ICT Industry Working Group (examples) by pps24758

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									ICT Industry Working Group (examples)
                                                                      2

Cases
  We   will examine the industries in the following six countries:
       Canada,
       Finland,
       India,
       Ireland,
       Israel, and
       Morocco.
                                                                       3

Canada


Population (million)            30
GDP ($million)                  607,744
GDP growth                      5.4%
GNP per Capita                  19,640
telephone mainlines             609 per 1000 people
cost of 3 minutes local call    US$ --
personal computers              270.6 per 1000 people
internet hosts                  335.96 per 10,000 people
high tech exports                        25% of manufactured exports


   Source: World Bank website
                                                                                     4

Canada
  Canada    is a leader in the Information Technology revolution.
       The Canadian IT industry drives annual revenues of over $70 billion and
        employs over 400,000.

  Canada’s    public policy has fostered the IT industry.
       Technology is viewed by all levels of government as a major engine for
        Canada’s leadership in the global knowledge-based economy.
       The federal government has strategically focused on initiatives to brand a
        “connected” Canada to compete effectively in the information age.
                                               5

Canada - 1997 Revenue - $100.2 billion




 Source: Industry Canada (Strategis website)
                                               6

Canada - 1997 Employment - 473,928




 Source: Industry Canada (Strategis website)
                                                         7

Canada - 1997 GDP - $42.3 billion (in billion dollars)




Source: Industry Canada (Strategis website)
                                              8

Canada - R&D $3.6 billion




Source: Industry Canada (Strategis website)
                                                                  9

Canadian Government - IT Role




             Downsizing                          Infrastructure
                                                 Development
Federal               Programs,     Policy,
                      Policy, R&D   R&D


Provincial            Programs      Strategy



Municipal                  -        Implementation
                                         10

Federal Activities
  Connecting   Canadians
       Canada Online
       Smart Communities
       Canadian Content On-line
       Electronic Commerce
       Government On-Line
       Connecting Canada to the World
                                        11

Federal Activities (Cont’d)
  Service     Canada
  Strategic     IM/IT Infrastructure
       Secure Channel
       Portal
       PKI
       Directories
       Secure Messaging
       Etc.

  IM/IT   is a key Enabler
                                                      12

Canada
    Federal Activities by Industry Canada:
         IT Policy (Computing and Communications),
         IT Regulation (Spectrum Usage),
         Strategis,
         Supplier Development Program,
         Information Highway Advisory Council,
         Canarie,
         New Media,
         Learning & Training,
         Health, and
         E-commerce
                                                            13

Federal Activities (Information Highway Advisory Council)




  5   Working Groups, 15 Policy Issues
   Competitiveness   and Job Creation
   Canadian   Content and Culture
   Access   and Social Impacts
   Learning   and Training
   R&D,   Applications and Market Development
                                                                 14

Federal Activities (Canarie)




   Infrastructure      Content   Applications


                                                Initial Thrust




                                                Current Focus
                                                         15

Provincial Examples




 Ontario              Telecommunication Strategy ‘ 92
                      Computing Sector Strategy ‘93
 New Brunswick        Information Highway Strategy ‘94

 Nova Scotia          Information Highway Strategy ‘94

 Newfoundland         Comprehensive IT Strategy ‘94

 Quebec, Manitoba,… Under Development
                                                                        16

   Municipal




                                                         Applications
(IT as an Enabler)
Information Age




                                                         Content


                                                         Infrastructure


                     Non - IT               IT
                     Industrial Age               Branham Group Inc.
                     (Sectoral Development)
                                                                       17

Finland


 Population (million)           5
 GDP ($million)                 119,834
 GDP growth                     6.3%
 GNP per Capita                 24,790
 telephone mainlines            556 per 1000 people
 cost of 3 minutes local call   US$ 0.14
 personal computers             310.7 per 1000 people
 internet hosts                 996.13 per 10,000 people
 high tech exports                       26% of manufactured exports

 Source: World Bank website
                                                                                              18

Finland
  Finland                    is not an economic powerhouse, yet it has developed a great
                     deal of expertise in networking and telecommunications.
                         Finland has the highest per capita Internet and mobile telephone
                          penetration rates of any country.

