1 / 29

Global Competitiveness and Technology

Global Competitiveness and Technology. National Conference on IP for MSME. Organised by CII-MoMSME-WIPO. 19th Oct 2010 Deepak Bhatnagar Indian Institute of Foreign Trade (IIFT) headcitt@iift.ac.in headcitt@gmail.com. India: Competing with the World. A peep into the past……

salena
Télécharger la présentation

Global Competitiveness and Technology

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Global Competitiveness and Technology National Conference on IP for MSME Organised by CII-MoMSME-WIPO 19th Oct 2010 Deepak Bhatnagar Indian Institute of Foreign Trade (IIFT) headcitt@iift.ac.in headcitt@gmail.com

  2. India: Competing with the World A peep into the past…… • Indian Steel in arrows and swords: • Iron tipped arrows used by Indians in the Persian army (480 BC) • Alexander the Great prized a gift of 100 talens of steel from Porus in 326 BC • Indian ‘Wootz’ steel used for making Damuscus blades and became famous in Europe (‘Wootz’ derived from the Kannada word ‘UKKU’ meaning steel) • British Royal Society made a detailed examination of Wootz Steel in 1790: their report says….“the steel of India is decidedly the best I have yet met with!” • “Should Tatas make steel rails to British specifications, I would undertake to eat every pound of it” Sir Fredrick Upcott, Chief Commissioner of Indian Railways. “If Upcott had carried out this undertaking he would have had some slight indigestion”(comment by Dorabjee Tata when the rails were sent to UK)

  3. Competing for the Future Forget that the ‘World is flat’ The world of business is turning upside down (The Economist April 17th 2010) • World’s Centre for economic gravity is shifting towards emerging markets • Emerging countries are no longer content to be sources of cheap hands and low-cost brains. • Instead, they too are becoming hot beds of innovation, producing breakthroughs in everything… from telecom to car making to health care. • They are redesigning products to reduce costs not just by 10% but by upto 90%. They are redesigning entire business processes to do things better and faster than their rivals in the West. They are the “new masters of management”

  4. Innovation and Technology Breakthrough ideas are tilting the balance • Rich-world companies are doing more R&D in emerging markets e.g. Fortune 500 companies now have 98 R&D facilities in China and 63 in India • Huawei, a Chinese telecoms giant, applied for more international patents than any other firm did in 2008. It set up R&D operations in India in 1999. Globally, the company owns 17 R&D centres with a strength of 40,000 Engineers. Order book in India $ 2 Billion (Rs. 9, 000 crore) with BSNL, MTNL, Reliance, Tata Indicom and Bharti Airtel. • Even more striking is the emerging world’s growing ability to make established products at dramatically lower costs. e.g. the $2,200 Nano Car or the $ 350 laptop: this sort of advance – dubbed as “frugal innovation” is not just exploiting cheap labour. It is re-designing products and processes to cut out un-necessary costs. (Similar to the concept of “lean manufacturing” when Japanese car industry beat the American giants 30 years ago!) • Emerging economies are not merely challenging that lead in innovation. They are unleashing a wave of low-cost, disruptive innovations that will, as they spread to the rich world, shake many industries to their foundations All sorts of CEOs will scream for protection!

  5. Technology and Competitiveness -these two are the most popular buzzwords of our time. • Technology is high up the agenda in both policy and academic debates. • The capacity of firms to use new technologies and improved organizational methods is central in explaining industrial leadership and the competitiveness of regions and countries. • Nevertheless, the relation between industrial innovation, scientific research, organizational change, and competitiveness is not clear. • The extent and manner in which innovation occurs in an economy depends on the development of new production and business capabilities, institutions, and infrastructure-factors which are, in turn, contingent (among other things) on business strategy and government decisions on public research funding.

  6. Defining Competitiveness • Country Competitiveness: Extent to which a national environment is conducive or detrimental to business. • Industry/Sector Competitiveness: Extent to which an industry or a business sector offers potential for growth and attractive return on investment. The concept can also be defined as the collective ability of firms in the sector to compete internationally. A more performance-oriented definition of industry competitiveness can be given as: Collective ability of an industry on performance factors such as productivity, cost, market share and technology. • Company Competitiveness: Ability to design, produce and/or market products or services superior to those offered by competitors , considering the price and non-price qualities.

