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Innovation africa options2012


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Innovation africa options2012

  1. 1. Innovation in the New Economy (Knowledge Economy) Options for Developing Countries Summary PresentationFrancis Stevens George
  2. 2. Knowledge Economy• The knowledge-driven economy brings new challenges for business. Markets are becoming more global with new competitors, product life cycles are shortening, customers are more demanding and the complexity of technology is increasing.• The knowledge-driven economy affects the innovation process and the approach to innovation.• The traditional idea that innovation is based upon research (technology- push theory) and interaction between firms and other actors is replaced by the current social network theory of innovation, where knowledge plays a crucial role in fostering innovation.Francis Stevens George
  3. 3. Competition in the New Economy• Competition in the New Economy is driven by Innovation.• Companies in the developing countries must innovate to be competive in the global economy.• Innovation has changed in the knowledge based economy. The old models-Closed Innovation, US style-are increasingly becoming redundant.• The New Models offer an opportunity to the developing countries.Francis Stevens George
  4. 4. Theory• Growth and Development of any modern economy is based on innovation and new technology• Kondratief’s ”Long Wave Theory”. The role of technology in the ”upwave”.• Schumpeter: technology innovation as the engine of economic growth• Mensch: Only innovation can overcome economic depression.Francis Stevens George
  5. 5. Technology and DevelopmentEconomic business Pol/Eco Influences Technology Innovation Impact on factors of productioncyclesFirst cycle French Revolution Industrial revolution I-iron, textile, Land-iron & coal resources(1780s-1830s) steam technology Capital-OT,BKn Labour-division of labour/fact. Workers. Enterprise-investment by landowners in new industrySecond cycle Marx Industrial revolution II-steel Land-pig iron coal(1830s-1880s) industry/railroads Capital-joint stock, issuing of notes, stable banking system Labour-education of workers Enterprise-investment by State and VCsThird cycle Capitalism Electrical Land-coal, petrol, other metals(1880s-1930s) engineering/electricity/motor Capital-int. Finn. Labour-more skilled, demise of child labour, Enterprise-inter war speculationFouth Cycle Socialism, Unionism, Nuclear/oil/electronics/micro Land-alluminium, silicone, petroleum(1930s-1990s) Consumption processing Capital-sophis. Fin mkts, Labour-highly skilled, universal education,unions Enterprise-international investmentFifth cycle Globalisation, Information Land-recycled/envio fM,(1990s- International, technology/telecoms/biotech/ggenetic Capital-single world market, money Integration eng Labour-know.workers Enterprise-monopolistic media,IT, private ins. investorsFrancis Stevens George
  6. 6. Innovation Models• US style-Closed Innovation Model• European/Early Industrial Revolution Model• Development- Driven Model(technopreneural model)• Technology push• Market Pull• Linkages between actors (chain linked theories)• Systems of Innovation (Technological Networks)• Social Network TheoryFrancis Stevens George
  7. 7. Innovation in the New Economy• Problem solving process• Occurence high with commercial entities• An interactive process involving relationships between firms with different actors• A diversified learning process• A process involving the exchange of codified and tacit knowledge• An interactive process of learning and exchange where interdependence between actors generates an innovative system or an innovation clusterFrancis Stevens George
  8. 8. The Question• Which Innovation models should developing countries go for? What are their options?Francis Stevens George
  9. 9. Criterion to Determine Options• In determing the options available to developing countries, I shall consider the following criterion• Knowledge Driven Focus• Degree of availability• Practical Usefulness• Level of documentation• Required resources for implementationFrancis Stevens George
  10. 10. Innovation ManagementInnovation ManagementOptions Knowledge Driven Focus Degree of Availability Required Criterion Resources Practical Usefulness Level of Documentation Francis Stevens George
  11. 11. Knowledge Driven Focus• Degree to which the technique focuses on knowledge as the most valuable asset to a company, highlighting features like: flexibility, cooperation, networking, internationalization, quick time-to-market, knowledge management, better market information and entrepreneurship encouragement.Francis Stevens George
  12. 12. Degree of Availability• Techniques and methodologies that are not subject to any copyrights or license restrictions so they can be used freely for any company. Generic methodological approaches and techniques which are not specific commercial tools owned by private players.• Open source!Francis Stevens George
  13. 13. Practical Usefulness• Focus on specific and key ‘problems’ to be solved by business organizations (problem-solving-orientation, know-how providers) Methodologies and techniques with a «tool» nature.Francis Stevens George
  14. 14. Level of Documentation• Well documented, standardized and systematized techniques, with a defined structure or method of application (existence of user’s guide or other codified knowledge pieces to replicate the technique) Availability of readily accessible best practice analysis (existence of examples and case studies to learn and diffuse how to use the technique)Francis Stevens George
  15. 15. Required Resources• Time required to be implemented; Average budget to perform the technique in a firm; Tools which are not too sophisticated, and can be generally applied by average- trained business professionals; If the implementation would require an external consultancy (required competencies, expertise and other resources for implementation and maintenance) it should be also assessed in terms of budgetFrancis Stevens George
  16. 16. Conclusion• “The innovation challenge is not just about catching up with developed countries in established areas of world production it is about developing an internal capacity for independent technological development and business knowledge. It is about learning to learn which takes time and requires resources. As well as adapting technology to local conditions, there needs to be investment in adapting organizations and institutions”.Francis Stevens George