IndiaIndia’’s R&D policy and its influence on s R&D policy and its influence on technology development and societytechnology development and society

MohsinMohsin U. KhanU. Khan

National Institute of Science Technology and National Institute of Science Technology and Development Studies, New DelhiDevelopment Studies, New Delhi--110012110012

Technology import policy of IndiaTechnology import policy of India

Period of liberalization until mid sixties.Period of liberalization until mid sixties.Period of tight regulations from then until the Period of tight regulations from then until the end of seventies.end of seventies.Period of relaxation of regulations from then Period of relaxation of regulations from then until the end of eighties.until the end of eighties.Regulations were then relaxed and the policy Regulations were then relaxed and the policy became once again liberal.became once again liberal.

Why India gone for liberalization in 1991Why India gone for liberalization in 1991

IndiaIndia’’s economy grew at the rate of about 5% during s economy grew at the rate of about 5% during 1980s.1980s.Domestic inflation gone up to 17% in 1991.Domestic inflation gone up to 17% in 1991.Foreign exchange reserves reduced to $ 1.2 billion Foreign exchange reserves reduced to $ 1.2 billion barely sufficient to pay for two weeks imports. barely sufficient to pay for two weeks imports. Central government fiscal deficit as a percentage of Central government fiscal deficit as a percentage of GDP touched the all time high of 8.4%.GDP touched the all time high of 8.4%.Current account deficit widened to $ 8 billion (2.6% Current account deficit widened to $ 8 billion (2.6% of GDP)of GDP)

Policy changes since 1991Policy changes since 1991

Drastically reduced number of industries Drastically reduced number of industries reserved for public sector.reserved for public sector.Abolished industrial licensing except for a Abolished industrial licensing except for a short list of industries related to security and short list of industries related to security and strategic concerns, hazardous chemicals.strategic concerns, hazardous chemicals.The restrictions imposed by MRTP Act on The restrictions imposed by MRTP Act on large firms expansion, merger, amalgamation large firms expansion, merger, amalgamation and take over etc..have been abolished.and take over etc..have been abolished.

Cont.//Cont.//

The protection provided to the small firms The protection provided to the small firms being reduced. being reduced. Now Now TNCs TNCs are free to decide whether they will are free to decide whether they will use imported or local raw material. use imported or local raw material. Now Now TNCs TNCs are free to use their brand names.are free to use their brand names.Now Now TNCs TNCs can increase the permissible extent can increase the permissible extent for foreign equity from 40 to 51 percent for foreign equity from 40 to 51 percent

FUNDS POURING IN FUNDS POURING IN

Figures in Figures in $billion$billion

27.8027.8028.4028.4014.6014.6015.4015.40RussiaRussia

37.4037.4014.8014.8015.1015.1018.2018.20BrazilBrazil

82.7082.7070.0070.0072.4072.4060.6060.60China China

24.5724.5715.715.75.55.53.23.2IndiaIndia

20072007200620062005200520042004

FDI leaps 56% in 2008FDI leaps 56% in 2008

FDI in 2007FDI in 2007--08 will be $30 billion. Mauritius and 08 will be $30 billion. Mauritius and Singapore are the two biggest investors in the country. Singapore are the two biggest investors in the country. The major sectors that attracted FDI are The major sectors that attracted FDI are telcomtelcom, real , real estate, construction activities electrical equipments, estate, construction activities electrical equipments, software and hardware and banking sector. Lot of software and hardware and banking sector. Lot of investment is expected to flow into petroleum, investment is expected to flow into petroleum, manufacturing and electronics hardware sector. manufacturing and electronics hardware sector.

Science and Technology Policy Science and Technology Policy ResolutionsResolutions

Scientific Policy Resolution 1958Scientific Policy Resolution 1958Technology Policy Statement 1983Technology Policy Statement 1983Science and Technology Policy 2003Science and Technology Policy 2003

Technology policy statement of 1983, Technology policy statement of 1983, emphasized the need to plan collaboration emphasized the need to plan collaboration

agreements in ways that would ensure effective agreements in ways that would ensure effective transfer of basic knowledge, knowtransfer of basic knowledge, know--why why

important inputs to the importing firms for important inputs to the importing firms for subsequent absorption, adaptation and upsubsequent absorption, adaptation and up--

gradation of the initially acquired knowledge.gradation of the initially acquired knowledge.

