Imp of Technology Esime-April 07l

7/30/2019 Imp of Technology Esime-April 07l

1/77

1

IMPORTANCE OFTECHNOLOGY IN THE

DEVELOPMENT OF ACOUNTRY:

Can underdeveloped countriesafford not to have a global

competitive industry?

By Edgar Snchez-Sinencio Analog and Mixed-Signal Texas A&M University


2/77

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


3/77

3

In Soft revolution, knowledge is replacing physical resourcesas the main driver of economic growth. The OECD calculatesthat between 1985 and 1997 the contribution of knowledge-based industries to total value added increased from 51% to59% 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 theknowledge 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


4/77

4

Background Queen Victorias Diamond Jubilee,held in

London on June 22,1897

The grandest fest: attendances included 46,000troops and 11 colonial prime ministers.

She ruled over a quarter of the worldspopulation and 20% of its territory

The empire was all connected by latest marvel

of British technology, the telegraph, andpatrolled by the Royal Navy, which was largerthan the next two navies put together.


5/77

5

Background (continues)

Why was Great Britain at the top andnot China, which was the worldstechnological leader for about thousandyears, between A.D 500 and A.D. 1500?

Britains advantages were marked by acombination of social, political, and

geographical factors. British society wasrelatively free and politically stable.Scientific thinking was dynamic.


6/77

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 havesurged.

US has replaced the British Empire Of the worlds 20 top universities, 18 are American

How about other players, China, India and theformer Soviet Union?

They are poorer, hungrier and have a good number ofwell trained people, they will compete with US for aslice of the pie.


7/77


8/77

8

Background (Bad news for USA)

China and India combined graduate 950,000 engineersyearly. US produces 70,000 engineers per year. How manyare educated to work for transnational companies?

More people in the USA will graduate in 2006 withsports-exercise degrees than electrical engineeringdegrees.

USA is loosing interest in the basics-math,manufacturing, hard work, savings and becoming apostindustrial society that specializes in consumptionand leisure


9/77

9

Background (Good news for USA)

The USA invests 2.6 % of its GDP on highereducation, compared with 1.2% and 1.1%in Europe and Japan, respectively.

US remains by far the most attractivedestination for students, nearly 30 % ofthe total number of foreign studentsglobally.

The US economy is excellent at takingtechnology and turning it into a productthat people buys.


10/77

10

Background (Good news for USA)

The USA has the most flexible labor laws in theworld. The easier it is to fire someone in a dyingindustry, the easier it is to hire someone in a risingindustry that no one knew would exist five yearsearlier.

Flexibility to quickly deploy labor and capitalwhere the greatest opportunity exists,and theability to quickly redeploy it if the earlierdeployment is no longer profitable, is essential ina flattening world Note the current lowunemployment rate in the USA is one of the lowestin the world, around 4.6%


11/77


12/77

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 worldand in Russia, Middle East,South Africa and

Europe.

Very few non-USA companies are truly

transnational.


13/77

13

Let us study how successful

countries developed theirindustries and education

Is there an strategy to become

an industrial power country?

What are the key elements to

accomplish these goals?


14/77

14

Scientists born in China won four Nobel Prizes in Physics.Science and technology have long preoccupied China's leaders; indeed,the People'sRepublic of China's third and fourth generationsof leaderscome almost exclusively from technical backgroundsboth Jiang Zeminand Zhu Rongji were trained as electrical power engineersandhave a great reverence for science. Hu Jintao was trained as a hydraulicengineer.

Deng Xiaoping called it "the first productive force." Distortions in the economyand society created by Communist Party of China rule traditionallyhas 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 scientificinstitutions have been encouraged to commercialize their activities, andChinese 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


15/77

15

Chinese university undergraduate and graduate enrollmentsmore 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 PRCpapers in the Science Citation Index.

The average age of Chinese researchers at the Chinese Academy ofSciences has dropped by nearly ten years between 1991 and 2003 asthe 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 StateCouncil, on May 6, 1995 issued the 'Decision of the Central Committee

of the Communist Party of China and the State Council on theAcceleration of Progress in Science and Technology'. The 'Decision'set the goal of overall (both public and private) to attain Chinese R&Dspending equivalent to 1.5 % of GDP by the year 2000. It urgedscientific academies and institutes of higher education to set up hightech companies. The 'Decision' noted that science and technology arethe chief forces of social and economic development.


