GLOBALIZATION, LOCATION AND INNOVATION
Agenda 1. Introduction with definitions 2. Interesting facts about the objects of research 3. Interconnection between the objects
Globalization the greater movement of people, goods, capital and ideas due to increased economic integration which in turn is propelled by increased trade and investment.
Innovation Use of a new product, service, or method in business practice immediately subsequent to its discovery.
Location A particular portion of space chosen for something
Coefficient of innovative location
Interesting facts about globalization and location Global income is more than $31 trillion a year, but 1. 2 billion people of the world's population earn less than $1 a day. 80% of the global population earns only 20% of global income The 3 billion people living in the 24 developing countries. The digital and information revolution has changed the way the world learns, communicates, does business and treats illnesses.
Imagination of innovation
Interconnection between innovation and globalization A New Way to Connect The World Wide Web, enabled by PC’s, e-mail, and Web browsers Digitalization and Fiber Optic Network Cell phones
Interconnection between innovation and globalization A New Way to Collaborate a) Outsourcing – In-Sourcing b) Off-Shoring – Supply-chaining c) New Organizational Structures - Vertical to Horizontal
Interconnection between innovation and globalization A New Cost structure The yearly wage level for an unskilled worker in China and India is 10 -30 times below the levels in Western Europe and USA. Even more striking – for highly skilled knowledge workers - salaries in China and India are 5 -10 times lower than in USA.
Interconnection between innovation and globalization A New group of Players The total Global Economic Population in 1985 was approximately 2. 5 Billion people. Fifteen years later, this population has increased to approx 4 Billion, with the inclusion of China, India, Russia and Eastern Europe.
Interconnection between location and innovation Innovation has become the defining challenge for global competitiveness. The strong effect of location on innovation holds important implications for companies and creates a new broader agenda for innovation management. Ideas and technologies that can be accessed at a distance cannot serve as a foundation for competitive advantage.
Coefficient of innovative development C in. dev = Costs on innovation Total costs
Location of innovation by means of globalization
Coefficient of regional innovation activity (2007)
GDP Influence of innovation on Gross Domestic Product Innovation
Quiz 1. The greater movement of people, goods, capital and ideas … Location Globalization Innovation Integration
Quiz 2. The implementation of innovation influences on GDP as… GDP increases GDP decreases No influence Absence of interconnection
Quiz 3. What country has the highest Coefficient of regional innovation activity : Ukraine USA United Kingdom Canada
Interconnection between globalization, location and innovation Benefits Problems
Thank you for your attention!
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