Notes

More quality at Upstream Part in Technology Pyramid
Technology is the chief from the enterprising globe. And it also leads applying a constitution. As opposed to the traditional political structure, this metabolic rate is Algorithms authored by engineers, scientists, and many others and not congressmen and politicians.

The particular global competition is definitely largely who offers the best technical team to publish the greatest one; in cases like this, Algorithms, that consist of us patents, technical processes, equipment, and so upon. Being a nation develops, adopts, applies in addition to diffuses appropriately the particular contents of this constitution, it elevates the lives of its citizens. The greater innovation a region pursues, the extra it refines this constitution.

Economists include shown a relationship between Knowledge Economy Index (KEI), production and lifestyle. The particular challenge for virtually any nation is to improve its KEI number. Doing how to make an icon for a website involves good training, economic regime along with other variables that help to improve technology capability.

Age natural resources dominating global commerce in addition to industry is long gone. What is important now is creating knowledge in addition to applying it. Many nations will make, others will basically consume. But prosperity is targeted at the creative stage plus nations that target on consuming, without having creating technology is not going to prosper.

Even together with abundance of natural resources, which within many instances, typically the consuming nations can not independently process with out the knowledge partners will not transform this trajectory associated with limited national wealth without technology generation.

With this basis, I actually separate the a couple of layers where international locations use and contend with technology while upstream and downstream layers. It is just like a two coating pyramid where the downstream is at the bottom with typically the upstream seated in top. What happens here is that a few nations focus upon the downstream part and some combine equally the downstream and upstream layers.

The most advanced countries combine the a couple of layers since they seek international competitiveness. These people provide technology plan that looks in the forthcoming and include plans to consider advantages that technology gives. They create and develop things and in the modern world are classed as expertise driven economies. Inside those nations, right now there is planning regarding continuity and technologies succession.

For the particular other nations, generally developing, they contend at the technological innovation pyramid primarily at the downstream layer. They will lack the ingenuity to create items and commercialize technology intellectual properties. The particular nations are not really driven by technologies, rather commodities. They are prone to trade shocks and are usually financially non-vibrant. They fall short to create riches using technology and even be involved in the pyramid as consumers or prosumers.

Let me personally illustrate using Nigeria where they speak typically the language of oil. In the oil industry, there will be the downstream and upstream sectors. Although the upstream targets exploration of raw oil, downstream does indeed the distribution and marketing.

The cash is in the upstream industry, a significant reason we have the other companions concentrated therein. That is where the particular knowledge creation is done and utilized in the market. I will be cautious in order to say, without the understanding partners in Nigeria, helping to discover this crude oil, Nigeria cannot acquire this product. Verdict: the particular oil will be there associated with no tangible economic make use of.

This will stick to pattern w here communities have water below them but simply no drilling expertise to be able to harness the normal water for cooking in addition to drinking. That is the problem regarding anchoring national technique at the downstream level. It lacks inventiveness.

In Africa and lots of developing countries where ICT features been embraced, these people rarely realize that right now there is more benefit than ICT offers them. Sure ICT has helped many developing countries to improve their company processes, tools in addition to people. They happen to be so excited on the powers regarding quicker and faster communication. They enjoy the wonders involving email, Internet plus mobile phone and many other. These experiences are primarily on marketing and advertising, distributing and installation of these ICT methods. read more get them to and can simply play on the downstream layer.

There experts in these matters point out repeatedly the innovations ICT has brought in order to the economies. We agree, ICT is wired for development in so several areas. Nonetheless, the particular good news will be that you will discover additional benefits up in typically the pyramid in case you maneuver up to typically the upstream layer. By not creating technology, our techno-economic advantages are limited and even this will not alter until we proceed up the pyramid.

Though this point could be illustrated with any technology, I will make use of the ICT because it is usually common and acquainted to people. I have got already illustrated typically the point in the petroleum industry where many developing international locations depend on petroleum improvement technology of the developed countries to be able to extract the olive oil. Even if they develop technologies for the distribution, the upstream idea will triumph. Nations make additional money to license technologies at the upstream level compared to the downstream.

Back to ICT, the upstream degree will involve creating computing systems, cellphones, routers, device individuals, and all other infrastructures that enable ICT trend. Rather than importing typically the latest cellphones, many of us will think how to design them. In 80% of typically the developing nations where mobile technology is definitely used, less than 2% of the technologies are designed and manufactured there.

Yes, you will find businesses that will distribute and sale these gadgets and make marginal income. They can import a laptop from China at $500 and sell to their consumers at $650. Mainly because the barrier to be able to entry is really weakened, the margins are usually small. Everybody is marketing and there are usually shops everyone. That they are technology firms to their nations because they can easily load the software and configure the networks and obtain the laptop working.

Compare and contrast that with leaders like Intel in addition to AMD that consider a piece of sand (silica) and process it. With the end, that will piece of mud of say a $1 can be sold for $3, 000 because involving the knowledge included to transform the sand to some sort of microprocessor. Which is information and the very best of human creativity and creativity. It truly is playing technology in the upstream level which is where the benefit is.

Nations earn on the upstream level since the sale margins are so huge mainly because the tools are specific niche market and in most all cases innovative with few players internationally. It is not just the business or margins. Upstream technology layer generate good jobs, regardless of whether in developed or perhaps developing nations. Several of the ideal opportunities in Africa will be in the oil giants where upstream technology rules. An individual create enviable great jobs to the citizens. They have the money to spend in addition to lift other locations of the economy. They hold work that bring recognition and dignity and they also use their heads to shape the planet.

You can create the same case for Pharmaceutical firms that will mix elements, substances, etc to make drugs. Some involving the drugs are really expensive but typically the ingredients are affordable. People pay with regard to the R&D spent in developing that drug. In establishing nations, they give attention to marketing and marketing the drugs. While in petroleum, ICT, it is everything regarding the downstream. The reason why the big Pharma might have margins involving 1000%, these entities can barely order 6% margins.

So essentially, in this century, you will find opportunities for nations. With regard to developing nations, in the event that they continue to be able to compete at the particular downstream layer associated with the pyramid, they will find it tough to move forward due to the fact competition is simply interchangeable with technology. Right now there is more danger, more knowledge necessity and more worth at the upstream. In addition to we want to get there.

How do many of us do that? Our countries need to have fundamental changes in our nationwide policies on specialized education or better Science, Technology, Design and Mathematics (STEM). That is the particular answer. I really believe in knowledge and education evolves it. This is about expansion of commitments on microelectronics, nanotechnology, biotechnology, mathematics, chemistry, physics, computer science, executive, medicine, and therefore on and in a generation we can become players with the upstream level of technology pyramid. And even reap that excellent value therein.
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