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IMPORTANCE OF TECHNOLOGY IN THE DEVELOPMENT OF A
COUNTRY:
IMPORTANCE OF TECHNOLOGY IN THE DEVELOPMENT OF A
COUNTRY:
Can underdeveloped countries afford not to
have a global competitive industry?
Can underdeveloped countries afford not to
have a global competitive industry?
By Edgar Sánchez-Sinencio Analog and Mixed-Signal Texas A&M University
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“ 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. ”
“ 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
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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 R&D, 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.
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 R&D, 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.
KNOWLEDGE AN ECONOMICS FORCE FOR GROWTH
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BackgroundBackground Queen Victoria’s 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 world’s
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.
Queen Victoria’s 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 world’s 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.
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Background (continues)Background (continues)
“Why was Great Britain at the top and not China, which was the world’s technological leader for about thousand years, between A.D 500 and A.D. 1500?
“Britain’s advantages were marked by a combination of social, political, and geographical factors. British society was relatively free and politically stable. Scientific thinking was dynamic.”
“Why was Great Britain at the top and not China, which was the world’s technological leader for about thousand years, between A.D 500 and A.D. 1500?
“Britain’s advantages were marked by a combination of social, political, and geographical factors. British society was relatively free and politically stable. Scientific thinking was dynamic.”
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Background (continues)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 world’s 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.
“ 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 world’s 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.
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Background (bad news for USA)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”
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”
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Background (Bad news for USA)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
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
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Background (Good news for USA)
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.
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.
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Background (Good news for USA)
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%
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%
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Global CompetitionGlobal 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.
USA’s 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 Union’s launch of the Sputnik satellite, b) in 1980 Japan was growing to become the technologically and economical dominant superpower of the future.
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.
USA’s 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 Union’s launch of the Sputnik satellite, b) in 1980 Japan was growing to become the technologically and economical dominant superpower of the future.
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USA Companies are transformed to transnational companies !
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.
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.
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Let us study how successful countries developed their industries and education
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?
Is there an strategy to become an industrial power country?
What are the key elements to accomplish these goals?
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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 backgrounds—both Jiang Zemin and Zhu Rongji were trained as electrical power engineers—and 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
China PRC
http://en.wikipedia.org/wiki/Science_and_technology_in_China#Communist_Party_of_China_oversight
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• 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 R&D 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.
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“ 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.aspx@tabindex=448&modelid=257.htm
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China needs her students back
• The number (in ‘000 )of Chinese students has grown
1985 1995 2000 2002 2004
2 5 8 20 25
Source: The battle for brainpower, The Economist October 7th 2006
“ trained talent is the yeast that transforms a society andmakes it rise” was said by Singapore’s city-state elder statesman
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• McKinsey calculates that in 2003, US had far moreyoung engineers who were capable of working for Multinational companies than China-540,000 against 160,000
• The sum of China’s total exports and imports amounts to around 70% of its GDP, against only 25 to 30% in Indiaand US. In 2007, China will account for nearly 10% of world trade, up from 4% in 2000
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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/C157V019.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 capabilityand 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 R&D resources, accelerating the uptake of R&D, promoting technology exchange, accumulating long-term technology capabilities, stimulating Collaborative research among up-/downstream sub-industries and boosting overall industrial competitiveness.
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.
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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)
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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 In 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 2:1
INDIA
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• NASSCOM estimates that in 2001-04 some 25,000Indian 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.
1. What is GDP of India in 1980 and in 2005?
GDP recorded in USD-Billions, based on Purchasing-Power-Parity [1]
1980 => 434.28 2005 => 3602.89[1] http://www.econstats.com/weo/C075V013.htm
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2. Was there a national strategy to promote industrial development?
Two Stages of Economic Reforms [2]: The pro-business measures of 1980, initiated by Gandhi’s
(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
2. Was there a national strategy to promote industrial development?
Two Stages of Economic Reforms [2]: The pro-business measures of 1980, initiated by Gandhi’s
(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
Brief summary about the technological development in India
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3. 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/
3. 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/
Brief summary about the technological development in India
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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.
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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.
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Is there an strategy to promote start up companies?
Technopreneur Promotion Programme (TePP)IntroductionAs 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.
ObjectivesTo 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.
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Is there an strategy to promote start up companies?
ActivitiesThe 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,R&D / 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 costsTePP 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.
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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)
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Recent news from India 2007Recent 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)
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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.
