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8/6/2019 India as Knowledge Economy1
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Knowledge Economy- Engineering Indian
Renaissance
Name:
Designation:
Date: February, 2004
Who Says Elephant Cant Gallop?
Who Says Elephant Cant Gallop?
INDIA as Knowledge Economy
NAME ROLL NOAditya Singh Rawat -10Ex 001
Bhupinder Singh -10Ex 011Manoj Yadav -10Ex 021
Poonam Mittal -10Ex 032Roshan -10Ex 042Susanta Dey -10Ex 052
GROUP NO:01
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Structure of the Presentation
Is India a Knowledge Economy? Mitigating Challenges
Indian KPO Industry Elephant can Gallop
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What is Knowledge?
Knowledge
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THE ECONOMICS OF THE KNOWLEDGE ECONOMY
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DRIVERS OF THE KNOWLEDGE ECONOMY
Globalization
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FOUR PILLARS OF KNOWLEDGE ECONOMY
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Production of Knowledge Economy
Developing a Knowledge Economy requires the interaction of thepublic sector, private enterprises, research and education institutions(both public and private), as well as civil society, at large.
EconomicFramework
InnovationSystems
EducationSystem
KE
InformationInfrastructure
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Is Knowledge Important for Economic Growth?
Per Capita GDP for Selected Regions or Countries
(1990 international $, 1480-1998)
0
5000
10000
15000
20000
25000
30000
1480 1560 1640 1720 1800 1870 1950 1998
Western Europe
Eastern Europe
United States
Latin America
Japan
China
India
Other AsiaAfrica
Source: Angus Maddison, The World Economy : A Millennial Perspective, OECD: Paris, 2001
Do we see a co-relation between GDPand Knowledge
Almost same percapita GDP
Infliction point forUS and WesternEurope
Infliction point forIndia
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Mitigating Knowledge Divide
Improve the efficiency in the use of public resources in the education system
Enhance the quality of primary and secondary education. This is especially important for India to meet thegoal of providing eight years of schooling for all children by 2020Ensure consistency between the skills taught in primary and secondary education and the needs of theknowledge economyReform the curriculum of tertiary education institutions to include skills and competencies for theknowledge economy (communication skills, problem-solving skills, creativity, and teamwork) that also meet
the needs of the private sectorRaise the quality of all higher educational institutions, not just a few world-class ones (such as the IITs)Embrace the contribution of the private sector in education and trainingEstablish partnerships between Indian and foreign universitiesIncrease university-industry partnerships to ensure consistency between research and the needs of theeconomyUse ICTs to meet the double goals of expanding access and improving the quality of educationMake effective use of distance learning technologies to expand access and the quality of formal educationand lifelong training
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A COMPARISION:
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Innovation Ecosystem Snapshot
Innovation is the central issue in economic prosperity
- Michael Porter
Variable Brazil China India
actual normalized actual normalized actual normalized
Royalty and License Fees Payments(US$ mil.), 2007
2.259.43 8.71 6.634.08 9.4 949.02 7.59
Royalty and License Fees Receipts(US$ mil.), 2007
319.41 7.91 204.5 7.64 111.6 7.18
Royalty Payments andreceipts(US$/pop.) 2007
13.46 5.88 5.21 4.87 0.94 2.52
University-Company ResearchCollaboration (1-7), 2008
3.6 6.8 4.5 8.32 3.6 6.8
S&E Journal Articles / Mil. People,2005
52.96 6.46 31.91 5.49 13.36 4.38
Patents Granted by USPTO / Mil.People, avg 2003-2007
0.76 6.23 0.58 5.96 0.4 5.55
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Strengthening Innovation Ecosystem
Increase R&D expenditures- Indias R&D budget is less than the amount spent by
many individual multinationals. India need more CSIREffectively enforce and implement IPR to create confidence among domestic andforeign innovators on protection of their innovations in the country
Enhance venture capital. In a market economy, one of the most admired economicinstruments for spurring innovation is venture capital. The growth of Silicon Valley as
well as Taiwan and Israel derives from the intensive use of venture funds, promoteRuralMicro Venture Capital in lines of micro credit supported by SIDBI & KVIC.
