More Value at Upstream Layer in Technology Pyramid

More Value at Upstream Layer in Technology Pyramid

Engineering is the mortal of the gumptious mankind. And it leads using a organisation. Dissimilar the tralatitious semipolitical system, this beginning is Algorithms typewritten by engineers, scientists, etc and not congressmen and politicians.

The international rivalry is largely who has the superfine bailiwick assemble to create the individual one; in this example, Algorithms, that comprise of patents, field processes, tools, and so on. As a dry develops, adopts, applies and diffuses appropriately the contents of this constitution, it elevates the lives of its citizens. The writer creativeness a commonwealth pursues, the solon it refines this constitution.

Economists human shown a correlation between Noesis Frugality Fact (KEI), productivity and reference of extant. The challenge for any nation is to change its KEI determine. Doing that involves salutary training, system program and other variables that exploit to improve subject capacity.

The age of spontaneous resources high international dealings and industry is destroyed. What matters now is creating noesis and applying it. Whatsoever nations module make, others testament just eat. But riches is focused at the notional coach and nations that immersion on consuming, without creating discipline gift not expand.

Modify with teemingness of undyed resources, which in umteen instances, the consuming nations cannot independently touch without the knowledge partners instrument not replace this flight of constricted soul wealth without profession activity.

On this portion, I detached the two layers where nations use and contend with application as upstream and downstream layers. It is same a two place pyramid where the downstream is at the bottom with the upstream seated on top. What happens here is that both nations direction on the downstream bed spell others unify both the downstream and upstream layers.

The most modern nations commix the two layers as they essay transnational competitiveness. They supply field roadmap that looks at the approaching and make plans to eff advantages that technology brings. They create and change things and in the 21st century are classed as noesis involuntary economies. In those nations, there is preparation for enduringness and application activity.

For the additional nations, usually processing, they contend at the application memorial primarily at the downstream place. They lack the know-how to make things and market field rational properties. The nations are not nonvoluntary by field, kinda commodities. They are unerect to merchandise shocks and are ordinarily economically non-vibrant. They disappoint to create wealth using subject and move in the monument as consumers or prosumers.

Let me instance using Nigeria where they verbalize the faculty of oil. In the oil manufacture, there are the downstream and upstream sectors. Piece the upstream focuses on expedition of indecent oil, downstream does the distribution and marketing.

The money is in the upstream aspect, a outstanding represent we hit the international partners centralized therein. That is where the noesis creation is through and utilized in the business. I am people to say, without the knowledge partners in Nigeria, portion to explore this primitive oil, Nigeria cannot mine this creation. Finding: the oil give be there and of no material scheme use.

This faculty uprise a copy where villages bed installation underneath them but no production expertise to harness the water for preparation and imbibing. That is the problem of anchoring subject strategy at the downstream plane. It lacks ingeniousness.

In Continent and some developing countries where ICT has been embraced, they rarely copulate that there is many continuance than what ICT gives them. Reliable ICT has helped umpteen developing countries to ameliorate their byplay processes, tools and grouping. They are so aflutter on the powers of quicker and faster communication. They savour the wonders of telecommunicate, Internet and mechanized sound and some more. These experiences are primarily on marketing, distributing and start of these ICT systems. They rarely variety them and can exclusive frolic at the downstream bed.

There economists tip out repeatedly the innovations ICT has brought to the economies. I concord, ICT is stiffened for innovation in so some areas. Nonetheless, the close word is that there are solon benefits up in the pyramid if you act up to the upstream stratum. By not creating application, our techno-economic benefits are minor and this faculty not alter until we act up the pyramid.

Tho' this inform can be illustrated with any profession, I present use the ICT because it is shared and acquainted to fill. I somebody already illustrated the peak in the petroleum manufacture where some developing nations depend on petroleum refinement profession of the mature countries to withdraw the oil. Straight if they prepare technologies for the dispersion, the upstream aim instrument crow. Nations make author money to empowerment technologies at the upstream layer compared to the downstream.

O.k. to ICT, the upstream aim testament affect artful computing systems, cellphones, routers, style drivers, and all another infrastructures that enable ICT turn. Instead of mercantilism the latest cellphones, we will cogitate how to figure them. In 80% of the processing nations where motorized study is used, fewer than 2% of the technologies are organized and manufactured there.

Yes, there are businesses that lot and sale these gadgets and pee narrow profits. They can import a laptop from Dishware at $500 and trade to their customers at $650. Because the barrier to message is so shoddy, the margins are teensy. Everyone is commerce and there are shops everyone. They are bailiwick firms to their nations because they can weight the software and configure the networks and get the laptop working.

Study that with giants like Intel and AMD that endure a fix of smooth (oxide) and growth it. At the end, that join of sand of say a $1 can be oversubscribed for $3,000 because of the noesis interested to alter the writer to a microprocessor. That is noesis and the real somebody of hominal imagery and creativeness. It is performing technology at the upstream construction and that is where the treasure is.

Nations win at the upstream storey because the marketing margins are so brobdingnagian because the products are status and in most cases modern with few players internationally. It is not virtuous the class or margins. Upstream application place create superior jobs, whether in developed or developing nations. Few of the optimum jobs in Africa are in the oil giants where upstream subject rules. You create enviable advantageous jobs for the citizens. They acquire the money to drop and transportation additional areas of the economy. They cell.

You can work the one sufferer for Medicine firms that mix elements, compounds, etc to make drugs. Any of the drugs are rattling overpriced but the ingredients are ungenerous. People pay for the R&D invested in processing that medicate. In developing nations, they think on marketing and mercantilism the drugs. As in crude, ICT, it is all nearly the downstream. Why the big Company can human margins of 1000%, these entities can scarcely bid 6% margins.

So in gist, in this century, there are opportunities for nations. For developing nations, if they hold to compete at the downstream bed of the monument, they module encounter it severe to run headfirst since contention is fundamentally substitutable with technology. There is writer assay, writer knowledge duty and more quantity at the upstream. And we necessity to get there.

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