CAMTIC English Presentation (Enero, 2011)


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CAMTIC Estrategia "Costa Rica: Verde e Inteligente 2.0" (Enero, 2011)

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CAMTIC English Presentation (Enero, 2011)

  1. 1. Estrategia“Costa Rica: Verde e Inteligente 2.0”
  2. 2. Costa Rica Green & Smart The National Strategy to deploy a sustainable ICT business eco-system A journey that has just started! Otto Rivera, Excecutive Director,Costa Rica’s Chamber of Information and Communication Technologies –CAMTIC-
  3. 3. Agenda • Sharing a common vision • Key performance indicators: Costa Rica is ICT… • Several ‘on going’ ICT initiatives • Costa Rica: green and smart! • The Hicks and Nicholson Model • The strategy: the starting point • Developing a sustainable ICT business eco-system • A world class ICT industry • Reaching the global market • Challenges and limitations • The global crisis impact • The future • Comments and questions
  4. 4. One shared visionCosta Rica as a:• Peaceful country - Constitutional abolition of army in 1948 - Perpetual Neutrality Declaration in 1983 - Peace with Nature – Global Proposal lead by Dr. Arias - Forever Costa Rica – its national dimension• World leader as eco – tourism/paradise• Leader on sustainable energies and environmental conservation policies• Democratic and transparent society, out of poverty and unemployment• A high-tech developing economy
  5. 5. Key country performance indicators• 1st Latin America country in Trade Policies (World Trade Indicators/WB, 2008)• Some key performance indicators from World Economic Forum -2008-: - 12th: High Tech Exports - 18th: Flexibility of Labor Market - 19th: Quality of Public Education Expenses (6% of GDP) - 27th: Trained Labor Force - 59th: Competitiveness Global Index• Oldest standing democracy in Latin America (120 years old, since 1889)• 60 years with no army (Constitutional abolition in 1948)• Free & mandatory education up to 9th grade (since 1864)• Universal health and pension systems (since 1943)
  6. 6. Several on going initiatives in ICT… mostlycomplimentary approaches…• Digital Democracy (E-inclusion approach -Lead by MICIT-)• E-Administration (Dedicated to the evangelization, plan and pushing e-Gov projects –Lead by Inter-institutional High Commission and the E-Gov National Secretariat-)• Digital Costa Rica (Focused on E-Government -Lead by private partners under coordination of Club de Investigación Tecnológica-)• Century 21st. Agenda (Research, development and innovation approach –Lead by private partners from academia, research and industry communities under coordination of Asociación Estrategia Siglo 21st.-)• Costa Rica Green and Smart! (Devoted to develop a world class ICT business ecosystem –Lead by CAMTIC- with many participants from Government, Academia, local industry and MNCs)
  7. 7. Is it urgent to integrate and align these initiatives? • The answer: YES! • The chances: SMALL… • Why?: - not a political urgency … - not “politically sexy” initiative… - ICT among “the winners” after CAFTA - a “cap” in creating new institutions • Mainly a private sector driven strategy • Historically… Government has never invested directly in ICT in Costa Rica • Indirect investments in education, health or infrastructure have been positively impacted ICT as externalities • However: we keep pushing!!! • IADB can play a key role by “suggesting ideas” or “initiatives”…
  8. 8. Strategic Priorities Enterprises capacity building Developing a sustainable ICT business eco-system
  9. 9. Balancing the Dual Role of ICT within anational competitiveness strategy Economic Sector Cross-fertilization business enabling tool
  10. 10. Success ICT Business & Exporting Model Global MarketplaceInternational International Reputation Linkages World Class National Industry Enterprises & Clusters / Competition & Cooperation Sustainable ICT Business Eco-system People / Educational Platform / Networking Research-Development-Innovation Financial Capital / Infrastructure Institutions / Regulation Vision / Strategy Private & Public, Academia Authors: Heeks and Nicholson
  11. 11. Success cases in progress• Ireland• Montreal• New Zealand• Uruguay• Costa Rica• Jalisco• Cordoba / Buenos Aires• Panama• Guatemala• Shenzhei – Dailan
  12. 12. How does Costa Rica stand and compete?• Human development centric national approach• Open to talent immigrants and the still standing “land of opportunity aura” or “Switzerland of the Americas”• Strong “country brand” based on: - quality of living, - renewable energy availability - low business and personal risks - geographic, time-zone and market proximity to US - cultural and “geo-strategic” alignment to Western’ ideals - flexible labor and foreign currency markets - Modern legislation: IP, telecomm (!!), digital signature…• Strong “country brand” in ICT US industry, improving in EU• Some smart ideas: - Attracting talent - Digital product: CAFTA, hopefully in EU-CAAA and others
