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Becoming one of the 15 Most Developed Nations. 8 th Herzliya Conference January 2008. The Competitive Approach. Mobility of Resources. Technology. Investments. Human Capital. Countries Compete. .8. .6. .4. .2. 0. 2007. 1950. 1960. 1970. 1980. 1990. 2000.

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Presentation Transcript
slide1

Becoming one of the 15 Most Developed Nations

8th Herzliya Conference

January 2008

the competitive approach
The Competitive Approach

Mobility of Resources

Technology

Investments

Human Capital

Countries Compete

israel is growing but not leapfrogging

.8

.6

.4

.2

0

2007

1950

1960

1970

1980

1990

2000

Israel is Growing but not Leapfrogging

USA = 1

Western Europe

Israel

Income Per Capita

Relative to US

Ireland

South Korea

leaping into the top 15
Leaping into the Top 15

ישראל15

Economist Quality of Life Index - 2005

leapfrogging differs from growth
Leapfrogging Differs from Growth

Growth

Leapfrog

3% is good

At least 6%

Time-based comparison

Competitive comparison

Incremental changes in products/exports

Sharp changes in product/export composition

Collaborative vision not necessary

Requires leadership, vision and carrying capacity

Recipes exist

No single formula

Does not narrow gaps

Narrows gaps

sophistication now leapfrog tomorrow

IRL

CHN

KOR

SGP

TTO

FIN

ISL

AUS

CAN

USA

CYP

SWE

NZL

DNK

CHL

ESP

HUN

NLD

HRV

GRC

MYS

DEU

PRT

CHE

THA

IND

BLZ

LKA

PER

OMN

ROM

MEX

BRA

TUR

BGD

IDN

DZA

SAU

LCA

JAM

BOL

COL

ECU

PRY

KEN

MDG

HTI

Sophistication Now = Leapfrog Tomorrow

GDP Growth 1992-2004

Product Complexity in 1992

Hausmann et. al., “The Product Space”

commonalities of countries that leapt

Public Discourse

Engines

Indicators

Unique Challenges and Opportunities

Design, Management and Execution of Policy

Public Sphere

Vision

Commonalities of Countries that Leapt
israel s economic problem is governance
Israel’s Economic Problem is Governance

Rank:

Rank:

Competitiveness of the private sector

Competitiveness of the public sector

8

29

Worker productivity

Labor force participation rate

10

35

R&D

No mid-tech

1

Human capital

3

public private cooperation trust required
Public/Private Cooperation & Trust: Required

Trust

Public Sector

Legislation and Infrastructure

Private Sector

Investment

israel 15 national obsession
Israel15: National Obsession

ישראל15

Redeeming the Land

Making the Desert Bloom

Aliyah

Leapfrog

slide11

Becoming one of the 15 Most Developed Nations

Reut Website

Conference Booklet