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Confronting the

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Title: Confronting the


1
Confronting the Inconvenient Truths of
Globalization
  • Beyond the tiger model of economic management
    new forms of social partnerships and global
    networking
  • Michael Best
  • Professor Emeritus
  • University of Massachusetts
  • and visitor, Center for Innovation and Structural
    Change
  • National University of Ireland, Galway

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New Growth Machine Globalization and
Technology-based Industrial Strategies
  • Establish an economic mandarinate as an
    executive industrial growth agency
  • Form partnerships with global business leaders to
    build, or leverage, an ST infrastructure and
    guide policy
  • Goal grow via strategic sectoral transitions and
    introductions
  • Invest heavily in skill formation

8
Evolution of Industrial Structure
PS 5 Knowledge intensive (systems
integration) information, communication,
instruments
future
PS 3,4 Complex-assembly intensive (flow) auto,
consumer electronics
PS 2 Material-intensive (flow) steel,
plastic food processing
present
PS 1 Low technology, labour intensive (interchange
ability) apparel, toys, furniture
(Principle of production)
9
Strategic Technology Upgrading Agencies
  • Japan EPA, MITI
  • So. Korea KIST
  • Taiwan ITRA
  • Singapore EDB
  • Ireland IDA
  • Finland TEKES
  • Sweden Vinnova

10
Irish Economic Mandarinate
11
Business Models for Technology Assimilation
  • Japan Indigenous WCM tech licensing
  • So. Korea Indigenous WCM equipment suppliers
  • Taiwan Tech-based SMEs Brain circulation with
    SV
  • Singapore FDI-affiliates GPN-hubs skill
    formation
  • Ireland High-tech FDI-affiliates RTCs
  • Nordic Tech-based NPDSF

12
Growth in Engineering and Science Graduates
1975-1995 creation of a global ICT labor market
13
Irelands Strategic Assessment (what the IDA saw
and acted on)
  • The triumph of neo-liberalism and the opening of
    global markets (EU, Eastern Europe, ex-USSR,
    China, India, Brazil)
  • Inter-determinant with
  • Emergence of high-tech industrial districts in
    US (3000 companies in MA, Silicon Valley, Austin)
    serially spawning new sectors

14
MA New Sector Creation
  • Minicomputers
  • Data Storage Systems (file cabinets of IT)
  • Medical devices (US output grew 9 times in 25
    years to 2004 regionally specialized)
  • Network Switching Equipment
  • Mutual fund industry (asset management)
  • Biotech
  • Business software tools
  • Defense systems

15
MA comparative advantage
  • Technological innovation Leadership in emergence
    of new high-tech sectors via a population of 3000
    high tech companies
  • A ST infrastructure anchored in research
    intensive universities
  • Business development infrastructure Grow
    companies from small to medium to and leaders to
    large size
  • Legacy of technology capability and skills
    (optics, systems engineering)

16
Opportunity Ride High-tech Waves
  • High tech companies have 2 parts platform
    development and production
  • Production activities can be off-shored
  • Ireland established a comparative advantage as a
    remote management site
  • Irelands business/education partnership is
    attractive to US high-tech companies

17
The demise of social partnership in the US
  • Triumph of neo-liberalism, the collapse of the
    New Deal and attack on organized labor
  • The attack on public sector including public
    education
  • Decline of American manufacturing capabilities
    (e.g. Ford v. Toyota)

18
Partnership with High-tech Leaders
  • Information-communication technology 7 of worlds
    top 10 including IBM, Intel, HP, Dell, Oracle,
    Lotus, and Microsoft
  • Medical technologies 15 of worlds top 25
  • Pharmaceuticals 13 of worlds top 15 and 6 of
    worlds top 10 drugs produced in ROI
  • Financial services over half of worlds 50
    largest banks and of worlds largest insurance
    companies

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Elements of a new Irish, Niche Strategy
  • Localization capabilities for EMEA (diverse
    languages, sensitivities to cultures)
  • Offer remote management to technology-driven
    companies concerned about IP Rapid location and
    scale-up for plants (skills and infrastructure)
    IDA
  • International back-office and services hub

21
High Tech Remote Facilities for any routine
operations
22
Is Ireland a high-tech economy?
  • Yes, affiliates of high tech companies
  • Yes, higher education skill formation
  • No, GERD/GDP
  • No, activities of affiliates
  • No, new sector creation
  • No, technology platform development
  • No, establishment of distinctive regional
    technological capabilities