  13. 13. Costa Rica Free Trade Agreement Policy• Strong national trade policy based on free trade agreements• ‘Zonas Francas’ as key attractors of FDI … but in thefuture??? • Current (600 million): • In progress (1.7 Billion): – Canada – European Union – Central America – CHINA (MOU signed – Chile on Nov. 17th. 2008) – Mexico • Expected (400 Million): – Panama – Singapur – Dominican Republic – Colombia – CARICOM – Brazil – USA (Effective 1/1/09) – Qatar -Egypt A platform to potentially reach a 2.7 billion people market! - Strong message to MNCs - Good potential to local SMEs
  14. 14. Vision / Strategy Global MarketplaceInternational International Reputation Linkages World Class National Industry Enterprises & Clusters / Competition & Cooperation Sustainable ICT Business Eco-system People / Educational Platform / Networking Research-Development-Innovation Financial Capital / Infrastructure Institutions / Regulation Vision / Strategy Private & Public, Academia Authors: Heeks and Nicholson
  15. 15. The value of national ICT strategy • A unifying message • A unique and consistent vision • A tool to facilitate/promote associative initiatives • A valuable ‘road map’ to set up priorities • A tool for policy makers to guide decision taking • A sign of maturity to local and international community
  16. 16. Complimentary roles Industry: Industry: -- Strong commitment to invest and cooperate Strong commitment to invest and cooperate -- Focused on social/common interests Focused on social/common interests -- Not a group of pressure … but a team work Not a group of pressure … but a team work Academia: Academia: --International standing programs and quality International standing programs and quality --Top research and innovation approach and centers Top research and innovation approach and centers --Balancing academic and industry needs Balancing academic and industry needs Government: - Long term vision - Flexible and open leadership - Pro actively focused in filling ecosystem lacks
  17. 17. Government: -As a catalyst agent- Flexible and open to listen and to share initiatives - Ready to promote dialog - Open to team work methodologies - Available to directly invest in the process - Active as a transformation agent with focused on the eco-system -Special emphasis on educational system, both public and private Vision / Strategy Private & Public, Academia
  18. 18. Associative … key but always challenging… Threats & Straights & Weaknesses Opportunities Taking control of your own destination!
  19. 19. Associative … always context driven(The case of Costa Rica) Global competition: 2009 -2011 250 companies agreeing to be part of a Regional Federation of ICT (* To be defined) Regional competition: TIC: 2003 90 companies transformed Caprosoft into CAMTIC, Cámara de Tecnologías. de Información y Comunicación HR and Quality Challenges: 1998 16 companies founded CAPROSOFT, Cámara de Productores de Software Intellectual Property Protection: 1993 8 companies created Asociación para la Protección de la Propiedad Informática (APPI)
  20. 20. Challenges with the Academia Public & Private technical education system ICT-Tools Soft-skills Public PrivateUniversity Foreign Languages University System Basic Sciences System Mathematics Primary and Secondary System
  21. 21. Challenges with the Government Executing Planning Multiple autonomic Short vs. long entities terms Legacy legislation Specific vs. and infrastructuregeneral goals Limited financialFormal vs. natural/true resources leadership Very limited skilled human recourses Little or no experience in enhancing high-tech /knowledge economy
  22. 22. Task Forces Tactic… delivering the strategy Networking IP Export Communication Promotion Infrastructure @-GovernmentHR: PublicUniversities CAMTICHR: Digital SignatureTechnicalEducation Corporate Social HR:Private Responsibility Universities Angel – Venture HR: Human Capital Development
  23. 23. A sustainable ICT business Eco-System Global MarketplaceInternational International Reputation Linkages World Class National Industry Enterprises & Clusters / Competition & Cooperation Sustainable ICT Business Eco-system People / Educational Platform / Networking Research-Development-Innovation Financial Capital / Infrastructure Institutions / Regulation Vision / Strategy Private & Public, Academia
  24. 24. The ICT business eco-system definition Key Regulation & Infrastructure Services Digital Components Framework ICT Direct Manufacturing Services Government & NGO Academia & Research ICT Community ICT Enabled Software Development Services Financial Community
  25. 25. Growing number of ICT companies Digital components Direct Manufactures Services 25 375 firms 705 companies 350Companies Firms 65 companies Enabling Software Services Development Fuente: Camtic & Procomer (2007)
  26. 26. Direct employment Digital Components Direct Manufactures Services10,050 12,705employees employees 54,755 21,050 9,600 employeesemployees Enabling Software Services Development Sources: Camtic & Cinde Note. Commercial companies, sportbooks and telecommunication operators are not incluced.