  Finland’s                  success can be attributed to having one of the lowest
                     corporate tax rates in Europe.
  Finland                    is one of two countries in Europe that has a positive balance
                     of trade in ICT hardware.
                                          Trade Balance
                     1200000

                     1000000
 US dollars (000s)




                      800000

                      600000
                      400000

                      200000
                            0
                                   1995             1996      1997
                                                    Year
                                                                           19

Finland
  Finlandstill needs to overcome several obstacles in order to become
  a centre of technical innovation:
       Finland has very high personal tax levels (63%), which motivates
        many entrepreneurs to take their VC to lower tax jurisdictions; and
       Finland’s tax policy also is heavy-handed in that stock options,
        once exercised, are treated as income, not capital gains.
                                                                                  20

Finland
  The   Finnish IT market has grown rapidly in percentage terms.
       1997        -        10.8%
       1988        -        9.6%
       1999        -        10.4%
       Over period 1996 to 1999, the Finnish IT market grew from 2.743 billion
        US dollars to 3.676 billion US dollars

  TheFinnish telecommunications market also has grown rapidly in
  percentage terms.
       1997        -        7.9%
       1998        -        9.6%
       1999        -        7.2%
       Over the period 1996 to 1999, the Finnish telecommunications market
        grew from 2.736 billion US dollars to 3.108 billion US dollars.
                                                                     21

India


 Population (million)           962
 GDP ($million)                 381,566
 GDP growth                     5.2%
 GNP per Capita                 370
 telephone mainlines            19 per 1000 people
 cost of 3 minutes local call   US$ 0.02
 personal computers             2.1 per 1000 people
 internet hosts                 .11 per 10,000 people
 high tech exports                     11% of manufactured exports

 Source: World Bank website
                                                                       22

India
  The   Information Technology Industry is stimulated by:
       Government spending on IT in the domestic market;
       Widespread English language skills; and
       A Large pool of college graduates.
  The   current environment encourages Foreign Direct Investment (FDI).
                                                                       23

India
  The   challenges to continued growth include:
       Slowing industrial growth and exports;
       Delays in implementing a new telecommunications policy;
       Lagging investment in infrastructure;
       High inflation in the second half of 1998;
       Widespread poverty (40% of population lives in poverty); and
       Political uncertainty.
                                                                          24

India
  The   Desktop PC Segment:
       The Desktop PC Segment in 1998 crossed the one-million mark,
        showing a growth of 29 percent over fiscal year 1997.
       The assemblers sector, a significant portion of which is grey, grew
        by 49 percent.
       The total PC shipments in 1998 was 1,027,190 units compared to
        800,000 in fiscal year 1997.
       Over 82% of the PC sales were in the corporate/government
        sector. This sector grew by 34% over fiscal year 1997.
       The household sector contributed to 18% of overall business.
        Growth in this sector was only 7.6% over fiscal year 1997.
                                                                               25

India
  The   IT Software Segment:
       The IT software segment had the highest ever overall growth
        between 1998 and1999 estimated at a growth rate of 58%.
          The   domestic industry grossed annual revenue of Rs 15,890 core.
                                                                       26

Ireland


 Population (million)           4
 GDP ($million)                 75,030
 GDP growth                     10%
 GNP per Capita                 17,790
 telephone mainlines            411 per 1000 people
 cost of 3 minutes local call   US$ 0.17
 personal computers             241.3 per 1000 people
 internet hosts                 121.65 per 10,000 people
 high tech exports                       62% of manufactured exports

 Source: World Bank website
                                                                              27

Ireland
  Irelandhas successfully transformed its economy through an
   aggressive industrial development strategy.
       In the 1970s, Ireland was predominately an agricultural economy.
       Within a short amount of time the economy experienced a transformation,
        and now high-tech industries such as pharmaceuticals and computers
        employ thousands.