16/77

16

Girls , when I was growing up, my parentsused to say to me, Tom, finish your dinnerpeople in China and India are starving. Myadvice 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 youmeet with Chinese politicians, they are all

scientists and engineers.You can have a numericdiscussion with them-you are never discussing give me a one-linerto 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


17/77

17

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 and

makes it rise was said by Singapores city-state elder statesman


18/77

18

McKinsey calculates that in 2003, US had far more

young engineers who were capable of working for

Multinational companies than China-540,000against 160,000

The sum of Chinas total exports and imports amounts

to around 70% of its GDP, against only 25 to 30% in Indi

and US. In 2007, China will account for nearly 10% of

world trade, up from 4% in 2000


19/77

19

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.htmPopulation: 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 researchconsortia (ASTRO) has been adopted in the hope of integrating industrialR&D resources, accelerating the uptake of R&D, promoting technologyexchange, accumulating long-term technology capabilities, stimulatingCollaborative research among up-/downstream sub-industries and boostingoverall industrial competitiveness.

Taiwanis a barren rock in a typhoon-laden sea, with virtually nonatural resources and it has the third largest financial reserves in the

world.


20/77

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, andsupport innovation.

Innovation index 6.06 second best (USA has 6.41)


21/77

21

Key issues:

Indian Institute of Technology HistoryThe history of the IIT system dates back to 1946 when a committee was setup by Hon'ble Sir Jogendra Singh, Member of the Viceroy's Executive Council,Department of Education, Health and Agriculture to consider the setting up ofHigher 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 thelines of the Massachusetts Institute of Technology, USA, with a number ofsecondary institutions affiliated to it.

The committee also felt that such institutes would not only produceundergraduates but they should be engaged in research, producing researchworkers and technical teachers as well. The standard of the graduates shouldbe at par with those from first class institutions abroad. They felt that theproportion of undergraduates and postgraduate students should be 2:1

INDIA


22/77

22

NASSCOM estimates that in 2001-04 some 25,000

Indian techies returned home, and the number is risingrapidly.

68% of Indian executives living in the US were looking

for opportunities to return home, and 12% had alread

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


23/77

23

2. Was there a national strategy to promote industrialdevelopment?

Two Stages of Economic Reforms [2]:

The pro-business measures of 1980, initiated by Gandhis (Indiraand Rajiv) removed price controls and reduced corporate taxes.

The economic liberalization of 1991, initiated by then Indian primeminister P. V. Narasimha Rao and his finance minister ManmohanSingh. It removed restrictive license policies, initiated

disinvestments and ended many public monopolies. It alsofacilitated the foreign direct investment in many sectors includinginfrastructure and technology.

[2] http://en.wikipedia.org/wiki/Economy_of_India

Brief summary about the technological developmen

in India


24/77

24

3. Is there an strategy to promote start up companies?

Some Incentives [3]

Setting up of Special Economic Zones (SEZ) in the countrywith a view to provide an internationally competitive andhassle free environment for exports.

Giving early tax incentive to technological companies.

Relaxing rules about Foreign Direct Investment in certainsectors.

[3] http://www.sezindia.nic.in/

Brief summary about the technological development

in India


25/77

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 spaceresearch.

India's energy requirements are met by oil, most of which is importeddespite the growth of indigenous production and hydroelectric

schemes, mostly based amid the powerful northern rivers. Mining isa relatively small sector, but does produce iron ore and cut diamondsfor export. India's main industrial development has been inengineering, especially transport equipment (a major export earner),iron and steel, chemicals, electronics and textiles.

Economic reforms have been underway since the beginning of the1990s, under which trade has been liberalized, the public sectorscaled back, and state-owned industries privatized. These reformswere developed with and approved by the IMF, which has suppliedsubstantial credits to India.


26/77

26

Key Strategies and reforms taken by the government in 1991:

- The reservation of many areas of economic activity for the state wasabolished.

- The restrictions on the inflow of foreign capital and technology transferwere significantly relaxed. Foreign participation in companies up to51% was permitted automatically in 34 industries. Clearance for higherlevels 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 becameable to expand existing units and construct new ones.

- Quantitative restrictions on imports of raw materials, intermediates andcapital goods were abolished. Considerable restrictions on the import

of consumer goods remained, although by 1995 an increasing numberwere being put on Open General License, albeit subject to tariffs.


27/77

27

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 schemeProgramme Aimed at Technological Self-Reliance (PATSER) and the

Department of Science and Technology (DST) under its Home GrownTechnology Programme (HGTP) of Technology InformationForecasting and Assessment Council (TIFAC) to tap the vast existinginnovative potentials of the citizen of India.

