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Fresh SG Economic Growth Model Ppt


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Fresh SG Economic Growth Model Ppt

  1. 1. A Fresh Economic Growth Model Singapore’s Unique Institutional Strengths Can Grow Meta-Ideas for Superior & Sustainable Long-Term Growth Mark Lee ( July 2009
  2. 2. Summary Fresh Economic Growth Strategies Over Generic Strategies For Superior Economic Growth Growth Model Approach Predictions Conventional Generic Inferior • Land “wannabe” & Economic Growth • Labor “more of the same” (diminishing returns) • Capital strategies Fresh Distinctive • Ideas Singaporean Potential • Institutions Institutional Strength for Superior • Population “Meta-Idea” Economic Growth • Human Capital Strategy
  3. 3. Economic Growth Models Need to Evolve as Knowledge Becomes More Important Paul Charles Albert Romer Jones Winsemius Economy Becomes More Knowledge-Based Fresh Growth Model Ideas (aka knowledge) Output Diminishing Institutions Returns Population Human Capital Land, Labor, Capital 1960’s 1970’s 1980’s 1990’s 2000’s 2010’s
  4. 4. Meta-Ideas Drive Economic Leadership Meta-Ideas “ideas about how to support the production and transmission of other ideas” the country that Might NOT be Technology-Centric takes the lead Peer Review in the 21st century … implements an Patents Innovation that Modern Research Uni more effectively & Land grant colleges Copyrights supports the production of new ideas in the private sector (Paul Romer) 17th 18th 19th 20th Century
  5. 5. Conventional R&D Strategies Focus Upon Creating Ideas WHO Does the Research? Educate, Train & Can Singapore Use Compete the Best R&D Effectively Personnel Against R&D Powers WHAT With Is Researched? Conventional Invest in the Highest R&D Strategies? ROI Target Markets
  6. 6. Fresh Thinking I Create a new “Meta-Idea” R&D Dimension WHO (Manpower) Does the Research? (Research Fellowship) WHAT Markets/Industries) Is Researched? (RCE, CRP) HOW (Means) To Research, Innovate & Transform? (Meta-R, I, T )
  7. 7. Fresh Thinking II Leverage Singapore’s Institutional Strengths To Grow Meta-Ideas Opportunity for “Economic Institutions” Meta-Ideas Diagram Source: Acemoglu, et al “Institutions as the Fundamental Cause of Long-Term Growth”
  8. 8. Singapore’s Unique Oppt’y To Grow Meta-Ideas “… next to impossible to transplant the Singapore wonder elsewhere. … senseless to launch an economic development programme Albert in a country which lacks political stability and Winsemius does not have a government that sticks to that programme” (Link) “a dominant party that can form a strong majority government that expects to be in power in the future, … it takes a long view in addressing problems. Paul Your political equilibrium would be Romer difficult to replicate in most other countries.” (Link)
  9. 9. Impact of Fresh Thinking Leverage Singapore’s Institutional Strengths The World’s Sui Generis Meta-Innovation Center Singapore’s Value as a Global City Innovation MM Lee 2007 Speech London: International Paris: Elegant New York: Business
  10. 10. Meta-Idea Opportunity: Biotech Industry The Biotech Industry Is Structurally Unprofitable Figure 6.2 “Science Business” Biotech Industry Aggregate Profit With Amgen Biotech Industry Aggregate Loss Without Amgen
  11. 11. Biotech Needs New Meta-Ideas (Opportunity for Singapore) Scientific revolutions like biotechnology are only partly about science. Inextricably linked .. Are experiments in HBS institutional arrangements, Professor organizational forms, Gary Pisano business models, and management practices (p. 183) Organizational and institutional innovations are needed to unlock the potential of biotechnology (p. 202)
  12. 12. Project Bio-MeRIT Meta-Research, Innovation & Transformation HBS Professor Pisano Results Successful Team Meta-Ideas Singapore Govt Enables a √ Test-Bed Unsuccessful Biotech Industry X Needs Research & Learning Ram Charan Opportunities
  13. 13. Mark Lee ( July 2009