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2017/ISOM/SYM/004 Session 1

Technology and Innovation - A Catalyst for Development

Submitted by: Papua New Guinea

Symposium on APEC 2018 PrioritiesPort Moresby, Papua New Guinea

5 December 2017

Technology & Innovation A Catalyst for Development

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Professor Teatulohi MatainahoChairman and CEO

PNG Science & Technology Council

“Technology plays a critical role in transforming societies and economies

through enhancing efficiency, connectivity and access to resources

and services.”

Innovation and Technology for Sustainable Development, (2017), United Nations

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“Innovation has long been recognized as an important driver of economic growth.

…innovation leads to new and improved products and services, higher

productivity, and lower prices.”

Atkinson, R.D, McKay, A.S, (2007),

Digital Prosperity: Understanding the Economic Benefits of the Information Technology

Revolution

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UN Sustainable Development Goal 9

Industry, Innovation and Infrastructure: Build resilient infrastructure, promote

inclusive and sustainableindustrialization and foster innovation.

Sustainable Development Agenda 2030, (2016), United Nations

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“As a result, economies that have consistently high levels of innovation

also tend to havehigh levels of growth.”

Atkinson, R.D, McKay, A.S, (2007), Digital Prosperity: Understanding the Economic Benefits of the Information Technology

Revolution

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Overview

1. The Role of Technology and Innovation

2. The Digital Age

3. Challenges for Economic Growth

4. Way Forward

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The Role of Technology and Innovation

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The Role of Technology and Innovation

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Human Needs

Science and Knowledge

Technology and Innovation

Products and Services

Trade and Economy

Development

Addressed through

Applied through

Influences the nature of

Contributes toward

Provides solutions to

Influences the nature of

Industry 1.0

Mechanical

Production

Hydro Power

Steam Power

19001800 2000

1784Mechanical Loom

The Role of Technology and Innovation

Industry 1.0

Mechanical

Production

Hydro Power

Steam Power

Industry 2.0

Mass

Production

Electricity

Assembly Line

19001800 2000

1784Mechanical Loom

1870Assembly Line

The Role of Technology and Innovation

Industry 1.0

Mechanical

Production

Hydro Power

Steam Power

Industry 2.0

Mass

Production

Electricity

Assembly Line

Industry 3.0

Automation

Electronics

Computers

ICT

Internet

19001800 2000

1784Mechanical Loom

1870Assembly Line

1969 Programmable Logic

Controller

The Role of Technology and Innovation

Industry 1.0

Mechanical

Production

Hydro Power

Steam Power

Industry 2.0

Mass

Production

Electricity

Assembly Line

Industry 3.0

Automation

Electronics

Computers

ICT

Internet

19001800 2000

1784Mechanical Loom

1870Assembly Line

1969 Programmable Logic

Controller

2000s?

Industry 4.0

Cyber-Physical

Systems

Internet of Things

Big Data

Cloud Computing

Artificial Intelligence

The Role of Technology and Innovation

The Digital Age

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Industry 4.0 Ecosystem

Morris Hosseini, (2015) “What will the future look like under Industry 4.0 and digital transformation in the healthcare space?”, Roland Berger Strategy Consultants

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• Mobile Internet

• Knowledge work automation

• Internet of things

• Cloud

• Advanced robotics

• Autonomous vehicles

• Next generation genomics

• Energy storage

• 3-D printing

• Advanced materials

• Advanced oil and gas exploration and recovery

• Renewable energy

Potential of Radical Innovation for Developing Countries

*According to the Industrial Development Report 2016 - UNIDO

ECONOMIC GROWTH

1. Technological learning2. Well-educated

workforce3. Selective FDI4. Value adding to

Natural Materials5. Technical cooperation

1. High Technology Demand2. Industry Up-scaling3. Product Assembling and Repackaging 4. Product Diversification

1. Heavy R&D Investments by the Public and Private sector,2. Government support for SME’s3. ICT Capability4. Technological institutions5. Upgrade In Export Clusters6. Next Generation Products

