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Title: IMPORTANCE OF TECHNOLOGY IN THE DEVELOPMENT OF A COUNTRY:


1
IMPORTANCE OF TECHNOLOGY IN THE DEVELOPMENT OF A
COUNTRY
  • Can underdeveloped countries afford not to have a
    global competitive industry?

By Edgar Sánchez-Sinencio Analog and
Mixed-Signal Texas AM University
2
Technological artifacts are products of an
economy, a force for economic growth, and a large
part of everyday life. Technological innovations
affect, and are affected by, a society's cultural
traditions.
Source
http//en.wikipedia.org/wiki/History_of_technology
3
KNOWLEDGE AN ECONOMICS FORCE FOR GROWTH
  • In Soft revolution, knowledge is replacing
    physical resources as the main driver of economic
    growth. The OECD calculates that between 1985 and
    1997 the contribution of knowledge-based
    industries to total value added increased from
    51 to 59 in Germany and from 45 to 51 in
    Britain.
  • The best companies devote at least a third of
    their investment to knowledge-intensive
    intangibles such as RD, licensing and marketing.
  • Universities are among the most important engines
    of the knowledge economy. Not only do they
    produce the brain workers who man it, they also
    provide much of its backbone, from laboratories
    to libraries to computer networks.

4
Background
  • Queen Victorias Diamond Jubilee,held in London
    on June 22,1897
  • The grandest fest attendances included 46,000
    troops and 11 colonial prime ministers.
  • She ruled over a quarter of the worlds
    population and 20 of its territory
  • The empire was all connected by latest marvel of
    British technology, the telegraph, and patrolled
    by the Royal Navy, which was larger than the next
    two navies put together.

5
Background (continues)
  • Why was Great Britain at the top and not China,
    which was the worlds technological leader for
    about thousand years, between A.D 500 and A.D.
    1500?
  • Britains advantages were marked by a
    combination of social, political, and
    geographical factors. British society was
    relatively free and politically stable.
    Scientific thinking was dynamic.

6
Background (continues)
  • It was said well, here we are on top of the
    world, and we have arrived at this peak to stay
    there-forever!
  • The world is now flat and other players have
    surged.
  • US has replaced the British Empire
  • Of the worlds 20 top universities, 18 are
    American
  • How about other players, China, India and the
    former Soviet Union?
  • They are poorer, hungrier and have a good number
    of well trained people, they will compete with US
    for a slice of the pie.

7
Background (bad news for USA)
  • A Goldman Sachs study concludes that by 2045,
    China will be the largest economy in the world,
    replacing the United States.
  • What current problems exist in the US industry
    world dominance?
  • The National Academy of Sciences, Engineering and
    Medicine reported that the scientific and
    technical building block of our economy
    leadership are eroding at the time when many
    nations are gathering strength

8
Background (Bad news for USA)
  • China and India combined graduate 950,000
    engineers yearly. US produces 70,000 engineers
    per year. How many are educated to work for
    transnational companies?
  • More people in the USA will graduate in 2006 with
    sports-exercise degrees than electrical
    engineering degrees.
  • USA is loosing interest in the basics-math,
    manufacturing, hard work, savings and becoming a
    postindustrial society that specializes in
    consumption and leisure

9
Background (Good news for USA)
  • The USA invests 2.6 of its GDP on higher
    education, compared with 1.2 and 1.1 in Europe
    and Japan, respectively.
  • US remains by far the most attractive
    destination for students, nearly 30 of the
    total number of foreign students globally.
  • The US economy is excellent at taking technology
    and turning it into a product that people buys.

10
Background (Good news for USA)
  • The USA has the most flexible labor laws in the
    world. The easier it is to fire someone in a
    dying industry, the easier it is to hire someone
    in a rising industry that no one knew would exist
    five years earlier.
  • Flexibility to quickly deploy labor and
    capital where the greatest opportunity exists,and
    the ability to quickly redeploy it if the earlier
    deployment is no longer profitable, is essential
    in a flattening world Note the current low
    unemployment rate in the USA is one of the lowest
    in the world, around 4.6

11
Global Competition
  • China and India represent a 2.3 billion people
    with a significant number of highly skilled
    engineers with low salaries in comparison with
    Western standards.
  • USAs top 1 of earners now receive 16 of all
    income, up from 8 in 1980.
  • How the USA become competitive and leading
    research in the world, what was the driving force
    behind that?
  • The challenges to which US responded were a)
    in 1950 the Soviet Unions launch of the Sputnik
    satellite, b) in 1980 Japan was growing to become
    the technologically and economical dominant
    superpower of the future.

12
USA Companies are transformed to transnational
companies !
  • For example HP currently has nearly 143,000
    employees in 178 countries. It is the largest
    consumer technology company in the world and in
    Russia, Middle East,South Africa and Europe.
  • Very few non-USA companies are truly
    transnational.

13
Let us study how successful countries developed
their industries and education
  • Is there an strategy to become an industrial
    power country?
  • What are the key elements to accomplish these
    goals?