  27. 27. Sales: local and international markets (as of 2007) Digital Components Direct Services US$1926 M US$7922M 0% local 59% local100% exports 41%exports US$3,456 M US$517 MUS$221 M 5% local59% local 95% exports41% exports Enabling Software Services Development Sources: Camtic, Procomer & Cinde (2007).
  28. 28. Costa Rica’s ICT Sector in brief… • US$3.5 billion of annual sales: 10.6% of GDP • US$2,8 billion of exports: 28.8% of total • 54,755 + direct employment: 3.4% of labor force
  29. 29. A sustainable ICT eco system A Systemic Approach Regulation Infrastructure Networking Institutions People R+D+I Money Education Metrics SOFT
  30. 30. Human Resources “normal distribution” Pyramid PhDs Post- “Licenciatura” Or Master Degrees Professionals (Bachelor Degrees) Specialist (Technicians) General Technicians
  31. 31. Labor market: supply and demand gap
  32. 32. The market adjustment … S’ $ S Higher salaries More students Immigrants & Re- converted from other areas D D’
  33. 33. HR and other challenging topics• Training as technologies changes and become more complex• Shifts in HR soft/hard skills• Academic vs. industry oriented training/educational profiles ( 8 are needed, 4 are been taught)• Permanent immigration and its regulatory trends• Temporary transfer of people among countries to provide services to customer’s projects• Very high turn over, specially among youngest
  34. 34. Networking & Capacity buildingLINK:Social & Business Networking + Direct Services• Incubation network of innovative ICT initiatives based on a business oriented model• Acceleration programs for innovative SMEs• Development of ICT focused Angel / Venture Capital Networks• Export Promotion Support to innovative SME
  35. 35. Networking & Capacity buildingLINK as a Capacity Building Consortium:• IADB – MIF• Parquetec• Fundación Mesoamérica• Incae Business School• CAMTIC - CADEXCO• Procomer• Financiera Desyfin• Corporación Andina de Fomento
  36. 36. Networking & EventsMeeting and virtual platform:• Costa Rica Technology Insight Series (6 on the road by 2008)• Costa Rica Services and Technology Summit (To take place on June 4-5, 2009)• Angel Investor Network• Yo Emprendedor• – CLICK!: Frequent Newsletter• /• Strong web presence: FaceBook – YouTtube – Linkin - Other• Frequent thematic breakfasts, lunches or seminars• Frequent training and workshops on ‘hot’ technical, back office or market topics
  37. 37. Promoting private equity via Stock Market: MAPAPrivate Stock options for innovative ICT SMEs (*)• Partnership with CR Stock Market (inspired in similar product developed at EU)• Based on monitoring SME key performance indicators: – AIM – Ofex/Plus London 1995 – Expandi – Milano 2003 – IEX – Dublin 2005 – Alternext – Paris 2005 – Nordic Alternative Market – OMHEX 2005 – Entry Standard - Germany 2005 – Alternative Market - Spain 2006 – Mapa – Costa Rica 2008
  38. 38. HR improvement programs … a hug plus in Costa Rica Costa Rica Multilingual • Massive English certification program based on EU English as 2nd Language Standard Certification (35K annually) and 5k English native teachers as the key pillar • French as 2nd Language certification program, in partnership with the Government of France (hundreds of French native teachers training Costa Rica’s French teachers – introduction since primary) • Chinese-Mandarin massive certification program (based on the recently created program of the Confucius Institute, U- Beijing & U. of Costa Rica) ICT Specialist Costa Rica • Filling the gap (in numbers and skills) • Levering soft & hard skills on new technologies • Creating the “R+D+innovation way of thinking” • Based on a joint research of Camtic and the two major public universities • US$3.0 Million+ on public funding as scholarship program associated
  39. 39. Institutional framework • Ministry of Science and Technology and National Council for Science and Technology • Ministry of Energy, Environment and Telecommunications • Ministry of Competitiveness and Regulatory Simplification • Ministry of National Planning • Ministry of Economics, Industry and Commerce • Permanent Commission of Science and Technology of Costa Rica’s Congress
  40. 40. Institutional framework• National Advisory Council of Competitiveness• National Commission of Science and Technology Performance Indicators• National Advisory Committee of Science and Technology Policy• Conforming Commission of Universidad Técnica Nacional• National Advisory Committee for Research, Development and Innovation Policy• Other …
  41. 41. Regulatory challenges• General Telecommunication Law & 13 other regulations• Electronic Signature Law (including ISO XXXX regulations)• Intellectual Property Law (Great advance: third party custody)• National Banking System for Development Law and related regulations (Still a challenge for SMEs at services sector)• Software Promotion Bill (A “soft” approach)• Technological Neutrality Bill (Government modernization)• Habeas Data Bill (Humanization of technology)• Immigration Bill (Immigration as a developing tool!)
