Transcript Global Competitiveness and Technology National Conference on IP for MSME Organised by CII-MoMSME-WIPO 19th Oct 2010 Deepak Bhatnagar Indian Institute of Foreign Trade (IIFT) [email protected] [email protected].

Global Competitiveness and Technology
National Conference on IP for MSME
Organised by CII-MoMSME-WIPO
19th Oct 2010
Deepak Bhatnagar
Indian Institute of Foreign Trade (IIFT)
[email protected]
[email protected]
India: Competing with the World
A peep into the past……
• Indian Steel in arrows and swords:
- Iron tipped arrows used by Indians in the Persian army (480 BC)
- Alexander the Great prized a gift of 100 talens of steel from Porus in
326 BC
- Indian ‘Wootz’ steel used for making Damuscus blades and became
famous in Europe
(‘Wootz’ derived from the Kannada word ‘UKKU’ meaning steel)
- British Royal Society made a detailed examination of Wootz Steel in
1790: their report says….“the steel of India is decidedly the best I
have yet met with!”
- “Should Tatas make steel rails to British specifications, I would
undertake to eat every pound of it”
Sir Fredrick Upcott, Chief Commissioner of Indian Railways.
“If Upcott had carried out this undertaking he would have had some
slight indigestion” (comment by Dorabjee Tata when the rails were sent to UK)
Competing for the Future
Forget that the ‘World is flat’
The world of business is turning upside down
(The Economist April 17th 2010)
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World’s Centre for economic gravity is shifting towards emerging
markets
Emerging countries are no longer content to be sources of
cheap hands and low-cost brains.
Instead, they too are becoming hot beds of innovation, producing
breakthroughs in everything…
from telecom to car making to health care.
They are redesigning products to reduce costs not just by 10% but by
upto 90%. They are redesigning entire business processes to do
things better and faster than their rivals in the West.
They are the “new masters of management”
Innovation and Technology
Breakthrough ideas are tilting the balance
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Rich-world companies are doing more R&D in emerging markets e.g. Fortune 500
companies now have 98 R&D facilities in China and 63 in India
•
Huawei, a Chinese telecoms giant, applied for more international patents than any other
firm did in 2008. It set up R&D operations in India in 1999. Globally, the company owns
17 R&D centres with a strength of 40,000 Engineers. Order book in India $ 2 Billion
(Rs. 9, 000 crore) with BSNL, MTNL, Reliance, Tata Indicom and Bharti Airtel.
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Even more striking is the emerging world’s growing ability to make established products
at dramatically lower costs. e.g. the $2,200 Nano Car or the $ 350 laptop: this sort of
advance – dubbed as “frugal innovation” is not just exploiting cheap labour. It is redesigning products and processes to cut out un-necessary costs. (Similar to the
concept of “lean manufacturing” when Japanese car industry beat the American giants
30 years ago!)
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Emerging economies are not merely challenging that lead in innovation. They are
unleashing a wave of low-cost, disruptive innovations that will, as they spread to the rich
world, shake many industries to their foundations
All sorts of CEOs will scream for protection!
Technology and Competitiveness
-these two are the most popular buzzwords of our time.
• Technology is high up the agenda in both policy and academic
debates.
• The capacity of firms to use new technologies and improved
organizational methods is central in explaining industrial leadership
and the competitiveness of regions and countries.
• Nevertheless, the relation between industrial innovation, scientific
research, organizational change, and competitiveness is not clear.
• The extent and manner in which innovation occurs in an economy
depends on the development of new production and business
capabilities, institutions, and infrastructure-factors which are, in turn,
contingent (among other things) on business strategy and government
decisions on public research funding.
Defining Competitiveness
• Country Competitiveness: Extent to which a national
environment is conducive or detrimental to business.
• Industry/Sector Competitiveness: Extent to which an industry
or a business sector offers potential for growth and attractive
return on investment. The concept can also be defined as the
collective ability of firms in the sector to compete internationally.
A more performance-oriented definition of industry
competitiveness can be given as: Collective ability of an
industry on performance factors such as productivity, cost,
market share and technology.
• Company Competitiveness: Ability to design, produce and/or
market products or services superior to those offered by
competitors , considering the price and non-price qualities.
The Global Competitiveness Report 2010-11
Long term prosperity in the wake of Global Economic Crisis: Since
2005, the World Economic Forum has based its competitiveness
analysis on the Global Competitiveness Index (GCI).