SectorSector--wise percentage share of R&D wise percentage share of R&D expenditureexpenditure

Central government Central government 64.9%64.9%State governmentsState governments 8.6%8.6%Public sectorPublic sector 10.1%10.1%Private sectorPrivate sector 16.4% 16.4%

Expenditure on R&D in IndiaExpenditure on R&D in India

19941994--9595 RsRs. 6,820 . 6,820 crorescrores19951995--9696 RsRs. 7,753 . 7,753 crorescrores20052005--0606 Rs Rs 20,553 20,553 crorescrores

R&D OrganizationR&D Organization

OrganizationOrganization Number Number StrengthStrength

CSIRCSIR 4242 Scientists 10,934Scientists 10,934ICARICAR 8989 Scientists 6,281Scientists 6,281ICMRICMR 26 26 Scientists 3732Scientists 3732DBTDBT 88 Scientists 800Scientists 800DRDODRDO 5252 Scientists 6,500Scientists 6,500DAEDAE 17 17 Scientists 5,000Scientists 5,000ISROISRO -- Scientists 10,000 Scientists 10,000

Institutions of Higher EducationInstitutions of Higher Education

Higher EducationHigher Education NumberNumber StrengthStrengthUniversitiesUniversities 253253 Faculty 4,11,628Faculty 4,11,628CollegesColleges 13,115 Students 83,99,43313,115 Students 83,99,433IITs IITs 7 Faculty 2, 5007 Faculty 2, 500

Students 23,000Students 23,000EnggEngg. Colleges 3,500 Students 2,62,000. Colleges 3,500 Students 2,62,000

Internationalization trend in Globalization Internationalization trend in Globalization of R&Dof R&D

R&D spending abroad by USA and other R&D spending abroad by USA and other developed countries rising faster than domestic developed countries rising faster than domestic spending. IBM and Hewlettspending. IBM and Hewlett--Packard spending Packard spending 30% on R&D outside USA.30% on R&D outside USA.1000 companies of Japan, Germany, UK, France, 1000 companies of Japan, Germany, UK, France, and South Korea have about 250 R&D facilities in and South Korea have about 250 R&D facilities in USA.USA.More than 150 R&D centers set up in India by More than 150 R&D centers set up in India by MNCsMNCs. .

IndiaIndia’’s S&T Policy on Globalization of s S&T Policy on Globalization of R&DR&D

To promote international science and technology To promote international science and technology cooperation towards achieving the goals of cooperation towards achieving the goals of national development and security and to make it a national development and security and to make it a key element of international relations.key element of international relations.Scientific research and technological development Scientific research and technological development can benefit greatly by international cooperation can benefit greatly by international cooperation and collaboration.and collaboration.Emphasis now shifting to external technology Emphasis now shifting to external technology acquisition to complement internal efforts.acquisition to complement internal efforts.

Cont.//Cont.//

For success in global market the most important For success in global market the most important factor is technical skills to produce superior factor is technical skills to produce superior products at competitive rates.products at competitive rates.Convenient mechanism for technology transfer Convenient mechanism for technology transfer inside and across countries.inside and across countries.Free and flexible movement of R&D personnel.Free and flexible movement of R&D personnel.Suitable/appropriate legal framework for Suitable/appropriate legal framework for facilitating collaborative R&D and dispute facilitating collaborative R&D and dispute settlement.settlement.

IndiaIndia’’s S&T Agreementss S&T Agreements

S&T agreements with more than 50 countries.S&T agreements with more than 50 countries.S&T and IPR agreements with France, EU and S&T and IPR agreements with France, EU and Russian Federation.Russian Federation.Joint R&D programs on material science; cellular Joint R&D programs on material science; cellular and molecular biology,and molecular biology,Laser and electroLaser and electro--optics. optics. Information technology.Information technology.Medical sciences and human genome researchMedical sciences and human genome researchGeophysicsGeophysics

Why R&D Alliance with India?Why R&D Alliance with India?

