Engineering the Future:
Disruptive Innovation
for Sensible Growth
SAAD AMANULLAH KHAN
Economic Growth traditionally has
been a function of :
1. Population growth,
2. Productivity,
3. Capital accumulation,
4. ...
1800’s were all about: Who could build
the biggest and most efficient
farming methods ?
1900’s were about: Race to build the
most efficient factories
And now the 2000’s will be all about
ideas and innovation.
-
2.0
4.0
6.0
8.0
10.0
12.0
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997...
Human Development Index (HDI)
Country’s Development Level
Standard means of measuring
Human Development
HDI LEVELS Rank 1960’s 2011
Very High Human
Development 1 - 47
Korea (15)
Singapore
(26)
High Human
Development
48 - 94 Ma...
GDP Growth (%)
60 - 70 70 -80 80 -90 90 - 00 00 -10 08 -10
China 3.0 7.4 9.8 10.0 10.3 9.7
India 6.7 2.9 5.7 5.6 7.4 7.9
P...
DISRUPTIVE INNOVATION
An innovation that helps
create a new market and value
network and which eventually
disrupts an exis...
Revolution in IT and
Back Office Support
1993: IBM post loss of US$ 8 Billion
Biggest lost in US history at that time
 Until Mid-80’s
Current reality 
But their GDP > Pakistan
(remember they got Independence 18
years after us)
Equal in Population
=
The KNOWLEDGE ECONOMY and current
economic performance are highly correlated
Pakistan
0
2
4
6
8
10
1
2
3
4
5
6
7
8
9
10
11
12
75
Economic Incentive and
Institutional Regime
InnovationEducation
ICT
Economic Incentive and
Institutional Regime
Education
...
Innovation
Economic Incentive and
Institutional Regime
Education
ICT
Innovation
Economic Incentive and
Institutional Regime
Education
ICT
Innovation
Economic Incentive and
Institutional Regime
Education
ICT
Innovation
Economic Incentive and
Institutional Regime
Education
ICT
Innovation
Economic Incentive and
Institutional Regime
Education
ICT
Based on
Current GDP
Growth rates
Economic Incentive and Institutional Regime
 Regulatory Quality – Stronger Institutions
 SECP, FBR, Competition Commissi...
Innovation
 Research and Journal Articles
 Create R&D Centers, Incubators and Libraries.
 Research facilities in public...
Education
 Average Years of Schooling
 Double or Triple % of GDP spending on Education
 Allow partnership with nations ...
 Computer per 1000 people
 Indigenous computer manufacturing
 Partnerships with global technology companies
 Strong in...
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
Disruptive innovation for sustain growth v2
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Disruptive innovation for sustain growth v2

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Pakistan seem to be lagging significantly behind other nations in economic growth. Only way forward is to use the Knowledge Economy and disruptive innovation to sustain growth. Else we will be left behind and face increasing poverty, unemployment, etc.

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Disruptive innovation for sustain growth v2

  1. 1. Engineering the Future: Disruptive Innovation for Sensible Growth SAAD AMANULLAH KHAN
  2. 2. Economic Growth traditionally has been a function of : 1. Population growth, 2. Productivity, 3. Capital accumulation, 4. Resources and knowledge availability
  3. 3. 1800’s were all about: Who could build the biggest and most efficient farming methods ?
  4. 4. 1900’s were about: Race to build the most efficient factories
  5. 5. And now the 2000’s will be all about ideas and innovation.
  6. 6. - 2.0 4.0 6.0 8.0 10.0 12.0 1961 1963 1965 1967 1969 1971 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 Pakistan (% GDP Growth)
  7. 7. Human Development Index (HDI) Country’s Development Level Standard means of measuring Human Development
  8. 8. HDI LEVELS Rank 1960’s 2011 Very High Human Development 1 - 47 Korea (15) Singapore (26) High Human Development 48 - 94 Malaysia (61) Medium Human Development 95 - 141 Sri Lanka (94) Low Human Development 142 - 187 Korea, Singapore, Malaysia, Sri Lanka Pakistan Pakistan (145)
  9. 9. GDP Growth (%) 60 - 70 70 -80 80 -90 90 - 00 00 -10 08 -10 China 3.0 7.4 9.8 10.0 10.3 9.7 India 6.7 2.9 5.7 5.6 7.4 7.9 Pakistan 6.8 4.8 6.9 4.0 4.6 3.2 LEGEND Above 7% 5% to 7% Below 5% +6.5%+4.7% 4 1 1 3 1 2 3 60 - 70 70 -80 China 3.0 7.4 India 6.7 2.9 Pakistan 6.8 4.8 LEGEND
  10. 10. DISRUPTIVE INNOVATION An innovation that helps create a new market and value network and which eventually disrupts an existing market and value network, displacing an earlier technology.
  11. 11. Revolution in IT and Back Office Support
  12. 12. 1993: IBM post loss of US$ 8 Billion Biggest lost in US history at that time
  13. 13.  Until Mid-80’s Current reality 
  14. 14. But their GDP > Pakistan (remember they got Independence 18 years after us) Equal in Population =
  15. 15. The KNOWLEDGE ECONOMY and current economic performance are highly correlated Pakistan
  16. 16. 0 2 4 6 8 10 1 2 3 4 5 6 7 8 9 10 11 12 75
  17. 17. Economic Incentive and Institutional Regime InnovationEducation ICT Economic Incentive and Institutional Regime Education ICT
  18. 18. Innovation Economic Incentive and Institutional Regime Education ICT
  19. 19. Innovation Economic Incentive and Institutional Regime Education ICT
  20. 20. Innovation Economic Incentive and Institutional Regime Education ICT
  21. 21. Innovation Economic Incentive and Institutional Regime Education ICT
  22. 22. Innovation Economic Incentive and Institutional Regime Education ICT
  23. 23. Based on Current GDP Growth rates
  24. 24. Economic Incentive and Institutional Regime  Regulatory Quality – Stronger Institutions  SECP, FBR, Competition Commission, IPO, etc.  Protection in Intellectual Property Rights (IPR)  Quality people – competitive Salary & Benefits  Increased Trade & Investments  Open Trade Barriers  Lower Cost of Trade – Port, Airport charges  Improved Logistic within country  Rule of Law  Improved Security Situation  Stronger and effective judiciary and law enforcement  Elimination of nepotism, discrimination & preferential treatment
  25. 25. Innovation  Research and Journal Articles  Create R&D Centers, Incubators and Libraries.  Research facilities in public and private sector  Issuance of Patents  Eco system for Innovators and Entrepreneurs  Graduate and Doctorate programs  Technology transfer and partnership at research level  Enhance scholarship program for top students  Royalty Payments & Receipts  Streamline Royalty approval and payment process
  26. 26. Education  Average Years of Schooling  Double or Triple % of GDP spending on Education  Allow partnership with nations with high literacy rates  Make Government deliver mandatory Primary education mandatory  Strong accountability if education funds misappropriated  Gross Tertiary Enrollment Rates  Put in place 12 universities & technical institutes in next 5 years  Gross Secondary Enrollment Rates  Invest in repairing all existing schools and enhance teacher salaries
  27. 27.  Computer per 1000 people  Indigenous computer manufacturing  Partnerships with global technology companies  Strong incentive to drive high tech innovation  Remove regulatory hurdles in ICT Internet Users per 1000 people  Enhance internet pipelines to Pakistan  Total Telephone/Mobile per 1000 people Information and Communication Technology
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