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25
inconvenient truths
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28
Arctic Melt Unnerves the Experts
29
Haiti
30
Food
31
Era of Cheap Resources
  • Oil for 10 a barrel in 1999 last week 117
  • Food prices soaring
  • Basic metal prices soaring

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Intractable sectors to economic mandarinates
  • Energy
  • Urban transportation
  • Food
  • Depletable resources

34
Facing the Inconvenient Truths Towards a
Sustainable Model of Economic Governance
  • Extend the social partnership to account for
    social infrastructures of consumption. Example
    Nordic model of urban transportation
  • Focus technology research, assimilation and
    development on clean technologies. Example Texas
    and renewable energy

35
Urban Transportation
  • Social infrastructure of consumption
  • Democratic v. exclusive or oligarchic sectors

36
Dubliners visit Copenhagen
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Cargo bike SUV alternative
39
Bridge over harbour
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  • I find out what the world needs, then I proceed
    to invent
  • --Thomas A. Edison

42
Energy democratic versus exclusive products
Renewable Energies
wind energy, hydropower, photovoltaics, etc.
in per cent
80
traditional biomass
70
60
oil, gas
50
40
30
20
10
nuclear power
0
1860
1880
1900
1920
1940
1960
1980
2000
2020
2040
2060
2080
2100
Year
43
Texas 10 billion clean energy project with huge
employment
44
Clearwater, Nolan County, Texas from oil to
renewables with scale
  • Today, Nolan County (pop 18K) produces more wind
    power than UK, France and CA on 3 large wind
    farms. Wind West
  • T Boone Pickens 4 year plan 4000 MW, 2700
    turbines across 200,000 acres150 miles across
    Panhandle (1 million homes)
  • Master scheme Army of wind farms North to South
    Great Plains and West to CA solar energy corridor

45
Cuchulainns energy
46
Where is Cuchulainn? Dundalks alternative
energy no hulk
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New Deal Strategy investment priorities
  • Focus on clean technology/renewable energy (from
    high-tech to clean tech)
  • Research and source world for leading, fast
    growing companies (basic industries)
  • Develop complementary capabilities to Basic
    Research TR DR AR and match to Skill
    Formation (global partnerships)
  • Transition to post-carbon products and processes
    sector by sector (toxic use reduction extension
    services energy efficiency)

49
Transition sector strategies, including
world-class technology-management based
regulation, to reduce inflationary pressures
  • Energy
  • Transportation
  • Water
  • Raw materials

50
Clean Tech well-known technologies
  • Solar power
  • Wind power
  • Green buildings
  • Personal transportation
  • The smart grid
  • Bio-based plastics
  • Advanced lithium-ion batteries
  • Water filtration

51
Clean Tech Emerging Technologies
  • Tidal power
  • Silicon-based fuel cells
  • Distributed hydrogen generation
  • Plug-in hybrid vehicles
  • Nano-technology-based materials

52
Clean technology are products and services that
  • Harness renewable materials and energy sources or
    reduce use of natural resources by increased
    productivity
  • Cut or eliminate pollution and toxic waste
  • Deliver equal or superior performance
  • Provide investors, companies, and customers with
    promise of increased returns, lower costs, and
    reduced prices
  • Create quality jobs in management, production and
    deployment

53
From TQM to LCA, sector by sector
54
How? Benchmark economic governance models
  • Nordic countries, US cities and states, European
    industrial districts
  • Envision a post-carbon age economy
  • Leverage skills and capabilities developed in
    high growth years
  • Extend mandate of the economic mandarinate to the
    intractable sectors
  • Address the social infrastructure of consumption
    with democratic goods
  • Social partnerships for socially rational products

55
Sources and Acknowledgements
  • Elephant in the Room, Guy Harrison, Google Images
  • G8 Renewable Energy Task Force
  • Google Images for fox, pollution, and clean
    technology images
  • Waves of Innovation, The Natural Edge Project
    Hargroves, K. and Smith, M.H. (2005) The Natural
    Advantage of Nations Business Opportunities,
    Innovation and Governance in the 21st Century,
    Earthscan, London, p 17.
  • Ron Pernick and Clint Wilder, The Clean Tech
    Revolution, HarperCollins, 2007.
  • http//www.copenhagenize.com/2007_10_01_archive.ht
    ml
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