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what is global competitive environment

January 16, 2021 by  
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International collaboration is likely to become a more important aspect of Taiwanese innovation strategy. Nearly one-third of clients have 250 or fewer employees.382, A major source of Fraunhofer’s strength and durability has been its diverse funding base, which enables its institute to perform their own in-house cutting-edge research, remain engaged in strategic national innovation programs, and collaborate with industry. We live in an era of risk and instability. cit. To satisfy the demands of both industry and society, India must dramatically improve its national innovation system.172 India has enormous potential. A 2009 survey of 6,233 Canadian enterprises in 67 industries found that only 18.8 percent said their strategic focus is to regularly. Renewable energy is an especially high priority. The region has seven universities, 22 non-university institutions of higher education, and five university-based institutes of higher education designed specifically to diffuse knowledge. The central government and provincial governments issued catalogues to procurement officials specifying which products meet “indigenous innovation” criteria. 4 Ministry of Science and Technology of the People’s Republic of China, China S&T Statistics Data Book 2010, Figure 1-1. 438 See remarks by Peter J. Nicholson in Innovation Policies for the 21st Century, op. 411 Presentation by Allen Bowling of Texas Instruments in Innovative Flanders. The companies are developing LED products and materials for street lighting. 114 “Caterpillar Expands China Research Center,” Business Daily Update (China) (January 10 2012). Compared to appliedresearch institutes of nations and regions such as Germany, Taiwan, and Finland, the majority of those in China are regarded as having relatively weak linkages with private industry. Various Germany government agencies also support programs to support ICT startups, provide expert help for small- and medium-sized businesses, vocational training, and export promotion for ICT-enabled services. The review process not only updated concepts and statistics, but also offered an opportunity to reflect on the scope of the GCI. 437 Freedman shows that BERD intensity in Quebec and Ontario is much higher than in the other, more resource dependent provinces. The government also launched an initiative in the mid-1990s to establish a network of “centers of excellence” to create research partnerships in advanced technologies, engineering and manufacturing, life sciences, environmental technologies, and natural resources. NOTE: Data for 2009 and 2010 are preliminary. Some Indian business leaders have criticized jugaad; Anand Mahindra notes that it is “all too often used to excuse cut-price, second-rate answers to his nation’s pressing business and social problems.” See Financial Times, “More with less.” May 19, 2012. Each year, it generates more than 100 patents and leverages $71 million in added investment.461, Canada also has made generous use of tax credits to entice corporations to build R&D centers and advanced manufacturing facilities in Canada. Federal government and state funding, which covers one-third of its budget, has been stable and has steadily increasing, enabling Fraunhofer to plan for the long term, Dr. Schindler explained. Tekes estimates that government investments in research have yielded a return of around 20 times for the Finnish economy. Rather than attempt to invent new technologies from scratch, Dr. Chu explained, Taiwan’s strategy has been to focus on technologies that multinationals already possess and that Taiwanese companies want to apply. 44 The initial fields covered in the 863 program were biotechnology, space, information technology, automation, energy, and new materials. The experienced ones are really shining, doing extremely well in patents and. It is a global competitiveness gap that is particularly concerning, given the world economy faces the prospect of a downturn. 317 Expert Commission on Research and Innovation, “Research, Innovation and Technological Performance in Germany Report 2009,” Virtually all work on global projects. 