Karel Mulder    January 4, 2010                                                                          Globalization    ...
GlobalizationGlobalization is NOT:Increased tradeIncreased exchange of capital        http://psdblog.worldbank.org/photoJa...
GlobalizationTrade in figuresImports and exports as percentage of GNP (current prices)                  1913   1950   1973...
GlobalizationTrade in figuresExport of goods from EU countries to other EU countries (% of GDP)                  1960   19...
GlobalizationTrade in figuresExport of goods from EU countries to non-EU countries (% of GDP)                  1960   1970...
GlobalizationTrade in figuresThe figures for Europe reflect the developments in global trade:The growth of internal Europe...
GlobalizationOr not?MonetizationRaw materials relatively cheap?Concentration and specialisation?January 4, 2010           ...
GlobalizationTrendWith a limited number of products DSMstrives for a top world-ranking after … …With these products DSM ha...
GlobalizationBackgroundKnowledge based, intensive production has a higher yield on anincreased scaleCore competencies are ...
GlobalizationCore BusinessHigh fixed costs and low variable costs in product and systemdesignsTherefore:   Core business  ...
GlobalizationBackgroundKnowledge based, intensive products create larger profits withincreased market sharesCore competenc...
GlobalizationTelevisionIn 1949 there were:78 US TV brands12 UK TV brands7 Franse TV brandsJanuary 4, 2010       12
GlobalizationEmerging Television Brands Akai                          Japan                      ? Curtis Mathes          ...
GlobalizationMarket Share Television BrandsMarket shares 1999-2000Source: MIRC Electronics annual report 1999-2000January ...
Globalization     Different Markets and their Television Brands                       TV-brands in a random Belgian online...
GlobalizationLCD’sSony 15%Philips 14%                                                       SonySharp 14%21.2 million unit...
GlobalizationResultsMore global oligopoliesLower product variationCultural uniformityLess room for de MaverickLess experim...
GlobalizationFrom Autarky to ‘Global Village’Ibieca is a village community in Aragon, Spain1910- High degree of autarky (m...
GlobalizationKnowledge-based SocietyHigher degree of knowledge in the economyCosts need to be recovered over a larger turn...
GlobalizationGlobal Spread of R&D                       Minimum                       number of   Research                ...
GlobalizationClusters of Knowledge and their consequencesPoor countries lag behind in development even more  (national com...
GlobalizationOther TrendsTechnological complexityEmancipation of stakeholdersJanuary 4, 2010                22
GlobalizationGlobalization of US Industrial R&D                                               Globalization of US Industri...
GlobalizationUS Patent Applications                                      Total US Patent Applications                     ...
GlobalizationShare of Foreign Utility Patent Grants                        60                        50                   ...
GlobalizationComplex InnovationsLess redundancy in design:   lean designDesign is increasingly multidisciplinary:  In car ...
GlobalizationParticipation in Higher Education                                                                    1970    ...
GlobalizationContributing to the Development of KnowledgeCivilians who are well informed imply that choices anddevelopment...
