Amit Kapoor, President & CEO, Institute for Competitiveness

41 Pages·2017·2.61 MB·English

by  Amit Kapoor

India’s Competitiveness:
A Perspective from States
Presented By:
Amit Kapoor
Chair, Institute for Competitiveness
WHAT IS COMPETITIVENESS?
• Competitiveness is the productivity (value per unit of input) with which a nation, region, or cluster utilizes its
human, capital, and natural resources. Productivity sets a nation’s or region’s standard of living (wages, returns
on capital, returns on natural resources)
• Productivity depends both on the value of products and services (e.g. uniqueness, quality) as well as the
efficiency with which they are produced.
• It is not what industries a nation or region competes in that matters for prosperity, but how firms compete
in those industries
• Productivity in a nation or region is a reflection of what both domestic and foreign firms choose to do in
that location. The location of ownership is secondary for prosperity.
• The productivity of “local” industries is of fundamental importance to competitiveness, not just that of
traded industries
• Devaluation and revaluation do not make a country more or less “competitive”
• Nations and regions compete in offering the most productive environment for business
Source: Michael E. Porter and Institute for Strategy and Competitiveness
WHAT DETERMINES COMPETITIVENESS?
MICROECONOMIC COMPETITIVENESS
Quality of business State of cluster Sophistication of company
environment development operations and strategy
MACROECONOMIC COMPETITIVENESS
Sound monetary and fiscal Human Development and
policy effective public institutions
ENDOWMENTS
Source: Michael E. Porter and Institute for Strategy and Competitiveness
WHY INNOVATE?
The capability to innovate and to bring innovation successfully to market is a crucial determinant of the global
competitiveness of nations.
• Firms create value
• Land
Inherited Prosperity adding goods and
• Labour Created Prosperity
services by realizing
(Natural Resources)
• Capital
the potential of
natural resources
• To create conducive conditions to enable
Government
innovation
GLOBAL INNOVATION
Data Source: Global Innovation Index
COUNTRY-WISE GROWTH IN PATENTS
1000000
UNITED STATES
100000
5
1 JAPAN
0
2

n SOUTH KOREA
i GERMANY

d TAIWAN
e 10000 FRANCE CHINA
t CANADA
n
UNITED KINGDOM
a
r NETHERLANDS ISRAEL INDIA
g SWITZERLAND
s SWEDEN AUSTRALIA
t
n AUSTRIA
e 1000 FINLAND SINGAPORE
t BELGIUM SPAIN
a DENMARK NORWAY
P RUSSIA IRELAND
f NEW ZEALAND BRAZIL SAUDI ARABIA
o MALAYSIA
MEXICO POLAND
r
e HUNGARY
bm 100 SOUTH AFRICA THAILAND GREECE CHILE TUKRUKWEYAIT
ARGENTINA ROMANIA
u UKRAINE ICELAND PORTUGAL UNITED ARAB EMIRATES
N PHILIPPINES COLOMBIA ESTONIA
l VENEZUELA EGYPT BULGARIA
a
t INDONESIA COSTA RICA
o LEBANON PAKISTAN
T LITHUANIA
10 CUBA
SRI LANKA
URUGUAY PERU
KENYA
BERMUDA
1
-10 -5 0 5 10 15 20 25 30 35
CAGR Growth Rate of Patents granted from 2002-2015
Source: USPTO, http://www.uspto.gov/web/offices/ac/ido/oeip/taf/cst_utlh.htm
LINK BETWEEN PATENTS AND COMPETITIVENESS
10000
)
e
l Maharashtra
a
c
s
Karnataka
g Tamil Nadu
o
l Delhi
n 1000
i
( Uttar Pradesh
6
Gujarat
1 West Bengal
- Haryana
5
1 Kerala Andhra Pradesh
0
Punjab
2
Rajasthan y = 118.32x - 6267.6
n Jharkhand Madhya Pradesh
i 100
d R² = 0.5581
e Odisha
li Assam Himachal Pradesh
f Uttarakhand

s
t Goa
n
Bihar
e Chhattisgarh
t Jammu & Kashmir
a
P
Tripura
fo 10 Mizoram Sikkim

r
e
b
m
u
N
1 Nagaland
50.00 52.00 54.00 56.00 58.00 60.00 62.00 64.00 66.00 68.00 70.00
State Competitiveness Index Scores 2016
Source: Annual Reports of CGPDTM Various Rounds
Country-wise R&D Expenditure as a Percentage of GDP
5
P 4.5
D
G

f 4
o

e
g
a 3.5
t
n
e
c
3
r
e
P

a
2.5

s
a

e
r 2
u
t
i
d
n 1.5
e
p
x
E 1

D
&
R 0.5
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Brazil India Sweden China Israel United States European Union Russian Federation World
Source: World Bank
Link between Innovation and Competitiveness at Global Level
COUNTRY-WISE GROWTH IN PATENTS
7
7
1
-
6 6
1
0 Switzerland
Singapore United States of America
2
Germany Netherlands
x HonJagp Kaonng (China) United KingdSowmeden
e Norway Finland
United Arab Emirates Belgium NewCa Zneaadlaand Denmark
d
Qatar Malaysia AustrAaluiasItsrFriraaaenlce LuxembIroeulargnd
n
I 5 China IcelandSouth Korea

s
s Saudi Arabia Estonia
e Spain Czech Republic
n Azerbaijan ThailCahnidle LithPuoalnainad y = 0.0495x + 2.4882
Indonesia BMPaaahInurnSaardoKiimtniuuaiuatwhsa AitfricaRussian Federation PortItuaglayl Malta
e
Rwanda KazaPkhhislitpapnines MexicCoosta RTicuarkey BulgariaLatviaSlovenia
v
BoJtosrwdaaOnnaman GeCoorlogimabia VietRnoammania Slovakia
it Sri Lanka MPoerruoccUoruMguaacyedonia Hungary R² = 0.8064
i GTuaajtAikelibmsataanlnaiJaamaicaIranBrazil Armenia MontenCerogarotia
t 4 Algeria HoCnadmuNrbaaosmdiiEabciuaador Serbia UkraiGnreeece Cyprus
e
CNoetep adlIvoire TrinidKaDedon amynaTidnu inTcoiasnbia aRgeopublic Moldova
p BaEntghliaodpeiashEl Salvador LebanAorngentina Mongolia
m EgypUSteganneKTdgayarnaglzyaznsitaaPnaraguay
ZambiaCameroon
o MBaleinPinakistanBolivia
C ZNimigberaibawe
Madagascar
l
a
Burundi MalaMwoizambique
b 3
o
l
G Yemen
2
10 20 30 40 50 60 70
Global Innovation index Score 2017
Factors of Production Demand Conditions
• Land • Market Size
• Labor • Market Sophistication
• Capital • Market Growth
• Infrastructure
(Physical and
Technological)
• Human Capital
State
Innovation
Index
Social and Political Industries, Innovation
Institutions and Entrepreneurship
• Healthcare Institutions • R&D
• Educational Institutions • New Firm Creation
• Administrative • Firms
Institutions • Industrial Clusters
• Financial Institutions • New Knowledge
Creation (Patents,
Copyrights etc.)