14
China PRC
Scientists born in China won four Nobel Prizes in
Physics. Science and technology have long
preoccupied China's leaders indeed, the
People's Republic of China's third and fourth
generations of leaders come almost exclusively
from technical backgroundsboth Jiang Zemin and
Zhu Rongji were trained as electrical power
engineersand have a great reverence for
science. Hu Jintao was trained as a hydraulic
engineer. Deng Xiaoping called it "the first
productive force." Distortions in the economy
and society created by Communist Party of China
rule traditionally has hurt Chinese science,
according to some Chinese science policy
experts. Before the 1990s, the Chinese Academy
of Sciences, modeled on the Soviet system,
placed much of China's greatest scientific talent
in a large, under-funded apparatus that remains
largely isolated from industry. However, as a
result of Chinese economic reform, most Chinese
scientific institutions have been encouraged to
commercialize their activities, and Chinese
scientists have increasingly begun to go into
business
http//en.wikipedia.org/wiki/Science_and_technolog
y_in_ChinaCommunist_Party_of_China_oversight
15
  • Chinese university undergraduate and graduate
    enrollments
  • more than doubled in the decade 1995 - 2005.
  • The revival of a research in PRC universities
    has already
  • given the universities the edge in the number of
    most cited PRC
  • papers in the Science Citation Index.
  • The average age of Chinese researchers at the
    Chinese Academy of Sciences has dropped by nearly
    ten years between 1991 and 2003 as the older
    generation retired and younger researchers, many
    educated in the United States and other foreign
    countries, took their place.
  • The Communist Party of China Central Committee
    and the State Council, on May 6, 1995 issued the
    'Decision of the Central Committee of the
    Communist Party of China and the State Council on
    the Acceleration of Progress in Science and
    Technology'. The 'Decision' set the goal of
    overall (both public and private) to attain
    Chinese RD spending equivalent to 1.5 of GDP
    by the year 2000. It urged scientific academies
    and institutes of higher education to set up high
    tech companies. The 'Decision' noted that science
    and technology are the chief forces of social and
    economic development.

16
Girls , when I was growing up, my parents used
to say to me, Tom, finish your dinner people in
China and India are starving. My advice to you
is Girls, finish your homework-people in China
and India are starving for your jobs Bill Gates
said The Chinese have risk taking down, hard
work down, education, and when you meet with
Chinese politicians, they are all scientists and
engineers. You can have a numeric discussion with
them-you are never discussing give me a
one-liner to embarrass my political rivals
with. You are meeting an intelligent bureaucracy.
http//www.nsfc.gov.cn/e_nsfc/desktop/nsfc2004.asp
x_at_tabindex448modelid257.htm
17
China needs her students back
  • The number (in 000 )of Chinese students has
    grown

trained talent is the yeast that transforms a
society and makes it rise was said by
Singapores city-state elder statesman
Source The battle for brainpower, The Economist
October 7th 2006
18
  • McKinsey calculates that in 2003, US had far
    more
  • young engineers who were capable of working for
  • Multinational companies than China-540,000
  • against 160,000
  • The sum of Chinas total exports and imports
    amounts
  • to around 70 of its GDP, against only 25 to 30
    in India
  • and US. In 2007, China will account for nearly
    10 of
  • world trade, up from 4 in 2000

19
Taiwan is a barren rock in a typhoon-laden sea,
with virtually no natural resources and it has
the third largest financial reserves in the
world.
Brief Summary about her technological development
1.What is the GDP in 1980 and in 2005? 1980
GDP 41.423 Billion 2005 GDP 345.105
Billion From http//www.econstats.com/weo/C15
7V019.htm Population 22.6m Adult literacy
96.1 2. Was there a national strategy to
promote her industrial development? Strategy
changes through stages on industrial
development. At the current stage of enhanced
industrial technology capability and phased-out
substantial government support, as well as
ever-intense global competition, the strategy of
forming an industry-directed research consortia
(ASTRO) has been adopted in the hope of
integrating industrial RD resources,
accelerating the uptake of RD, promoting
technology exchange, accumulating long-term
technology capabilities, stimulating
Collaborative research among up-/downstream
sub-industries and boosting overall industrial
competitiveness.
20
3. Is there a strategy to promote startup
companies? Government grants, low interest
loans, technology development and transfer,
angel funds are tools commonly employed. 4.
What is the percentage of the industrial output
of the semiconductor industry? about 10
GDP. 5. How many engineers are produced per year
in your country? From ministry of education
statistics, about 90,000. 6. Who are the leaders
that promo the industrialization in your
country? Chief of Executive Yuan, Minister of
Economical Affairs, Council for Economic
Planning and Development, National Science
Council, Private sectors. 7. Another
important factors in the industrial development
and university cooperation in your country?
The government has sought to integrate scientific
and technological resources, elevate academic
standards, strengthen industrial technology, and
support innovation. Innovation index 6.06 second
best (USA has 6.41)
21
INDIA
Key issues Indian Institute of Technology
History The history of the IIT system dates back
to 1946 when a committee was set up by Hon'ble
Sir Jogendra Singh, Member of the Viceroy's
Executive Council, Department of Education,
Health and Agriculture to consider the setting up
of Higher Technical Institutions for post war
industrial development in India. The 22 member
committee headed by Sri N.R.Sarkar, in its
report, recommended the establishment of four
Higher Technical Institutions I n the Eastern,
Western, Northern and Southern regions, possibly
on the lines of the Massachusetts Institute of
Technology, USA, with a number of secondary
institutions affiliated to it. The committee
also felt that such institutes would not only
produce undergraduates but they should be engaged
in research, producing research workers and
technical teachers as well. The standard of the
graduates should be at par with those from first
class institutions abroad. They felt that the
proportion of undergraduates and postgraduate
students should be 21
22
  • NASSCOM estimates that in 2001-04 some 25,000
  • Indian techies returned home, and the number is
    rising
  • rapidly.
  • 68 of Indian executives living in the US were
    looking
  • for opportunities to return home, and 12 had
    already
  • decided to do so.
  • What is GDP of India in 1980 and in 2005?
  • GDP recorded in USD-Billions, based on
    Purchasing-Power-Parity 1
  • 1980 gt 434.28 2005 gt 3602.89
  • 1 http//www.econstats.com/weo/C075V013.htm

