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These blog posts are based on WIPO – World Intellectual Property Rights Report on Global Innovation Index 2022.
There is no point in comparing with the top 6 countries because the disparity is too great. However, the finding may be looked at to understand the relationship between various pillars.
For better understanding, I shall take the top 6 countries and 9 countries below rank #30. Pakistan is included and shall be compared with likewise countries. Finally, Pakistan shall be focused upon singly.
Population, PPP Adjusted GDP, GDP Per Capita
The GDP figures taken in this report are Purchasing Power Parity adjusted ones. This figure has been simply divided by the population to arrive at GDP per capita. Population may be a great asset if it can be channelized for greater productivity. China has done it more effectively and has become the manufacturing hub for the world. Meanwhile, they built the necessary infrastructure. India, which is only 50million less people, was not able to do so due to major differences between the two countries. Indian government does not have the kind of control which China has. Population for countries with less control over their population becomes a negative factor for GDP.
- China, ranked #11, has the largest population and is already the second largest economy after US. However, per capita GDP of China is only 19,090 USD while the same for US is 69,375USD. This is due to population where China is touching 1.5 billion people as against 333 million in the US.
- Malaysia and Türkiye are very close at ranks #36 and #37 respectively. Both are Upper-Middle Income countries. Malaysia with a population of 33 million, has a GDP of 969 billion USD, while Türkiye with a population of 85 million, has GDP of 2.9 trillion USD. Per capita GDP of Malaysia is 29,048 USD while Türkiye has 33,693. The large difference in GDP is offset by the higher population.
- Iran also has 85 million people, but their per capita output is only about 14,000 USD, and the GDP is 1.19 trillion. In our comparative basket, India has the highest GDP at over 10 trillion USD, next is Indonesia at 3.5 trillion USD. India has the second largest population at 1.4 billion and may take over China soon, because unlike China, India does not have strict control on population growth. Per capita GDP of India is only 7,314 USD despite 10 trillion USD GDP; Indonesia, with. A population of 276 million, is better placed at 12,967 USD.
- Pakistan has lost the gains achieved through many years of family planning campaigning. Bangladesh appears to be better. In 1970, before BD came into being, the then East Pakistan had more population – 65 million – than the West Pakistan – 58 million. Presently, Pakistan is at 225 million while BD is at 166 million. Pakistan population has grown at an astounding rate and has crossed BD by a wide margin of 60 million, or 36%. Our GDP difference is about 21%, thereby reducing the per capita GDP by that margin; Pakistan is at 5,447 USD.
Input vs Output
The input and output findings are quite interesting, even anomalous. But a deeper look will make these more understandable.
For creative and innovative Outputs, Input comes from institutions, human capital, infrastructure, market development and business parameters. There is a corresponding relationship between input and output, but it may not be entirely linear because multiple factors interplay. No country has similar ratings for input pillars to support the output. An example will clarify this point.
USA is ranked #2 in GII 2022, and we also know that they are far ahead in innovation as compared to other countries. Let us have a look at the seven pillars and their ranking. Higher number means lower strength. For comparison, we shall look at China.
|USA ranked #2||China ranked #11|
|Knowledge and Technology: #3||Knowledge and Technology: #6|
|Creative outputs: #12||Creative outputs: #11|
|Institutions: #13||Institutions: #42|
|Human Capital & Research: #9||Human Capital & Research: #20|
|Infrastructure: #19||Infrastructure: #25|
|Market Sophistication: #1||Market Sophistication: #12|
|Business Sophistication: #3||Business Sophistication: #12|
There are significant differences in Institutions, Human Capital, Infrastructure, and Market Sophistication. When we go deeper into indicators and compare, we find greater differences.
Before we go into our regional basket, I would like to bring two countries, South Korea, and UAE, which have come up fast. We know UAE is a place where the whole world invests literally, in so many forms. It is a tourist hub, but it has also emerged as a technology hub where innovations are taking place. South Korea is already much ahead in technology for long.
UAE is ranked at #31, has a population of 10 million, GDP of 699 billion USD, and per capita GDP of 74,245 USD. It is a high-income country. Of course, this picture is highly partial due to extreme disparity and inequality of wealth there. Our focus is on Input/Output.
South Korea is ranked #6, has a population of 51 million, GDP of 2.5 trillion USD, and per capita GDP of 48,309 USD.
|South Korea ranked #6||UAE ranked #31|
|Knowledge and Technology: #10||Knowledge and Technology: #59|
|Creative outputs: #4||Creative outputs: #45|
|Institutions: #31||Institutions: #6|
|Human Capital & Research: #1||Human Capital & Research: #17|
|Infrastructure: #13||Infrastructure: #7|
|Market Sophistication: #21||Market Sophistication: #23|
|Business Sophistication: #9||Business Sophistication: #26|
UAE is better than South Korea in the Input pillars of Institutions and infrastructure, and comparable in market sophistication. However, South Korea is much superior in human capital and research, and that reflects in much greater superiority in the Outputs, knowledge and technology, and creative outputs.
The point I am raising is that human capital and research are the major distinguishing factors.
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