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Abstract
1. Introduction
research scientist and covers the entire spectrum of new skills required,
whether it is the telephone operator or the fisherman and farmer, the
worker on a building site or the people who maintain and operate essential
infrastructure.
140
133
129
126
130
124
123
118
120
110
101
101
100
92
90
83
80
2007 2009 2011 2013 2015
140
120
100
80
60
40
20
0
Pakistan Turkey Malaysia Ireland India
140
90
40
Institutions Infrastructure
Macroeconomic environment Health and primary education
%
80
80
60
60
40
28
24
28
24
23
22
19
18
17
17
12
20
2.2
0.3
6
0.2
2
2
0
Pakistan Turkey Malaysia Ireland India
Manuf. (% GDP) Goods/Services,% of Exports
Hi-Tech Exports, % of Exports IT Exports, % of Exports
35
30 50
USA
25 40 USA
EU China
20 30 ROW
Other Asia
15 ROW 20 EU
10
10 Japan
Japan China
5 ROW: Rest of t he World
0
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
‘residents’ in patent applications was also very small, except for Turkey
and Iran, indicating weaknesses in local systems. In comparison, just five
countries accounted for 89 percent of global patent applications, with
China leading with 965,000 (36 percent), followed by the US (803,000 or 30
percent), South Korea (277,000 or 10 percent), Germany (197,000 or 7
percent), India (147,000 or 5 percent) and France (74,000 or 3 percent).
These numbers reflect the state of investment and activities in the modern
sectors of their economies.
Pakistan fares badly even among the OIC countries (Figure 6), with
just 978 applications or about 2 percent of the total number filed by OIC
countries in 2014 (World Intellectual Property Organization, 2015). Of these,
146 were filed by residents, 776 by nonresidents and 56 filed abroad.
Globally, Pakistan’s share was a negligible 0.04 percent, which reflects not
only its low innovative capability, but also lack of investment and
intellectual property protection. It also implies the absence of the diffusion
of innovations and best practices from leading global firms, especially
‘frontier firms’, which have higher productivity levels than nonfrontier or
large firms (OECD, 2015).
Pakistan
Morocco
Egypt
Kazakhstan
S. Arabia
Turkey
Indonesia
Malaysia
Iran
( X 1,000) 0 3 6 9 12 15
By Residents By Non-Residents Filed Abroad
Computer
technology, 12.4
Others
(35.6%) Digital
Communication
/Telecomms, 10.3
Pharmaceuticals, 9.8
Minerals,
Mettallurgy, 4.1 Organic fine
chemistry, 7.7
Engines, pumps,
Medical Technology,
Electrical machinery, turbines, 6.2
4.1 Audio-visual
apparatus, energy,
technology, 5.7
4.1
70
60
65.2
50
40
22.1
30
19.9
20
11.7
6.8
3.6
10
0.3
1.0
0
Primary Middle Secondary TVE
2014-15 Enrollments (million) 2014-15 Enrollments, %
The development of higher and different skills will affect the growth
of new startups, but these will need to be regularly updated. This is where
the state comes in. SMEs need venture capital and angel finding. However,
funding for SMEs is less of a bottleneck than technology intelligence and
help with change management. The policy framework required for SMEs in
Pakistan would be to enhance technical skills and the organizational
capacity of the client, provide training in financial and business models,
provide ‘change’ intelligence and facilitate venture capital and angel funds,
especially for new technology-based firms (NTBFs).
product in the context of market share and the stage of the organization in
the firm’s lifecycle.
NTBFs are also quite vulnerable in the initial stages (the initiation,
survival and growth phases) and face rapidly changing technology
management activities and matters of sustainable supply chains, which
include not just hardware and software, but also people with the right skills
and their sudden exit to potential competitors and further new startups. The
state can help by providing ‘changing technology’ intelligence.
0.5 0.5
Manufacturing Sector Services Sector
0.4 0.4
Frontier firms Frontier firms
3.5%/annum 0.3 5.0%/annum
0.3 All firms
1.7%/annum 0.2 All firms
0.2 0.3%/annum
0.1
0.1 Non-frontier firms
- 0.5%/annum 0.0 Non-frontier firms
- 0.1%/annum
0.0 -0.1
2001
2002
2003
2004
2005
2006
2007
2008
2009
2001
2002
2003
2004
2005
2006
2007
2008
2009
2 See: http://www.kauffman.org/microsites/state-of-the-field/topics/firm-and-industry-dynamics/
productivity-growth
Productivity and Entrepreneurship in Pakistan: The Role of Public Policy 441
6. Conclusion
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