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Globalisation 01

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Globalisation 01

  1. 1. Karel Mulder January 4, 2010 Globalization http://www.princeton.edu/~ina/info graphics/starbucks.html1
  2. 2. GlobalizationGlobalization is NOT:Increased tradeIncreased exchange of capital http://psdblog.worldbank.org/photoJanuary 4, 2010 2
  3. 3. GlobalizationTrade in figuresImports and exports as percentage of GNP (current prices) 1913 1950 1973 1994 France 30 21.4 29.2 34.2 Germany 36.1 20.1 35.3 39.3 UK 47.2 37.1 37.6 41.8 Netherlands 100 70.9 74.8 89.2 USA 11.2 6.9 10.8 17.8 maps.google.com Japan 30.1 16.4 18.2 14.6January 4, 2010 3
  4. 4. GlobalizationTrade in figuresExport of goods from EU countries to other EU countries (% of GDP) 1960 1970 1980 1990 France 4.3 7.5 9.7 11.4 Germany 6.4 11.0 14.3 16.9 UK 3.3 6.1 10.6 10.9 Netherlands 20.8 26.5 32.9 34.8 maps.google.comJanuary 4, 2010 4
  5. 5. GlobalizationTrade in figuresExport of goods from EU countries to non-EU countries (% of GDP) 1960 1970 1980 1990 France 6.9 4.9 7.0 6.1 Germany 9.5 7.5 9.3 9.5 UK 11.0 9.5 10.7 8.1 Netherlands 13.2 8.1 9.9 11.4 maps.google.comJanuary 4, 2010 5
  6. 6. GlobalizationTrade in figuresThe figures for Europe reflect the developments in global trade:The growth of internal European capital exchange(direct foreign investments) is greater thanThe growth of investments made outside the EUJanuary 4, 2010 6
  7. 7. GlobalizationOr not?MonetizationRaw materials relatively cheap?Concentration and specialisation?January 4, 2010 7
  8. 8. GlobalizationTrendWith a limited number of products DSMstrives for a top world-ranking after … …With these products DSM has a number 1 or2 position. To maintain this position, presenceon the European, Japanese and US market is http://www.dsm.comnecessary. “We want fewer goals and more internationalization”,(free translation from Selman, RvB DSM, NRC15-11-1990)January 4, 2010 8
  9. 9. GlobalizationBackgroundKnowledge based, intensive production has a higher yield on anincreased scaleCore competencies are easier to manage (better span of control)It is more efficient to deal with fluctuations in salesPossibilities of a free marketJanuary 4, 2010 9
  10. 10. GlobalizationCore BusinessHigh fixed costs and low variable costs in product and systemdesignsTherefore: Core business Market leadershipConcentrating on a core business is necessary to be a market leaderin that businessJanuary 4, 2010 10
  11. 11. GlobalizationBackgroundKnowledge based, intensive products create larger profits withincreased market sharesCore competencies can be managed better and faster (span ofcontrol)Flexibility to deal with changesLiberalization of tradeParadox of Multiformity; locally products and cultures diversify,globally they become more uniform.January 4, 2010 11
  12. 12. GlobalizationTelevisionIn 1949 there were:78 US TV brands12 UK TV brands7 Franse TV brandsJanuary 4, 2010 12
  13. 13. GlobalizationEmerging Television Brands Akai Japan ? Curtis Mathes USA 1960 Hitachi Japan 1975 JVC Japan 1976 Philips Magnavox Netherlands 1976 Matsushita Panasonic Japan 1975 Mitsubishi Japan 1980 Thomson RCA France 1987 (1946) early Zenith SAMPO Taiwan 1981 SAMSUNG Korea 1989 Sanyo Japan 1977 SANSUI Japan 1987 Sharp Japan 1983 Sony Japan 1961 Tatung Taiwan 1979 Toshiba Japan 1976 LGE Zenith Korea 1999 (1948) early Sony Figures from http://www.tvhistory.tv/January 4, 2010 13
  14. 14. GlobalizationMarket Share Television BrandsMarket shares 1999-2000Source: MIRC Electronics annual report 1999-2000January 4, 2010 14
  15. 15. Globalization Different Markets and their Television Brands TV-brands in a random Belgian online store: TV-brands in a random US online store:Images fromcompanywebsites January 4, 2010 15
  16. 16. GlobalizationLCD’sSony 15%Philips 14% SonySharp 14%21.2 million units sold in 2005 growth 141 %46.4 million units sold in 2006 growth 119%Price decreases, e.g 16 % in the 4th quarter of 2005January 4, 2010 16