Impact of Technology and Innovation on

Economic Growth

Low Growth Medium Growth High Growth

DIFFUSION OF TECHNOLOGICAL KNOWLEDGE

LONG-CYCLE TECHNOLOGY MEDIUM-CYCLE TECHNOLOGY

SHORT-CYCLE TECHNOLOGY

Challenges forEconomic Growth

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1. Technology Gap

2. Twenty-First Century Skills &

Artificial Intelligence

3. Sustainability

1. Technological Gap

Technology Infrastructure

Internet Of Things/Sensors

Financial/Blockchain Technology

Internet Economy

Integrated Supply Chain

New and improved product and systems

Frugal, Social and Disruptive Innovation

Discovery of New Markets

Technology Learning and Adoption

R&D Scientific Discovery

Science and Technology Policy

Innovation Systems

Innovation fund

Competitiveness Policy

Manufacturing Infrastructure

SME policies

ICT policies

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CONNECTIVITY GROWTH

STRUCTURAL

REFORM

Bridging the Technological Gap

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AGRICULTURE example

India’s Biotechnology Industry(Source: https://www.ibef.org/industry/biotechnology-india.aspx, Biotechnology industry in India)

Indian agriculture sector accounts for 18 per cent of India's gross domestic product (GDP) and provides employment to 50% of the countries workforce.

Agricultural exports constitute a fifth of the total exports of the country.

India is among the top 12 biotech destinations in the world and ranks third in the Asia-Pacific region

The Indian biotech industry holds about 2 per cent share of the global biotech industry.

2. Twenty-First Century Skills & Artificial Intelligence

People-to-People (Labor Mobility)

Data Sharing, Knowledge Exchange

Scientific Collaboration

Technology and Skills Transfer

AI Interface

Talent and Skills Acquisition

Use of Diaspora Arrangements

Machine Learning

Coding

Active Labor Market and Social Insurance

Policies

Technology Institutions

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CONNECTIVITY GROWTH STRUCTURAL

REFORMS

Bridging the Skills Gap

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CONNECTIVITY STRUCTURAL REFORMS

• 21st CENTURY SKILLS example

• Investment in Technological Learning as in the case of most Asia-regional economies

• Use of Computers to enhance skills, increase productivity, overcome supply/demand, overcome skills mismatch and structural unemployment

• Disruptive Technologies create a shift from existing skills to new sets of skills (Data Science Analytic Skills)

3. Sustainability

Service Delivery

Global Value Chains

Renewable Resources

Green Networks and markets

Public Awareness and Social License/Public

trust

Social Inclusion

Traditional Knowledge application

Bio-economy, Green Technologies and

Clean Energy

Green Growth

Green Infrastructure

Carbon Offset( REDD+)

Diffusion of Low Carbon Technologies

Waste Management

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CONNECTIVITY GROWTH STRUCTURAL

REFORM

Enhancing Sustainability

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CONNECTIVITY STRUCTURAL

REFORMS

• ENERGY example

• Case of Energy Sector in Sri Lanka( Source: Gunatilake.H, Pamakanthi.D. (2008)Economics of Energy Conservation A case study, Asian Development Bank)

• Use of Low Carbon Technology ( Lighting) in the electricity Sector to conserve energy and increase Energy Savings.

• Increased Energy savings, Long Term Economic Growth

• AGRICULTURE example

• Growing Crops in the Desert with use of agricultural technology- Plants engineered to survive drought conditions (Source:. Ramey.K , (November 12,2012) Technology and Society-

Impact on Society. http\\: www.useoftechnology.com)

Way Forward

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APEC Regional Trend Analysis

IMPACT OF TECHNOLOGY ON EMPLOYMENT AND THE ECONOMY

• Digital technology expected to

increase productivity and Economic Growth

• However, technology can lead to a

decrease in employment opportunities based on current skills

• Requires shift in the development of new employment skills

• Decline in Labor Share is an indicator of decreasing Inclusion

• Globalization and Technology Change are the major causes for decline in Labor Share

• Impact of Globalization and Technological Change are Skills-mismatch and Structural

Unemployment

“Rethinking Skills Development

in the Digital Age”APEC Policy Support UnitNovember 2016

“Declining Labour Share and

the Challenge of Inclusion”APEC Policy Support UnitNovember 2017

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KNOWLEDGE-BASED ECONOMY

Creating Tradable Services and Technology Exchange

RESOURCE-BASED ECONOMY

Leverage for Resource Rich Economies

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BRIDGING

THE GAP

Research & Development

Technology Transfer

Skills Development

Next Generation Technologies

Value Adding

Innovation

‘Green’ Jobs

Traditional & Local Knowledge

Sustainability

Green Technologies

Biotechnology AI and Automation

Social License/Public trust

THANK YOU

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