for start-ups andinnovative SMEs, would help further encourage startups and innovation in firms.

Intellectual property rights andinformation services
Cambodia’s intellectual property laws are relatively
more advanced than those of other ASEAN member
States, but enforcement is uneven and challenging.
Cambodia’s patent authority lacks sufficient funding
and expertise to examine patent applications and has
been collaborating with the intellectual property
offices of Singapore and Japan to grant patent
protection to applicants who have already registered
their patents in those countries. 77 There is still a lack ofskilled officials who can process and respond swiftly.
Public awareness about intellectual property is still
limited, and there is a lack of facilities to support
intellectual property processes. 78 The application,
registration and enforcement mechanisms reportedly“remain relatively nascent” in Cambodia, despite some
improvement in recent years. 79 Against thisbackground, the Industrial Development Policy
includes specific goals to improve the effectiveness ofthe process of registering industrial property rights(including by seeking to recognize registration agentsof partner countries) and to increase automation ofregistration processes (see clause 6.3 B of the Policy).
76F

7F

78F

Formal financing for start-ups from credit institutions is
also lacking. The venture capital market and angel
investors are still nascent, with few active fundmanagers. The small size of the Cambodian market is aconstraint, although it could offer the potential to
become a marketplace to test innovations before
rolling them out on the regional ASEAN market. 76
75FYoung start-up founders lack an understanding of basic
financing models at a fundamental level, such as thedifference between equity and debt, different terms forphased financing, performance conditions of fundrelease, and more. This is partially reflective of the levelof business education currently available via formal
education or through entrepreneurship support
programmes.

76

An increased number of technology-oriented trade visits fromregional technology communities was observed in the “Cambodia’s
Vibrant Tech Startup Ecosystem” report, highlighting therecognition of Cambodia as a “test-bed” market for piloting new
ideas.
77
OECD, ERIA and the Association of Southeast Asian Nations
2018, p. 245.

The Law on Patents, Utility Model Certificates andIndustrial Designs (2006) has had limited practical use,thus far, except for larger foreign enterprises operatingin Cambodia. Indeed, since 2011, the annual numberof patent applications filed in Cambodia is on average
77. Out of 620 patent applications between 2011 and2018, only 5 were filed by residents. 80
79F

Information about funding, as well as legal and tax
advice are extremely important for SMEs but highly

78

Government of Cambodia 2019.
DFDL 2015.
80
Seewww.wipo.int/ipstats/en/statistics/country_profile/profile.jsp?code=
KH.
79

The Science, Technology and Innovation Ecosystem of Cambodia — 32

CHAPTER 5: WEAKNESSES OF
THE NATIONAL INNOVATION SYSTEM
inaccessible. Legal and tax processes for start-ups andtechnology appears to be difficult for start-up founders
to manage. They report struggling to find up-to-date,definitive resources that guide them through policy,
instead of straining their resources with complexity or
ambiguity.
Start-ups ranked the provision of co-working space as
the least significant support they require, and note thatinvestment, legal and tax consultation services, as wellas access to investment professionals as mentors or
strategic partners are far more important.

33 — The Science, Technology and Innovation Ecosystem of Cambodia

Norms and certification
A discussion of the Institute of Standards of Cambodia
and its functions is provided in section 4.5.
National stakeholders report that information aboutnorms and certifications are not accessible for
Cambodian start-ups and SMEs, and that the norms
and certification system is not fully operational. This
limits enterprise opportunities for entering regional
value chains and developing products with ageographical indication.

CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONSCHAPTER

6

CONCLUSIONS AND

RECOMMENDATIONS

Cambodia’s STI Policy seeks to promote STI as a driving
force for inclusive and sustainable socioeconomic
development. It contributes to the achievement of
Vision 2050 of becoming an upper-middle income
economy by 2030 and a high-income economy by2050 and of the CSDGs. The objectives of the STI Policy
are to strengthen the STI foundation, improve theenabling environment and develop an STI ecosystem
for sustainable development, and enhance the qualityof people’s lives, at all levels and in all sectors. The STI
Policy seeks to achieve these objectives by adopting
and adapting technologies and promoting further
innovation.
The promotion of STI is embedded in RS-IV, Vision
2050, the National Strategic Development Plan 2017–2023 and the Industrial Development Policy 2015–
2025.
The NIS of Cambodia is under development. Based on
its current strengths and weaknesses, it will benecessary to do the following to further strengthen the
NIS:
Enhance the governance of the STI system. STI
governance is key and has been recently restructured
with the creation of MISTI in March 2020. It will be
important to consolidate this new structure, while
reducing fragmentation and silos. This will requireclarifying the role of MISTI and other stakeholders,strengthening awareness and capacities of theGovernment to implement the STI Policy, andmonitoring and evaluating advances made in the
promotion of STI.
Build human capital in STI. The current demand forinnovation is low and there is a limited culture ofscience and entrepreneurship. It will be critical topromote scientific, digital and entrepreneurship

