Pakistan seem to be lagging significantly behind other nations in economic growth. Only way forward is to use the Knowledge Economy and disruptive innovation to sustain growth. Else we will be left behind and face increasing poverty, unemployment, etc.

1. Engineering the Future:
Disruptive Innovation
for Sensible Growth
SAAD AMANULLAH KHAN

2. Economic Growth traditionally has
been a function of :
1. Population growth,
2. Productivity,
3. Capital accumulation,
4. Resources and knowledge availability

4. 1800’s were all about: Who could build
the biggest and most efficient
farming methods ?

5. 1900’s were about: Race to build the
most efficient factories

6. And now the 2000’s will be all about
ideas and innovation.

9. -
2.0
4.0
6.0
8.0
10.0
12.0
1961
1963
1965
1967
1969
1971
1973
1975
1977
1979
1981
1983
1985
1987
1989
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
Pakistan (% GDP Growth)

10. Human Development Index (HDI)
Country’s Development Level
Standard means of measuring
Human Development

11. HDI LEVELS Rank 1960’s 2011
Very High Human
Development 1 - 47
Korea (15)
Singapore
(26)
High Human
Development
48 - 94 Malaysia (61)
Medium Human
Development
95 - 141 Sri Lanka (94)
Low Human
Development
142 - 187
Korea,
Singapore,
Malaysia,
Sri Lanka
Pakistan
Pakistan
(145)

17. GDP Growth (%)
60 - 70 70 -80 80 -90 90 - 00 00 -10 08 -10
China 3.0 7.4 9.8 10.0 10.3 9.7
India 6.7 2.9 5.7 5.6 7.4 7.9
Pakistan 6.8 4.8 6.9 4.0 4.6 3.2
LEGEND Above 7%
5% to 7%
Below 5%
+6.5%+4.7%
4
1
1
3
1
2
3
60 - 70 70 -80
China 3.0 7.4
India 6.7 2.9
Pakistan 6.8 4.8
LEGEND

19. DISRUPTIVE INNOVATION
An innovation that helps
create a new market and value
network and which eventually
disrupts an existing market
and value network, displacing an
earlier technology.

21. Revolution in IT and
Back Office Support

32. 1993: IBM post loss of US$ 8 Billion
Biggest lost in US history at that time

36.  Until Mid-80’s
Current reality 

38. But their GDP > Pakistan
(remember they got Independence 18
years after us)
Equal in Population
=

45. The KNOWLEDGE ECONOMY and current
economic performance are highly correlated
Pakistan

46. 0
2
4
6
8
10
1
2
3
4
5
6
7
8
9
10
11
12
75

47. Economic Incentive and
Institutional Regime
InnovationEducation
ICT
Economic Incentive and
Institutional Regime
Education
ICT

48. Innovation
Economic Incentive and
Institutional Regime
Education
ICT

49. Innovation
Economic Incentive and
Institutional Regime
Education
ICT

50. Innovation
Economic Incentive and
Institutional Regime
Education
ICT

51. Innovation
Economic Incentive and
Institutional Regime
Education
ICT

52. Innovation
Economic Incentive and
Institutional Regime
Education
ICT

53. Based on
Current GDP
Growth rates

54. Economic Incentive and Institutional Regime
 Regulatory Quality – Stronger Institutions
 SECP, FBR, Competition Commission, IPO, etc.
 Protection in Intellectual Property Rights (IPR)
 Quality people – competitive Salary & Benefits
 Increased Trade & Investments
 Open Trade Barriers
 Lower Cost of Trade – Port, Airport charges
 Improved Logistic within country
 Rule of Law
 Improved Security Situation
 Stronger and effective judiciary and law enforcement
 Elimination of nepotism, discrimination & preferential treatment

55. Innovation
 Research and Journal Articles
 Create R&D Centers, Incubators and Libraries.
 Research facilities in public and private sector
 Issuance of Patents
 Eco system for Innovators and Entrepreneurs
 Graduate and Doctorate programs
 Technology transfer and partnership at research level
 Enhance scholarship program for top students
 Royalty Payments & Receipts
 Streamline Royalty approval and payment process

56. Education
 Average Years of Schooling
 Double or Triple % of GDP spending on Education
 Allow partnership with nations with high literacy rates
 Make Government deliver mandatory Primary education mandatory
 Strong accountability if education funds misappropriated
 Gross Tertiary Enrollment Rates
 Put in place 12 universities & technical institutes in next 5 years
 Gross Secondary Enrollment Rates
 Invest in repairing all existing schools and enhance teacher salaries

57.  Computer per 1000 people
 Indigenous computer manufacturing
 Partnerships with global technology companies
 Strong incentive to drive high tech innovation
 Remove regulatory hurdles in ICT
Internet Users per 1000 people
 Enhance internet pipelines to Pakistan
 Total Telephone/Mobile per 1000 people
Information and Communication Technology