  7. The Global Competitiveness Report 2010-11 Long term prosperity in the wake of Global Economic Crisis: Since 2005, the World Economic Forum has based its competitiveness analysis on the Global Competitiveness Index (GCI). • A highly comprehensive index which captures the micro economic and macro economic foundation of national competitiveness. The report defines “competitiveness as the set of institutions, policies and factors that determine the level of productivity of a country” • Thus, more-competitive economies tend to be able to produce higher levels of income for their citizens. • The productivity level also determines the rates of return obtained by investments in an economy. • The concept of competitiveness thus involves static and dynamic components.

  8. The 12 Pillars of competitiveness • The GCI provides a weighted average of many different components, each of which reflects one aspect of the complex concept that we call competitiveness. These are broadly grouped into 12 pillars of competitiveness. • Strong inter-relations of the 12 pillars- in fact, they tend to reinforce each other

  9. 9th Pillar - Technological readiness • This measures the agility with which an economy adopts existing technologies to enhance the productivity of its industries. In today's globalised world, technology has increasingly become an important element for firms to compete and prosper. • In this context, whether the technology used has or has not been developed within national borders is irrelevant for its effect on competitiveness. The central point is that the firms operating in the country have access to advanced products and blueprints and the ability to use them. Among the main sources of foreign technology, FDI plays a key role. India is the 2nd favourite destination for FDI (after China) Level of technology available to firms in a country needs to be distinguished from the country’s ability to innovate and expand the frontiers of knowledge

  10. 12th Pillar - Innovation • In the long run, standards of living can be expanded only with innovation. Particularly important for economies as they approach the frontiers of knowledge. • Firms must design and develop cutting edge products and processes to maintain a competitive edge. • This requires an environment that is conducive to economic activity, supported by both public and private sectors. • Sufficient investment in R&D, especially by Private Sector. • Presence of hi-quality research institutions • Extensive collaboration in research between university and industry. • Protection of Intellectual Property (IP) Organizational strategy for competitiveness: Develop and Integrate the Technology Strategy with Business strategy

  11. Key factors for the top spot in GCI Switzerland has: • Excellent capacity for innovation • High spending on R&D • Scientific research institutions are among the world’s best • Strong collaboration between academic and business sectors ensures that much of this research is translated into marketable products and process, reinforced by strong IP protection • High rate of patenting : 148 per million inhabitants. (India: 5.46 per million inhabitants) Sweden: no 2 slot ( has replaced USA ,which slipped to 4th) India: no 51 slot (slipped from 49th spot last year) China: no 27 slot (up from 29th spot last year)

  12. What are the requirements for enhancing competitiveness ? • Prevent obsolescence – sustained R&D • Making the future work for you! Are you confident about… • Future trends: how they may affect you? • Where the new opportunities will be? • How S&T can help you seize these opportunities? • What you should be doing NOW? For every person and organization priorities may differ. But one thing is certain: We live in a world of change!. The need to anticipate and prepare for the future is crucial.

  13. Need to “Manage” Technology • rapid technological change, uncertainity and complexity • technological knowledge to sustain competitiveness in an uncertain business context • issues become manifold because of globalization of technology • technology financing (VCs, Government schemes to encourage R&D and incentives) • create and nurture a ‘culture of innovation’

  14. NEED FOR A TECHNOLOGY VISION… ‘Blessed are those, who have a dream or a vision, for, those who have not, are dead while living!’

  15. Stories and new ideas… Opportunities on how frugal technology helped companies become globally competitive

  16. Global Leadership through Technology - the charms of frugal innovation • Mac 400- a hand held ECG device developed by GE’s health care lab at Bangalore. This miracle sells for $800 (conventional ECG is $ 2000) • Water Filter- using rice husks to purify water developed by TCS in Chennai. • Gives abundant supply of bacteria free water for an initial investment of about $ 24 and recurring expense of $ 4 for a new filter every few months. • Tata Chemicals is making these filter. Plan to produce 1m next year and hopes for an external market of 100 mn. • Frugal Innovation- not just about re-designing products: it involves re-thinking entire production processes and business models. • Companies need to squeeze costs to reach more customers and accept thin profit margins to gain volume

  17. Low Cost Insulin Pump • Under development at Amrita School of bio-technology with support from TIFAC, DST. • Partnership with Bio-Con, a leading manufacturer of human re-combinant insulin. • Price range in the 1000s. Imported pump costs Rs. 1.75 lakhs. • Globally competitive product. • A boon for diabetics, numbers increasing at alarming rate.