literacy, and the technological readiness of the youth,
starting in basic education. Teaching STI from a very
early age will help create a new generation of scientists
and innovators. STEM skills will also need to bepromoted in higher education. In addition, there isroom to strengthen teaching and collaboration with theprivate sector in TVET centres. Strategic developmentof human resources is at the foundation of promoting
STI.
Strengthen research capacity and quality. There is astrong need to build the capacity of the higher
education and research system to conduct high-quality
R&D activities of national interest and in priority
sectors. This will require developing a national
research agenda with the academic community and inclose collaboration with the private sector, providing
funding to support excellence in science, supporting
the internationalization of research and encouraging
collaboration with the private sector.
Increase collaboration and linkages between
different actors. Innovation comes out from theexchange of ideas, across different people,
organizations, sectors and scientific domains.
Intermediary organizations and knowledge-broker
institutions are essential to facilitate such exchanges.
Hence, it will be critical to promote and sustain
incubation and acceleration facilities, technologicalplatforms open to the private sector, and innovative
clusters fostering collaboration to support innovationin SMEs and enhance their absorptive capacities.
Foster an enabling environment for innovation.
Supporting innovation capabilities and increasing theabsorptive capacities of enterprises requires financing
and promoting intermediary structures that nurture
new enterprise (start-ups), support technology transfer,and promote domestic technologies. It needs fostering

The Science, Technology and Innovation Ecosystem of Cambodia — 34

CHAPTER 6: CONCLUSIONS AND RECOMMENDATIONS
institutions that provide technology and quality
services (i.e., norms and certification) to enterprises. It
also requires increasing access to finance forinnovation activities, including through leveraging
investments from the private sector and attracting
funding from donors. Incentivising FDI that supports

35 — The Science, Technology and Innovation Ecosystem of Cambodia

the building of domestic technological capabilities,
facilitating the importing of technology equipment andpromoting intellectual property rights are additional
avenues for fostering an enabling environment for
innovation.

REFERENCESREFERENCES
Cambodia Development Resource Institute (CDRI) (2019). “Innovation and Entrepreneurship Ecosystem in
Cambodia: The Roles of Academic Institutions”.
Cambodia, Government of Cambodia (2013). National Science and Technology Master Plan 2014–2020.
Available at http://snt.gov.kh/wp-content/uploads/2016/03/Master-Plan-2014-2020.pdf.
_____ (2019). Cambodia’s Voluntary National Review 2019 on the Implementation of the 2030 Agenda for
Sustainable Development.
Cambodia, Ministry of Education, Youth and Sports (2016). Policy Guidelines for New Generation Schools.
Cambodia, Ministry of Industry and Handicraft (2016). Cambodia Industrial Development Policy 2015–2025.
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APPENDIX

APPENDIX
LIST OF ORGANIZATIONS CONSULTED
Ministry of Industry Science Technology and Innovation (MISTI)-General Department of Science Technology of Innovation-National Institute of Science Technology of Innovation-General Department of Industry-General Department of SME and Handicraft-Institute of Standards of Cambodia
Advisory Board Members of National Council of Science
Technology and Innovation

Council for the Development of Cambodia (CDC)
Techo Startup Center (TSC)
SME Bank of Cambodia
Federation of Associations for Small and Medium Enterprises of
Cambodia (FASMEC)
Cambodia Chamber of Commerce (CCC)

Former National Science and Technology Council
Institute of Technology of Cambodia (ITC)
Ministry of Economy and Finance (MEF)-General Department of Economic Policy and Public FinanceRoyal University of Phnom Penh (RUPP)Supreme National Economic Council (SNEC)Royal University of Agriculture (RUA)

Ministry of Foreign Affair and International Cooperation(MFAIC)-General Department of International Cooperation-National Institute of Diplomacy and International Relations

National Institute of Post and Telecommunication and ICT(NIPTICT)

Ministry of Education, Youth and Sports (MOEYS)-General Department of Higher Education-General Department of Policy and Planning

Cambodia Development Research Institute (CDRI)

Ministry of Post and Telecommunications (MPTC)-General Department of ICT

Asian Vision Institute (AVI)

Ministry of Commerce (MOC)-General Department of International Trade-General Department of Trade Promotion

National Polytechnic Institute of Cambodia (NPIC)

Kirirom Institute of Technology (KIT)

Impact Hub Company
Small World Company
Amru Rice Company

Ministry of Labour and Vocational Training (MLVT)-General Department of TVET
Ministry of Agriculture, Forestry and Fisheries (MAFF)-General Department of Agriculture

GGear Group Company
ISI Group Company
Mong Reththy Group Company

Ministry of Health (MOH)-General Department of Health

Chip Mong Group Company

Ministry of Planning (MOP)-General Department of Planning-National Institute of Statistics

Royal Group Company

Ministry of Public Work and Transportation (MPWT)-General Department of Logistics-General Department of Planning

Bongloy Company

Ministry of Interior (MOI)-General Commissariat of National Police

Asian Development Bank (ADB)

Wing Company

Japan International Cooperation Agency (JICA)

World Bank
Ministry of Defense (MOD)-Royal Cambodian Armed Forces
Ministry of Civil Service (MCS)The Science, Technology and Innovation Ecosystem of Cambodia — 38

APPENDIX

39 — The Science, Technology and Innovation Ecosystem of Cambodia