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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 R&D lab and is the first campus based VLSI Design facility in India.
http://eetimes.com/news/semi/showArticle.jhtml;jsessionid=ASETUTI3TRYL4QSNDLOSKHSCJUNN2JVN?articleID=18402777&_requestid=394263
Texas Instruments sets up second development facility in India
(proximity to IIT, Chennai). http://www.networkworld.com/news/2006/071306-ti-sets-up-second-development.html
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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 => 2% of GDP =>6.8% of industrial
output
[4] Economic data from ISA,Frost and Sullivan[5] http://www.answers.com/topic/list-of-countries-by-industrial-output
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 => 2% of GDP =>6.8% 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]
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/infotech.html
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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/2006090400580100.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
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/2006090400580100.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
Brief summary about the technological development in India
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SOUTH KOREAKorean GDP between 1970 and 2005
SOUTH KOREAKorean GDP between 1970 and 2005
GDP
0
100
200
300
400
500
600
700
800
900
1970 1975 1980 1985 1990 1995 2000 2005
year
bill
ion
$
Innovation Index : 7th, 4.62
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Korean national strategy to promote industrial
development
Korean national strategy to promote industrial
developmentThe major national strategy is “ Select and Concentrate”
Background:
• very limited natural resources• limited financial resources• small domestic market• small land• highly educated human resources
Korea has
Can not invest for every field.
• 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
Strategy:
Now, this philosophy has been spread over almost everything and been being a part of Korean culture
“Growth Engine”
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The percentage of the industrial output of the Semiconductor
industry
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
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
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TOP UNIVERSITIES IN LATINAMERICA 2006
World Ranking2 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
• PONTIFICAL CATHOLIC UNIVERSITY OF RIO DE JANEIRO 539
12 PONTIFICAL CATHOLIC UNIVERSITY OF CHILE 572
15 UNIVERSITY OF GUADALAJARA 692
http://www.webometrics.info/top200_latinamerica.asp
HOW CAN WE MAKE MEXICAN UNIVERSITIES MORE COMPETITIVE ?
** UNAM has been ranked among the best 100 universities in the world by another ranking organizations
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Top Universities Distribution by Continent
CONTINENT Top 200 Top 500
USA & Canada 118 228Europe 67 209Oceania 6 23Asia 5 23Latin America 3 9Middle East 1 7Africa 1
Distribution by Country RANK COUNTRY Top 200 Top 500 1 United States of America 101 2012 Germany 25 513 Canada 17 274 United Kingdom 13 405 Netherlands 8 106 Australia 6 197 Sweden 6 108 Switzerland 4 813 Brazil 2 5G Mexico 1 2
http://www.webometrics.info/Distribution_by_Country.asp
Top Universities Distribution by Continent
CONTINENT Top 200 Top 500
USA & Canada 118 228Europe 67 209Oceania 6 23Asia 5 23Latin America 3 9Middle East 1 7Africa 1
Distribution by Country RANK COUNTRY Top 200 Top 500 1 United States of America 101 2012 Germany 25 513 Canada 17 274 United Kingdom 13 405 Netherlands 8 106 Australia 6 197 Sweden 6 108 Switzerland 4 813 Brazil 2 5G Mexico 1 2
http://www.webometrics.info/Distribution_by_Country.asp
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02468
101214161820
UnitedStates
Japan EuropeanUnion
pre-primaryprimarylower secondaryupper secondaryTertiary
Source: OECD
Spending per student, 000,PPP
41
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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
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Indicators about Mexico 1/10
15th largest country 1,973,000 sq km The economy • Economic freedom index 2.89 ( > 50 world position)• GDP per head $6,050 (61 world position)• GDP per head in purchasingPower parity (USA=100) 23.8 (~ 75 world position)Human development index 80.2 ( 51 world position)
Origins of GDP % of totalAgriculture 4.0Industry, of which: 26.4Manufacturing & mining 19.5Services 69.6
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Indicators about Mexico
Total expenditure on R&D % of GDP 2002
1. Israel 4.66 2. Sweden 4.274. Japan 3.12 6. USA 2.6429. Brazil 1.04 31. Spain 0.9543. 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 ‘0001 France 75,048 2. Spain 51,8303. USA 41,212 4. Italy 39,6048. Mexico 18,665 38. Brazil 4,091
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Indicators about Mexico 10/10
Largest tourist receipts $m1. USA 64,509 2. Spain 41,7703. France 37,038 12. Canada 10,57914. Mexico 9,457 17. Japan 8,848
Daily newspaper per’000 population1 Japan 551 2 Norway 54412 Singapore 234 17 USA 18820 Canada 157 29 Spain 110
Mexico is not in the top 30 countries my guess of newspaper per 1000 population is about 20
46
Indicators about Mexico
Trade ($bn fob)Principal exports Principal importsManufactured 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 20.2Total 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 & educationHealth spending, % GDP 6.1 Education spending, %GDP 5.1Doctors per 1,000 pop 1.6 Enrolment,%: primary 110Hospital beds per 1000 pop 1.0 secondary 79 tertiary 21Obesity (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 world1 Finland 86 5 Australia 742 South Korea 85 13 Estonia 643 United States 81 16 Denmark 634 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-government
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
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.cfm?story_id=4339960
How to transform classical university environment into the current world situation?
