Knowledge is the person in charge of the innovative humanity. And it leads by means of a constitution. Not like the traditional political edifice, this constitution is Algorithms in print by engineers, scientists, etc and not congressmen and politicians.
The international competition is essentially who has the top specialized group to write the top one in this case, Algorithms, that comprise of patents, specialized processes, tools, and so on. As a nation develops, adopts, applies and diffuses appropriately the stuffing of this constitution, it elevates the lives of its citizens. The new innovation a nation pursues, the new it refines this constitution.
Economists have revealed a correlation involving Knowledge Saving Manifestation (KEI), productivity and degree of alive. The challenge for one nation is to get stronger its KEI total. Liability that involves good schooling, economic regime and further variables that lend a hand to get stronger knowledge capability.
The become old of unaffected assets dominating international buying and productiveness is passed away. What matters now is creating knowledge and applying it. Selected nations yearn for craft, others yearn for purely consume. Save for wealth is concentrated at the creative theater and nations that focus on consuming, not including creating knowledge yearn for not burgeon.
Level with profusion of unaffected assets, which in loads of instances, the consuming nations cannot independently sort out not including the knowledge partners yearn for not change this route of inadequate resident wealth not including knowledge construction.
On this center, I separate the two layers where nations operation and compete with knowledge as upstream and downstream layers. It is love a two layer pyramid where the downstream is at the bottom with the upstream seated on topmost. What happens here is that selected nations focus on the downstream layer though others combine in cooperation the downstream and upstream layers.
The a large amount forward-looking nations combine the two layers as they seek intercontinental competitiveness. They endow with knowledge roadmap that looks at the hope and have policy to presume compensation that knowledge brings. They craft and remodel belongings and in the 21st century are classed as knowledge determined economies. In individuals nations, there is arrangement for continuity and knowledge succession.
For the further nations, customarily on the rise, they compete at the knowledge pyramid primarily at the downstream layer. They lack the know-how to craft belongings and commercialize knowledge intellectual properties. The nations are not determined by knowledge, rather wares. They are level to trade shocks and are customarily economically non-vibrant. They break down to craft wealth by means of knowledge and participate in the pyramid as trade or prosumers.
Let me illustrate by means of Nigeria where they preach the style of petroleum. In the petroleum productiveness, there are the downstream and upstream sectors. Though the upstream focuses on exploration of crude lubricate, downstream does the circulation and marketing.
The wealth is in the upstream sector, a major aim we have the foreign partners concentrated therein. That is where the knowledge construction is ready and utilized in the productiveness. I am alert to reply, not including the knowledge partners in Nigeria, serving to explore this crude lubricate, Nigeria cannot source this invention. Verdict: the lubricate yearn for be there and of no tangible economic operation.
This yearn for be a result a plan where villages have fill with tears underneath them save for no drilling expertise to strap up the fill with tears for cooking and drinking. That is the problem of anchoring resident approach at the downstream level. It lacks ingenuity.
In Africa and loads of on the rise countries where ICT has been embraced, they not often live through that there is new amount than what ICT gives them. Sure ICT has helped loads of on the rise countries to get stronger their dealing processes, tools and nation. They are so excited on the powers of nearer and sooner communiqu?. They savor the wonders of send a reply to, Internet and mobile telephone and loads of new. These experiences are primarily on marketing, distributing and installation of these ICT systems. They not often reach them and container individual amusement at the downstream layer.
There economists point prevented repeatedly the innovations ICT has brought to the economies. I reach a decision, ICT is wired for innovation in so loads of areas. Nonetheless, the good news bulletin is that there are new repayment awake in the pyramid if you redistribute awake to the upstream layer. By not creating knowledge, our techno-economic repayment are inadequate and this yearn for not change until we redistribute awake the pyramid.
Even if this point container be illustrated with one knowledge, I yearn for operation the ICT as it is regular and traditional to nation. I have already illustrated the point in the petroleum productiveness where loads of on the rise nations depend on petroleum refining knowledge of the developed countries to extract the lubricate. Level if they remodel technologies for the circulation, the upstream idea yearn for triumph. Nations reach new wealth to permission technologies at the upstream level compared to the downstream.
Back to ICT, the upstream level yearn for entail manipulative computing systems, cellphones, routers, device drivers, and entirely further infrastructures that allow ICT revolution. As a replacement for of importing the newest cellphones, we yearn for think how to shape them. In 80% of the on the rise nations where mobile knowledge is worn, a smaller amount than 2% of the technologies are premeditated and manufactured there.
Yes, there are businesses that dispense and selling these gadgets and reach marginal profits. They container import a mainframe from Tableware at $500 and wholesale to their customers at $650. As the barrier to entry is so weak, the margins are small. One and all is selling and there are shops one and all. They are knowledge firms to their nations as they container overload the software and configure the networks and find the mainframe effective.
Balance that with giants love Intel and AMD that presume a cut of sand (silica and sort out it. At the bring to an end, that cut of sand of reply a $1 container be sold for $3,000 as of the knowledge drawn in to transform the sand to a microprocessor. That is knowledge and the incredibly top of human being thoughts and vision. It is playing knowledge at the upstream level and that is where the amount is.
Nations win at the upstream level as the selling margins are so huge as the goods are niche and in a large amount belongings innovative with the minority players globally. It is not just the trade or margins. Upstream knowledge layer craft good jobs, whether in developed or on the rise nations. Selected of the top jobs in Africa are in the lubricate giants where upstream knowledge rules. You craft desirable good jobs for the citizens. They have the wealth to squander and lift further areas of the saving. They own jobs that make happen distinction and dignity and they operation their brains to smooth the humanity.
You container reach the same case for Pharmaceutical firms that mix up elements, compounds, etc to craft drugs. Selected of the drugs are in truth high-priced save for the ingredients are second-rate. Nation compensation for the R&D invested in on the rise that drug. In on the rise nations, they focus on marketing and selling the drugs. As in petroleum, ICT, it is entirely nearly the downstream. Why the huge Pharma container have margins of 1000%, these entities container barely power 6% margins.
So in essence, in this century, there are opportunities for nations. For on the rise nations, if they stay to compete at the downstream layer of the pyramid, they yearn for unearth it hard to redistribute forward since competition is in the end synonymous with knowledge. There is new lay bare, new knowledge must and new amount at the upstream. And we necessity to find there.
How do we do that? Our nations requisite have fundamental changes in our resident policies on specialized schooling or superior Art, Knowledge, Engineering and Arithmetic (STEM). That is the reaction. I deem in knowledge and schooling evolves it. It is nearly development of commitments on microelectronics, nanotechnology, biotechnology, arithmetic, chemistry, physics, computer art, engineering, medicine, and so on and surrounded by a initiation we container happen to players at the upstream level of knowledge pyramid. And bring in that enormous amount therein.
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