Restructure and modernize universities and publicly funded R&D institutions bygiving them flexibility, freedom of operation, and financial autonomyPromote a national fund to support grassroots innovators, with the aim of
building a national register of innovators, converting innovations into viable businessplans, and disseminating knowledge of indigenous innovations, especially for jobcreationEntrepreneurs make things happen
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Innovation Helps in Social Development
Forty percent of the world's poor live in India
28 percent living below the poverty lineMore than a third live on less than US$1 a day, and 80 percent live on less than US$2 a day
16% of rural population doesnt have access to clean drinking water
India Example: Green & White Revolution, Jaipur Foot, Arvind Eyes, Simputer
Nepal: Kanchan ArsenicFilter reflects humble solution to mammoth problem ofsafe drinking water
Laos: Sunlabob sold several communities solar units; Sunlabob is also
active in Hybrid village grid units
Kenya: Kickstartmanual pumps, The official data says use of 45,000 pumps have
created 29,000 new waged jobs, $37 million per year in new profits and wages generated by thepumps and more than 50% of pumps managed by women entrepreneurs
Cuba: created the worlds only Hepatitis B vaccine and provided national immunization by the late1980s
Vietnam cut malaria deaths by 97% in 1992-97 with locally researched andproduced drugs
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Indian KPO Industry
Stabilization2005-2010
Consolidation(2002-2004)
- ,1996 McKinsey conceivesbuilds and manages its
Knowledge Centre
-1997 GE Capital Servicesestablishes its back office
operations
Growth(1999-2001)
Inception(1996-1998)
(1998 Some Captives such as&Frost Sullivan and)Gartner establish their
operations
2000 Third Party market
competition increases withMphasis and Office Tigeropening their operations
,2001 Evalueserve Irevna andNetscribes enter as Third Party
providers
2002 ABN Amro and AT Kearneyestablishes their back office
operations
Start of knowledgeservices
Captive players enterthe Indian market
Large captive players enterthe market
Third Party players startcropping up
Competition among Third Party- players heat up
Market consolidation Collaborations between Third
Party player
2003 Morgan Stanley and Prudentialestablishes their back office
operations
2004 ICRA and Bytes to Knowledge( )B2K collaborate to form Brickwork
to offer financial services
Captive Players to increasefoothold in the Knowledge
.Services market Industry will comprise few
large third party players.along with the captives
Information Management andAnalytics to fuel the
market growth in the short.run
Independent research forinvestment banks and largebusinesses to show
traction going ahead
Characteristics:
Examples:
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Market Trend- Economic Imperatives
7.7
1.2
39.8
17
BPO KPO
CAGR
:
26%
CAGR
:
46%
2010
2003
*
-Majority of shortfall in highknowledge industry
- -Global off shoring2010
ndian pie -KPO Revenue Generation $12 b - ,Employment Oppr 250 000
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Elephant can Gallop
Largest democracy4th largest economy by PPP index
6th largest energy consumerFor Ex reserves skyrocket from USD 42 bn (2001) to USD 166 bn (2006)GDP growth to continue between 8-10%3rd largest economy by 2050: Goldman Sachs35 percent of Indians are below the age of 15
Tata- Corus- 5th Largest Manufacturer of SteelHero Honda - largest manufacturer of motorcycles
Moser Baer 3rd largest optical media manufacturer in world100 Fortune 500 have set R&D facilities in India including GE, Delphi, Eli Lilly, HP,Heinz and Daimler ChryslerPharmaceutical Industry - 4th largest in worldBPO & KPO- Largest destination in World
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Knowledge Economy- Engineering Indian
Renaissance
Who Says Elephant Cant Gallop?Who Says Elephant Cant Gallop?
THANKYOU
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