23
Brief summary about the technological
development in India
  • Was there a national strategy to promote
    industrial development?
  • Two Stages of Economic Reforms 2
  • The pro-business measures of 1980, initiated by
    Gandhis (Indira and Rajiv) removed price
    controls and reduced corporate taxes.
  • The economic liberalization of 1991, initiated by
    then Indian prime minister P. V. Narasimha Rao
    and his finance minister Manmohan Singh. It
    removed restrictive license policies, initiated
    disinvestments and ended many public monopolies.
    It also facilitated the foreign direct investment
    in many sectors including infrastructure and
    technology.
  • 2 http//en.wikipedia.org/wiki/Economy_of_India

24
Brief summary about the technological
development in India
  • Is there an strategy to promote start up
    companies?
  • Some Incentives 3
  • Setting up of Special Economic Zones (SEZ) in the
    country with a view to provide an internationally
    competitive and hassle free environment for
    exports.
  • Giving early tax incentive to technological
    companies.
  • Relaxing rules about Foreign Direct Investment in
    certain sectors.
  • 3 http//www.sezindia.nic.in/

25
Was there a national strategy to promote
industrial development? India's industrial
economy continues to invest heavily in advanced
technology initiatives such as digital
communications and space research. India's
energy requirements are met by oil, most of which
is imported despite the growth of indigenous
production and hydroelectric schemes, mostly
based amid the powerful northern rivers. Mining
is a relatively small sector, but does produce
iron ore and cut diamonds for export. India's
main industrial development has been in
engineering, especially transport equipment (a
major export earner), iron and steel, chemicals,
electronics and textiles. Economic reforms have
been underway since the beginning of the 1990s,
under which trade has been liberalized, the
public sector scaled back, and state-owned
industries privatized. These reforms were
developed with and approved by the IMF, which has
supplied substantial credits to India.
26
Key Strategies and reforms taken by the
government in 1991 - The reservation of many
areas of economic activity for the state was
abolished. - The restrictions on the inflow of
foreign capital and technology transfer were
significantly relaxed. Foreign participation in
companies up to 51 was permitted automatically
in 34 industries. Clearance for higher levels or
in industries outside the 34 were processed
speedily, and foreign equity inflows jumped
rapidly after 1991. - The restrictions on the
large industrial houses (designed to curb
monopoly) were significantly relaxed, and large
companies became able to expand existing units
and construct new ones. - Quantitative
restrictions on imports of raw materials,
intermediates and capital goods were abolished.
Considerable restrictions on the import of
consumer goods remained, although by 1995 an
increasing number were being put on Open General
License, albeit subject to tariffs.
27
Is there an strategy to promote start up
companies? Technopreneur Promotion Programme
(TePP) Introduction As a new initiative during
1998-99, the Ministry of Science Technology has
launched a novel programme, known as
Technopreneur Promotion Programme (TePP)
jointly operated by the Department of Scientific
Industrial Research (DSIR) under its plan
scheme Programme Aimed at Technological
Self-Reliance (PATSER) and the Department of
Science and Technology (DST) under its Home Grown
Technology Programme (HGTP) of Technology
Information Forecasting and Assessment Council
(TIFAC) to tap the vast existing innovative
potentials of the citizen of India. Objectives To
promote and support untapped creativity of
individual innovators To assist the individual
innovators to become technology based
entrepreneurs To assist the technopreneur in
networking and forge linkages with other
constituents of the innovation chain for
commercialization of their developments.
28
Is there an strategy to promote start up
companies? Activities The activities under TePP
includes providing financial support to selected
screened Individual innovators having original
ideas for converting them into working models,
prototypes etc. The assistance under TePP
includes to undertake the activities like, RD /
engineering consultancy, Small equipment, tools
etc. Raw Material / Accessories (for
prototype/process trials), Fabrication cost (for
prototypes) Patent guidance and support
Manpower Testing Trials Any other relevant
costs TePP support to the innovators is limited
to 90 of the total cost of the project
remaining 10 is to be borne by the
innovator/inventor. Software Technology Parks of
India (STPI) are also helping to promote
start-ups.
29
How many engineers are produced per year in your
country? According to the All India Council for
Technical Education, India produced 401,791
engineers in 2003-04, 35 per cent being computer
engineers. In 2004-05, the number of engineering
graduates increased to 464,743, of which 31 per
cent were computer engineers. Compared to India
and China, the United States produces only 70,000
engineering graduates every year. All of Europe
produces just 100,000. India currently has 113
universities and 2,088 colleges, many of which
teach various engineering disciplines.
Engineering colleges in the country have been
growing at 20 per cent a year, while business
schools have grown at 60 per cent.
(Engineering education Can India overtake
China? George Iype June 09, 2006)
30
Recent news from India 2007
  • Cellular phones pay about 5 US cents per minute.
    Special phones for illiterate people use special
    codes so they can dial with one button. It costs
    10cents per minute to dial from India to US. From
    Internet to a USA phone is 1.7 cents per minute,
    access to broadband cost 5 US per month.
  • GSM is the dominant standard but new local
    standard are being proposed.
  • India has the largest railway network in the
    world, one of the primary means of transportation
    for long distances for people and cargo.
  • It has 3 (10) domestic airlines in 2005 (2007)
  • The Medical tourisms as well as Dental tourism
    continue growing.
  • Very cheap medical cost, i.e, 500 brain surgery
    and hospital.
  • Initial salaries for undergraduate, MS and Ph D
    are 8K-10K, 10K-12K, 15K-18K , respectively.
  • After 8 years salaries could reach 40K ( for
    management ladder)