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A highly comprehensive index which captures the micro economic and
macro economic foundation of national competitiveness. The report
defines “competitiveness as the set of institutions, policies and factors
that determine the level of productivity of a country”
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Thus, more-competitive economies tend to be able to produce higher
levels of income for their citizens.
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The productivity level also determines the rates of return obtained by
investments in an economy.
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The concept of competitiveness thus involves static and dynamic
components.
The 12 Pillars of competitiveness
• The GCI provides a weighted average of
many different components, each of which
reflects one aspect of the complex concept
that we call competitiveness. These are
broadly grouped into 12 pillars of
competitiveness.
• Strong inter-relations of the 12 pillars- in
fact, they tend to reinforce each other
9th Pillar - Technological readiness
• This measures the agility with which an economy adopts existing
technologies to enhance the productivity of its industries. In today's
globalised world, technology has increasingly become an important
element for firms to compete and prosper.
• In this context, whether the technology used has or has not been
developed within national borders is irrelevant for its effect on
competitiveness. The central point is that the firms operating in the
country have access to advanced products and blueprints and the
ability to use them. Among the main sources of foreign technology,
FDI plays a key role. India is the 2nd favourite destination for FDI
(after China)
Level of technology available to firms in a country needs to be
distinguished from the country’s ability to innovate and expand the
frontiers of knowledge
12th Pillar - Innovation
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In the long run, standards of living can be expanded only with innovation. Particularly
important for economies as they approach the frontiers of knowledge.
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Firms must design and develop cutting edge products and processes to maintain a
competitive edge.
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This requires an environment that is conducive to economic activity, supported by both
public and private sectors.
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Sufficient investment in R&D, especially by Private Sector.
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Presence of hi-quality research institutions
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Extensive collaboration in research between university and industry.
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Protection of Intellectual Property (IP)
Organizational strategy for competitiveness: Develop and Integrate the Technology
Strategy with Business strategy
Key factors for the top spot in GCI
Switzerland has:
- Excellent capacity for innovation
- High spending on R&D
- Scientific research institutions are among the world’s best
- Strong collaboration between academic and business
sectors ensures that much of this research is translated
into marketable products and process, reinforced by
strong IP protection
- High rate of patenting : 148 per million inhabitants.
(India: 5.46 per million inhabitants)
Sweden: no 2 slot ( has replaced USA ,which slipped to 4th)
India:
no 51 slot (slipped from 49th spot last year)
China: no 27 slot (up from 29th spot last year)
What are the requirements for
enhancing competitiveness ?
• Prevent obsolescence – sustained R&D
• Making the future work for you!
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Are you confident about…
Future trends: how they may affect you?
Where the new opportunities will be?
How S&T can help you seize these opportunities?
What you should be doing NOW?
For every person and organization priorities may differ.
But one thing is certain:
We live in a world of change!.
The need to anticipate and prepare for the future is crucial.
Need to “Manage” Technology
• rapid technological change, uncertainity and
complexity
• technological knowledge to sustain
competitiveness in an uncertain business context
• issues become manifold because of globalization
of technology
• technology financing (VCs, Government schemes
to encourage R&D and incentives)
• create and nurture a ‘culture of innovation’
NEED FOR A TECHNOLOGY VISION…
‘Blessed are those,
who have a dream or a vision,
for, those who have not,
are dead while living!’
Stories and new ideas…
Opportunities on how frugal
technology helped companies
become globally competitive
Global Leadership through Technology the charms of frugal innovation
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Mac 400- a hand held ECG device developed by GE’s health care lab at
Bangalore. This miracle sells for $800 (conventional ECG is $ 2000)
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Water Filter- using rice husks to purify water developed by TCS in Chennai.
Gives abundant supply of bacteria free water for an initial investment of about
$ 24 and recurring expense of $ 4 for a new filter every few months.
Tata Chemicals is making these filter. Plan to produce 1m next year and
hopes for an external market of 100 mn.
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Frugal Innovation- not just about re-designing products: it involves re-thinking
entire production processes and business models.
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Companies need to squeeze costs to reach more customers and accept thin
profit margins to gain volume
Low Cost Insulin Pump
- Under development at Amrita School of biotechnology with support from TIFAC, DST.
- Partnership with Bio-Con, a leading
manufacturer of human re-combinant
insulin.
- Price range in the 1000s. Imported pump
costs Rs. 1.75 lakhs.