7 in innovation and No. On the one hand, India is a global leader in information technology and business-process outsourcing services, which account for nearly $60 billion in annual exports and employ more than 2.5 million.168 On the other, more than one-third of India’s 1 billion people live below the poverty line, and three-. This chapter will describe how different nations studied by the STEP Board are addressing these and other issues. We continue to monitor key trends and business fundamentals, such as revenue per available room (RevPAR) to ensure our strategy remains well suited to the developing environment and our capabilities, and we believe our business is resilient. Indirect competitors are those that sell unrelated goods and services, but to similar target markets. Please see Chapter 1.1 of The Global Competitiveness Report 2007–2008 (Sala-i-Martín et al. Between 1980 and 2008, the percentage of Chinese aged 18 to 22 with a college education rose from 2 percent to 23 percent.86 The number of Ph. Fraunhofer has opened a number of centers in the U.S. specializing in different fields. Since it began operation a decade ago, the program has established 2,000 chairs at degree-granting institutions. Several studies have found that Finland’s investments in R&D have had a significant impact. the low value-added of its exports. The program has a $300 million annual budget to recruit and retain top-flight academics. 87 National Education Development Statistics cited by Su Jun and Joseph Zhou, “Chinese University in the National Innovation System,” presented at June 28, 2011 joint symposium at Chinese Academy of Engineering in Beijing. 300 German Federal Labor Agency data. 357 In 2008 and 2009, the programs PRO INNOII, INNO NET, NEMO, and INNO-WATT were restructured and integrated into Central Innovation Programme. We focus on Singapore and Taiwan, which have extraordinarily well-educated populations and have attained world standards in industries such as high-tech electronics, biotechnology research, and chemicals. SOURCE: Statistics Canada, CANSIM, tables 358-0001 and 380-0017 and Catalogue nos. Box 5.3 Innovation with Chinese Characteristics. It also has set a target of having renewable energy meet 18 percent of gross energy consumption and provide for 35 percent of electricity by 2020. 83 From Dahlman presentation, Building the 21st Century: U.S. - China Cooperation in Science, Technology, and Innovation, op. Compared to universities in the U.S., however, most of those in China tend to be ivory towers that put top priority on publishing papers, many of them of questionable quality, in scientific and technical journals. Stephen O’Rourke of Deutsche Bank Securities estimates the Chinese solar cell and module makers pay 3.5 percent interest on average to borrow from government banks. Many of its stated S&T and modernization goals will be unachievable without continued access to and exploitation of the global marketplace for several more decades. 88-001-XIE and 88F0006XIE. 337 A comprehensive explanation of German programs to develop next-generation transportation technologies can be found in German Federal Government’s National Electromobility Development Plan, August 2009 ( As of September 2009, the foundation had committed nearly $5.2 billion to 6,300 projects at 130 research institutions across Canada. The rapid transformation of the global innovation landscape presents tremendous challenges as well as important opportunities for the United States. As the government’s science and technology plan for 2006-2010 stated, “The critical success factor for Singapore will be its ability to become an international talent node—nurturing its own talent as well as drawing creative and talented people from all corners of the world to live and work in Singapore.”272, Singapore is making impressive progress. FIGURE 5.3 While trade data indicate that the United States imported $2 billion of iPhones from China in 2009, only an estimated three percent of the value-added was from China. 311 German Association of Chambers of Industry and Commerce data cited in BMBF, “High-Tech Strategy 2020,” op. This process enabled the government to “cherry pick” Hsinchu tenants, according to Dr. Amsden. It is reportedly planning to set up an electronics development fund (EDF) to promote R&D in electronics.225 Minister of Finance Pranab Mukherjee proposed in March 2012 that India’s weighted deduction of 200% for R&D expenditures—one of the highest in the world—be extended from 2012 for another five years226. The World Competitiveness Yearbook's global competitiveness index or ranking assesses and ranks how countries and enterprises manage the totality of their competencies to achieve increased prosperity. The more serious competitors a company faces as it … 447 Science, Technology, and Innovation Council of Canada, “State of the Nation, 2010.” Access at$FILE/10059_IC_SotN_Rapport_EN_WEB_INTERACTIVE.pdf. Universities produce more than one-third of Chinese patents for inventions and 60 percent of published science and engineering papers.89. 38. 12 Ministry of Science and Technology of the People’s Republic of China, China S&T Statistics Data Book 2010, Figure 1-3 at A well organized planned strategy should be used to achieve global competitive advantage. The report also questioned whether the many discrete programs in areas like telecommunications, information, and pharmaceuticals fit into an overarching framework. 