Michael Kahn, Tshwane University of Technology Trivandrum, August 2009 BRICS for an Innovative South?

The Challenge

i.Industrial revolution (machines; factories; canals) ii.The Age of Steam (coal, iron, rail) iii.Age of steel and heavy engineering (electrical, chemical, civil and naval) iv.Age of automobile (mass production, petrochemicals) v.Age of Information Technology and Communications vi.Age of ? Bio/nano/cogno? Technological Great Surges

 Location specific; diffusion 50+ yrs  Distinct techno-economic paradigm  Knowledge as factor of production  Bubbles and busts as technology and finance get misaligned  Society and politics essential aspect of local technological evolution and innovation

Technological innovation is critical to long-term economic growth. Most technological innovation consists of incremental change in existing industries. …. Sustained growth can occur only with the continuous introduction of truly new goods and services—radical technological innovations that disrupt markets and create new industries. The capacity to turn science- based inventions into commercially viable innovations is critical to radical technological innovation.’ (Branscomb and Auerswald, 2002)

Innovations

Brazil: aerospace; mineral and crop commodities; energy; s/w; pharm; medical India: aerospace; crop commodities; s/w; pharma; automotive Russia: aerospace; nano; bio; energy China: manufacturing & services South Africa: mineral and crop commodities; s/w; services; medical; energy

Contribution of Knowledge to GDP Growth Source: KDI and K4D

Potential in knowledge clusters

Watch this space Leader in Plant Varieties #9; animal breeding, animal and plant health => potential for innovation? Shift toward Infectious Diseases plus molecular biology competence => reality in the Farmer to Pharma concept Government does pick winners! SASOL, SUNSPACE; now PBMR No shortage of ideas or funding

A Poverty of technology or a poverty of politics? Services led economies with service delivery failure Innovation failure or a failure of process? Informal sector unquantified What barriers of entry to informal sector? Unintended consequences of policy Examples of innovation: financial services; repair shops; cellphone banking