US giant GE has a large R&D set up in India, Its US giant GE has a large R&D set up in India, Its CEO observedCEO observed

““India is a developing country. But it is developed India is a developing country. But it is developed country as regards its superb infrastructure. It is country as regards its superb infrastructure. It is for this reason that we want to shift a part of GEfor this reason that we want to shift a part of GE’’s s development efforts to Indiadevelopment efforts to India””

Cont. //Cont. //Low cost R&DLow cost R&DIndia is the second largest market, therefore, the India is the second largest market, therefore, the companies through their products sale earn more companies through their products sale earn more than what is spent by them on R&D and their than what is spent by them on R&D and their production center in India.production center in India.India allow foreign investors 100% foreign India allow foreign investors 100% foreign ownership and full repatriation of capital and ownership and full repatriation of capital and profits.profits.India has also accepted the R&D programs under India has also accepted the R&D programs under the chapter of trade in services of WTOthe chapter of trade in services of WTO

Cont. //Cont. //

India has large pool of English speaking skilled India has large pool of English speaking skilled manpower manpower IndiaIndia’’s telecom infrastructure is comparable to s telecom infrastructure is comparable to that in many countries. that in many countries. IndiaIndia’’s geographical location enables 24x7 service s geographical location enables 24x7 service offerings.offerings.Good regulatory framework.Good regulatory framework.

Indian Indian Pharma Pharma PolicyPolicy--20022002

100% foreign investment automatically permitted.100% foreign investment automatically permitted.Foreign technology agreements automatic Foreign technology agreements automatic approval through reserve bank of India.approval through reserve bank of India.Abolition of industrial licensing for all bulk drugs, Abolition of industrial licensing for all bulk drugs, intermediates and formulations.intermediates and formulations.Drug control restricted only to essential drugs to Drug control restricted only to essential drugs to deal with diseases like malaria and diabetes deal with diseases like malaria and diabetes (insulin)(insulin)The only exceptions The only exceptions ––the drugs based on DNA the drugs based on DNA technology have been cleared for potential health technology have been cleared for potential health and environmental risks.and environmental risks.

Emerging TrendsEmerging Trends

Foreign Direct Investment (FDI) permitted up to Foreign Direct Investment (FDI) permitted up to 100% through automatic routes. 100% through automatic routes. India had agreed to implement a product patent India had agreed to implement a product patent regime with effect from 1regime with effect from 1stst January 2005 as per January 2005 as per WTO agreement.WTO agreement.MNCs MNCs have started strengthening their business in have started strengthening their business in India. They have increased their stakes in existing India. They have increased their stakes in existing ventures of set up new wholly owned subsidiaries ventures of set up new wholly owned subsidiaries (e.g. Pfizer)(e.g. Pfizer)

Cont.//Cont.//

Increased focus by Indian Increased focus by Indian PharmaPharma companies on companies on R&D.R&D.R&D can be performed in India at 15R&D can be performed in India at 15--20% of the 20% of the cost in Europe and USA. In dollar terms the cost cost in Europe and USA. In dollar terms the cost advantage is about 10advantage is about 10--15 times.15 times.The Indian companies are pursuing contract The Indian companies are pursuing contract manufacturing for supply of bulk drugs/ manufacturing for supply of bulk drugs/ intermediates for intermediates for MNCsMNCs..

Cont.//Cont.//

With low cost of production India has become a With low cost of production India has become a base for outsourcing drugs.base for outsourcing drugs.Indian companies are setting up subsidiaries Indian companies are setting up subsidiaries abroad or seeking strategic alliances to explore abroad or seeking strategic alliances to explore tremendous opportunities in the generics market tremendous opportunities in the generics market expected in the next 5expected in the next 5--10 years.10 years.

IndiaIndia------A Global hub for testing and A Global hub for testing and development of new drugsdevelopment of new drugs

Pharma Pharma industry today takes $300industry today takes $300--700 million and 700 million and 1010--15 years to introduce a new drug in the market.15 years to introduce a new drug in the market.A large pool of well qualified and skilled A large pool of well qualified and skilled manpower available at low cost.manpower available at low cost.Availability of large number of patients with all Availability of large number of patients with all forms of diseases.forms of diseases.Also patients available who have not received any Also patients available who have not received any other medical treatment.other medical treatment.

Cont.//Cont.//

Clinical trials cost half or one third of what a Clinical trials cost half or one third of what a developed country does and also takes much less developed country does and also takes much less time to complete.time to complete.Regulations permit testing of new drugs with Regulations permit testing of new drugs with necessary protective measures. necessary protective measures.

Software revenuesSoftware revenues

During 2006During 2006--07 the industry grew 28.2% 07 the industry grew 28.2% to touch $ 25.9 billion (15.5 billion to touch $ 25.9 billion (15.5 billion exports and $ 5.4 billion domestic exports and $ 5.4 billion domestic market). market). Nasscom Nasscom estimates software exports and estimates software exports and ITES to grow at 30ITES to grow at 30--32% in 200632% in 2006--07. That 07. That would take the industry to would take the industry to $ 30 billion$ 30 billionmark, of which export will amount to mark, of which export will amount to 25.3 billion. 25.3 billion.

