some contemporary economic concerns of hong kong
Post on 19-Dec-2015
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HK-China: Economic Aspects, KV Patri
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Maslow’s Theory of Human Needs
Physiological Needs
Safety Needs
Belonging and Love Needs
Esteem Needs
Self-Actualization
Needs
HK-China: Economic Aspects, KV Patri
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Human Needs: Maslow’s Theory
• Physiological needs, Safety needs, Belonging and love needs, Esteem needs, and Needs for self-actualization.
• Esteem needs prompt users to move to new products quickly - you buy a new shirt you like even if you already have too many shirts.
• Modern customers are demanding more product variety and more innovative products.
HK-China: Economic Aspects, KV Patri
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Value of Life: What is important (Japan) [M. Takahashi, 1999]
0
10
20
30
40
50
60
%
MaterialAbundancePsychologicalAbundance
HK-China: Economic Aspects, KV Patri
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Relationship between human beings and nature (Japan) [M. Takahashi, 1999]
01020304050
%Use itFollow itConquer it
HK-China: Economic Aspects, KV Patri
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GDP of Guangdong Province
0
200
400
600
800
1975 1980 1985 1990 1995 Year
GD
P b
illia
n yu
an
(200
0 va
lue)
HK-China: Economic Aspects, KV Patri
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0
200
400
600
800
1000
1990 1995 2000
Bill
ions
of 1
990
US
$
China
India
HK
GDP of China, India, and HK
HK-China: Economic Aspects, KV Patri
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0
2000
4000
6000
8000
10000
1990 1992 1994 1996 1998 2000
Bill
ions
of 1
990
US
$GDP of USA
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110000
115000
120000
125000
130000
135000
140000
1990 1992 1994 1996 1998 2000 2002
HK: Per Capita GDP in HK$ at Constant 1990 Market Prices
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Per Capita GDP Ranking, 1997
1. Luxembourg
2. USA
3. Switzerland
4. Kuwait
5. Hong Kong (US$26,400)Ref: 1st Report of Chief Executive’s Commission on Innovation and
Technology, September 1998.
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% Share of Mfg in HK GDP
0
5
10
15
20
25
30
1975 1980 1985 1990 1995 2000
HK-China: Economic Aspects, KV Patri
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% Share of Mfg in HK Employment
0
10
20
30
40
50
60
1955 1960 1965 1970 1975 1980 1985 1990 1995 2000
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Gross Output of HK Mfg SectorHK$ Billion
0
50
100
150
200
250
300
350
1978 1980 1982 1984 1986 1988 1990 1992 1994 1996
HK-China: Economic Aspects, KV Patri
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Value Added Per Person (HK$)
0
100000
200000
300000
400000
500000
600000
700000
1982 1984 1986 1988 1990 1992 1994 1996
MFG
Fin. & Real Estate
Poly. (Fin. & RealEstate)
Poly. (MFG)
HK-China: Economic Aspects, KV Patri
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0
20
40
60
80
100
120
140
1994 1996 1998 2000 2002
Man
ufac
turin
g in
dex
1996-2001: Hong Kong Manufacturing Index(1986=100)
HK-China: Economic Aspects, KV Patri
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0200400600
800100012001400
1995 1996 1997 1998 1999 2000 2001
HK: Production-based GDP in Billions of HK$
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0
2
4
6
8
1995 1996 1997 1998 1999 2000 2001
HK’s Domestic Manufacturing: % GDP
HK-China: Economic Aspects, KV Patri
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0
2
4
6
8
1996 1997 1998 1999 2000 2001 2002
HK: % Unemployment
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Is Hong Kong hollowing out ?Or,
Is there an industrial transformation?
HK-China: Economic Aspects, KV Patri
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Transformation: Mfg Moves to the Mainland To Lower Costs
• Over 4M workers in the mainland
• 1995: HK exports to mainland up by 20%
• 1995: 71% of domestic exports and 40% of re-exports attributed to outward processing activities in the mainland
• 1995: 74% of imports and 82% re-exports of mainland origin
HK-China: Economic Aspects, KV Patri
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A quote from the second report (1999) of HKSAR Chief Executive’s Commission on
Innovation and Technology “There is strong competition [to HKSAR] from
neighboring economies for Hong Kong’s regional role in trade, finance, transportation and communications. With respect to manufacturing, Hong Kong must strive to support and further develop high-value activities. Hong Kong is also facing stiff competition from low-cost economies. A fundamental challenge is how Hong Kong should position itself in the knowledge-based, global economy of the 21st century.”
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Innovation is not easy
Although innovation is increasingly seen as a powerful way of obtaining competitive advantage and more secure approach to defending strategic positions, success is not guaranteed. After all, innovation is by its nature a risky business. And we need to remember that there is a great deal of uncertainty in innovation, made up of technical, market, social, political and other factors.
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Innovation is essentialBecause the innovation process is so uncertain,
it sounds that it is forgivable for many organizations to decide not to innovate. But, the approach of doing nothing is rarely an option, especially in the rapid change of the technology and the economics.
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We have no option but to learn to manage innovation
So the question is not one of whether or not to innovate but rather of how to do so successfully. What lessons can we learn from research and experience, and is there any pattern to these which might be used to guide actions?