31
Who was the leader (s) that promote the
industrialization in your country? J. R. D.
Tata (1904-1993) Most famous industrial pioneer
of modern India. Father of Indian civil aviation.
He founded India's first commercial airline, Tata
Airlines, in 1932, which in 1946 became Air
India, now India's national airline. Tata
directed the Tata Group of Companies, with major
interests in many industries in India, including
steel, engineering, hospitality and electrical
companies. G. D. Birla (1894-1983)
Founded BITS, Pilani. In collaboration with
Caesar, an American friend, he set up an Aluminum
Plant 'Hindalco'. He also started many
educational Institutions. To his credit go many
temples, planetariums and hospitals. During the
decades of 70's and 80's, The Birlas were among
the topmost Industrial Houses of India.
32
Another important factors in the industrial
development and university-industry cooperation
in your country? Traditionally, this used to
be a niche area involving government educational
institutions and government projects in the
past With the liberalisation of the economy
in the recent years, there are more such cases
involving private industrial establishments and
universities as well. e.g. OLAB in BITS is a
semiconductor RD lab and is the first campus
based VLSI Design facility in India. http//eetime
s.com/news/semi/showArticle.jhtmljsessionidASETU
TI3TRYL4QSNDLOSKHSCJUNN2JVN?articleID18402777_re
questid394263 Texas Instruments sets up second
development facility in India (proximity to IIT,
Chennai). http//www.networkworld.com/news/2006/07
1306-ti-sets-up-second-development.html
33
  • 4. What is the percentage of the industrial
    output of the Semiconductor industry?
  • Direct Impact of Semiconductor Technology Driven
    Industries on
  • Output of Indian Economy 4-5
  • 14.25 billion USD gt 2 of GDP gt6.8 of
    industrial output
  • 4 Economic data from ISA,Frost and Sullivan
  • 5 http//www.answers.com/topic/list-of-countries
    -by-industrial-output
  • 5. How many engineers are produced per year in
    India?
  • 284,000 in 2005 6
  • Who was the leader (s) that promoted the
    industrialization in India?
  • No single leader, venture capitalists or
    individual investors though some pro- business
    policy makers are highlighted in Q-2
  • 6 http//www.sunmediaonline.com/indiachronicle/i
    nfotech.html

34
Brief summary about the technological
development in India
  • 7. Other important factors in the industrial
    development and university-industry cooperation
    in your country?
  • Industry growth in IT sector seems to be mainly
    driven by low-cost Outsourcing and availability
    of large English speaking engineering workforce.
    University Industry relation is still weak in IT
    sector. 7
  • 7 http//www.hindu.com/edu/2006/09/04/stories/2
    006090400580100.htm
  • Observe that the driving force for industrial
    growth, in India, has been private companies and
    local natives returning from abroad and putting
    ideas, creativity and money.Recently the
    government is adding strength and efforts for
    this economical growth