434 Findings of the National Audit Office and other studies of Tekes’ performance can be found in Markus Koskenlinna, “Additionality and Tekes,” Impact Analysis, Nov. 25, 2003 ( 223 From presentation by M. P. Chugh of Tata Auto Component Systems in India’s Changing Innovation System, op. Yet when low taxes, finance costs, and other special advantages are accounted for, the average real return on equity of state-owned enterprises over that period was negative 6.2 percent.121. Research institutions that cooperate with these firms can receive grants covering their entire costs up to €175,000.360 As of late 2010, ZIM had allocated €1.4 billion in grants that were matched by €1.5 billion in SME contributions. Academics recognized by their peers as “world leaders” in their fields are paid $200,000 annually for seven years with indefinite renewal. 66 The Medium to Long-Term Plan for the Development of Science and Technology, op. While giving Germany strong marks in high technology and in research institutions, the study cited financing of innovative projects in particular as a “major barrier to innovation.” Aversion to risk is another constraint. 442 Council of Canadian Academies, op. Guelph, a project to improve understanding of the brain and spinal cord at Dalhousie University in Halifax, and monitoring of ecosystems in the Canadian Arctic at the Université du Québec à Rimouski.454, Canada Research Chairs complements the foundation by funding development of world-class research capacity at universities and a cadre of researchers. 457 National Research Council, “NRC-Industrial Research Assistance Program,” Power Point presentation, March 2010, ( Japan has taken a number of actions since the mid-90s to improve its innovation system, many of them inspired by the United States.473 Japan has strengthened protection of intellectual property, overhauled science and technology policy institutions, enacted its own version of the Bayh-Dole Act to make it easier for universities and research laboratories to commercialize technology, and bolstered industry and academic science partnerships.474 Japan. “ITRI is not only charged with raising the technological level of Taiwan, but also with increasing the level of its productive capabilities. W. Wessner, editor, Washington, DC: The National Academies Press, 2011. strength.”28 Such pronouncements have been backed with a flurry of initiatives at the central, provincial, and local levels to upgrade the nation’s innovation ecosystem. Canada ranks No. ITRI also was pivotal to the development of Taiwan’s personal computer industry. The Five-Year plan calls for a number of new universities and greater collaboration between academia, research institutes, and industry. The constitution was designed to prevent the central government from having sole control over education. 403 See remarks by Fientje Moerman, former Minister for Economy, Enterprise, Science, Innovation, and Foreign Trade, in Innovative Flanders. The world has become more globalized, competitive, dynamic and uncertain than ever before. They are leveraging their large domestic markets and low-cost workforces to attract foreign investment in next-tier industries and are developing globally competitive corporations. The second decade of the 21st century is witnessing the rise of a global competition that is based on innovative advantage. Coming at a time when other nations were cutting back such spending in the face of recession, the major commitment to innovation represented “a paradigm shift of some importance” for Germany, explained Rainer Jäkel, director general for technology and innovation policy at the Federal Ministry of Economics and Technology (BMWi).307, The government also has been implementing a wide range of policies and programs to improve its innovation system. When contracted to perform research, institutes agree to meet deadlines, milestones, and deliverables. America’s innovation system has long been the envy of the world. The company's operating situation depends on both external and internal factors. To help deliver health care to remote villages, for example, hospitals in Delhi are setting up “medical kiosks” in clusters of villages that enable doctors in Delhi to diagnose patients using satellite technologies. •    strengthen collaboration between universities and business, •    improve the environment for high-tech start-ups, and. These efforts quickly transformed Taiwan’s economy. The NSF will fully match funds for start-ups, which will be assessed based on their “potential to disrupt a current industry and create new ones,” according to the disruptive innovation methodology of Harvard Business School professor Clay Christensen.287, •    Grants for polytechnics to perform translational research on R&D conducted by universities and public research institutes. The Fraunhofer Heinrich Hertz