Where is the wealth of my nation?

Where is the wealth of my nation?By Rimalyn Siriban

Given this formula…from the

Measuring the 21st Century

Wealth of Nations

dsdFNsF

dsdFsRsFKW

W= Total Wealth

K = Produced Capital

Produced capital consists of physical assets generated by applying human productive activities to natural capital and capable of providing a flow of goods or services.

R = Extraction

Extraction = is the act or a instance of extracting; the process of being

extracted, removal.

F = Production

(K,R,N)

K = Produced CapitalR = Extraction

N= Fixed Population

N = Fixed Population

The total number of inhabitants constituting a particular race, class, or group in a specified area.

Fixed Population for Philippines:95 Million

In order to build foresight in 2020

We identified 3 Themes that affects Innovation in a country:

1. Personalisation2. Collaboration

3. Innovation

Innovation: Transforming the way business creates includes global ranking of countriesAn Economist Intelligence Unit white paper sponsored by Cisco Systems

1. Personalisation

-goes beyond customisation, allowing the consumer to stamp the product or service with his or her own applications, preferences, and configurations. Technology is a high degree of personalisation, with the wide range of downloadable applications available.

2. Collaboration

-means to work together, and our research focuses specifically on formal collaborative arrangements at work that build traditional geographic, institutional and functional boundaries.

2. Collaboration

The emphasis on core competencies,

the need for corporate agility and the

rise of emerging markets have caused

firms to focus on collaboration both

within and among organizations.

2. Collaboration

Collaboration among functional groups and organizations will help companies become more productive and innovative.

3. Innovation

The application of knowledge in a novel way, primary for economic benefit – is becoming increasingly important for companies and government.

Government Policy Makers

see the need for an innovative environment if their economies are to prosper.

Government Policy Makers

need to know the indicators of innovation efficiency:

1. Highlight certain possible inadequacies in certain

environment factors2. Number of work permits for foreign

scientist and engineers

What makes a country innovative?

1.Technical Skills of the workforce

2. Quality of IT / telecommunications

infrastructure

INNOVATION

DIRECT DRIVERS OF INNOVATION

1. R&D as a % GDP2. Quality of a local

research infrastructure

3. Education of the workforce

Innovation: Transforming the way business creates includes global ranking of countries An EconomistIntelligence Unit white paper sponsored by Cisco Systems

INDIRECT DRIVERS OF INNOVATION

1. Political Stability2. Macroeconomic

stability3. The institutional

framework4. The regulatory

environment5. Tax regime6. Flexibility of the

labour market

INNOVATION

DIRECT DRIVERS OF INNOVATION

4. Technical Skills of the workforce

5. Quality of IT and communications infrastructure

6. Broadband Penetration

Innovation: Transforming the way business creates includes global ranking of countries An EconomistIntelligence Unit white paper sponsored by Cisco

Systems

INDIRECT DRIVERS OF INNOVATION

7. Openness of national economy to foreign investment

8. Ease of hiring foreign nationals

9. Opennes s of national culture to foreign influence

10. Access to investment finance

11. Protection of intellectual property

Innovation Efficiency

A comparison on its innovation output (performance) with its ranking on direct innovations can provide an insight into the efficiency of innovation.

For investors

The International Innovation Rankings are useful because to some extent the more innovative a country, the greater its growth potential.

Foresight 2020

In the next five years, nearly 60% of the 82 countries studied are likely to improve their innovation performance

What is happening to our country…

Our creative geniuses are leaving the country.

Making Japanese, Europeanand American companies benefit from the scholars ofour nation.

What is happening to our country…

We are allowing our geniuses to be brandedby a foreign country.

Example is the “Thai Rice”who was invented and developed by a Scientist.

Where have all our geniuses gone?

With the ASEAN Free Trade Agreement

“If we do not do anything now we will be left in the

dust”-3rd Inahgen Farmers Congress 2010,

February 3-5,2010SMX Convention

AGRICULTURE

needs an “Task Force ” funded by government to create

1. Accurate Survey2. Local Ordinances3. Preparedness and Response Plan4. Checklist / Resource List5. Upgrading Capabilities6. Contingency Planning Workshop

AGRICULTURE

The limiting factor right now is the

COLD STORAGE.Mindanao Fish, Tuna:

60% delivered directly55% consumed locally

The most innovative country

15 out of the top 25 performers on the innovation index are with countries with fewer than 10 million inhabitants.

-Switzerland, Sweden and Finland.

Small Countries

with cluster of world-class companies in research intensive sectors and their universally high standards of education, especially in science and mathematics, guarantee their continued success at creating wealth through their innovation prowess.

#1 Innovative Country - Japan

The Japanese education fosters conformity, not creativity.

Several factors propel Japan to the position of top innovator. For one thing, this resource-poor economy has long taken an “innovate or die” approach

- There is a symbiotic relationship between large companies and associated smaller firms that were closely integrated into so-called “keiretsu” and were under strong pressure to innovate.

How did their government do this?

Japan invests proportionally more in R&D – Research and Development

than the US.

Japan US3.35% of GDP

2.79% of GDP

#2 Innovative Country - Switzerland

Is a leading innovator. With it’s high tech clusters in the horological, electrical and pharmaceutical companies.

#3 Innovative Country – United States

300 Milion Population – at the top of the list .

Its high ranking says much about the creativity of its companies as well as the efficiency of its patenting process.

China and India

are breaking out of their position as,members of the underdeveloped

world.

Has already taken Japan to become

the world’s second largest investor in R&D.

China US $136 bn 2006

130 bn

AMERICA

330 bn

can expect to benefit more that India from foreign direct investment because of its more favorable regulatory and economic climate. Much of China’s inbound investment will continue to target innovation-rich sectors such as:

Mobile and fixed communicationsAviationVehicle ManufacturingPharmaceuticals and foodstuffs

Multinational Companies are

opening

Research Centers in China, lured by the fact that local scientists are paid only about 20% as much as Western Scientists.

Multinational Companies

Exploit this situation, more than 300 foreign

companies, including major life science firms, have established R&D

Centres in China.

is not an innovation

utopia.

Problems include the rampant theft of intellectual property, academic fraud, weak financial markets, and political meddling in science and research. Chinese innovation remains weak.

Let’s compare ASIAN CountriesINNOVATION PERFORMANCE 2002-2006

YEAR 2002-2006

Patents per m

Direct Inputs Index

InnovationEnvironment

Aggregate Innov. Enabler

Japan 1 11 23 14

Taiwan 8 16 16 16

South Korea 15 13 35 18

Hongkong 23 21 11 20

Malaysia 34 32 34 31

Thailand 53 61 45 59

India 58 50 54 50

China 59 42 57 45

Philippines 60 60 48 58

Indonesia 74 71 70 73

Vietnam 79 75 66 75

China and India

are breaking out of their position as ,members of the underdeveloped world.

According to study…

This world average is the arithmetic of the innovation index for each of the

82 countries.

The Economist Intelligence Unit 2007

YEAR 2002-2006

Patents per m

Direct Inputs Index

InnovationEnvironment

Japan 1 11 23 14

Taiwan 8 16 16 16

Hong Kong 23 21 11 20

India 58 50 54 50

China 59 42 57 45

Vietnam 79 75 66 75

YEAR 2002-2006

Patents per m

ExpectedDirect Inputs Index

ExpectedInnovationEnvironment Index

Japan 1 12 9.56 9.01

Taiwan 6 13 21 16

Hong Kong 23 21 6 21

India 56 49 52 50

China 54 37 53 37

Vietnam 79 73 54 70

The Economist Intelligence Unit

India 56 49 52 50