35
SOUTH KOREA Korean GDP between 1970 and 2005
Innovation Index 7th, 4.62
36
Korean national strategy to promote industrial
development
The major national strategy is Select and
Concentrate
Growth Engine
Background
Korea has
  • very limited natural resources
  • limited financial resources
  • small domestic market
  • small land
  • highly educated human resources

Can not invest for every field.
Strategy
  • Select major fields that is suitable for Korea
  • Invest all the national resources for the
    selected fields
  • Concentrate and speed-up
  • Globalization be the world best in the
    selected field in 10 years
  • Success in the selected field will power other
    fields in the future

Now, this philosophy has been spread over almost
everything and been being a part of Korean culture
37
The percentage of the industrial output of the
Semiconductor industry
  • GDP per head 12,690
  • Electronics product
  • 2003 23 of GDP, 40 of total export
  • Semiconductor
  • 2001 5 of GDP, 15 of total export

Current even higher
38
TOP UNIVERSITIES IN LATINAMERICA 2006
World Ranking 2
UNIVERSITY OF SAO PAULO 112 1
UNIVERSITY NACIONAL AUTONOMA DE MEXICO 110
3 STATE UNIVERSITY OF CAMPINAS
192 4 UNIVERSITY OF CHILE
230 7 TECNOLOGICO DE MONTERREY
374 8 UNIVERSITY OF BUENOS
AIRES 376 5 FEDERAL
UNIVERSITY OF SANTA CATARINA 342 6 FEDERAL
UNIVERSITY OF RIO DE JANEIRO 366 9 FEDERAL
UNIVERSITY OF RIO GRANDE DO SUL 379 11
PONTIFICAL CATHOLIC UNIVERSITY OF RIO DE JANEIRO
539 12 PONTIFICAL CATHOLIC UNIVERSITY OF
CHILE 572 15 UNIVERSITY OF GUADALAJARA
692
HOW CAN WE MAKE MEXICAN UNIVERSITIES MORE
COMPETITIVE ?
http//www.webometrics.info/top200_latinamerica.as
p
UNAM has been ranked among the best 100
universities in the world by another ranking
organizations
39
  • Top Universities Distribution by Continent
  • CONTINENT Top 200 Top 500
  • USA Canada 118 228
  • Europe 67 209
  • Oceania 6 23
  • Asia 5 23
  • Latin America 3 9
  • Middle East 1 7
  • Africa 1
  • Distribution by Country
  • RANK COUNTRY Top 200 Top 500
  • 1 United States of America 101
    201
  • 2 Germany 25 51
  • 3 Canada 17 27
  • 4 United Kingdom 13
    40

40
Spending per student, 000,PPP
Source OECD
41
(No Transcript)
42
  • What are some potential solutions to create (HT)
  • High Technology industry in developing countries?
  • Background
  • A maquiladora (or maquila) is a factory, that
    imports
  • materials and equipment on a duty- and
    tariff-free basis
  • for assembly or manufacturing.
  • The maquila must be a temporary step towards
  • developing high technology. It is not a final
    solution.
  • An own foundry of semiconductor is not needed to
  • develop HT.
  • Many successful semiconductor companies are fab
    less

43
Indicators about Mexico 1/10
  • 15th largest country 1,973,000 sq km
  • The economy
  • Economic freedom index 2.89 ( gt 50 world
    position)
  • GDP per head 6,050 (61 world position)
  • GDP per head in purchasing
  • Power parity (USA100) 23.8 ( 75 world
    position)
  • Human development index 80.2 ( 51 world position)
  • Origins of GDP of total
  • Agriculture 4.0
  • Industry, of which 26.4
  • Manufacturing mining 19.5
  • Services 69.6

44
Indicators about Mexico
  • Total expenditure on RD of GDP 2002
  • 1. Israel 4.66
    2. Sweden 4.27
  • 4. Japan 3.12
    6. USA 2.64
  • 29. Brazil 1.04
    31. Spain 0.95
  • 43. Venezuela 0.45
    44. Mexico 0.41
  • Largest market capitalization m, end 2003
  • 1 USA 14,266,266
    15 South Korea 329,616
  • 2 Japan 3,040,665
    19 Brazil 234,560
  • 6 Canada 893,950
    27 Mexico 122,532
  • Most tourist arrivals 000
  • 1 France 75,048
    2. Spain 51,830
  • 3. USA 41,212
    4. Italy 39,604
  • 8. Mexico 18,665
    38. Brazil 4,091

45
Indicators about Mexico 10/10
  • Largest tourist receipts m
  • USA 64,509
    2. Spain 41,770
  • 3. France 37,038
    12. Canada 10,579
  • 14. Mexico 9,457
    17. Japan 8,848
  • Daily newspaper per000 population
  • 1 Japan 551
    2 Norway 544
  • 12 Singapore 234
    17 USA 188
  • Canada 157 29
    Spain 110
  • Mexico is not in the top 30 countries
    my guess of newspaper per 1000 population is
    about 20