  Ireland’seconomy has grown at an average annual rate of 8.9 % in
   real terms in the four year period from 1994 to 1997, compared to an
   EU average of 2.4%.
  Irelandis one of two countries in Europe that has a balance of trade
   surplus in ICT hardware.
                US dollars (000s)




                                                  Trade Balance
                                    8000
                                    6000
                                    4000
                                    2000
                                      0
                                           1995          1996     1997
                                                         Year
                                                                                  28

Ireland
           economy is viewed by many as a case study in successful
  Ireland’s
   economic development. Success has been attributed to:
       The emergence of a dynamic and youthful population;
       Pursuit of pragmatic and innovative government policies;
       An openness to trade, not only in goods and services, but also in
        new ideas;
       And an emphasis on education and technological innovation;
       The establishment of a consensual partnership for managing the
        economy, involving Government and the social partners;
       An unequivocal commitment to full EMU membership;
       Steadily increasing levels of export growth;
       Substantial inflows of high technology inward investment;
       A stable pro-business government environment;
       Strategic investments in social and physical infrastructure; and
       Above all, a new confidence in Ireland’s people and their capabilities.
                                                                           29

Ireland
  Ireland   is now the Silicon Valley of Europe:
       Ireland is the second largest exporter of software in the world,
        second only to the United States.
       Seven out of the top ten independent software companies in the
        world, are located in Ireland.
       Over 40% of all European PC packaged software (including 60%
        of business applications software) sold in Europe is produced in
        Ireland.
       Companies located in Ireland include the "Who’s Who" of the
        Computing World:
          IBM/Lotus,Computer Associates, Novell, Microsoft, Sun
           Microsystems, Symantec, Oracle, SAP and Informix.
                                                                                     30

Ireland
  The    Irish software industry’s success is characterized by:
       Almost 600 Irish owned software companies;
       Large number of new start-up companies - 40-50 Annually;
       Highly export oriented, exports represent 60% of production, with the US
        being the largest market for Irish software companies;
       Young, skilled, well-educated people with strong technological, linguistic
        and business skills;
       A world class software oriented support infrastructure including
        localization, disc and CD ROM manufacturing and duplication, user
        manual printing, turnkey and fulfillment services, technical support and
        call centre services.
       A world class telecommunications systems providing cost effective,
        flexible and reliable services.
        The Irish IT market continues to perform above average.
                                                                                   31

Ireland
  The    Irish IT market has grown rapidly in percentage terms.
       1997        -        10%
       1988        -        10.3%
       1999        -        11%
       Over period 1996 to 1999, the Irish IT market grew from 1.221 billion US
        dollars to 1.645 billion US dollars

  The Irish telecommunications market also has grown rapidly in
   percentage terms.
       1997        -        11.3%
       1998        -        12.1%
       1999        -        9.6%
       Over the period 1996 to 1999, the Irish telecommunications market grew
        from 2.201 billion US dollars to 4.839 billion US dollars.
                                                                       32

Israel


 Population (million)           6
 GDP ($million)                 98,081
 GDP growth                     2.2%
 GNP per Capita                 16,180
 telephone mainlines            450 per 1000 people
 cost of 3 minutes local call   US$ 0.07
 personal computers             186.1 per 1000 people
 internet hosts                 146.78 per 10,000 people
 high tech exports                       33% of manufactured exports

 Source: World Bank website
                                                                                                  33

  Israel
       has a very well developed IT infrastructure, which has fostered the
 Israel
 development of a successful IT industry.
      Initial focus was military, but now strong civilian IT sector is emerging.
      IT is readily available in business, education and homes.
      IT is part of the education system.
            In   schools, there is 1 PC for every 10 students.

       has instituted a policy of gradual liberalization in the
 Israel
 telecommunications sector.
      Rapid change has resulted as a result of liberalization:
              of 1992, mobile and international services are open to competition, with foreign
            As
            companies free to invest heavily in national operators.
            In   January 1999, competition opened for the domestic telecom market.