Objectives

To promote and support untapped creativity of individual innovatorsTo assist the individual innovators to become technology based

entrepreneursTo assist the technopreneur in networking and forge linkages with other

constituents of the innovation chain for commercialization of theirdevelopments.


28/77

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 convertingthem 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 supportManpowerTesting & TrialsAny other relevant costs

TePP support to the innovators is limited to 90% of the total cost of theproject & remaining 10% is to be borne by the innovator/inventor.

Software Technology Parks of India (STPI) are also helping to promotestart-ups.


29/77

29

How many engineers are produced per year in your

country?

According to the All India Council for Technical Education, Indiaproduced 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)


30/77

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.Itcosts 10cents per minute to dial from India to US. From Internet to a USAphone is 1.7 cents per minute, access to broadband cost $5 US permonth.

GSM is the dominant standard but new local standard are being

proposed. India has the largest railway network in the world, one of the primarymeans 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)


31/77

31

Who was the leader (s) that promote the industrialization in

your country?

J. R. D. Tata (1904-1993) Most famous industrial pioneer ofmodern India. Father of Indian civil aviation. He foundedIndia's first commercial airline, Tata Airlines, in 1932, which in1946 became Air India, now India's national airline. Tata

directed the Tata Group of Companies, with major interests inmany 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 anAluminum Plant 'Hindalco'. He also started many educationalInstitutions. To his credit go many temples, planetariums andhospitals. During the decades of 70's and 80's, The Birlas

were among the topmost Industrial Houses of India.


32/77

32

Another important factors in the industrial development

and university-industry cooperation in your country?

Traditionally, this used to be a niche area involvinggovernment educational institutions and government projectsin the past

With the liberalisation of the economy in the recent years,

there are more such cases involving private industrialestablishments and universities as well.

e.g. OLAB in BITS is a semiconductor R&D lab and is the firstcampus 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-develo ment.html


33/77

33

4. What is the percentage of the industrial output of theSemiconductor 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 inIndia?

284,000 in 2005 [6]

6. Who was the leader (s) that promoted theindustrialization in India?

No single leader, venture capitalists or individual investors thoughsome pro- business policy makers are highlighted in Q-2

[6] http://www.sunmediaonline.com/indiachronicle/infotech.html


34/77

34

7. Other important factors in the industrial development anduniversity-industry cooperation in your country?

Industry growth in IT sector seems to be mainly driven by low-costOutsourcing and availability of large English speaking engineeringworkforce. 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 beenprivate companies and local natives returning from abroad andputting ideas, creativity and money.Recently the government isadding strength and efforts for this economical growth

Brief summary about the technological development in India


35/77

35

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

billion

Innovation Index : 7th, 4.62


36/77

36

Korean national strategy topromote industrial development

The 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


37/77

37

The percentage of the industrialoutput 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


38/77

38

TOP UNIVERSITIES IN LATINAMERICA 2006World 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

http://www.webometrics.info/top200_latinamerica.asp

HOW CAN WE MAKE MEXICANUNIVERSITIES MORE COMPETITIVE ?

**UNAM has been ranked among the best 100 universities in the world by another rankingor anizations


39/77

39

Top Universities Distribution by Continent

CONTINENT Top 200 Top 500

USA & Canada 118 228

Europe 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 10

6 Australia 6 197 Sweden 6 108 Switzerland 4 813 Brazil 2 520 Mexico 1 2

http://www.webometrics.info/Distribution_by_Country.asp

S di d 000 PPP


40/77

40

0

2

4

68

10

12

14

16

18

20

United

States

Japan European

Union

pre-primary

primary

lower secondaryupper secondary

Tertiary

Source: OECD

Spending per student, 000,PPP


41/77

41


42/77

42

What are some potential solutions to create (HT)High Technology industry in developing countries?Background

A maquiladora (or maquila) is a factory, that importsmaterials and equipment on a duty- and tariff-free basis

for assembly or manufacturing.

The maquila must be a temporary step towardsdeveloping high technology. It is not a final solution.

An own foundry of semiconductor is not needed todevelop HT.

Many successful semiconductor companies are fab less


43/77

43

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 4.0

Industry, of which: 26.4

Manufacturing & mining 19.5

Services 69.6

Indicators about Mexico


44/77

44


Total expenditure on R&D % 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 20031 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



45/77

45


Largest tourist receipts $m

1. 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 54412 Singapore 234 17 USA 188

20 Canada 157 29 Spain 110

Mexico is not in the top 30 countries my guess of newspaperper 1000 population is about 20


46/77

46


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 21.5Agricultural 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

d b


47/77

47


Health & educationHealth 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


48/77

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 suitableenvironment to develop this industry?