46
Indicators about Mexico
Trade (bn fob) Principal exports
Principal imports Manufactured
products 160 Intermediate goods 129.2
(Maquiladora 77.5
(Maquiladora 68.4) Crude Oil products
20.5 Consumer goods 21.5
Agricultural products 5.2
Capital Goods 20.2 Total incl. others
164.9 Total
170.5 Main export destinations () Main
origins of imports() United States
88.8 United States 61.8
Canada 1.7 China
5.5 Spain
0.9 Japan
4.5
47
Indicators about Mexico
Health education Health spending, GDP 6.1
Education spending, GDP 5.1 Doctors
per 1,000 pop 1.6 Enrolment,
primary 110 Hospital beds per 1000
pop 1.0 secondary
79

tertiary 21 Obesity (17M,16W in
the world ) 19.4, 29 Diabetes ( 1 in the
world) 14.2 11th largest
pop. 103.5 M Highest tertiary enrolment in the
world 1 Finland 86
5 Australia 74 2 South Korea
85 13 Estonia
64 3 United States 81
16 Denmark 63 4 Sweden 74
18 Poland 60
A mathematic study for 15 years olds placed
Mexican students in the last place 29/29 in
countries belonging to the OECD
48
  • What are some potential solutions to create (HT)
  • High Technology industry in developing countries?
  • Who are the players in this creation of a HT
    industry?
  • Who should lead and pay for this national
    initiative?
  • What should be provided to create a suitable
  • environment to develop this industry?
  • What level of commitment is needed with the
  • participants of this initiative?

49
  • What are some potential solutions to create (HT)
  • High Technology industry in developing countries?
  • The players must be from university-industry-gove
    rnment
  • Government and industry should lead and pay for
  • this national initiative.
  • Make different regions and states compete to
    attract
  • industry by tax exempt and providing financial
    support
  • including real state. Improve infrastructure,
    roads, schools,
  • and health
  • Facilitate importing and exporting permits for
    this industrial
  • sector. Provide financial aid and simplify
    bureaucracy.

50
  • What are some potential solutions to create (HT)
  • High Technology industry in developing countries?
  • Serious long term level of commitment is needed
    with the
  • participants of this initiative.
  • This should be an initiative at the national
    level and
  • independent of the government in office.
  • Put someone in charge based on experience,
    technically
  • capable and world recognized. Do not put in
    charge a politician
  • or someone without the credentials.
  • Increase the number of qualified undergraduate
    and
  • graduated students in science and engineering

51
  • Remarks on creation of (HT) High Technology
    industry
  • in developing countries.
  • There is no single approach to accomplish this
    goal and is
  • adaptable to variation in the world market.
    Previous
  • approaches followed by Japan, India, China
    and Korea
  • should be studied and come with one that
    suits the local
  • culture and maturity of society.
  • The main national goals should be set
    independent of
  • government in office and should have plans for
    5 to 10 years.
  • Encourage the local industry to become a
    partner of these
  • goals. This industry should move from being
    distributors,
  • maintenance, assembly and manufacturers to
    world leaders
  • in some key high technology niches.

52
  • The first group of people that will form this
  • high tech industry could come from natives
  • working abroad at industry and academia.
  • Attract the best people from all over the world
  • with experience to help to develop this
    industry,
  • provide the proper financial benefits with a
  • constructive and intellectual environment.
  • Creation of well educated and trained human
  • resources should become the highest priority of
  • the national priorities. What is need to
    accomplish
  • this?

53
How to transform classical university environment
into the current world situation?
An international survey offers two pieces of
advice for countries that are trying to create
successful higher-education systems, be they
newcomers such as India and China or failed old
hands such as Germany and Italy. First
diversify your sources of income. The bargain
with the state has turned out to be a pact with
the devil. Second let a thousand academic
flowers bloom. Universities, including for-profit
ones, should have to compete for customers. A
sophisticated economy needs a wide variety of
universities pursuing a wide variety of
missions. These two principles reinforce each
other the more that the state's role contracts,
the more educational variety will
flourish. http//www.economist.com/displaystory.c
fm?story_id4339960
54
  • Undergraduate programs at university should be up
  • dated to reflect the needs of the international
    industry, not
  • just the local needs which often do not have a
    large market.
  • Faculty members at universities should have MSc
    and
  • Ph D. degrees. A drastic renovation program
    should be
  • in place. They should have periodic stays at
    industry
  • supporting their research.
  • Salaries of professors must be competitive with
    industry
  • salaries. Promotion should be based on
    results and
  • guided graduate students.
  • Talent resides in the brains of individual, but
    it is also
  • nurtured by organizations.

55
  • A typical Mexican home earns 10,244 pesos
    monthly
  • The national income grew 0.8 per year in the
    last 5 years
  • The difference in income between the 10 richest
    and the
  • 10 poorest is about 22 times
  • 50 of the poorest Mexican population lives
    with less than
  • 3 US dollars per day
  • 18.2 (19M) of the population leaves in extreme
    poverty,
  • about 72 and 52 monthly in urban and rural
    areas,
  • respectively.

