Innovation and prosperity
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Nations are lifted toward prosperity through economic growth driven by innovation and tech based productivity increase
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Innovation and prosperity
- 1. © 2017 Singularity University 1 OUR REALITY, OUR SOLUTIONS Prosperity only through growth Growth through productivity increase Productivity increase through technology & innovation 4 January 2019 Feedback: ceo@ignite.org.pk
- 2. Technology and innovation drive prosperity 2 TECH & INNOVATION PRODUCTIVITY GROWTH PROSPERTY
- 3. All roads to a welfare state pass through economic growth “There are no examples of countries improving the welfare of their populations without growth” -- World Economic Forum: The Global Competitiveness Report, 17-18 3 “Redistribution, as distinct from Growth, cannot be the answer to removing poverty” -- “How Economic Growth in India Reduced Poverty and Lessons for other Developing Countries,” Jagdish Bhagwati and Arvind Pangariya
- 4. But the right kind of growth, which happens through productivity increase "Second, shift Pakistan’s growth policy from the failed import-led strategies towards policies that focus squarely on raising domestic productivity growth and exports ... One of the most important lessons for students of economic growth is that a country’s long-term growth is almost exclusively a function of its domestic productivity growth. In plain words, a country cannot buy success from the outside, success has to be developed internally ... Invest in science, technology and human capital infrastructure.” -- Atif Mian, Fixing Pakistan’s Financial Woes 4
- 5. Productivity increase is driven by technology and innovation … "Rather than static discussions over the size of the deficit, there must be more debate about its actual composition; how to invest strategically in key areas, such as research and development, education and human capital formation, that will increase gross domestic product in the future (bringing the debt/GDP ratio down as a consequence); and how to engage in a debate about the direction of change so that such investments will lead to growth that is not only smarter (innovation-led) but also more inclusive and sustainable.” -- Mariana Mazucatto, Economist, author of The Entrepreneurial State: Debunking public vs. private sector myths 5 The State must direct the economy towards new techno-economic paradigms. -- Carlota Perez, Centennial Professor at the London School of Economics
- 6. … particularly in developing countries In lagging countries, political and social norms impede the spread of technology -- bad rules, old ways of thinking and self imposed limitations. -- Paul Romer, awarded Nobel Prize in Economics in 2018 for “for integrating technological innovations into long-run macroeconomic analysis” and having “immense impact on global policy making.” 6
- 7. Large firms that can compete globally … 7 McKinsey, 2018: "Large competitive firms propel outperforming economies. On average, these economies have twice as many companies with revenue over $500 million as other emerging economies. Top firms in emerging economies are more innovative, aggressive in their investment strategies, nimbler in allocating resources and prioritize growth outside their home markets.” "Governments also collaborated with the private sector to co-create solutions in multiple areas, including infrastructure, technology, and financial services. Firms in many of the outperforming economies face fewer regulatory and tax barriers compared with companies in other countries, and this in turn encourages business creation and improved efficiency. Outperformer governments have used pilot programs and experiments to test new ideas in a variety of contexts, modifying and updating them as necessary and then scaling up policies that work.”
- 8. .. with support of the state as visionary, risk taker, investor and enabler Policy Up stream HR R&D Innovate Incentive & Regulate Cross Industry Demand Creation HYUNDAI: STEEL RE- ROLLING POLYMER FOR AUTO RESEARCHERS & VOCATIONAL TRAINING CHINA: AI, ROBOTICS USA PHARMA: ORPHAN DRUGS USA: DOD, NSF, DARPA, NASA CHINA: TORCH INDIA: STARTUP PACKAGE 2015 ISRAEL: YOZMA MALAYSIA: MAVCAP CHINA: CLEAN TECH ELON MUSK: $4.9 BILLION JAPAN, INC USA: NANO, SEMATECH APPLE, SONY, TOYOTA APPLE: SBA GRANT GOOGLE: NSF GRANT G-G, G-B unified platform to provide real time monitoring, analytics/AI, adaptation and course correction Requite HR being produced? Innovation trajectory correct? Incentive providing desired result?
Editor's Notes
- https://www.dawn.com/news/1427514/fixing-pakistans-financial-woes "First, strengthen Pakistan’s financial and regulatory authorities.Third, modernise the financial system in order to reduce the incidence of tax evasion and money laundering.
- In my view—and that of most contemporary economists, I believe—Schumpeter’s most original and most lastingly significant book was Theory of Economic Development, which appeared in 1911 (and was translated into English in 1934). It was at the University of Czernowitz, not far from the beginning of his career as an economist, that he worked out his conception of the entrepreneur,the maker of “new combinations,” as the driving force and characteristic figure of the fits-and-starts evolution of the capitalist economy. He was explicit that, while technological innovation was in the long run the most important function of the entrepreneur, organizational innovation in governance, finance, and management was comparable in significance. I think that this is Schumpeter’s main legacy to economics: the role of technological and organizational innovation in driving and shaping the growth trajectory of capitalist economies. It is possible to see Keynesian and Schumpeterian ideas as complementary. Keynes is about short-run economic fluctuations brought about by erratic variations in the willingness of investors and governments to spend; Schumpeter is about the long-run trajectory driven by the erratic march of technological progress. This complementarity only became clear later, after both men had died, when economic growth became an explicit objective of public policy and topic of systematic analysis. Schumpeter was left frustrated by the younger generation’s affinity for his rival. In any case, the “preliminary volume” never materialized. The world turns. Today, some sixty years after their deaths, Schumpeter’s star probably outshines Keynes’s. The business cycle has receded in importance, partly because the large industrial economies have sprouted a more stable structure, and partly because the lessons that Keynes taught have been learned by central banks and finance ministries. Instead, long-term economic growth has moved to the top of the political and intellectual agenda, and that was Schumpeter’s topic. As Robert Lucas memorably put it, once you have begun to think about economic growth, it is hard to think about anything else. It is a pity that troubled old Schumpeter did not live to see the triumph of his obsession. Robert Solow
- https://www.youtube.com/watch?v=0bDs5VTafEA&t=352s https://www.youtube.com/watch?v=mSHBma0Ithk
- https://www.mckinsey.com/~/media/McKinsey/Featured%20Insights/Innovation/Outperformers%20High%20growth%20emerging%20economies%20and%20the%20companies%20that%20propel%20them/MGI-Outperformers-Executive-summary-Sep-2018.ashx