20111123 Paris Asian Economic Growth

8/3/2019 20111123 Paris Asian Economic Growth

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Asian Economic Growth and Intellectual

Capital

Carol Yeh-Yun Lin

Dept. of Business Administtation

National Chengchi University, TaiwanNov. 23, 2011


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Outlines

Briefing of National Intellectual Capital

Economic growth in Asia

The impact of financial crisis

National intellectual capital and GDP growth

National intellectual capital growth model

Policy implications


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Are you ready for the era of big data?

By constantly testing, bundling, synthesizing, and

making information instantly available across theorganizationfrom the store floor to the CFOsofficethe rival company had become a different, farnimbler type of business.

Over time, we believe big data may well become anew type of corporate asset that will cut acrossbusiness units and function much as a powerful branddoes, representing a key basis for competition.

This trend applies to nations as well.

*

OCTOBER 2011, McKinsey Quarterly,

Source: McKinsey Global Institute

Brad Brown, Michael Chui, and James Manyika
http://www.mckinsey.com/mgi/http://www.mckinsey.com/mgi/


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Briefing of National Intellectual Capital


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Variables in each type of capital

Human Capital index Market capital indexSkilled labor* Corporate tax*Employee training* Cross-border venture*Literacy rate Openness of culture*Higher education enrollment Globalization*Pupil-teacher ratio Transparency*Internet subscribers Image of country*Public expenditure on education

Exports of goods

Process capital index Renewal capital index

Business competition environment* Business R&D spendingGovernment efficiency* Basic research*Intellectual property rights protection* R&D spending/GDPCapital availability* R&D researchersComputers in use per capita Cooperation between universities and

enterprises*Convenience of establishing new firms* Scientific articlesMobile phone subscribers Patents per capita (USPTO + EPO)Remarks:Financial capital is the logarithm of GDP per capita adjusted by purchasing power parity.

Variables marked with an asterisk are rated qualitatively using a scale of 110.


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Ranking Human

capital

Market

capital

Process

capital

Renewal

capital

Financial

capitalOverall IC

1Denmark Singapore Denmark Switzerland Norway Sweden

2Sweden Hong Kong Singapore Sweden Singapore Switzerland

3Iceland Ireland Finland Finland USA Denmark

4Israel Netherlands Switzerland Israel Hong Kong Finland

5Norway Chile Hong Kong USA Ireland Singapore

Top 5 out of 48 National Intellectual Capital Rankings

2005-2010


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Economic development in AsiaChina, Hong Kong, Singapore, Taiwan

(The Greater China)

Japan, India, Korea, Malaysia


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0

50

100

150

200

250

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

%

Trade to GDP %

China

Hong Kong

Singapore

Taiwan

India

Japan

Korea

Malaysia

France


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0 20 40 60 80 100 120 140 160 180 200

China

Hong Kong

Singapore

Taiwan

India

Japan

Korea

Malaysia

France

% GDP per capita (ppp) growth 2001 vs. 2010


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8.6 8.8 9 9.2 9.4 9.6 9.8 10

China

Hong Kong

Singapore

Taiwan

India

Japan

Korea

Malaysia

France

Students PISA Performance on 1-10 scale 2001-2010 Average


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-

10.00

20.00

30.00

40.00

50.00

60.00

2005 2006 2007 2008 2009 2010

%

Total general government debt (%GDP)

China

Hong Kong

Singapore

Taiwan

Estonia

Finland

Sweden



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-6.00

-4.00

-2.00

-

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

2005 2006 2007 2008 2009 2010

%

Real GDP growth per capita %

China

Hong Kong

India

Korea

Malaysia

Singapore

Taiwan

France


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-

2.00

4.00

6.00

8.00

10.00

12.00

2005 2006 2007 2008 2009 2010

%

Unemployment Rate of Labor Force

China

Hong Kong

India

Korea

Malaysia

Singapore

Taiwan

France


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-

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

90.00

2005 2006 2007 2008 2009 2010

%


China

Hong Kong

India

Korea

Malaysia

Singapore

Taiwan

France


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The problem of government debt

The historical experience gives a very clear

view that the aftermath of a financial crisis

brings slow and halting growth, sustained high

unemployment, and surging public debtwith

the overhang ofpublic and private debt beingthe most important impediment to a normal

recovery from recession.

(This Time Is Different: Eight Centuries of Financial Folly

by Carmen M. Reinhartand Kenneth Rogoff)
http://www.amazon.com/This-Time-Different-Centuries-Financial/dp/0691152640/ref=sr_1_1?s=books&ie=UTF8&qid=1319128237&sr=1-1http://www.amazon.com/Carmen-M.-Reinhart/e/B001JJA510/ref=sr_ntt_srch_lnk_1?qid=1319128237&sr=1-1http://www.amazon.com/Carmen-M.-Reinhart/e/B001JJA510/ref=sr_ntt_srch_lnk_1?qid=1319128237&sr=1-1http://www.amazon.com/This-Time-Different-Centuries-Financial/dp/0691152640/ref=sr_1_1?s=books&ie=UTF8&qid=1319128237&sr=1-1


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-

10.00

20.00

30.00

40.00

50.00

60.00

2005 2006 2007 2008 2009 2010

%


China

Hong Kong

Singapore

Taiwan

Estonia

Finland

Sweden

National intellectual capital

and GDP growth


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Overall Intellectual Capital vs. GDP per capita (ppp) for 48 countries in 2010


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National intellectual capital growth model


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Good

Better

A

A+

Current Status

Big

Stride

Intellectual Capital Growth

GDP Growth

High

Low High

National Intellectual Capital Growth Model


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Potential paths of National Intellectual

Capital Development

Route #1:HC + MC + PC FC + overall IC (China, Korea)

Route #2:HC + MC + RC FC + overall IC (Sweden)

Route #3:HC + PC + RC FC + overall IC (Singapore)

Route #4:HC + PC FC + overall IC (Ireland)

Route #5:HC + RC FC + overall IC (Taiwan)

Route #6:PC FC + overall IC (Poland)


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Policy implications


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Implication - 1

Market capital of France is going backwards

China is still behind, yet Hong Kong is part of

China and is well developed in both intangibles

and tangibles

Singapore and Taiwan are Chinese societies

(bamboo network)

Singapore was hard hit by financial

crisis, yet bounced back very fast


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Implication - 2 In general, Asians are very diligent people

Current and future human resources in the mentionedAsia countries are very qualified (high-tech engineers,PISA)

China, Hong Kong, Singapore, Taiwan and even Japan,Korea are under the influence of Confucianism

(benevolent, loyal, harmonious, polite Korea is developing very fast

Malaysia is very aggressive and shows goodperformance in trading

Innovation and entrepreneurshipin the mentioned Asian countries

are increasingly evident


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Conclusion

Know thy yourself Strategy formation

Short term: market capital + process capital

Long term: human capital + renewal capital

Benchmarking

Partnering & collaborating

Within Europe

With Asia

Goal setting


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www.nic40.org


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Thank [email protected]

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20111123 Paris Asian Economic Growth