Innovation new economy_summary_african_days_sl_share

INNOVATION IN THE NEW ECONOMY (KNOWLEDGE ECONOMY)

Options for Developing Countries

Africa Day Oslo:-28.05.2016

www.innovationafrica.org

The role of the African Diaspora in Norway in enhancing innovation in Africa

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Relevant Project/Experience

• 2002: United Nations Digital Diaspora Network for Europe( European Representative at UN ICT Task Force)The Digital Diaspora Network: Africa — a collaborative effort between the UN ICT Task Force, the UN Fund for International Partnerships, the UN Development Fund for Women, Digital Partners, and Gruppo CERFE —seeks to promote development in Africa through mobilising the technological, entrepreneurial and professional expertise and resources of the African diaspora. The objective is to build a network of entrepreneurs from Africa living in North America and Europe who will contribute to promoting digital opportunities in Africa.

• Grunderneshus-VP Project Development:(2012-2013) (Oslo International Hub)

• 2016 Book: Innovation in Africa-Stories of Entrepreneurship and Innovation



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• CEO Innovation Africa• Adviser to the Oslo Freedom

Forum(Human Rights Foundation)• Founder Innovation Africa in 2005• Consulted for World Bank,2002-

2004• Consulted for Norad,2007-2009• Several Tech Startups• Manager at Yara 1993-1999• BSc Econ-London School of

Economics 1989, MBA-BI 1993• Accomplish author- 5 titles

Outline In order to understand and

appreciate The Role of the

Diaspora we need to look at:

• Innovation-Theory, Knowledge

Economy,Competition

• Innovation in the New Economy

• The Innovation Models

• The Paradigm Shift

• The Options for Africa

• The Role of the African Diaspora

• Conclusion/Take AwayAfrica Day Oslo:-28.05.2016

www.innovationafrica.orgFrancis Stevens George

Innovationafrica.orgwww.northfire.technology

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Theory-The Innovation

Imperative

• Growth and Development of any

modern economy is based on

innovation and new technology

• Kondratief’s ”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.



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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• Open Innovation



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Knowledge Economy

• Greater reliance on intellectual capabilities than on physical inputs or natural resources.

• The competitive advantage of countries are found in the pool of knowledge workers. Human Capital development is paramount

• Knowledge economy fuels the Service Economy-Growth is not a commodity

• The knowledge-driven economy affects the innovation process and the approach to innovation

• Social network theory of innovation, where knowledge plays a crucial role in fostering innovation.




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Competition in the New Economy • Competition in the New Economy

is driven by Innovation.

• 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.




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Innovation in the New Economy

• Problem solving process

• An interactive process involving relationships between firms/countries with different actors

• A diversified learning process

• A process involving the exchange of codified and tacitknowledge

• An interactive process of learning and exchange where interdependence between actors generates an innovative system or an innovation cluster




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Paradigm Shift• Immigrant entrepreneurs make a

significant positive contribution

to their host country economy

• High-skilled immigrants have

contributed to the high-tech

sector and to innovation, as

measured by growth in patenting

and in science and engineering.

• Connecting with and

Collaborating

• Diaspora as a National Asset

• Growth is not a commodityAfrica Day Oslo:-28.05.2016



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Growth is not a Commodity • Over the past decade Africa - world’s

fastest-growing continents— average

annual rate more than 5%

• Tourism, has boomed: the number of

foreign visitors doubled and receipts

tripled between 2000 and 2012

• Growth is even faster in services, which

expanded at an average rate of 2.6% per

person across Africa between 1996 and

2011.

• Despite falling commodity prices, growth

is forecast at 5%.

• Telecommunications, transportation and

finance -spur economic growth.


www.innovationafrica.orgFrancis Stevens GeorgeInnovationafrica.org

www.northfire.technology

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African Economic Growth




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WHICH INNOVATION MODELS SHOULD

COUNTRIES IN AFRICA ADOPT? WHAT ARE THE

CORRESPONDING OPTIONS

Africa Day Oslo:-28.05.2016 www.innovationafrica.org

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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




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

Rising Standard of living

Not well educated, less educated, not information literate, outdated skills. Limited participation.

Stagnation, stagnant standard of living

FEATURES OF “NEXT” ECONOMY

Information based ProductsInternet, ICT

Tele Services, E-commerceIntangible Assets

Net Entrepreneurs

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

Develop new business modelsCreate jobs, income and increase savings

Invest in entrepreneurship training at all levels, support private initiatives

Innovation Africa Model: To Make the New Economy work in Sierra Leone: Action Points

Diaspora Engagement as knoweledge and skills source

Transmisison Mechanism

• Temporary return of qualified nationals

• Entrepreneurship training

• Incubators/Tech Labs

• Smart Remittances-Remittances for Investment

• Research (focus groups)

• Partnerships and collaborations on research

projects (virtually and in-person)

• Resource sharing - providing access to funding,

data, research and technology

• Serving as mentors and advisors

• Co-creating and reviewing teaching curricula and

PhD training materials

• Investing in institutional advancement initiatives



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To Summarize• The Knoweldge Economy offers

unprecedented opportunities for growth parallel with our natural resources

• Knowledge and intellectual capital resides in our diaspora communties

• Enabling structures to faciltitate the transfer of knowedge/ and or participation of the Diaspora

• Knowledge is just as important as capital. In International Development, knowledge transfers has become an important element

• The innovation challenge is to develop an internal capacity for independent technological development and business knowledge

• For this, we need the Diaspora!




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Take Away • Knowledge is the

essential ingredient

• Where is the greatest

source of Knoweldege

• In our people



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If one does not know to which port one is sailing, no wind is favorable.-- Lucius Annaeus Seneca, Roman philosopher

Technology and DevelopmentEconomic business

cycles

Pol/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 Industrial revolution II-steel

industry/railroads

Land-pig iron coal

Capital-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/ggenetic

eng

Land-recycled/envio fM,

Capital-single world market, money

Labour-know.workers

Enterprise-monopolistic media,IT, private ins.

investors



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