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.
55From the “ Encuesta Nacional de Ingreso y Gastos de los Hogares 2005” http://www.cronica.com.mx/nota.php?id_nota=265296
• 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 $52 monthly in urban and rural areas, respectively.
56
Rank Name Citizenship Age Net Worth ($bil) Residence1 William Gates III United States 50 50.0 United States2 Warren Buffett United States 75 42.0 United States3 Carlos Slim Helu Mexico 66 30.0 Mexico4 Ingvar Kamprad Sweden 79 28.0 Switzerland5 Lakshmi Mittal India 55 23.5 United Kingdom6 Paul Allen United States 53 22.0 United States7 Bernard Arnault France 57 21.5 France8 Prince Alwaleed Bin Talal Alsau 49 20.0 Saudi Arabia9 Kenneth Thomson & family Canada 82 19.6 Canada10 Li Ka-shing Hong Kong 77 18.8 Hong Kong11 Roman Abramovich Russia 39 18.2 Unite Kingdom12 Michael Dell United States 41 17.1 United States
Rank Name Citizenship Age Net Worth ($bil) Residence1 William Gates III United States 50 50.0 United States2 Warren Buffett United States 75 42.0 United States3 Carlos Slim Helu Mexico 66 30.0 Mexico4 Ingvar Kamprad Sweden 79 28.0 Switzerland5 Lakshmi Mittal India 55 23.5 United Kingdom6 Paul Allen United States 53 22.0 United States7 Bernard Arnault France 57 21.5 France8 Prince Alwaleed Bin Talal Alsau 49 20.0 Saudi Arabia9 Kenneth Thomson & family Canada 82 19.6 Canada10 Li Ka-shing Hong Kong 77 18.8 Hong Kong11 Roman Abramovich Russia 39 18.2 Unite Kingdom12 Michael Dell United States 41 17.1 United States
The World's Richest People
http://www.forbes.com/lists/2006/10/Rank_1.html
57
http://ww
w.b
usinessweek.com
/pdfs/2005/0548_philsco.pdf
Many talented people not only create jobs and wealth,They turn their hands to philantropy
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 shouldturn 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 ofKorea 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 R&D.
62
ReferencesReferences
63
Appendix I1. 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
1. Pennsylvania State University 1,396
2. Georgia Institute of Technology 1,372
3.Purdue University 1,261
4. North Carolina State University 1,240
5. Univ. of Illinois, Urbana-Champaign 1,198
6. University of Michigan 1,127
7. Virginia Tech 1,098
8. Texas A&M University 1,044
9. Ohio State University 892
10. University of California, San Diego 883
11. University of Florida 882
12. Iowa State University 868
13. University of Texas, Austin 865
Bachelor's Degrees Awarded by School:
65
1. University of Southern California 1,244
2. Stanford University 930
3. University of Michigan 894
4. Georgia Institute of Technology 838
5. Massachusetts Inst. of Technology 808
6. Johns Hopkins University 777
7. University of Texas, Arlington 661
8. San Jose State University 625
9. Univ. of Illinois, Urbana-Champaign 577
10. Purdue University 525
11. Texas A&M University 522
12. University of Florida 503
13. Cornell University 490
Master's Engineering Degrees Awarded by School
66
1. Massachusetts Ins. of Technology 273
2. Stanford University 251
3. Georgia Institute of Technology 250
4. University of Michigan 226
5. Univ. of Illinois at Urbana-Champaign 220
6. University of California, Berkeley 201
7. Purdue University 165
8. Pennsylvania State University 151
9. Texas A&M University 148
10. University of Florida 145
11. University of Texas, Austin 143
12. Univ. of California, Los Angeles 137
13. Univ. of Maryland, College Park 131
14. Cornell University 116
15. University of Minnesota, Twin Cities 115
Doctoral Engineering Degrees Awarded by School
67
0% 20% 40% 60% 80% 100%
Brazil6
Hungary5
Poland
United States
Norway
Iceland
Netherlands
Denmark1
New Zealand
Turkey
Canada
Australia
Portugal
Israel
Ireland
Italy
United Kingdom
Chile
Belgium4
Switzerland
Mexico3
Spain
Czech Republic
Japan2
Russian Federation2
Austria
France1
Greece
Slovak Republic
Sweden
Finland1
Germany
Korea
Life sciences, physical sciences and agriculture Mathematics and computer science
Engineering, manufacturing and construction Health and welfare
Humanities, arts and education Social sciences, business, law and services
Other
Chart A3.6. Tertiary graduates, by field of education (2004)Graduates with tertiary-type A and advanced research qualifications
1. Year of reference 2003.2. Physical sciences, mathematics, statistics and computing are included in life sciences.3. Excludes tertiary-type A second degree programmes.4. Excludes tertiary-type B second degree programmes (for the Flemish community in Belgium).5. Excludes tertiary-type B second degree programmes.6. ISCED 5B programmes are included with ISCED 5A/6.Countries are ranked in descending order of the proportion of qualifications in life sciences, physical sciences and agriculture; mathematics and computer science; and engineering, manufacturing and construction.Source: OECD. Table A3.3. See Annex 3 for notes (www.oecd.org/edu/eag2006).