  18. FUNGISOMETMPride Product of Public-Private Partnership FUNGISOMETM development at Delhi University & KEM Hospital, Mumbai was supported by DBT, MoST, GoI. Technology transferred to Lifecare Innovations Through National Research Development Corporation. R&D at Lifecare Innovations led to the commercialization of FUNGISOMETMwhich was supported by DSIR, MoST, GoI under the auspices of PATSER (Program Aimed at Techonological Self Reliance).

  19. Liposomal Amphotericin : Produced at Lifecare FUNGISOME Liposomal Amphotericin : Produced in the lab LAMP LRC 1 TM Bench to Bedside

  20. FUNGISOMETM- "The new Gold Standard"

  21. PATSER Providing Strength • Special issue of Journal of Postgraduate Medicine on- Systemic Fungal Infections and development of Indian Liposomal Amphotericin B The special issue of the Journal highlighted matchless safety, therapeutic success and economy of treatment

  22. Indian Institute of Foreign Trade • Specialised Centres in IIFT: • SME • CITT • WTO

  23. IIFT : SME Centre • SME Centre of the institute, set up in May 2005, plays a crucial role in conducting research and capacity building programmes for SMEs at national and international levels • IIFT is being increasingly recognized as Regional Resource Centre for Capacity Building of SMEs 1. Research: Some of the important research conducted by the Centre includes A. Impact of Global Financial crises on SMEs from India B. Product Market Identification for Agricultural exporters from Andhra Pradesh C. Product Market Identification for SME Textile exporters : case study for Tirupur Exports D. The SME Whitebook: Essential Handbook for Small and Medium Enterprises 2009-10 E. Inventory of Food Safety Standards for Agricultural Exporters from India F. Market research reports in collaboration with Centre for Promotion of Imports from developing countries G. Increasing Competitiveness of Informal sector in India, submitted to NMCC 2.Training: SME Centre has been involved in Capacity Development of SMEs both at National and International level. Some of the important Capacity building programs conducted by the Centre for the year 2009-10 includes A. Training the trainers for SMEs in Greater Mekong Sub Region at Bangkok in Dec 2009 B. Capacity Building of SMEs at Chennai (Leather cluster), Tirupur (Textiles cluster) and Hyderabad (Agriculture) C. Student training in collaboration with CII and CBI, Netherlands

  24. IIFT : Centre for International Trade in Technology (CITT) Objectives: • Support industry by providing analytical information on technology export potential sectors and markets. • Develop a cadre of experts and trainers in international technology trade. • Underscore the importance of technology exports and strive for its inclusion in the curricula of the concerned academic institutions. • Sensitise Government of India towards an enabling and proactive policy regime.

  25. Focused studies by CITT: • Technology Branding in SMEs • Technology Support Services in Special Economic Zones (SEZs) • Survival of Startups • Foreign R&D Centres in India. • Exportable R&D Services in the CSIR System. • Technology Financing for SMEs: A Survey Report on Auto-Component SMEs. • Valuation of Intangible Assets - A Perspective. • GATS Provisions on R&D Services and Export Potential for India. • Global Marketing of Research and Development Services: Some Conceptual Issues. • Technology-Intensive Exports from India. • Policies and Incentives for Accelerating Technology-Intensive Exports: Exporters' Perspectives.

  26. How can IIFT help ? • Develop an export strategy for SMEs by linking technology with trade. • Organize ‘tailor-made’ training programmes for capacity building on the interface between technology and trade. • International branding/marketing of technologies • New business opportunities for Global trade • Impact of changing global, technological & business environment in the domains of your interest.

More Related