Advancement and Aggressiveness: A WBI Point of view Carl Dahlman ECA Development and Intensity Workshop World Bank Estab

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Advancement and Competitiveness: A WBI Perspective Carl Dahlman ECA Innovation and Competitiveness Workshop World Bank Institute. February 18,2004. Structure of Presentation. Learning and Growth in Historical Perspective The Knowledge Revolution Implications for Developing Countries

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Advancement and Competitiveness: A WBI Perspective Carl Dahlman ECA Innovation and Competitiveness Workshop World Bank Institute February 18,2004

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Structure of Presentation Knowledge and Growth in Historical Perspective The Knowledge Revolution Implications for Developing Countries High Growth Performance and Knowledge Strategies Benchmarking the World Knowledge Economy Innovation in Developing Countries Challenges to Developing Countries Challenges to World Bank © Knowledge for Development, WBI

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World GDP/Capita and Population ©Knowledge for Development, WBI

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Growing Differences in GDP/Capita

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GDP/Capita Growth: Korea versus Ghana ©Knowledge for Development, WBI

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Puzzle and Challenge Puzzle : If it is obvious to the point that the successful utilization of learning is such a key component of development,mwhy hasn " t it made a focal concentration of improvement technique and guidance? Challenge: What do we have to do to convey it to the standard and in what manner would we be able to plan Bank to give significant exhortation.

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New Growth Patterns In a decade ago there has been reestablished enthusiasm for development on the grounds that: Micro level proof of expanding significance of new advancements ICT unrest Increased share of innovative items in fares Managerial and authoritative changes Macro level confirmation of changes of examples and nature of development among OECD nations Surprisingly solid development of US economy 1995-2002 Reversal of pattern towards merging of per capita wage among OECD nations. This has prompt to concentrate on " new economy " to comprehend what is going on

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The Knowledge Revolution and " The New Economy " Ability to make, get to and utilize information is getting to be principal determinant of worldwide intensity Seven key components of "Information Revolution" Increased codification of learning and advancement of new advances Closer connections with science base/expanded rate of development/shorter item life cycles Increased significance of training & up-skilling of work drive, and long lasting learning Investment in Intangibles (R&D,education, programming) more noteworthy than half of apparatus & hardware interests in OECD. © Knowledge for Development, WBI

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The Knowledge Revolution - 2 Greater esteem included now originates from interest in intangibles, for example, marking, showcasing, circulation, data administration Innovation and profitability increment more imperative in intensity & GDP development Increased Globalization and Competition Trade/GDP from 38% in 1990 to 52% in 1999 Value included by TNCs 27% of worldwide GDP Bottom Line: Constant Change and Competition Implies Need for Constant Restructuring and Upgrading © Knowledge for Development, WBI

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Changing Structure of Manufactured Exports Toward High Tech. Items in OECD High innovation businesses expanded from 18.8% in 1990 to 25.3% in 1999 Medium high innovation enterprises expanded from 38.7% to 39.1% Medium low innovation ventures diminished from 17.9% to 14.1% and Low innovation businesses diminished from 24.3% to 21.3% Therefore approximately 2/3rds of made fares from the OECD nations is high or medium innovation

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Implications for Developing Countries The learning upset is being driven by the industrialized nations Developing nations run danger of being deserted further. There is likewise slant towards rising imbalance with-in both created and creating nations Developing nations need to create express procedures to exploit learning transformation to enhance their aggressiveness Improve execution of conventional parts Leapfrog advancements Develop new divisions Address issues of expanding inward disparities

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Eight Fastest Growing Economies (consistent 1995 US$) ©Knowledge for Development, WBI

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Few Countries Have Sustained High Growth Rates over Long Periods Most of these nations are or were up to this point creating nations They have taken after fruitful learning methodologies Key components of those techniques, notwithstanding suitable macroeconomic administration and great financial motivating force administrations have been: Massively taking advantage of worldwide information Investing firmly in instruction And now putting intensely in ICT

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To Help Developing Countries to this the World Bank has Knowledge for Development Program Policy Forums, Policy Conferences, Seminars, and Training on K4D Policy Services on K4D, extending from undeniable reports to modified strategy notes KAM Web-construct apparatus in light of nation learning evaluations (do-it-without anyone's help investigation) K4D Community of Practice