What level of commitment is needed with theparticipants of this initiative?

What are some potential solutions to create (HT)


49/77

49

p ( )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 attractindustry by tax exempt and providing financial supportincluding real state. Improve infrastructure, roads, schools,and health

Facilitate importing and exporting permits for this industrialsector. Provide financial aid and simplify bureaucracy.


50/77

50

What are some potential solutions to create (HT)High Technology industry in developing countries?

Serious long term level of commitment is needed with theparticipants of this initiative.

This should be an initiative at the national level andindependent of the government in office.

Put someone in charge based on experience, technically

capable and world recognized. Do not put in charge a politicianor someone without the credentials.

Increase the number of qualified undergraduate andgraduated students in science and engineering


51/77

51

Remarks on creation of (HT) High Technology industryin developing countries.

There is no single approach to accomplish this goal and isadaptable to variation in the world market. Previousapproaches followed by Japan, India, China and Koreashould be studied and come with one that suits the local

culture and maturity of society.

The main national goals should be set independent ofgovernment in office and should have plans for 5 to 10

years.

Encourage the local industry to become a partner of thesegoals. This industry should move from being distributors,maintenance, assembly and manufacturers to world leaders

in some key high technology niches.


52/77

52

The first group of people that will form thishigh tech industry could come from natives

working abroad at industry and academia.

Attract the best people from all over the worldwith experience to help to develop this industry,

provide the proper financial benefits with aconstructive and intellectual environment.

Creation of well educated and trained humanresources should become the highest priority ofthe national priorities. What is need to accomplishthis?

How to transform classical university environment into the current world


53/77

53

An international survey offers two pieces of advice forcountries that are trying to create successful

higher-education systems, be they newcomers such as Indiaand 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 awide variety of universities pursuing a wide variety

of missions.

These two principles reinforce each other: the more that thestate's role contracts, the more educational variety will flourish.

http://www.economist.com/displaystory.cfm?story_id=4339960

situation?


54/77

54

Undergraduate programs at university should be updated to reflect the needs of the international industry, notjust the local needs which often do not have a large market.

Faculty members at universities should have MSc andPh D. degrees. A drastic renovation program should bein place. They should have periodic stays at industry

supporting their research.

Salaries of professors must be competitive with industrysalaries. Promotion should be based on results andguided graduate students.

Talent resides in the brains of individual, but it is alsonurtured by organizations.

i l i h $ hl


55/77

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.

The World's Richest People


56/77

56

Rank Name Citizenship Age Net Worth ($bil) Residence

1 William Gates III United States 50 50.0 United States2 Warren Buffett United States 75 42.0 United States3 CarlosSlimHelu Mexico 66 30.0 Mexico4 Ingvar Kamprad Sweden 79 28.0 Switzerland5 Lakshmi Mittal India 55 23.5 United Kingdom

6 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


57/77

57

http://www.businessweek.com

/pdfs/2005/0548_philsco.pdf

Many talented people not only create jobs and wealth,

They turn their hands to philantropy


58/77

58

Promote philanthropy among the richest people in the

country.

Increase donations to private and public universitiescoming from former students and industry.

Provide an easy legal and financial path toestablish high tech start up companies.

Implement measurement for identifying the bestundergraduate students in the country. A nationalentrance exam?

Increase exchange of graduate students and faculty,

attract top foreign students to study in Mexico, of coursemake attractive Fellowship offers.


59/77

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 citizensbrainpower

Conclusions


60/77

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

involvebasic 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.

Conclusions (continues)


61/77

61

Conclusions (continues) Governments must invest heavily, especially in the

early stages of Research and Development andshould 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 governmentprovision of health, erase impunity and corruption,

enhanced and invest heavily on education and R&D.


62/77

62

References

[1] F. Zakaria, How long will America lead the World Newsweek.http://www.msnbc.msn.com/id/13123358/site/newsweek/page/3/print/1/displaymode/1098/

[2]T. L. Friedman, The World is Flat, Farrar, Straus and Giroux, NewYork, 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?docid=4237353244338529080

A di I
http://www.hindu.com/edu/2006/09/04/stories/2006090400580100.htmhttp://www.hindu.com/edu/2006/09/04/stories/2006090400580100.htmhttp://www.cronica.com.mx/nota.php?id_http://www.cronica.com.mx/nota.php?id_http://www.hindu.com/edu/2006/09/04/stories/2006090400580100.htmhttp://www.hindu.com/edu/2006/09/04/stories/2006090400580100.htm