Institute, which specializes in information and communications technology, has been developing 3-dimensional imaging, sensor, and communication network technologies with many possible medical applications. The top 10 universities garner half of research grants in Japan.499, Even though patent filings increased, technology transfer from Japanese research universities was not impressive when measured licensing revenue, according to Dr. Oka, Dr. Nakamura, and Dr. Tohei. At a time when the U.S. is struggling to maintain funding for current programs, China is providing the financial resources and policy support needed to build a 21st century innovation system. (Annexure 4). For India’s world-class technology companies, the goal is to develop more proprietary intellectual property and gain global market share. The Taiwanese government is investing $1 billion into clean energy over three years. “At present, we believe the innovation of structure is more important than innovation of technology,” said Mr. Li of the State Council Central Finance and Economics Office. In terms of hardware and software, China is likely to concentrate its R&D efforts on embedded systems, advanced engineering software, large-scale digital control equipment and systems for production lines, integrated IT systems, encryption, virtual reality technologies, and new materials, according. That gives ITRI a much more complex role, than comparable U.S. agencies, notes Dr. Amsden. The remaining third comes from publicly funded research projects that it wins on a competitive basis from the German government and the European Union. As a result, it wants to market its. In a competitive world, if you can’t keep your cool, stay focused, and find a way to win against all odds, you’re toast. cit. •    nurture regional innovation clusters. 483 See presentation by David K. Kahaner of the Asian Technology Information Program in Innovation Policies for the 21st Century, op. The program, managed by the National Research Council, has a $281 million budget and employs 240 industrial technology advisors in 147 sites across the country. 453 Canada Foundation for Innovation, 2009 Report on Results: An Analysis of Investments in Infrastructure ( Several multinationals also said they are losing considerable numbers of seasoned talent to Chinese state-owned enterprises or private Chinese companies willing to double and even triple their salaries, offer senior positions, and provide housing. Seats in these schools are extremely scarce, however. The Institute for Photonic Microsystems and Institute for Electron Beam and Plasma Technology, for example, have demonstrated what it is billed as the first successful roll-to-roll manufacturing system that deposits OLED materials on sheets of aluminum, a process with wide potential applications for solar cells, memory systems, sensors, lighting, and other devices.388, At the same time, Fraunhofer’s headquarters tries to give its institutes the latitude needed set their own direction in developing technologies and responding to opportunities. The government defines “forward-looking projects” in science, technology, and social development and detailed roadmaps to achieve each of the overarching missions over 10 to 15 years. As a result, consumer spending and service industries remained robust through the recession, according to Klaus F. Zimmerman, former president of DIW Berlin. Chinese manufacturing accounted for only $73.5 million of value of those $2 billion worth of phones, however. Battery Industry for Electric-Drive Vehicles. 496 Applied Research Inc., “Survey of Environment for Start-ups,” November 2006. Only recently have they been allowed to accept donations directly from alumni abroad.202. As evidenced by recent policies and the growing focus on “inclusive innovation,” the government of Prime Minister Singh is well cognizant of these challenges and determined to address them. 472 Canada ranks 20th among OECD nations in terms of natural science and engineering degrees as share of total degrees and 17th in the number of people in science and technology occupations. In Plymouth, Mich., Fraunhofer USA has a state-of-the-art center to develop laser technologies, components, and systems. The government is mapping strategies to address all of these shortcomings. In China, engineers now earn about $40,000 a year, compared to around $120,000 in Dallas, and job-hopping to other companies has become more intense. No longer is U.S. pre-eminence assured as a place to turn laboratory discoveries into new commercial products, companies, industries, and high-paying jobs. “We support the institutes that are successful in the market and want them to grow further,” Ms. Hellwig explained. “We have to learn from the United States.”166. The Ministry of Education plans to invest $1.7 billion over five years in first-rate universities. 