My Model 2002 2011 [Compatibility Mode]

8/2/2019 My Model 2002 2011 [Compatibility Mode]

1/11

FUTURE

DIRECTIONS:

MAKING THE NEW

Francis Stevens George 1

AFRICA

www.innovationafrica.org


2/11

Technology and Economics

Growth and Development of any modern economy

is based on innovation and new technology Kondratiefs Long Wave Theory. The role of

technology in the upwave.

www.innovationafrica.orgFrancis Stevens George2

Schumpeter: technology as the engine of economicgrowth

Mensch: Only innovation can overcome economic

depression.


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Economic

business cyclesPol/Eco

Influences

Technology Innovation Impact on factors of production

First cycle

(1780s-1830s)

French Revolution Industrial revolution I-iron,

textile, steam technology

Land-iron & coal resources

Capital-OT,BKn

Labour-division of labour/fact. Workers.

Enterprise-investment by landowners in

new industry

Second cycle(1830s-1880s)

Marx Industirla revolution II-steelindustry/railroads

Land-pig iron coalCapital-joint stock, issuing of notes,

stable banking system

Labour-education of workers

Enterprise-investment by State and VCs

Third cycle

(1880s-1930s)

Capitalism Electrical

engineering/electricity/motor

Land-coal, petrol, other metals

Capital-int. Finn.

Labour-more skilled, demise of child

labour,

Enterprise-inter war speculation

Fouth Cycle

(1930s-1990s)

Socialism,

Unionism,

Consumption

Nuclear/oil/electronics/micro

processing

Land-alluminium, silicone, petroleum

Capital-sophis. Fin mkts,

Labour-highly skilled, universal

education,unions

Enterprise-international investment

Fifth cycle

(1990s-

Globalisation,

International,

Integration

Information

technology/telecoms/biotech/g

genetic eng

Land-recycled/envio fM,

Capital-single world market, money

Labour-know.workersEnterprise-monopolistic media,IT, private

ins. investors

www.innovationafrica.org

3Francis Stevens George


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My Model: The Starting Point4

The world is characterise by two sets of economies.TheNew Economy is characterise by information literatepersons creating new products and services. This neweconomy will experience rising living standards.

At the other end, we find the Old economies. These are

www.innovationafrica.orgFrancis Stevens George

characterise y people with outdated skills, that participatein a limited manner in the world economy. This economywill experience stagnation and no growth.

These two economies will be defined by a wideningDigital Divide.


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My Model: To Make the New Economy work in Africa:

Starting Point

Based on Joseph Schumpeters ideas5

Well educated, informationLiterate. These men andwomenparticipate in the economy ascreative entrepreneurs.

Rising Standard of living

Create new products and servicesKnowledgeable about market signalsDevelop products that markets wants

Develop new business modelsCreate jobs, income and increase savings


Not well educated, lesseducated, not information

literate, outdated skills.Limited participation.

Stagnation, stagnant standard of living

FEATURES OF NEW ECONOMY

Information based ProductsInternet, ICT

Tele Services, E-commerceIntangible AssetsNet Entrepreneurs

Innovation is the driving force


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MyModel: Action Points6

To move the Old economy to the New Economy

Investment in training programs for all sectors ofsociety, developing information literate leaders,entertaining and encouraging private sector


.

Innovation is the KEY

Time scale 5-10 years.


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Well educated, informationLiterate. These men and womenparticipate in the economy ascreative entrepreneurs.


FEATURES OF NEXT ECONOMY

Create new products and servicesKnowledgeable about market signalsDevelop products that markets wants

Develop new business models

Time Scale is 5-10

years My Model: To Make the New Economy

work in Africa: Action Points

7

Not well educated, lesseducated, not informationliterate, outdated skills. Limited

participation.


Information based Products

Internet, ICTTele Services, E-commerce

Intangible AssetsNet Entrepreneurs

,

Investment in Training Programs, Support for Private Sector Initiatives.


Innovation is thedriving force


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Well educated, informationLiterate. These men and womenparticipate in the economy ascreative entrepreneurs.


Govt support enabling environment-telecoms, legislation, taxation, Redtape.

My Model: To Make the New Economy work

in Africa: Action Points

Innovation is the driving force

Not well educated, lesseducated, not informationliterate, outdated skills.

Limited participation.


Invest in IT Training at all levels, support private initiatives

www.innovationafrica.orgFrancis Stevens George8


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Lessons from the Past.Remember

9

African countries focused on commodity products. The prices ofcommodities fell over time. Terms of trade worsen. Many failed to

diversify into products that saw rising terms of trade. Non participation in the International Trading regimes because of

outdated skills.

Unmarketable skills

Tourism was a late comer and of course because of oor infrastructure,


many could not full develop their tourism potential. Many basic infrastructure industries were government owned.

Inefficient and often badly managed.

Remember one of the problems in Africa has been the lack of skills inthe Industrial Age. Not enough engineers to maintain machines andplants.

Traditional Western aid provided some industrial infrastructure, BUTbecause we lacked skills and knowledge, we did not create any valuefrom these.


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Key Elements

10

Need a good infrastructure. In the knowledgeeconomy-human capital is part of the infrastructure!

Tangible and Intangible infrastructure

In the new paradigm, the tangible infrastructure isthe information technology network. Many countries


are pr vat s ng t ese as a cond t on from IMF/IBRD. Human Capital is the most important in order to

create prosperity-the intangible.

Intangible assets are the sources of value in the neweconomy.

An information literate population has higher chanceof increasing its standard of living than one that is

not.


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Conclusion

11

To join this New Economy we need

to invest in our people.

Kn l i k in r i nt in


knowledge based economy

Innovate!!

My Model 2002 2011 [Compatibility Mode]

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