  17. 17. GlobalizationResultsMore global oligopoliesLower product variationCultural uniformityLess room for de MaverickLess experimentation and innovation? http://www.micheloud.comJanuary 4, 2010 17
  18. 18. GlobalizationFrom Autarky to ‘Global Village’Ibieca is a village community in Aragon, Spain1910- High degree of autarky (meat, bread, vegetables, fruit, smith, carpenter, clothing) Surplus goes to the national market Stable social structure: CASA as social unity1980- Production is for the market No local produce www.altoaragon.org Commuting IndividualisationJanuary 4, 2010 18
  19. 19. GlobalizationKnowledge-based SocietyHigher degree of knowledge in the economyCosts need to be recovered over a larger turnoverResearch and Design (R&D) requires co-operation and many externalcontacts Creates a concentration of knowledgeJanuary 4, 2010 19
  20. 20. GlobalizationGlobal Spread of R&D Minimum number of Research units per location DevelopmentJanuary 4, 2010 20
  21. 21. GlobalizationClusters of Knowledge and their consequencesPoor countries lag behind in development even more (national companies are taken over by multinationals and R&D dissipates, unless there is a strong focus on a knowledge-based infrastructure)Also happens in ‘rich’ areas that lag behind in development e.g. the South of Italy, parts of Eastern EuropeGovernment interference is usually impossible due to international obligationsJanuary 4, 2010 21
  22. 22. GlobalizationOther TrendsTechnological complexityEmancipation of stakeholdersJanuary 4, 2010 22
  23. 23. GlobalizationGlobalization of US Industrial R&D Globalization of US Industrial R&D 1989-1998 Year 25 Billions of current 20 15 US$ 10 5 0 Foreign R&D Overseas R&D Karel Mulder, Managing the dynamics of Technology in Modern day society, In: Robert Verburg, Roland Ortt, Willemijn Dicke 2006, Managing Technology and Innovation, An Introduction, London/New York: RoutledgeJanuary 4, 2010 23
  24. 24. GlobalizationUS Patent Applications Total US Patent Applications 400 350 300 250 * 000 200 150 100 50 0 63 66 69 72 75 78 81 84 87 90 93 96 99 02 19 19 19 19 19 19 19 19 19 19 19 19 19 20 Year Based on: http://www.uspto.gov/go/taf/us_stat.htmJanuary 4, 2010 24
  25. 25. GlobalizationShare of Foreign Utility Patent Grants 60 50 40 percentage 30 20 10 0 1963 1968 1973 1978 1983 1988 1993 1998 2003 Utility Patent Grants, Foreign Origin Percent Share Based on: http://www.uspto.gov/go/taf/us_stat.htmJanuary 4, 2010 25
  26. 26. GlobalizationComplex InnovationsLess redundancy in design: lean designDesign is increasingly multidisciplinary: In car design mechanical engineers and designers are involved but also experts in microelectronics, plastics, software, aerodynamics … c,mm,nInnovations is usually only possible if http://www.autoindetoekomst.nl/suppliers innovate simultaneouslyJanuary 4, 2010 26
  27. 27. GlobalizationParticipation in Higher Education 1970 1996 Increase % Albania 25469 34257 34,5 Austria 59778 293172 390,4 Bulgaria 99596 262757 163,8 Finland 59769 226458 278,9 Iceland 1706 7908 363,5 Italy 687242 1892542 175,4 Netherlands 231167 468970 102,9 Norway 50047 185320 270,3 Romania 151885 411687 171,1 Spain 224904 1684445 649,0 Sweden 144254 275217 90,8 United Kingdom 601300 1891450 214,6 Karel Mulder, Managing the dynamics of Technology in Modern day society, In: Robert Verburg, Roland Ortt, Willemijn Dicke 2006, Managing Technology and Innovation, An Introduction, London/New York: RoutledgeJanuary 4, 2010 27
  28. 28. GlobalizationContributing to the Development of KnowledgeCivilians who are well informed imply that choices anddevelopments should be participatory, and predictions should notjust be made: Forecasting ForesightThere is a need for constructive technology assessment, andparticipation of civilians that explores quality in debatingJanuary 4, 2010 28
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