From the Encuesta Nacional de Ingreso y Gastos
de los Hogares 2005 http//www.cronica.com.mx/not
a.php?id_nota265296
56
The World's Richest People
  • Rank Name Citizenship
    Age Net Worth (bil) Residence
  • 1 William Gates III United States 50 50.0
    United States
  • 2 Warren Buffett United States 75 42.0 United
    States
  • 3 Carlos Slim Helu Mexico 66
    30.0 Mexico
  • 4 Ingvar Kamprad Sweden 79 28.0 Switzerland
  • 5 Lakshmi Mittal India 55 23.5
    United Kingdom
  • 6 Paul Allen United States 53
    22.0 United States
  • 7 Bernard Arnault France 57 21.5
    France
  • 8 Prince Alwaleed Bin Talal Alsau 49 20.0
    Saudi Arabia
  • 9 Kenneth Thomson family Canada 82 19.6
    Canada
  • 10 Li Ka-shing Hong Kong 77 18.8
    Hong Kong
  • 11 Roman Abramovich Russia 39
    18.2 Unite Kingdom
  • 12 Michael Dell United States 41
    17.1 United States

http//www.forbes.com/lists/2006/10/Rank_1.html
57
Many talented people not only create jobs and
wealth, They turn their hands to philantropy
http//www.businessweek.com/pdfs/2005/0548_philsco
.pdf
58
  • Promote philanthropy among the richest people
    in the country.
  • Increase donations to private and public
    universities coming from former students and
    industry.
  • Provide an easy legal and financial path to
    establish high tech start up companies.
  • Implement measurement for identifying the best
  • undergraduate students in the country. A
    national entrance exam?
  • Increase exchange of graduate students and
    faculty, attract top foreign students to study in
    Mexico, of course make attractive Fellowship
    offers.

59
  • Industrial growing must be accompanied by social
  • responsibility, continuing education, parental
  • support and encouragement, medical care,
  • promotion for career development.
  • Modern companies to win the talent wars should
  • turn themselves into learning organizations.
  • The success of advanced economies is
    increasingly dependent not on their physical
    capital but on their capacity to mobilize their
    citizens brainpower

60
Conclusions
  • As a society one can choose to shift the
  • responsibility or to choose to change the
    paradigm.
  • The preconditions for development and progress
  • involve basic infrastructure ( ports, power
    and
  • roads) and human capital ( health and
    education)
  • Technology has been the main force behind the
  • long-term increases in income in the rich
    world,
  • not exploitation of the poor. Consider the
    cases of
  • Korea and Japan. This not to say that human
  • exploitation has not occurred and is occurring.

61
Conclusions (continues)
  • Governments must invest heavily, especially in
    the
  • early stages of Research and Development and
  • should maintain the momentum as a part of a
  • permanent national strategy.
  • Break the cycle The rich move from
    innovation to
  • greater wealth to further innovation the poor
    do not.
  • Collective action, through effective government
  • provision of health, erase impunity and
    corruption,
  • enhanced and invest heavily on education and
    RD.

62
References
  • 1 F. Zakaria, How long will America lead the
    World Newsweek. http//www.msnbc.msn.com/id/13123
    358/site/newsweek/page/3/print/1/displaymode/1098/
  • 2 T. L. Friedman, The World is Flat, Farrar,
    Straus and Giroux, New York, 2005
  • 3 http//www.enchantedwebsites.com/maquiladora/
  • 4 http//www.iitkgp.ac.in/institute/history.php
  • 5 The Economist, Pocket World in Figures,
    Profile Books, Ltd,London, Edition 2006
  • 6 J. D. Sachs, The End of Poverty ,Economic
    Possibilities of Our Time. Pinguin Books, New
    York, 2005.
  • 7 http//video.google.com/videoplay?docid423735
    3244338529080

63
  • Appendix I
  • Top number of graduate students in different
  • universities at different levels
  • 2. Tertiary education by field for OECD countries
  • Reading Comprehension
  • Finland 543.5
  • Korea 534.1
  • Mexico 399.7
  • Basic Sciences
  • Finland 548.2
  • Japan 547.6
  • Mexico 404.9

64
Bachelor's Degrees Awarded by School
65
Master's Engineering Degrees Awarded by School
66
Doctoral Engineering Degrees Awarded by School
67
(No Transcript)
68
Appendix II Indicators about Mexico
  • Color TVs per 100 households
  • USA 99.5 26 South
    Korea 93.3
  • Mexico 90 47 Russia
    75.8
  • Computer per 100 people
  • Switzerland 70.9 8 South Korea
    55.8
  • 10 Canada 48.7 34 Spain
    19.6
  • ? Mexico lt 19
  • Telephone lines per 100 people
  • 8 Canada 65.1 17 South
    Korea 53.8
  • ? Mexico lt 28