  42. 42. Limitations and pending elements on Costa Rica’sICT eco-system• ICT Research, Development and Innovation Centers - Cenibiot (2010) - CidTIC (still a proposal)• Lack of relationships with key research international centers: - InBIO - EARTH - CATIE• Limited cross fertilization promotion and networking framework to straight ICT utilization across key sectors: - agro (coffee, sugar, banana, oil palm) - tourism (traditional and new areas) - energy - environment - health
  43. 43. Statistics… still a pending subject!• Initial mapping efforts in 2000/2001 (Prosoftware)• Business and HR focused• Second generation of mapping efforts in 2006/2007• Also focused on business variables and HR metrics• First comparisons in 2008• Still a mix of soft (70%) & hard (30%) data• Recently improved by two new projects (US$180K in grants from IDRC & EU’s 7th. FP, US$130K from IDRC): - R+D+I capacities - HR labor market and regulatory/institutional benchmarking• New efforts via MICIT (National Commission on S,T&I Indicators) are in progress: USD200K investment• Banco Central also increasing interest• Ministerio de Hacienda (Dirección de Tributación) is also very active in finding information…
  44. 44. Telecommunication market new regulation to beimplemented• “Convergence centric” new legislation with huge challenges: - new generation networks approach… good and bad - (Good) Modern approach on seamless networks not on services - (Bad) No experience… huge challenges with specific regulations - Regulatory Body conformation is in progress• Telecomm market will grow 2 to 3 times the current size (from USD$650M up to USD$1.5B) within next 5 years of less• High and diverse fiber optic availability: - Caribbean Sea (2) - Pacific Ocean (1) - Central America - North (3) –Puebla-Panama Plan Project- - Panama - South (4) – Puebla-Panama Project-
  45. 45. World Class National Industry Global MarketplaceInternational International Reputation Linkages World Class National Industry Enterprises & Clusters / Competition & Cooperation Sustainable ICT Business Eco-system People / Educational Platform / Networking Research-Development-Innovation Financial Capital / Infrastructure Institutions / Regulation Vision / Strategy Private & Public, Academia
  46. 46. Rich ecosystemStrong ICT multinational presence (some examples) - Digital Components: Intel – Hospedia – Continental AG - ICT Outsourcing: Hewlett Packard – IBM Global – BT - Align Tech - Software: Microsoft – Oracle –Avionics- (Intel, HP) - ICT BPO & IT Support: Western Union – Amazon – P&G - R&D: (Intel – HP)Strong ICT local industry (some examples) - 75% of Central America / DR software products - 94% of firms are SMEs - 55% of all companies are exporting regularly - 87% of the firms launched new products/services in 2007 - 83% has started new business models (web, services, OSS)5 public and 59 private universities
  47. 47. Capacity building initiatives for ICT SME straighten Capacity Building for Exporting SMEs • Product/marketing maturity assessments • Business plan development assistance • Critical mission processes assessments and advising services • “Exporting Step-by-Step” training initiative • Secure export planning and “save landing” consultancy services • Trade mission preparation and delivery advisory • Reduced rates for all SMEs on all services Quality Maturity Programs (continuation of ProSoftware program with IADB funding) • ISO • CMMi • PMI
  48. 48. Promising future … even with the crisis Huge opportunities to come: - Most of top multinationals are diversifying local operations - Second generation strategy is in place in most multinationals - Intel has open a software research and development center - It also has open a corporate share services support center - Hewlett Packard will grow to 9000 direct jobs by 2009 - HP has also announced a massive research laboratory in 2009 Higher levels of complexity and value added activities as second generation initiatives land in Costa Rica
  49. 49. Local companies are also more sophisticated…Local companies also are moving up in value chains:• Several consortiums are currently conforming• New outsourcing projects flowing from multinationals to Costa Rican smaller companies• Many former managers or key staff that have left MNCs are now entrepreneurs or have joined Costa Rican firms• Some former managers are now free-land consulting agents serving regularly local firms (Camtic has 3 top consultants working for LinkExportaciones)
  50. 50. Skysoft Lab Consortium – Space Industry - • Thanks to not having army during the last 60 years, Costa Rica is granted as a secure country to develop space projects, all of them under military secret IP protection • Costa Rica has a growing presence of space research and development companies. • Former astronaut Dr. Franklin Chang-Diaz has built large and sophisticated research, development and testing facilities to work in building the first full-scale prototype ever of Variable Specific Impulse Magnetoplasma Rocket - VASIMR -, a new fuel and engine technology for interplanetary space traveling and other utilizations on Earth • Initial actions are in progress to create the Skysoft Consortium, an initiative to create an ICT/software dimension in the new space industry cluster