68
Appendix II: Indicators about Mexico
Color TVs per 100 households1. USA 99.5 26 South Korea 93.339 Mexico 90 47 Russia 75.8
Computer per 100 people1. Switzerland 70.9 8 South Korea 55.810 Canada 48.7 34 Spain 19.6? Mexico < 19
Telephone lines per 100 people8 Canada 65.1 17 South Korea 53.8? Mexico < 28
69
Indicators about Mexico
Book Sales $m1 United States 32,264 2 Japan 20,8185 Mexico 3,567 15 South Korea 821
Nationality of asylum applications in indust. Countries ( in 000, 2003)3 Turkey 29.2 11 Colombia 12.44 China 26.3 13 Mexico 10.7
Highest foreign debt $m, 20031 Brazil 235,431 25 Peru 29,8572 China 193,567 39 Ecuador 16,8646 Mexico 140,004 47 Iran 11,601
70
Indicators about Mexico
Agriculture Biggest producers ‘000 tonnesMeat1 China 70,899 6 India 5,9412 United States 38,911 9 Mexico 4,908Fruit1 China 76,893 6 Italy 15,7273 Brazil 34,298 7 Mexico 14,743
Sugar top ten producers top ten consumers1 Brazil 26,000 1 India 18,6002 India 21,700 2 EU15 14,1007 Mexico 5,400 7 Mexico 5,300Coffee top producers top consumers1. Brazil 1,729 1 USA 1,2305. Mexico 273 2 Brazil 825
71
Indicators about Mexico
MetalsLead producers consumers1 China 955 1. USA 1,4945 Mexico 135 7 Mexico 307Zinc 4 Canada 788 3 Japan 6196 Mexico 427 5 South Korea 438Silver1 Peru 2,921 2 Mexico 2,551 6 Canada 1,309Oil ‘000 barrels per day producers consumers• Saudi Arabia 9,817 1 USA 20,071• USA 7,454 7 South Korea 2,3035 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.
1. USA 6.41 2. Taiwan 6.063 Finland 5.74 7. South Korea 4.6211 Canada 4.36 20. France 3.81Mexico is not in the top 44
Information and communication technology index1 Iceland 6.36 2 Denmark 6.263 Sweden 6.23 7 USA 6.0715 Japan 5.79 18 South Korea 5.74 Mexico is not in the top 44
73
Appendix III Korean National Growth Engines
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 medicine, artificial organ, bio chip
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 medicine, artificial organ, bio chip
74
Korean strategy to promotestart up companies
Korean strategy to promotestart 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 Master’s degree)
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 Master’s degree)
75
How many Korean engineers are produced per year?
How many Korean engineers are produced per year?
year 1997 1998 1999 2000 2001
BS. 79,908
82,442 82,129 85,546 96,979
MS. /Ph.D.
13,644
15,770 18,190 20,211 22,007
Science Engineering
Mathematics, Computer Science
2,735Mechanical / Aerospace
5,199
Physics 1,830 Material 2,471
Chemistry 2,272 Electrical 10,132
Earth Science 745 Chemical. 1,546
Biology 2,681 Bio / Food 919
Others 597 Fabrics 357
Nuclear / Petroleum
400
Architect / Civil 4,663
Others 3,285
total 10,859 total 28,971
<Graduates in Engineering and Science>
<Ph. D. expected : total during: 2001~2010 >
<Current Ph. D. : 2001>Total Industry University National Lab.
Korea 46,146 5,351 35,141 5654
USA 357,200 147,900 175,900 33,500
*total number of people in Korea: 50 million
76
Who promoted the industrialization in Korea?
Who promoted the industrialization in Korea?
1960~1980 : President Junghee Park promoted/emphasized
- Social Overhead Capital deployment- Heavy Industry - Export- Education/ cultural enlightenment
<bright side>
- prolonged one-man rule - overemphasized uniformity - too strong government control on industry- infringement of human right
<dark side>
Thereafter : not a specific person, it runs by itself
77
Another important factors in the industrial development and university-industry
cooperation
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 1~2 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.
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 1~2 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.
