Innovation Africa 2012

Innovation in the New Economy (Knowledge Economy)
Options for Developing Countries Summary Presentation

Francis Stevens George www.krooman.com
Knowledge Economy
The knowledge-driven economy brings new challenges for business. Markets are becoming more global with new competitors, product life cycles are shortening, customers are more demanding and the complexity of technology is increasing. The knowledge-driven economy affects the innovation process and the approach to innovation. The traditional idea that innovation is based upon research (technology- push theory) and interaction between firms and other actors is replaced by the current social network theory of innovation, where knowledge plays a crucial role in fostering innovation.
Francis Stevens George
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Competition in the New Economy Competition in the New Economy is driven by Innovation. To be competitive, companies must continiously innovate. Companies in the developing countries must innovate to be competive in the global economy. Innovation has changed in the knowledge based economy. The old models-Closed Innovation, US style-are increasingly becoming redundant. The New Models offer an opportunity to the developing countries.
Theory 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. Schumpeter: technology innovation as the engine of economic growth Mensch: Only innovation can overcome economic depression.
Technology and Development

Economic business cycles First cycle (1780s-1830s) Pol/Eco Influences Technology Innovation Impact on factors of production
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 Land-pig iron coal Capital-joint stock, issuing of notes, stable banking system Labour-education of workers Enterprise-investment by State and VCs Land-coal, petrol, other metals Capital-int. Finn. Labour-more skilled, demise of child labour, Enterprise-inter war speculation Land-alluminium, silicone, petroleum Capital-sophis. Fin mkts, Labour-highly skilled, universal education,unions Enterprise-international investment Land-recycled/envio fM, Capital-single world market, money Labour-know.workers Enterprise-monopolistic media,IT, private ins. investors
Second cycle (1830s-1880s)
Marx
Industrial revolution II-steel industry/railroads
Third cycle (1880s-1930s)
Capitalism
Electrical engineering/electricity/motor
Fouth Cycle (1930s-1990s)
Socialism, Unionism, Consumption
Nuclear/oil/electronics/micro processing
Fifth cycle (1990s-
Globalisation, International, Integration
Information technology/telecoms/biotech/ggenetic eng
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Innovation Models
US style-Closed Innovation Model European/Early Industrial Revolution Model Development- Driven Model(technopreneural model) Technology push Market Pull Linkages between actors (chain linked theories) Systems of Innovation (Technological Networks) Social Network Theory
Innovation in the New Economy

Problem solving process Occurence high with commercial entities An interactive process involving relationships between firms with different actors A diversified learning process A process involving the exchange of codified and tacit knowledge An interactive process of learning and exchange where interdependence between actors generates an innovative system or an innovation cluster
The Question Which Innovation models should developing countries go for? What are their options?
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Criterion to Determine Options In determing the options available to developing countries, I shall consider the following criterion
Knowledge Driven Focus Degree of availability Practical Usefulness Level of documentation Required resources for implementation
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Innovation Management
Innovation Management Options Knowledge Driven Focus
Degree of Availability
Required Resources
Criterion
Practical Usefulness Level of Documentation
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Knowledge Driven Focus Degree to which the technique focuses on knowledge as the most valuable asset to a company, highlighting features like: flexibility, cooperation, networking, internationalization, quick time-to-market, knowledge management, better market information and entrepreneurship encouragement.
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Degree of Availability Techniques and methodologies that are not subject to any copyrights or license restrictions so they can be used freely for any company. Generic methodological approaches and techniques which are not specific commercial tools owned by private players. Open source!
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Practical Usefulness Focus on specific and key problems to be solved by business organizations (problem-solving-orientation, know-how providers) Methodologies and techniques with a tool nature.
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Level of Documentation Well documented, standardized and systematized techniques, with a defined structure or method of application (existence of users guide or other codified knowledge pieces to replicate the technique) Availability of readily accessible best practice analysis (existence of examples and case studies to learn and diffuse how to use the technique)
Required Resources Time required to be implemented; Average budget to perform the technique in a firm; Tools which are not too sophisticated, and can be generally applied by averagetrained business professionals; If the implementation would require an external consultancy (required competencies, expertise and other resources for implementation and maintenance) it should be also assessed in terms of budget
Conclusion The innovation challenge is not just about catching up with developed countries in established areas of world production it is about developing an internal capacity for independent technological development and business knowledge. It is about learning to learn which takes time and requires resources. As well as adapting technology to local conditions, there needs to be investment in adapting organizations and institutions.
Progress Diagram
Phase 1 Phase 2 Phase 3
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Linear Model
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Block Diagram
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Time required to be implemented; Average budget to perform the technique in a firm; Tools which are not too sophisticated, and can be generally applied by average-trained business professionals; If the implementation would require an external consultancy (required competencies, expertise and other resources for implementation Stevens George and maintenance) it should be also
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Table
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3-D Pie Chart
Learn Perform Innovate Grow Redesign Technology
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Options
Which Innovation Model (s)
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Innovation Africa 2012

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Innovation in the New Economy (Knowledge Economy)

Options for Developing Countries Summary Presentation

Francis Stevens George

Technology and Development

Industrial revolution I-iron, textile, steam technology

Second cycle (1830s-1880s)

Industrial revolution II-steel industry/railroads

Third cycle (1880s-1930s)

Fouth Cycle (1930s-1990s)

Socialism, Unionism, Consumption

Fifth cycle (1990s-

Globalisation, International, Integration

Information technology/telecoms/biotech/ggenetic eng

Francis Stevens George

Innovation in the New Economy

Francis Stevens George

Francis Stevens George

Practical Usefulness Level of Documentation

Francis Stevens George

Francis Stevens George

Francis Stevens George

Francis Stevens George

Francis Stevens George

Francis Stevens George

Francis Stevens George

3-D Pie Chart

Learn Perform Innovate Grow Redesign Technology

Francis Stevens George

Which Innovation Model (s)

Francis Stevens George

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