  51. 51. MasterMed – E-Health/Tourism Services Industry -• CR’s Public Health System is an example for a developing country• CR is awarded as #1 Eco-Tourism destination in the world• Limited sources of information on drugs and their interactions• A massive data base and access technology (3,500+ active ingredients/8000 trademarks)• Partnership among Academia and Industry over an intellectual property agreement• WEB, PCs, PDAs and cell phones - services based business model
  52. 52. Environmental Technology Cluster • Country advantages: - Ranked #5 country by EPI (among 149, WEF-2008) - 92% of electricity from renewable sources - 90% of potential still to be developed - 36% territory/70% territorial water protected - 14% increase on forest coverage (54%+ in 25 years) • Committed as the first carbon-neutral country by 2021 • We must increase another 9% of forest coverage • Partnership with MINAET to incorporate ICT to the environmental cluster.
  53. 53. Digital Design / Animation Cluster • Top universities with international standards • Good young artists with high tech skills as key element • Early adopters of digital design-animation technologies • Cluster approach since the early stages of sub-sector development • First customers are industry leaders (Disney, well recognized Disney sub-contractors) • A niche of software development young and dynamic firms • A mixture of products and services (outsourcing)
  54. 54. Code migration cluster: ArtInsoft Case of Study • Lead by on pioneer professor-entrepreneur (Dr. Carlos Araya) • Initial concepts and models were based on PHD doctoral thesis • ArtInSoft as the center of a very specific and deep cluster • Complex projects around the world with top companies • A mix of software products and outsourcing services • Lots of externalities and benefits for SMEs working at the cluster • Almost 100% Costa Rican firms / Similar to Genexus, Uruguay
  55. 55. The competition – cooperation concept• A huge barrier for most countries when developing associative initiatives, specially in small-scaled eco-systems• A cultural challenge: lowered in Costa Rica but huge in the rest of Central America and most of Latin America• Personal relationships & transparent leadership• Open and plural mechanisms (national task forces as a plus)• ALETI is a good example: 10 years with little progress…• The integration of a Central American ICT Federation has been impossible so far (I started promoting the idea during 1st. Costa Rica Technology Insight in 2002)• MNCs tend to isolate … local managers are usually a barrier• Local software SMEs tend to be the foundation• Depending on local conditions, promoting cooperation must be driven from the technology …• Easier to focus on foreign markets if cooperation need to be focused on market
  56. 56. World Class National Industry Global MarketplaceInternational International Reputation Linkages World Class National Industry Enterprises & Clusters / Competition & Cooperation Sustainable ICT Business Eco-system People / Educational Platform / Networking Research-Development-Innovation Financial Capital / Infrastructure Institutions / Regulation Vision / Strategy Private & Public, Academia
  57. 57. Global crisis and recession impact• Opportunities and challenges• Cost reduction is driving decisions• India terrorist attacks will definitively impact (How?)• Two contradictory trends: - Recession pushes our markets down - Cost reduction pushes our markets up - What will be the final balance?• Should we change projects in progress? Link???• Local markets reacting quickly: - Government budgets on ICT projects will make a difference - Labor market trends? Not clear yet… - Loans have never been the key variable for ICT SMEs - Loans are a key variable for all customers• Were we prepared? Are we getting prepared? Would we get prepared?
  58. 58. Future challenges• Vision – Strategy shifting from: - ICT to Cross-Fertilization centric approach - national to regional eco-system - general market to specific niches - balancing short and long term thinking and acting - national/regional ICT promotion agency (a public-private) & vision• Sustainable business/exporting ICT eco-system: - HR availability: numeric and qualified: today vs. tomorrow - HR training: a fast moving target … - creation of R+D+I capacities: CidTIC, CeniBIOT - loans with no collaterals? Significant VC? - has “soft or new” economy higher risk that “hard or old” economy?• Software: product or service… or both????• New business models (web based services, software as a service, outsourcing, other)? … How-when to migrate?• International payments & Intellectual Property
  59. 59. Thank you!