63/77

63

Appendix I

1. 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 548.2Japan 547.6

Mexico 404.9


64/77

64

1. Pennsylvania State University 1,396

2. Georgia Institute of Technology 1,3723.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 88212. Iowa State University 868

13. University of Texas, Austin 865

Bachelor's Degrees Awarded by School:


65/77

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 52511. Texas A&M University 522

12. University of Florida 503

13. Cornell University 490

Master's Engineering Degrees Awarded by School

Doctoral Engineering Degrees Awarded by School


66/77

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 1658. 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

Life sc iences phys ical sc iences and agr icul ture Mathemat ics and computer sc ience

Chart A3.6. Tertiary graduates, by field of education (2004)

Graduates wit h tertiary-type A and advanced research qualifications


67/77

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 sc iences, phys ical sc iences and agr icul ture Mathemat ics and computer sc ience

Engineering, manuf acturing and construction Health and welfare

Humanities, arts and education Social sciences, business, law and serv ices

Other

1. Year of ref erence 2003.

2. Phys ical sciences, mathematics , statist ics and computing are included in life sciences.

3. Excludes tertiary-ty pe A second degree programmes.

4. Excludes tertiary -ty pe B second degree programmes (for the Flemish community in Belgium).

5. Excludes tertiary-ty pe 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 f or notes (www.oecd.org/edu/eag2006).

Appendix II: Indicators about Mexico


68/77

68

Appendix II: Indicators about Mexico

Color TVs per 100 households

1. USA 99.5 26 South Korea 93.339 Mexico 90 47 Russia 75.8

Computer per 100 people

1. Switzerland 70.9 8 South Korea 55.8

10 Canada 48.7 34 Spain 19.6

? Mexico < 19

Telephone lines per 100 people

8 Canada 65.1 17 South Korea 53.8

? Mexico < 28



69/77

69


Book Sales $m

1 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, 2003

1 Brazil 235,431 25 Peru 29,857

2 China 193,567 39 Ecuador 16,8646 Mexico 140,004 47 Iran 11,601



70/77

70


Agriculture Biggest producers 000 tonnes

Meat1 China 70,899 6 India 5,941

2 United States 38,911 9 Mexico 4,908

Fruit

1 China 76,893 6 Italy 15,7273 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 14,1007 Mexico 5,400 7 Mexico 5,300

Coffee top producers top consumers

1. Brazil 1,729 1 USA 1,230

5. Mexico 273 2 Brazil 825



71/77

71


Metals

Lead producers consumers1 China 955 1. USA 1,494

5 Mexico 135 7 Mexico 307

Zinc

4 Canada 788 3 Japan 6196 Mexico 427 5 South Korea 438

Silver

1 Peru 2,921

2 Mexico 2,551

6 Canada 1,309Oil 000 barrels per day producers consumers

1. Saudi Arabia 9,817 1 USA 20,071

3 USA 7,454 7 South Korea 2,303

5 Mexico 3,789 11 Mexico 1,864



72/77

72

Innovation Indexis a measure of human resources skills, market

incentive structures and interaction between business and scientific

sectors.

1. USA 6.41 2. Taiwan 6.06

3 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 6.0715 Japan 5.79 18 South Korea 5.74

Mexico is not in the top 44

Appendix III Korean National Growth Engines


73/77

73

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

K t t g t t


74/77

74

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 participationof start-up companies by the law

Exemptions of mandatory military service for researchers who areemployed in a start-up company (limited for qualified researchers withMasters degree)

How many Korean engineers are produced per year?


75/77

75

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, ComputerScience

2,735 Mechanical / Aerospace 5,199

Physics 1,830 Material 2,471

Chemistry 2,272 Electrical 10,132Earth 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 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


76/77

76

Who promoted the industrialization in Korea?

1960~1980 : President Junghee Park promoted/emphasized

- Social Overhead Capital deployment

- Heavy Industry

- Export

- Education/ cultural enlightenment

- 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

Another important factors in the industrialdevelopment and university industry


77/77

development and university-industrycooperation

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 shortterm research : around 1~2 years)

Almost all the government research fund requires participation ofindustry (even in the research/education program for university)

Technology that was developed by the university itself is rarelytransferred to the industry (Industry prefer to employ the student

rather than technology licensing)

However, the industry-initiated research outcome is easily integratedwith the product.

Naturally Industry have the initiative of research

Imp of Technology Esime-April 07l

Documents

Transcript of Imp of Technology Esime-April 07l