- Globally competitive product.
- A boon for diabetics, numbers increasing at
alarming rate.
FUNGISOMETM
Pride Product of Public-Private Partnership
FUNGISOMETM development at Delhi University & KEM
Hospital, Mumbai was supported by DBT, MoST, GoI.
Technology transferred to Lifecare Innovations Through
National Research Development Corporation.
R&D at Lifecare Innovations led to the commercialization
of FUNGISOMETM which was supported by DSIR, MoST,
GoI under the auspices of PATSER (Program Aimed at
Techonological Self Reliance).
Liposomal Amphotericin :
TM
Produced at Lifecare
FUNGISOME
Liposomal Amphotericin :
Produced in the lab
LAMP LRC 1
Bench
to
Bedside
FUNGISOMETMBrand
FUNGISOMETM1
AmBisome2,3
Amphocil/
Amphotech5
Ampholip/
Abelcet3,4
Complete Partial Successful
Response Response Response
(%)
(%)
(%)
Nephrotoxicity
incidence7
(%)
Minimum
Daily
Treatment
Cost (Rs.)
73.6
17.5
91.1
-1*
5,900
58.0
19.0
77.0
10-20
30,000
42.0
11.0
35.0
46.0
282 out of 473 patients enrolled in different
groups of fungal infections, only ‘some’
successfully treated
30,000
25-40
24,100
42-63
17,325
33.3
Conventional
Amphotericin B6
31.6
17,325
34-40
300
PATSER Providing Strength
• Special issue of Journal of
Postgraduate Medicine
onSystemic Fungal Infections
and development of Indian
Liposomal Amphotericin B
The special issue of the Journal highlighted matchless safety,
therapeutic success and economy of treatment
Indian Institute of Foreign Trade
Specialised Centres in IIFT:
• SME
• CITT
• WTO
IIFT : SME Centre
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SME Centre of the institute, set up in May 2005, plays a crucial role in conducting research and
capacity building programmes for SMEs at national and international levels
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IIFT is being increasingly recognized as Regional Resource Centre for Capacity Building of SMEs
1. Research: Some of the important research conducted by the Centre includes
A. Impact of Global Financial crises on SMEs from India
B. Product Market Identification for Agricultural exporters from Andhra Pradesh
C. Product Market Identification for SME Textile exporters : case study for Tirupur Exports
D. The SME Whitebook: Essential Handbook for Small and Medium Enterprises 2009-10
E. Inventory of Food Safety Standards for Agricultural Exporters from India
F. Market research reports in collaboration with Centre for Promotion of Imports from
developing countries
G. Increasing Competitiveness of Informal sector in India, submitted to NMCC
2.Training: SME Centre has been involved in Capacity Development of SMEs both at National
and International level. Some of the important Capacity building programs conducted by the
Centre for the year 2009-10 includes
A. Training the trainers for SMEs in Greater Mekong Sub Region at Bangkok in Dec 2009
B. Capacity Building of SMEs at Chennai (Leather cluster), Tirupur (Textiles cluster) and
Hyderabad (Agriculture)
C. Student training in collaboration with CII and CBI, Netherlands
IIFT : Centre for International Trade in Technology (CITT)
Objectives:
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Support industry by providing analytical information on
technology export potential sectors and markets.
Develop a cadre of experts and trainers in international
technology trade.
Underscore the importance of technology exports and
strive for its inclusion in the curricula of the concerned
academic institutions.
Sensitise Government of India towards an enabling and
proactive policy regime.
Focused studies by CITT:
Technology Branding in SMEs
Technology Support Services in Special Economic Zones (SEZs)
Survival of Startups
Foreign R&D Centres in India.
Exportable R&D Services in the CSIR System.
Technology Financing for SMEs: A Survey Report on Auto-Component SMEs.
Valuation of Intangible Assets - A Perspective.
GATS Provisions on R&D Services and Export Potential for India.
Global Marketing of Research and Development Services: Some Conceptual
Issues.
Technology-Intensive Exports from India.
Policies and Incentives for Accelerating Technology-Intensive Exports: Exporters'
Perspectives.
How can IIFT help ?
• Develop an export strategy for SMEs by linking
technology with trade.
• Organize ‘tailor-made’ training programmes for
capacity building on the interface between technology
and trade.
 International branding/marketing of technologies
 New business opportunities for Global trade
 Impact of changing global, technological & business
environment in the domains of your interest.