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Framework for Using K4D: Four Key Functional Areas Economic impetus and institutional administration that gives motivators to the proficient utilization of existing and new learning and the prospering of enterprise Educated, inventive and gifted individuals Dynamic data foundation Effective national development framework ©Knowledge for Development, WBI

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KAM Methodology KAM: 76 auxiliary/subjective factors to benchmark execution on 4 columns Variables standardized from 0 (most exceedingly awful) to 10 (best) for 121 nations Basic scorecard for 14 factors at two focuses in time, 1995 and 2002 Aggregate information economy file (KEI) Will show with speedy examination of Slovakia ©Knowledge for Development, WBI

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Armenia INNOVATION: Researchers in R&D/mil pop Patents conceded by USPTO/mil Scient. & Tech. Distributions/mil pop. ECON. Impetus REGIME: Tariff & Non-duty hindrances Rule of Law Regulatory Quality INFORMATION INFR.: Tel. Lines per 1,000 individuals Computers for every 1,000 individuals Internet clients for every 10,000 individuals EDUCATION: Adult proficiency rate Secondary Enrollment Tertiary Enrollment Armenia ©Knowledge for Development, WBI

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ECA & the World: Knowledge Economy Index ©Knowledge for Development, WBI

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ECA & the World: Innovation ©Knowledge for Development, WBI

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ECA & the World: Innovation (outright values) ©Knowledge for Development, WBI

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New Area of Focus: Innovation Policy and Strategy Conceptual structure for advancement in setting of creating nations Benchmarking nations regarding their insight capacities Developing approach toolbox for arrangement guidance in various prime examples of nations

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Conceptual Framework for Innovation in Developing Countries Innovation in creating nations ought to be seen extensively as something new to the neighborhood environment Therefore recognize two expansive sorts of development Local upgrades through selection of existing outside innovation Development of advances new to world

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Innovation in Developing Countries In creating nations the principal sort is the most pertinent, the second is more uncommon, aside from the most progressive creating nations Developing nations will get a greater monetary effect from raising normal nearby practice to best world practice than from formation of their own new information They will likewise get a greater effect from raising normal neighborhood practice to best nearby practice, in this manner the huge significance of residential dispersion

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Sources of Domestic Innovation Imports of capital merchandise, segments, items or administrations Products and administrations got to and delivered nation by remote speculators Copying or figuring out of outside items and administrations Technological endeavors of local or remote firms, not all of which depends on formal R&D

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Bias Towards Formal R&D Efforts Policy creators in creating nations tend to concentrate on formal R&D and on freely subsidized research endeavors They tend to concentrate on spectacular high innovation areas They tend to concentrate on industry, to a lesser degree on horticulture, and next to no on administrations They additionally tend to concentrate on R&D data sources and yields, less on business and administration

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Challenges But , as noted before, center of policymakers are not the most imperative components of the advancement framework in creating nations R&D not the fundamental wellspring of advancement High tech divisions are modest piece of creating economies Service segment is biggest share of financial action Successfully applying learning requires enterprise, administration, organizations,and likewise relies on upon financial and institutional administration Need a superior calculated structure and arrangement tool stash that separates crosswise over nations Provides made to quantify strategy counsel and particular venture outline

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Benchmarking Countries in Terms of Knowledge Capabilities Education and aptitudes Acquiring Knowledge Creating Knowledge Disseminating Knowledge Applying Knowledge

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Differentiated Strategies

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National Innovation System Needs to incorporate not simply R&D establishments and colleges, but rather most basically firms and other learning foundations Needs to incorporate thoughtfulness regarding the more extensive financial motivating force and institutional administration, training and abilities, and ICT-consequently our K4D system

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Challenges to Developing Countries Finding profitable approaches to connect into and contend effectively to the worldwide framework Getting into worldwide esteem ties Moving up these esteem chains Taking favorable position of worldwide learning to enhance welfare Preventive wellbeing Agriculture Developing separated points of interest Building on neighborhood assets Building on culture and different intangibles Strengthening non-exchanged administrations

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Challenges to World Bank How to fortify scientific ability on development and development How to coordinate this component into standard of Bank work: CAS, PRSPs, and so on How to gain from our experience and tha of others to plan suitable approach proposals and projec