69
Indicators about Mexico
Book Sales m 1 United States 32,264
2 Japan 20,818 5 Mexico
3,567 15 South Korea
821 Nationality of asylum applications in
indust. Countries ( in 000, 2003) 3 Turkey
29.2 11 Colombia
12.4 4 China 26.3
13 Mexico 10.7 Highest foreign
debt m, 2003 1 Brazil
235,431 25 Peru
29,857 2 China 193,567
39 Ecuador 16,864 6 Mexico
140,004 47 Iran
11,601
70
Indicators about Mexico
  • Agriculture Biggest producers 000 tonnes
  • Meat
  • 1 China 70,899
    6 India 5,941
  • 2 United States 38,911
    9 Mexico 4,908
  • Fruit
  • 1 China 76,893
    6 Italy 15,727
  • 3 Brazil 34,298
    7 Mexico 14,743
  • Sugar top ten producers top
    ten consumers
  • 1 Brazil 26,000
    1 India 18,600
  • 2 India 21,700
    2 EU15 14,100
  • Mexico 5,400 7
    Mexico 5,300
  • Coffee top producers top
    consumers
  • Brazil 1,729
    1 USA 1,230
  • 5. Mexico 273
    2 Brazil 825

71
Indicators about Mexico
  • Metals
  • Lead producers
    consumers
  • China 955
    1. USA 1,494
  • Mexico 135
    7 Mexico 307
  • Zinc
  • Canada 788
    3 Japan 619
  • 6 Mexico 427
    5 South Korea 438
  • Silver
  • Peru 2,921
  • 2 Mexico 2,551
  • Canada 1,309
  • Oil 000 barrels per day producers
    consumers
  • Saudi Arabia 9,817 1
    USA 20,071
  • USA 7,454
    7 South Korea 2,303
  • 5 Mexico 3,789
    11 Mexico 1,864

72
Indicators about Mexico
  • Innovation Index is a measure of human resources
    skills, market incentive structures and
    interaction between business and scientific
    sectors.
  • USA 6.41
    2. Taiwan 6.06
  • Finland 5.74
    7. South Korea 4.62
  • 11 Canada 4.36
    20. France 3.81
  • Mexico is not in the top 44
  • Information and communication technology index
  • 1 Iceland 6.36
    2 Denmark 6.26
  • 3 Sweden 6.23
    7 USA 6.07
  • Japan 5.79
    18 South Korea 5.74
  • Mexico is not in the top 44

73
Appendix III Korean National Growth Engines
  • Digital TV Broadcasting
  • standard, broadcasting system, TV, camera
  • Display
  • LCD, PDP, organic EL
  • Semiconductor
  • process, nano-device, memory, SOC
  • Mobile Communication
  • 4G standard, system, cell phone, wireless
    network, telemetics,
  • Intelligent Home Networks
  • home server/networking, intelligent consumer
    electronics, ubiquitous computing, USN
  • Digital Contents
  • contents development tool, digital contents,
    contents distribution
  • Robotics
  • home, medical, military application,
    intelligence, HCI
  • Automobile
  • electrical car, hybrid car, fuel cell, safety,
    sensors, intelligent driving assistant, part
  • Battery
  • fuel cell, next generation battery
  • Bio-technology

74
Korean strategy to promote start up companies
  • Various government funding programs are available
  • Startup, research, manufacturing, marketing,
    office, equipment, consulting
  • Almost all the start-up companies take benefit
    from these funds
  • Fluent of government research fund especially for
    10 growth engines (refer previous page)
  • Most of government research program
    require/encourage the participation of start-up
    companies by the law
  • Exemptions of mandatory military service for
    researchers who are employed in a start-up
    company (limited for qualified researchers with
    Masters degree)

75
How many Korean engineers are produced per year?
ltGraduates in Engineering and Sciencegt
total number of people in Korea 50 million
ltCurrent Ph. D. 2001gt
ltPh. D. expected total during 20012010 gt
76
Who promoted the industrialization in Korea?
19601980 President Junghee Park
promoted/emphasized
ltbright sidegt
  • - Social Overhead Capital deployment
  • Heavy Industry
  • Export
  • Education/ cultural enlightenment

ltdark sidegt
  • - prolonged one-man rule
  • overemphasized uniformity
  • too strong government control on industry
  • infringement of human right

Thereafter not a specific person, it runs by
itself
77
Another important factors in the industrial
development and university-industry cooperation
  • Very little amount of money from the industry is
    donated to university for pure research and
    education (example Yonsei university only 10
    out of 140million research fund comes from
    industry)
  • However, industrial research fund for practical
    application is active
  • The topic and specification are generated by
    industry need. (very short term research around
    12 years)
  • Almost all the government research fund requires
    participation of industry (even in the
    research/education program for university)
  • Technology that was developed by the university
    itself is rarely transferred to the industry
    (Industry prefer to employ the student rather
    than technology licensing)
  • However, the industry-initiated research outcome
    is easily integrated with the product.

Naturally, Industry have the initiative of
research.
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