Innovation new economy_summary_african_days_sl_share

INNOVATION IN THE NEW ECONOMY
(KNOWLEDGE ECONOMY)
Options for Developing Countries
Africa Day Oslo:-28.05.2016
www.innovationafrica.org
The role of the African Diaspora in Norway
in enhancing innovation in Africa
1

Relevant
Project/Experience
• 2002: United Nations Digital Diaspora Network
for Europe( European Representative at UN ICT
Task Force)
The Digital Diaspora Network: Africa — a
collaborative effort between the UN ICT Task
Force, the UN Fund for International
Partnerships, the UN Development Fund for
Women, Digital Partners, and Gruppo CERFE —
seeks to promote development in Africa
through mobilising the technological,
entrepreneurial and professional expertise and
resources of the African diaspora. The objective
is to build a network of entrepreneurs from
Africa living in North America and Europe who
will contribute to promoting digital
opportunities in Africa.
• Grunderneshus-VP Project Development:(2012-
2013) (Oslo International Hub)
• 2016 Book: Innovation in Africa-Stories of
Entrepreneurship and Innovation
2
• CEO Innovation Africa
• Adviser to the Oslo Freedom
Forum(Human Rights Foundation)
• Founder Innovation Africa in 2005
• Consulted for World Bank,2002-
2004
• Consulted for Norad,2007-2009
• Several Tech Startups
• Manager at Yara 1993-1999
• BSc Econ-London School of
Economics 1989, MBA-BI 1993
• Accomplish author- 5 titles

Outline In order to understand and
appreciate The Role of the
Diaspora we need to look at:
• Innovation-Theory, Knowledge
Economy,Competition
• Innovation in the New Economy
• The Innovation Models
• The Paradigm Shift
• The Options for Africa
• The Role of the African Diaspora
• Conclusion/Take Away
Francis Stevens George
Innovationafrica.org
www.northfire.technology
3

Theory-
The Innovation
Imperative
• 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.
4

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 Theory
• Open Innovation
5

Knowledge
Economy
• Greater reliance on intellectual
capabilities than on physical inputs or
natural resources.
• The competitive advantage of countries
are found in the pool of knowledge
workers. Human Capital development is
paramount
• Knowledge economy fuels the Service
Economy-Growth is not a commodity
• The knowledge-driven economy affects
the innovation process and the approach
to innovation
• Social network theory of innovation,
where knowledge plays a crucial role in
fostering innovation.
6

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.Africa Day Oslo:-28.05.2016
7

Innovation in the
New Economy
• Problem solving process
• An interactive process
involving relationships
between firms/countries 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 cluster
8

Paradigm Shift • Immigrant entrepreneurs make a
significant positive contribution
to their host country economy
• High-skilled immigrants have
contributed to the high-tech
sector and to innovation, as
measured by growth in patenting
and in science and engineering.
• Connecting with and
Collaborating
• Diaspora as a National Asset
• Growth is not a commodityAfrica Day Oslo:-28.05.2016
9

Growth is not a
Commodity • Over the past decade Africa - world’s
fastest-growing continents— average
annual rate more than 5%
• Tourism, has boomed: the number of
foreign visitors doubled and receipts
tripled between 2000 and 2012
• Growth is even faster in services, which
expanded at an average rate of 2.6% per
person across Africa between 1996 and
2011.
• Despite falling commodity prices, growth
is forecast at 5%.
• Telecommunications, transportation and
finance -spur economic growth.
www.innovationafrica.orgFrancis Stevens George
10

African Economic Growth
11

WHICH INNOVATION
MODELS SHOULD
COUNTRIES IN AFRICA
ADOPT? WHAT ARE THE
CORRESPONDING OPTIONS
Africa Day Oslo:-28.05.2016 www.innovationafrica.org
12

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 Theory
13

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
implementation
14

15
Well educated, information
Literate. These men and women
participate in the economy as
creative entrepreneurs.
Rising Standard of living
Not well educated, less educated, not
information literate, outdated skills.
Limited participation.
Stagnation, stagnant standard of living
FEATURES OF “NEXT” ECONOMY
Information based Products
Internet, ICT
Tele Services, E-commerce
Intangible Assets
Net Entrepreneurs
Create new products and services
Knowledgeable about market signals
Develop products that markets wants
Develop new business models
Create jobs, income and increase savings
Invest in entrepreneurship training at all levels, support private initiatives
Innovation Africa Model: To Make the New Economy work in
Sierra Leone: Action Points
Diaspora Engagement as knoweledge and skills source

Transmisison
Mechanism
• Temporary return of qualified nationals
• Entrepreneurship training
• Incubators/Tech Labs
• Smart Remittances-Remittances for Investment
• Research (focus groups)
• Partnerships and collaborations on research
projects (virtually and in-person)
• Resource sharing - providing access to funding,
data, research and technology
• Serving as mentors and advisors
• Co-creating and reviewing teaching curricula and
PhD training materials
• Investing in institutional advancement initiatives
16

To Summarize • The Knoweldge Economy offers
unprecedented opportunities for growth
parallel with our natural resources
• Knowledge and intellectual capital resides in
our diaspora communties
• Enabling structures to faciltitate the transfer
of knowedge/ and or participation of the
Diaspora
• Knowledge is just as important as capital. In
International Development, knowledge
transfers has become an important element
• The innovation challenge is to develop an
internal capacity for independent
technological development and business
knowledge
• For this, we need the
Diaspora!
17

Take Away • Knowledge is the
essential ingredient
• Where is the greatest
source of Knoweldege
• In our people
18
If one does not know to which port one is sailing, no wind is favorable.
-- Lucius Annaeus Seneca, Roman philosopher

Technology and Development
Economic business
cycles
Pol/Eco Influences Technology Innovation Impact on factors of production
First cycle
(1780s-1830s)
French Revolution Industrial revolution I-iron, textile,
steam technology
Land-iron & coal resources
Capital-OT,BKn
Labour-division of labour/fact. Workers.
Enterprise-investment by landowners in new
industry
Second cycle
(1830s-1880s)
Marx Industrial revolution II-steel
industry/railroads
Land-pig iron coal
Capital-joint stock, issuing of notes, stable banking
system
Labour-education of workers
Enterprise-investment by State and VCs
Third cycle
(1880s-1930s)
Capitalism Electrical
engineering/electricity/motor
Land-coal, petrol, other metals
Capital-int. Finn.
Labour-more skilled, demise of child labour,
Enterprise-inter war speculation
Fouth Cycle
(1930s-1990s)
Socialism, Unionism,
Consumption
Nuclear/oil/electronics/micro
processing
Land-alluminium, silicone, petroleum
Capital-sophis. Fin mkts,
Labour-highly skilled, universal education,unions
Enterprise-international investment
Fifth cycle
(1990s-
Globalisation,
International,
Integration
Information
technology/telecoms/biotech/ggenetic
eng
Land-recycled/envio fM,
Capital-single world market, money
Labour-know.workers
Enterprise-monopolistic media,IT, private ins.
investors
19

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