Finland as a knowledge Economy - Carl J Dahlman - Jorma Routti -
Advancing Knowledge in the Public Sector: A World Bank Perspective ©Knowledge for Development, WBI...
-
Upload
josephine-rosalind-cook -
Category
Documents
-
view
219 -
download
1
Transcript of Advancing Knowledge in the Public Sector: A World Bank Perspective ©Knowledge for Development, WBI...
Advancing Knowledge in the Public Sector: A World Bank Perspective
©Knowledge for Development, WBI©Knowledge for Development, WBI
Carl Dahlman
World Bank
Advancing Knowledge and the Knowledge Economy
January 10-11, 2005
Growing Differences in GDP/Capita
Per Capita GDP for Selected Regions or Countries (1990 international $, 1480-1998)
0
5000
10000
15000
20000
25000
30000
1480 1560 1640 1720 1800 1870 1950 1998
Western Europe
Eastern Europe
United States
Latin America
Japan
China
India
Other Asia
Africa
Source: Calculated from Angus Maddison, The World Economy : A M illennial Perspective, OECD: Paris, 2001
GDP/Capita Growth: Korea vs Ghana
0
2
4
6
8
10
12
14
1960 1965 1970 1975 1980 1985 1990 1995 2000
K n o w le d g e m a k e s th e D if fe r e n c e K n o w le d g e m a k e s th e D if fe r e n c e b e tw e e n P o v e r ty a n d W e a lth . . .b e tw e e n P o v e r ty a n d W e a lth . . .
R e p . o f K o r e a
G h a n a
T h o u s a n d s o f c o n s ta n t 1 9 9 5 U S d o lla r s
D if fe re n c e a t t r ib u te d to k n o w le d g e
D if fe re n c e d u e to p h y s ic a l a n d h u m a n c a p ita l
©Knowledge for Development, WBI©Knowledge for Development, WBI
Key Issues for Governments in Developing Economies
How to help them develop appropriate policy knowledge for broad development strategy?
Economic analysis as part of project preparation and or policy dialogueTechnical assistance loansTraining and helping set up institutional capability
What can they do to develop better strategies to make more effective use of technical knowledge for successful economic development
Policy analysis/advice/training/study tours visitsProjects such as metrology, standards, quality control, public research institutions, higher education
Few Countries Have Sustained High Growth Rates over Long Periods
Have analyzed countries with highest growth performance and found that key elements of their strategies, in addition to appropriate macroeconomic management and good economic incentive regimes have been:
Massively tapping into global knowledgeInvesting strongly in educationMore recently, investing heavily in ICTFor most advanced, focusing much more on producing own world frontier knowledge, if not across the board, at least in some sectors
Framework for Using K4D:
Four Key Functional Areas Economic incentive and institutional regime that provides incentives for the efficient use of existing and new knowledge and the flourishing of entrepreneurship
Educated, creative and skilled people
Dynamic information infrastructure
Effective national innovation system
©Knowledge for Development, WBI©Knowledge for Development, WBI
KAM Methodology
KAM: 76 structural/qualitative variables to benchmark performance on 4 pillars
Variables normalized from 0 (worst) to 10 (best) for 121 countries
www.worldbank.org/kam
Basic scorecard for 14 variables at two points in time, 1995 and 2002
Aggregate knowledge economy index (KEI)
©Knowledge for Development, WBI©Knowledge for Development, WBI
Relative Positioning of Countries in Global KE
Conceptual Framework for Innovation in Developing Countries
Innovation in developing countries should be understood broadly as something new to the local environment
Therefore distinguish two broad types of innovation
Local improvements through adoption of existing foreign technology
Development of technologies new to world
©Knowledge for Development, WBI©Knowledge for Development, WBI
Innovation in Developing Countries
In developing countries the first type is the most relevant, the second is rarer, except for the more advanced developing countries
Developing countries will get a bigger economic impact from raising average local practice to best world practice than from creation of their own new knowledgeThey will also get a bigger impact from raising average local practice to best local practice, therefore the critical importance of domestic diffusion
©Knowledge for Development, WBI©Knowledge for Development, WBI
ChallengesFocus of most S&T policymakers is not on the most important elements of the innovation system in developing countries
R&D not the main source of innovationHigh tech sectors are tiny part of developing economiesService sector is largest share of economic activitySuccessfully applying knowledge requires entrepreneurship, management, organizations,and also depends on economic and institutional regime
Need a better conceptual framework and policy tool kit that
Differentiates across countriesProvides made to measure policy advice and specific project design
©Knowledge for Development, WBI©Knowledge for Development, WBI
Differentiated StrategiesAcquiring Creating Disseminating
Catch-Up Sectors Most critical:
-lots of knowledge in pubic domain
-also large stock to be purchased
Therefore need good global scanning and acquisition ability
Less relevant or feasible, but still need R&D capability to acquire and adapt.
Focus limited R&D efforts on complementing what can be acquired
Very important:
-extension services
-technical information
-metrology, standards, testing and quality control
-specialized suppliers
-growth of most efficient firms
Sectors Nearer Frontier
Continue tapping global knowledge
-FDI/licensing
-Strategic alliances
-foreign R&D as antennas to tap knowledge
Refocus public efforts on commercially relevant research
Increase private R&D efforts
Stimulate more interaction among R&D institutes, firms and universities
Dissemination efforts continue to be critical
But also need to
commercialize knowledge
-technology transfer offices
-tech parks/spin-offs
-cluster development
-regional innovation ©Knowledge for Development, WBI
©Knowledge for Development, WBI
Three Key Policy Areas for Innovation Policy
Education and training policiesAppropriate S&T policiesRegional cluster policies
Education and Training Policies
Increasing average educational attainment of labor forceIncreasing higher education enrollment rates as it is now more important to make effective use of knowledge as well as to create new knowledgeStrengthening the research capability of universities and their interaction with firms and research institutesDeveloping life long learning opportunities in order to facilitate continuous learning and re-skilling
Specific S&T Policies
Increasing public R&D funding, and encouraging private sector to increase its own R&D effortAllocating public funding more effectivelyGetting more spin-offs from public R&D effortsEncouraging greater interaction among three key domestic actors: public R&D institutes, universities and productive sectorEncourage greater investment in R&D and knowledge assets by private sectorEncouraging greater interactions between domestic actors and foreign knowledge actors Encouraging brain circulation rather than brain drainEncouraging the development of regional knowledge clusters
Development of Regional Innovation Clusters
While the general economic and institutional framework and broad policies towards science and technology and education, are very important, innovation happens at the local levelTherefore governments also have to stimulate development of regional innovation clusters.This involves developing stronger interactions among firms, universities and research institutions through formal and informal processes
Not just among local actors But increasingly with foreign firms and institutions
Also involves regional development policies, infrastructure and logistics
Conclusion
Greater attention needs to be paid to creating domestic capability to make more effective use of knowledge
S&T strategies appropriate to country’s level of developmentPolicies to help firms and organization to tap into global knowledge more effectivelyInvestments in human resources, especially higher education Development of local R&D capability to
• scan , acquire and adapt relevant global• improve and create appropriate new knowledge
Need to make more convincing case to ministries of finance and to business sector that investing in knowledge is necessary and can yield high economic and social returns
©Knowledge for Development, WBI©Knowledge for Development, WBI
END
Contact Information:[email protected]
©Knowledge for Development, WBI©Knowledge for Development, WBI
Brazil
China
India
Korea
Mexico
Russia
USA