India as Knowledge Economy1

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

India as Knowledge Economy1

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