The money makers, The money makers, Nasscom Nasscom ranking ranking as per revenueas per revenue

RankRank CompanyCompany Exports in 2006Exports in 2006--0707RsRs in in crorecrore

__________________________________________________________________________________________________11 TCSTCS 5,963 ($ 1 billion)5,963 ($ 1 billion)22 WiproWipro 5,881 ($ 1 billion)5,881 ($ 1 billion)33 InfosysInfosys 4,761 ($ 1 billion)4,761 ($ 1 billion)44 SatyamSatyam 2, 6232, 62355 HClHCl 2,4002,400

Cont.//Cont.//

US continues to be major market for US continues to be major market for Indian software services with a share of Indian software services with a share of 70% while Europe accounted for 23.5% 70% while Europe accounted for 23.5% in 2006in 2006--07.07.The number of 500 companies that have The number of 500 companies that have been outsourcing their requirements has been outsourcing their requirements has also been steadily growing with as many also been steadily growing with as many as 254 outsourcing their requirements as 254 outsourcing their requirements from India.from India.

Cont.//Cont.//

The IT industry added over 100,000 The IT industry added over 100,000 jobs in 2006jobs in 2006--07, taking total 07, taking total employees in the sector 15,00,000. employees in the sector 15,00,000. Last fiscal, ITESLast fiscal, ITES--BPO added BPO added 165,000 jobs and software and allied 165,000 jobs and software and allied services created 140,000 jobs.services created 140,000 jobs.

Cont.//Cont.//One of the major reasons that Indian software exports One of the major reasons that Indian software exports is gaining recognition across the world is because of is gaining recognition across the world is because of quality certification. Out of 23 quality certification. Out of 23 SEISEI--CMM level 5 CMM level 5 certified companies world over, 15 are from India. This certified companies world over, 15 are from India. This number is expected to grow as there are several number is expected to grow as there are several companies that have already reached to level 4companies that have already reached to level 4..Another encouraging sign is that small office segment Another encouraging sign is that small office segment of the market has grown by 70% in 2005of the market has grown by 70% in 2005--06. Besides 06. Besides large corporate market like ERP segment grew by large corporate market like ERP segment grew by 23%,e23%,e--commerce solutions by 300% CAD/CAM commerce solutions by 300% CAD/CAM market 41% and banking by 70%. market 41% and banking by 70%.

Cont.//Cont.//The number of software exporting The number of software exporting companies has grown to a record. At companies has grown to a record. At present it is 2,250 and expected to grow present it is 2,250 and expected to grow to 2660 mark next year.to 2660 mark next year.Number of software companies logging Number of software companies logging exports to exports to Rs Rs 500 500 crore crore now stands at 37. now stands at 37. The top 100 exporters accounted for 61% The top 100 exporters accounted for 61% of the export resources in 2006of the export resources in 2006--0707

Projections for IndiaProjections for India’’s IT industrys IT industryAccording to According to NasscomNasscom--McKinseyMcKinsey reportreport

Annual revenue for IT industry in 2008 will be around Annual revenue for IT industry in 2008 will be around US $ 50 billion.US $ 50 billion.

Thus a number of opportunities to be createdThus a number of opportunities to be createdPotential for 2.2 million jobs in IT by 2008.Potential for 2.2 million jobs in IT by 2008.IT will attract Foreign Direct Investment (FDI) of US $ IT will attract Foreign Direct Investment (FDI) of US $ 44--5 billion. 5 billion.

Benefits of S&T on SocietyBenefits of S&T on Society

Science relieves pressure of ignorance; Science is Science relieves pressure of ignorance; Science is universal; no patents; no IPRuniversal; no patents; no IPR

Technology changes our life style:Technology changes our life style:Green Revolution Green Revolution White Revolution White Revolution Blue RevolutionBlue RevolutionNuclear EnergyNuclear EnergyDefenseDefenseDrug RevolutionDrug RevolutionICT RevolutionICT Revolution