267 For details on the e-Taiwan program, see National research institutes had three winning entries in R&D Magazine’s 2010 R&D top 100 Awards, for example. We try to give them as much autonomy as possible,” explained Anke Hellwig, liaison office for Fraunhofer USA’s seven U.S. centers. 138 Ministry of Information Industry, “Outline of the 11th Five-Year Plan and Medium-and-LongTerm Plan for 2020 for Science and Technology Development in the Information Industry,” Xin Bu Ke [2006] No. 31 For an extensive discussion of the controversies surrounding China’s indigenous innovation policies, see James McGregor, “China’s Drive for ‘Indigenous Innovation: A Web of Industrial Policies, “U.S. 249Ministry of Economic Affairs, “Multinational Innovative R&D Center in Taiwan,” updated Oct. 5, 2011. Taiwan is the world’s leading producer of mask ROMs and optical discs and the world’s largest integrated circuit foundry producer and largest packager of integrated circuits.240 Taiwan is the second-largest producer of large highdefinition LCD panels, IC design services and crystalline silicon solar cells.241 Taiwanese industry is making impressive progress in next-generation industries such as solid-state lighting, thin-film electronics, photovoltaic cells, and biomedical devices using nano-scale materials. 398 European Commission, Third European Report on Science and Technology Indicators 2003. 195 Akshaya Mukul, “Govt Plans 50 Centres of Excellence for Science & Tech,” The Times of India, Jan. 17, 2011. The government also has unveiled what it describes as Germany’s first comprehensive national innovation framework, High-Tech Strategy 2020, which seeks to consolidate public programs around well-defined missions.308, Some of these efforts appear to be bearing fruit. TACO also established four advanced engineering centers, including one in the U.S., and 16 different manufacturing plants for interior plastics, seating systems, exteriors and composites, and other components and modules. 349 Data from Research in Germany Web site of the BMBF Despite all of that activity, however, corporate China can boast few breakthrough products or technologies with the notable exception of internet based e-ecommerce and social network sites, such as dynamic e-commerce and social network sites such as Tencent, Alibaba, and Baidu. The competitiveness strategy can be traced to the 1979 and 1980 reports of the Joint Economic Committee, chaired by Senator Lloyd Bentsen. In most cases, it is too early to offer a full assessment of whether the strategies and policy tools selected by other nations will achieve their stated targets. 210 Ibid., data from Indian Central Statistics Organization. China’s Demographic Challenge. D. degrees, 45 percent had run their own R&D facilities, and 35 percent have been entrepreneurs. university-industry research, small-business incubators, and a network of 45 Venturing Business Laboratories, which help young researchers commercialize their work. These data refer to German exports to both other EU members as well as countries outside the EU. “A high-wage country needs to invest in education, universities, and research to foster innovation,” explained former DIW president Zimmerman. 233 Data from Mini Joseph Tejaswi and Sujit John, “IBM is India’s second largest pvt sector employer,” Times of India, Aug. 18, 2010. 265 The institute also has an open laboratory to make 8-inch wafers for microelectromechanical systems (MEMS). In addition to setting broad goals such as increasing R&D spending to 2.5 percent of GDP by 2020, the lengthy document contained lists of targets for catching up with advanced nations by 2020 in “frontier sciences” such as the study of life processes, earth systems, and the brain; “major scientific programs” that include protein studies, quantum regulation, and nano-scale materials; applied technologies aimed at specific industries such new-energy based vehicles, high-performance computing, sensor networks, high-definition flat-panel displays, high-speed transit, and renewable energies. German and American scientists collaborate on numerous programs, such as the German Electronic Synchrotron, the Large Hadron Collider at the European Organization for Nuclear Research, and on what is described as the world’s most powerful spallation neutron source SNS under. Each of these nations has revamped their national innovation strategies in order to increase R&D spending, collaboration between industry and academia, and new technology start-ups. While some of India’s 358 universities and more than 20,000 colleges are huge by Western standards, overall quality is poor.199 India’s National Knowledge Commission estimates the. 183 For a summary of recent initiatives, see `India Rising’ Science (24 February 2012, Vol. Institute directors coming from private industry general take steep pay cuts, but they can earn outside income as consultants. China has passed Japan as the world’s second-largest spender on R&D.33 Tertiary enrollment in China rose from 2 percent in 1980 and 22 percent in 2007. Exports of everything from kitchen equipment and industrial, 291 Ministry of Trade and Industry, “Economic Survey of Singapore 2010,”. A competitive advantage is what makes an entity's goods or services superior to all of a customer's other choices. This report argues that far more vigorous attention be paid to capturing the outputs of innovation - the commercial products, the industries, and particularly high-quality jobs to restore full employment. 