Post on 01-Nov-2014
description
Future Trends in Technology Business Incubation
Rustam LalkakaBusiness & Technology Development Strategies LLC
rlalkaka@btds.biz www.btds.biz
New Zealand Trade and EnterpriseAsian Association of Business Incubation
International Conference, Auckland, New Zealand March 2007
Key Development Concern is now PovertyToday, 1 in 5 of the world’s people - 1.2 billion - live on less than one dollar a day, 1 in 3 have no access to electricity, and 1 in 2 lack basic sanitation. 50 countries have lower percapita incomes now than a decade ago.
Traditional measures of poverty focus on income or expenditure. The broader concept of Empowerment,however, covers choices, opportunities and access to:
Human Assets (Skills, Knowledge, Health care)Social Assets (Family, Friends, Political networks) Financial Assets (Savings, Government transfers, Credit)Physical Assets (Property rights, drinking Water, clean Air)Equity, Human rights, Self-esteem, Social InclusionRespect for Culture, Ethnicity, Religion, Language
The lack of access to such assets are ‘unfreedoms’
The Paradoxes of Poverty
Knowledge to attack problems of poverty and disease exists. But political commitment and resources have yet to be mobilized.Knowledge Rights (IP) unfairly deny the right to a better life
Energy demands of developing nations must rise & oil prices climb, with disastrous effects on global warming and growth. Today renewable energy contributes under 15 % of global supply
People paradox: Population is ageing in many rich countries but proportions of youth are rising in poor countries - This poses the dilemma: Import young workers OR export the work ?
Official development assistance to poor countries is about $ 50 billion a year. Subsidies to agriculture in rich nations are $ 350 billion, and military expenditures $1,000 billion
Racial, religious and gender violence make us all less secure
Determinants of Incubation Success ....beyond incubator location, layout, management
Public policy
Culture Context
BusinessInfrastructure
GeographyHistory
Community support
The COMMUNITY is the ultimate supporter (and beneficiary) of the Incubation system
New incubation modes must be developed to address rural & urban poverty
Putting Incubation in Context
Incubation deals with a tiny portion of SME developmentIt is no panacea, not a solution to vast unemploymentIncubation requires a variety of players, playing as a teamFor success, it must be integrated in national plansIts about people and process, not only plans and policiesChange comes slowly, and failure is part of successFrom the outset, it must involve politicians and communityImportantly, incubation must have a ‘champion’
Half the world’s 4,500+ incubators are in developing nations. But one-third of these are in only three
(China, Brazil, Korea)
Emerging Developments Worldwide
ONE, Technology need no longer be the dominant focus.The urgent issues are employment, empowerment, environment
TWO, Government should no longer be the sole sponsor.The emerging model is of public-private-academia partnering
THREE, the Bottom-of-pyramid - 4 bill poor with $ 2,000 PPP income - is much bigger market than the affluent 100 million with $20,000 at Top-of-pyramid. MNCs and SMEs can serve BoP
FOUR, it is not enough to look west at USA and Europe, as significant developments are taking place in the South, eg. in Brazil, Chile, New Zealand, and in East, eg. China, India, Korea
No one wants to (or can) stop the GLOBALIZATION Express, but you must prepare the platform for us to
jump on to it !!
Future developments outside the incubator
Many service/ pharma/ manufacture jobs will move out of USA
Skilled migrants will return home, while American youth migrate
Disparities in incomes within countries may well widen
More people will work at home, Ideas of retirement will change
Workers will choose quality-time over more money
Computing power/convergence will rise, Robots will replace labor
Use of stem-cells and targeted drug delivery will enhance health
Water shortages will become severe > Major cause of conflicts
Costs of global climate change will rise to billions per year
....but enlightened self-interest and human ingenuity may well prevail
Discernible Incubation Trends1. Convergence of services on the ‘smart’ Incubation platform
2. Incubators & Managers accredited to meet quality norms
4. Stronger links to knowledge-base: academia-research
5. Mobilizing public-private partnerships, to serve the BoP
6. e-incubation network for distance counseling, as eRedes
7. Increase in global out-sourcing of services /manufacture
8. More emphasis on MIS, monitoring, evaluation, impact
Move towards balance between:Public intervention> Private Initiative
>Inclusive Development
9. Strengthened incubator association linked worldwide
10. Social innovation - civic entrepreneurs, to address 3 E’s
11. New technologies (nano, environment, energy, security)
12. Expatriate nationals to bring back expertise, contacts
13. International incubation alliances for soft-landings/synergy
14. Incubator Expansion: Finland (pop. 5 mill has 40 incubators), Korea (pop 50 mill - 350 incubators), that is, 7 to 8 per million pop. What are the plans in your country?
Which of the trends above will be your national priorities??
We welcome your comments and proposals
We cannot solve tomorrow’s problemsusing the same skills and knowledge we had
when we created themAlbert Einstein