CSIRCSIR’’s s PerformancePerformance

Over 50,000 tractors valued over 200 Over 50,000 tractors valued over 200 crores crores have been have been manufactured based on CSIR knowmanufactured based on CSIR know--how.how.Petroleum refining processes and novel catalyst developed Petroleum refining processes and novel catalyst developed by CSIR in association with consulting engineering design by CSIR in association with consulting engineering design organizations and industry have enabled India to emerge as organizations and industry have enabled India to emerge as one of the few major technology licensors in the world in one of the few major technology licensors in the world in this high tech fieldthis high tech fieldA whole range of pesticides with low residual effects A whole range of pesticides with low residual effects developed by the chemical groups of CSIR laboratories are developed by the chemical groups of CSIR laboratories are being manufactured by a number of private sector unitsbeing manufactured by a number of private sector units

Cont.//Cont.//

The productivity in number of sugar mills has The productivity in number of sugar mills has been significantly enhanced by the use of been significantly enhanced by the use of instrumentation system developed by CSIRinstrumentation system developed by CSIRAppropriate leather processing techniques Appropriate leather processing techniques developed and popularize by CSIR have enabled developed and popularize by CSIR have enabled India to emerge as an exporter of value added India to emerge as an exporter of value added finished goods.finished goods.High level capabilities in CSIR for testing and High level capabilities in CSIR for testing and design of aircraft have enabled safety evaluation design of aircraft have enabled safety evaluation and enhancement in operational life of aircraft.and enhancement in operational life of aircraft.

Cont.//Cont.//

Successes Successes Our ancestors were compulsive observerOur ancestors were compulsive observerThey new how to draw inferencesThey new how to draw inferencesThey learnt from trials and errorsThey learnt from trials and errors

FailuresFailuresLack of tradition of reasoning and questioningLack of tradition of reasoning and questioningUnable to remove urban poverty as well as rural Unable to remove urban poverty as well as rural

Work places in traditional sectors of Work places in traditional sectors of developing economiesdeveloping economies

Work places should be created in areas where people Work places should be created in areas where people now live, rather being concentrated in metropolitan now live, rather being concentrated in metropolitan cities.cities.They should be cheap enough to be created in large They should be cheap enough to be created in large numbers without requiring large capital investment or numbers without requiring large capital investment or imports.imports.The production involved as well as organizational The production involved as well as organizational methods must be relatively simple with only a moderate methods must be relatively simple with only a moderate degree of skill required for their successful operation degree of skill required for their successful operation The production should be from local materials and The production should be from local materials and intended from local useintended from local use

Cont.//Cont.//

What we should do:What we should do:Strengthen scientific cooperation of Global scale.Strengthen scientific cooperation of Global scale.Enhance network between industry and research Enhance network between industry and research and industrial application.and industrial application.

China Vs India China Vs India AttributeAttribute China China India India ______________________________________________________________________________________________Population (in billion) Population (in billion) 1.31.3 1.031.03literacy rateliteracy rate 82%82% 54%54%AreaArea 9.6 9.6 bn bn sq kmsq km 3.3 3.3 bn bn sq kmsq kmTotal GDPTotal GDP $ 1 trillion$ 1 trillion 500 500 bnbnGDP growth (CAGR)GDP growth (CAGR) 10%10% 6%6%Per capita GDPPer capita GDP $ 735$ 735 $ 495$ 495Total exports (in Total exports (in bnbn)) $ 249$ 249 $47$47Share in world tradeShare in world trade 3.4%3.4% 0.8%0.8%

China Vs IndiaChina Vs IndiaIT industry figuresIT industry figures CalendarCalendar 20062006 20062006__________________________________________________________________________________________________________IT spending as % of GDPIT spending as % of GDP 1.10%1.10% 1.68%1.68%IT industry turnover IT industry turnover $46.1 $46.1 bnbn $ 12 $ 12 bnbnHardware exports Hardware exports $ 26.4 $ 26.4 bnbn $ 0.4bn$ 0.4bnSoftware exports Software exports $ 1.2bn$ 1.2bn $25bn$25bnInstalled PC base Installed PC base 22 million 22 million 7 million7 millionPC Penetration/1000PC Penetration/1000 13.213.2 3.53.5Internet user base Internet user base 22.5 million 22.5 million 3.5 million3.5 millionInternational Bandwidth International Bandwidth 7.5 7.5 GbpsGbps 1 1 GbpsGbpsTelephone lines Telephone lines 175 million 175 million 34.5 million34.5 millionTelephone lines/100Telephone lines/100 8.68.6 3.43.4Mobile phones Mobile phones 136 million136 million 5.7 million5.7 million

