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Local vs. Global Competitiveness and Collaboration. Dr. Orna Berry Chief Scientist Head of the R&D Administration MINISTRY OF INDUSTRY & TRADE. EU, Helsinki 22Nov. 1999. The rate of growth of the capitalistic system is on the decline:. Source:Lester Thurow, the future of Capitalism.

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slide1

Local vs. Global Competitiveness

and Collaboration

Dr. Orna Berry

Chief Scientist

Head of the R&D Administration

MINISTRY OF INDUSTRY & TRADE

EU, Helsinki 22Nov. 1999

the rate of growth of the capitalistic system is on the decline

The rate of growth of the capitalistic system is on the decline:

Source:Lester Thurow, the future of Capitalism

slide3
In the 20th century we observe:

 Disappearance of comparative advantage

e.g.

 Geographic location of industry

 Natural resources

 Capital rich Productivity

 Labor rich

slide4

 Capital invested, not necessarily where natural

resources, or even financial richness are.

 Human capital:

Brainpower, skills and knowledge are attracting

investments creating physical capital

democracy capitalism
Democracy - one person, one vote

Capitalism - economically fit drive the unfit out

Government - Equal distribution of income

Market Economy - Rapid increase in inequality

Power is based on wealth and political position

Democracy - Capitalism
economic competitiveness
Individual - capitalism

Government - preserving wealth and

distributing it via wise

investments (education,

economic infrastructure...)

Economic Competitiveness
slide7
How can government be attractive to capitalistic activities?

Strengthen talents and skills

Equal opportunity to leverage

Create Future Potential

local vs global
Competitive advantage is taken into international trade.

In theory - In an equal global environmentno region, industry or firm has preference.

Business costs in different locations are approaching equality.

The edge of an individual - country -market segment depends only on skill and talent.

Local vs. Global
slide9
Policies are set to continuously create a competitive edge so that economic power is developed and maintained via brainpower industries
slide10

Chief Scientist

Dr. Orna Berry

International Programs

National Programs

Generic R&D

“MAGNET”

: Bi-national Funds

BIRDF

CIIRD

SIIRDF

BRITECH

South-Korea

Industrial

R&D

Israel - US

High Tech

Commission

Industrial

Incubators

Technological

Incubators

“MESER”-

“BASHAN"

Other

Bi-National

Agreements

EU RTD

Fp-5

slide11

Patents Per Capita: Israel vs. the NIC

Source: Manuel Trajtenberg - TAU

slide12

Patents per Capita: Israel vs. the G7

(patents per 100,000 population)

Source:: Manuel Trajtenberg TAU

slide13

Israeli Patents in the US and Industrial R&D

Number of Patents

Issued in the US

Industrial R&D

(millions of 1990$)

Source: Manuel Trajtenberg - TAU

slide14

Output per Capita and Labor Force - Growth

In Israeli Electronic Industry

30%

26%

25%

22%

21%

Based on I.E.A. data

slide15

Economy

Defense

Education

Israel’s competitive edge in technology - based industries