      Israel was early in anticipating internet development:
            Invested   in high-performance infrastructure.
            Academic     Network, ILAN, provides service to all universities and research centres.
                                                                                        34

Israel
  Many     hardware producers have opened subsidiaries in Israel.
  The    software sector is also very strong.
        Highly skilled Russian immigrants have helped stimulate a strong IT
         software industry.
            Global   activity exceeds 1.5 billion US dollars.
            18,000   computer specialists.
            Local   supply of software is strong with 300 software houses.
            Exports   exceeded 1 billion US dollars.

        The industry has capitalized on its military expertise.
              Information security and network management products contribute the most to
               exports and constitute nearly 20% of all software exports.

  Telecommunications      equipment constitutes one of the most dynamic
   sectors in the Israeli industry.
                                                                      35

Morocco


Population (million)           27
GDP ($million)                 33,514
GDP growth                     - 2.0%
GNP per Capita                 1,260
telephone mainlines            50 per 1000 people
cost of 3 minutes local call   US$ 0.08
personal computers             2.5 per 1000 people
internet hosts                 0.17 per 10,000 people
high tech exports                       27% of manufactured exports

Source: World Bank website
                                                                                           36

Morocco
  Government        launched a national program to develop the IT industry.
      Main actions for Information Society are:
          The    creation of a State Secretariat for IT.
          The  creation of CSTI (Comite de Suivi des Technologies de l’Information), an
          initiative of the Ministry or Commerce and Industry, which has begun the
          building of a national strategy.
          The    creation of an academic network linking research centres and universities
          The  development of national R&D through public centres. Morocco has
          instituted a IT development policy based on the liberal economic model and its
          historic ties to Europe.
          The study “Competitive Morocco”, completed in 1996, examines different fields
          of economic development including tourism, textiles and ICT.

      Major factors influencing the development of the ICT sector include:
          The    low cost for human capital;
          Local    high-level engineering skills;
          IT   is well-established in the local economic framework; and
         A     stable socio-political environment.
                                                                                              37

Morocco
  There remain areas of concern that have prevented Morocco from
  real success in its policy initiative.
       The regulatory environment for business remains too complex.
       The hardware market is dominated by European and American firms and
        few value-added activities take place in Morocco.
            All   hardware is imported.
            PC    clones are assembled in Morocco.

       The Software industry also is burdened with difficulties.
                    all software is exclusively in French; there are nearly no applications
            Virtually
            developed in Arabic.
            Piracy   constitutes a major problem.

       The home market is poor as a result of economic conditions.
            Market    is made up of SMEs, which represent 80% of industrial structure.
                                                                                    38

Morocco
  IT     is growing at a steady pace.
         The market in 1998 for IT has increased to over 300 million US dollars.
                55% is in equipment and 45% in services.
                512 companies form the Moroccan IT sector.

         At the end of 1998, the number of PCs is estimated at 350,000.
                This indicates a growth of 17% over 1997.

         The market is shared among administration (25%), banks (22%), SMEs
          (30%), and other sectors - liberal professions and large firms (23%).




 Source: EITO 99
                                                                   39

Morocco
  Among Arab states, Morocco has the highest telecommunications
  network growth.
      It grew 23% per annum between 1990 and 1995.
      Teledensity increased from 1.7% in 1990 to 5.5% n 1998.
      This constitutes fifth largest growth in world.
      Quality also has improved.
      Still has much work and even more in rural areas.
                                                                       40

South Africa


 Population (million)           41
 GDP ($million)                 129,094
 GDP growth                     1.7%
 GNP per Capita                 3,210
 telephone mainlines            107 per 1000 people
 cost of 3 minutes local call   US$ 0.07
 personal computers             41.6 per 1000 people
 internet hosts                 34.02 per 10,000 people
 high tech exports                      -- % of manufactured exports

 Source: World Bank website

								
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