Download Organizational rigidity A call for Strong Commitment at the top level

Lesson from Japanese Experience for
Development of Thailand’s Knowledge Economy
Discussion Points
Dr. Kanit Sangsubhan
Fiscal Policy Research Institute Foundation
Motohashi, IT revolution’s Implications for the Japanese Economy
Comparison of K-ICT contribution
GDP Growth
K-ICT
K-non ICT
Others
L-Quantity
L-Quality
TFP
Japan by Motohashi Thailand by NESDB/FPRI
1995-2003
1999-2003
% Growth
% share
% Growth
% share
1.28
100
4.63
100
0.54
42.2
1.15
24.8
0.62
48.4
3.05
65.9
0.12
9.4
0.43
9.3
-0.32
-25.0
0.01
0.2
0.42
9.1
0.45
35.2
-
Motohashi, IT revolution’s Implications for the Japanese Economy
Firm Level Analysis
•
Ability to adjust at the firm level,
Organizational rigidity
A call for Strong Commitment at the top level of the firm.
outcome of investment.
•
A good network formation.
Dynamism of ICT progress,
Beside the commonly known economy of scale and scope
from ICT.
Motohashi, IT revolution’s Implications for the Japanese Economy
Complementary Investment
• HR
Elites -technologist
ICT Manager
ICT solution provider
• Knowledge Management
(Late?) Adoption of technology by manufacturing / SMEs / Firms
Education to top level managers
Nezu, Development of the Japanese Telecom Industry
Development Phases of Japanese ICT
Phasing
1.
3.
5.
Pre-market Stage
From Fixed to Mobile
Oligopoly market
2. Domestic Competition
4. Competition among Technology
Nezu’s Suggestions
1.
Government may fail in selecting technology – better let the private sector do.
2. In liberalizing the industry, fair competition is needed.
3. The new business expansion – vertically and horizontally—need IPR protection
4.Foreign competition (in the case of Japan) so far has
no threat to national interest and security.
Nezu, Development of the Japanese Telecom Industry
Nazu’s Suggestions
• Government fail in selecting technology – better let the private
sector do.
Build-Transfers-Operate by the private sector
Critical argument that free-to-choose technology lead uneconomical scale
•
Liberalization needs fair competition
A classic case of oligopoly market.
First, fierce competition of low quality
Second, oligopoly market of high price and poor services.
supervisory committee-- minimum quality standard– penalty
•
Foreign competition and security
Japan might be a unique one by two reasons.
? Unique technological standard adopted in Japan / BIG THREE—NTT,
KDDI, Softbank— dominate
? NTT group and strong backing from the government.