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Local vs. Global Competitiveness and Collaboration

In a transformative address delivered on November 22, 1999, Dr. Orna Berry, Chief Scientist and Head of R&D at the Israeli Ministry of Industry & Trade, explores the declining growth rates of capitalism and the evolving landscape of economic competitiveness. Highlighting the shift from traditional comparative advantages to a focus on human capital—skills and knowledge—Dr. Berry emphasizes the importance of creating favorable government policies to attract investment and maintain economic power. The challenges of global market equality and the importance of leveraging local talents and innovations are discussed, along with Israel's unique position in industrial R&D.

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Local vs. Global Competitiveness and Collaboration

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  1. Local vs. Global Competitiveness and Collaboration Dr. Orna Berry Chief Scientist Head of the R&D Administration MINISTRY OF INDUSTRY & TRADE EU, Helsinki 22Nov. 1999

  2. The rate of growth of the capitalistic system is on the decline: Source:Lester Thurow, the future of Capitalism

  3. In the 20th century we observe:  Disappearance of comparative advantage e.g.  Geographic location of industry  Natural resources  Capital rich Productivity  Labor rich

  4.  Capital invested, not necessarily where natural resources, or even financial richness are.  Human capital: Brainpower, skills and knowledge are attracting investments creating physical capital

  5. Democracy - one person, one vote Capitalism - economically fit drive the unfit out Government - Equal distribution of income Market Economy - Rapid increase in inequality Power is based on wealth and political position Democracy - Capitalism

  6. Individual - capitalism Government - preserving wealth and distributing it via wise investments (education, economic infrastructure...) Economic Competitiveness

  7. How can government be attractive to capitalistic activities? Strengthen talents and skills Equal opportunity to leverage Create Future Potential

  8. Competitive advantage is taken into international trade. In theory - In an equal global environmentno region, industry or firm has preference. Business costs in different locations are approaching equality. The edge of an individual - country -market segment depends only on skill and talent. Local vs. Global

  9. Policies are set to continuously create a competitive edge so that economic power is developed and maintained via brainpower industries

  10. Chief Scientist Dr. Orna Berry International Programs National Programs Generic R&D “MAGNET” : Bi-national Funds BIRDF CIIRD SIIRDF BRITECH South-Korea Industrial R&D Israel - US High Tech Commission Industrial Incubators Technological Incubators “MESER”- “BASHAN" Other Bi-National Agreements EU RTD Fp-5

  11. Patents Per Capita: Israel vs. the NIC Source: Manuel Trajtenberg - TAU

  12. Patents per Capita: Israel vs. the G7 (patents per 100,000 population) Source:: Manuel Trajtenberg TAU

  13. Israeli Patents in the US and Industrial R&D Number of Patents Issued in the US Industrial R&D (millions of 1990$) Source: Manuel Trajtenberg - TAU

  14. Output per Capita and Labor Force - Growth In Israeli Electronic Industry 30% 26% 25% 22% 21% Based on I.E.A. data

  15. Economy Defense Education Israel’s competitive edge in technology - based industries

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