ChinaChina’’s economic policy reformss economic policy reformsChinaChina’’s economic reforms started a full 25 years ago s economic reforms started a full 25 years ago while in India they started a decade later in 1991.while in India they started a decade later in 1991.Deng Deng XiopingXioping kicked off economic reforms when he kicked off economic reforms when he suggested that tens of thousands of small and medium suggested that tens of thousands of small and medium enterprises be thrown in private waters to swim or sink enterprises be thrown in private waters to swim or sink For most of the last two decades ChinaFor most of the last two decades China’’s economy has s economy has grown double digit growth with an average CAGR grown double digit growth with an average CAGR (Compound Aggregate Growth Ratio) of 10% in the last (Compound Aggregate Growth Ratio) of 10% in the last decades. decades. In the last decade China has paid special interest to high In the last decade China has paid special interest to high technology industries. technology industries. From exporting toys and textiles, China has today grown From exporting toys and textiles, China has today grown to be major exporter of IT hardware, overtook Taiwan in to be major exporter of IT hardware, overtook Taiwan in 2000.2000.

ChinaChina’’s software storys software storyChinaChina’’s software growth is currently hampered by s software growth is currently hampered by

number of factors: number of factors: China Media Intelligence (CMI) estimates that out of China Media Intelligence (CMI) estimates that out of 5,000 software companies 55% of them have less than 50 5,000 software companies 55% of them have less than 50 people. Another 42% employ 50people. Another 42% employ 50--100 people and there are 100 people and there are only a handful of companies with an employee strength only a handful of companies with an employee strength of 1000 people. of 1000 people. CMI says CMI says Yongyou Yongyou the largest domestic player in the largest domestic player in software development. The countrysoftware development. The country’’s largest company s largest company Oriental Software has a little over 1300 people compare Oriental Software has a little over 1300 people compare that to 26,000 at that to 26,000 at Infosys Infosys and 24,000 at TCS. and 24,000 at TCS.

Cont.//Cont.//Some of the top companies had obtained CMM Some of the top companies had obtained CMM certification, a large number of middle level companies certification, a large number of middle level companies had not even heard it. had not even heard it. Lack of comfort with English language and the cultural Lack of comfort with English language and the cultural confusion that comes with it made Chinaconfusion that comes with it made China’’s software s software industry immature.industry immature.India has at least five year lead in software outsourcing. India has at least five year lead in software outsourcing. India has surpassed Ireland as the prime outsourcing India has surpassed Ireland as the prime outsourcing destination of the world. The Indian companies have won destination of the world. The Indian companies have won a reputation of low cost high quality software delivery. a reputation of low cost high quality software delivery.

Dynamic technoDynamic techno--management management capabilitiescapabilities

Resource exploitation capabilitiesResource exploitation capabilitiesTechnological learning Technological learning Outside technological sourcingOutside technological sourcingHuman resource exploitationHuman resource exploitationResource focusing for the targetResource focusing for the target

Managerial integrating capabilitiesManagerial integrating capabilitiesTask force team integration between R&D and productionTask force team integration between R&D and productionConcurrent development system : Managing multifaceted activitiesConcurrent development system : Managing multifaceted activitiesProduction technology management Production technology management Interfaces and consensus building among functional departmentInterfaces and consensus building among functional departmentTop management leadership and involvementTop management leadership and involvement

Cont.//Cont.//

Path navigating capabilityPath navigating capabilityPlanned management Planned management Fitting into changes in environmentFitting into changes in environmentJoint R&D activitiesJoint R&D activities

Korean electronics export growthKorean electronics export growth

From meager of $ 89 million in 1971 to $ 20.638 From meager of $ 89 million in 1971 to $ 20.638 billion in 1992 an increase by a factor of 232 billion in 1992 an increase by a factor of 232 Between 1988 and 1992 Korean market share Between 1988 and 1992 Korean market share increased :increased :

From 7.5% to 17.7% in USFrom 7.5% to 17.7% in USFrom 7.8% to 18.1% in Europe and From 7.8% to 18.1% in Europe and From 23.6% to 33.7% in East AsiaFrom 23.6% to 33.7% in East Asia

(Exclusive of Japan) (Exclusive of Japan)

Cont.//Cont.//

Semiconductor export is the largest item in Semiconductor export is the largest item in electronics exportelectronics export

From $ 7.8 billion in 1993 to $ 11 billion in1994From $ 7.8 billion in 1993 to $ 11 billion in1994During the seventies electronics exportsDuring the seventies electronics exports

CAAGR was 43% while for other sectors CAAGR was 43% while for other sectors CAAGR Was 35.6% CAAGR Was 35.6%