294 Alice S. Huang and Chris Y. H. Tan, “Achieving Scientific Eminence Within Asia,” Science, Vol. The U.S. manufacturers also accused their Chinese competitors of selling at below-fair value. The list of star foreign scientists recruited to Singapore’s well-funded research labs is impressive. The Flemish government introduced a program to place young academic researchers into industry and to support Ph. The Leibniz Association, an umbrella organization of 87 independent state-controlled institutes, performs research on scientific issues of strategic importance, such as life sciences, natural sciences, and social sciences. she said, and to tighten collaboration among universities, government, and industry. Moreover, China faces a rapid aging of its workforce, leading to a contraction of from 72% to 61% between 2010 and 2050. 448 The government also established a number of programs to build world-class research institutions, encourage companies to invest more in R&D, and disseminate technology more widely through the economy. In 2010, the German government unveiled High-Tech Strategy 2020, which it described as the country’s “first broad national concept in which the key stakeholders involved in innovation share a joint vision.” The primary goals are to build lead markets, bridge industry and science, and improve framework conditions such as access to early-stage finance, intellectual property protection, public procurement, and the ability of universities and research institutions to commercialize research. and 50,000 skill-development centers across the country. 19 National Research Council, S&T Strategies of Six Countries, Implications for the United States, Washington, DC: The National Academies Press, 2010, page 30. 381 See presentation by Roland Schindler, executive director of Fraunhofer, in Meeting Global Challenges: U.S.-German Innovation Policy, op. Driven by the nation’s one child policy, China’s total fertility rate has fallen over the past 30 years from 2.6, well above the rate needed to hold a population steady, to 1.56, well below that rate.38 If children of one-child families want only one child themselves, as is typical, China will face a long period of low fertility. They spent nearly $50 billion on R&D in 2009, seven times more than in 2000, and employed nearly 1.5 million R&D personnel, three times the 2000 level.101, These investments have enabled China to rapidly become a major global force in a range of advanced industries. 50 Xue, “China’s Innovation Policy in Context of National Innovation System Reform,” op. To the contrary, some analysts warn, such an approach could ultimately make Chinese industry less competitive.165, Some Chinese officials agree that fulfilling the high aspirations for innovation will require reform of government institutions and corporate culture. 113 Universities focused on human resource development. They will offer doctorate programs and be based at existing institutions.195, India has big ambitions in nanotechnology. The Global Competitiveness Report 2016-2017 assesses the competitiveness landscape of 138 economies, providing insight into the drivers of their productivity and prosperity. 455 Data: Canada Research Chairs Web site. But the Experts Commission notes that Germany is one of few industrial nations that do not offer a tax credit for R&D. “It is well known that the banks are not so supportive.”321, The German system also distributes its R&D investments very differently than the United States. 250 National Science Council Executive Yuan, “National Science and Technology Development Plan (2009-12), passed July 2, 2009 (, 251 Id., p. 66. •    Grants to companies accepted into incubators covering 85 percent of the cost of developing a proof of concept, up to S$250,000. 396 Fraunhofer USA Website, Once higher U.S. worker productivity, the actual labor content of a product, logistics costs and other factors are fully accounted for, China’s cost advantage will be negligible, BCG predicts.72 To remain competitive in the years ahead, therefore, China will increasingly have to compete in higher value-added products rather than just on the basis of low labor costs. 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