Kerala Economy Vol.2 No. 2&3, February-March, 2021 Vol.2 No. 2&3, February-March, 2021

Special issue on

Transforming Kerala to a Knowledge Economy

Edited by

K J Joseph P V Unnikrishnan

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Contents

Page No

Editorial 5

Part I Knowledge economy: setting the context 7 Democratizing digital space, prelude to transform Kerala 9 into a knowledge economy Pinarayi Vijayan Transforming Kerala to a knowledge economy - a manifesto 11 T M Thomas Isaac Knowledge economy based on Kerala’s unique strength 15 Bengt Åke Lundvall Strengthening the learning and research base 18 V K Ramachandran Vision for the future of Kerala 21 K M Abraham IT stimulus for the knowledge economy 23 Deepu Zacharia Part II Pillars of the knowledge economy 25 A. Digital Infrastructure 27 S Somanath 27 Design and vision of Kerala-Fibre Optic Network (K-FON) 29 Jayasankar Prasad and Santhosh Soman A vision for electronics systems design and manufacturing 31 T R Hemalatha Reflections from experts across the world 33 Hideki Esho 33 G Vijayaraghavan 35 Raja Rasiah 37 Sreejith Nair 39 Rasigan Maharajh 41 Prince Joseph 43 Keun Lee 45

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B. Innovation system 47 M S Rajashree 47

Evolving an innovation ecosystem for Kerala 50 P V Unnikrishnan Kerala start-up ecosystem 55 Tom Thomas Reflections from experts across the world 58 Xiaolan Fu 58 C Balagopal 60 Erika Kraemer-Mbula 62 Srikumar Chattopadhyay 64 Thankom Arun 66 Anoop Ambika 68 Rainer Walz 70 Rasmus Lema 72 Nanditha Mathew 75 C. Skilling, reskilling and upskilling 77 Saji Gopinath 77 Kerala workforce strategies for the fourth industrial revolution 79 Santhosh Chandrasekhara Kurup Work near home infrastructure for Kerala 82 P M Sasi Reflections from experts across the world 85 Charles Edquist 85 Zhang Liyan 87 Sushil Khanna 89 Mammo Muchie 91 Glenda Kruss 93 Dinesh Abrol 96 Edward Henry Lorenz 98 Anna Kingiri 100

Part III Towards a way forward 103 Reflections from experts across the world 105 Aurora Fernandez Gonzales 105 Luc Soete 107 Sabu Thomas 109 Judith Sutz 111 Jayati Ghosh 113 Arun M Kumar 115 José Eduardo Cassiolato 117 Gabriela Dutrénit 119 Patrick Heller 121 Susan E. Cozzens 123 A V Jose 125 Jose Alexandre O Vera-cruz 127 Jeffrey Orozco 128 New studies on Kerala 129 What is new(s) from GIFT 140

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Editorial Harnessing global expert network

In the last issue of Kerala Economy, we articulated Kerala budget 2021-22 as a blueprint for a great leap forward given its focus on transforming Kerala to a Knowledge Economy. There is hardly any economy which is not knowledge based. However, a knowledge economy is different in the sense that it is based increasingly on knowledge-intensive activities, implying greater reliance on intellectual capital rather than physical inputs. Hence, unlike the traditional economy wherein land, labour, capital and organisation are considered basic factors of production, 'knowledge' is the key resource in a knowledge- based economy. The knowledge could be scientific which is often codified and an outcome organised scientific enquiries. In contrast to the scientific knowledge, there could be synthetic knowledge which is often experience based and remain tacit and uncodified. If knowledge is the key resource, learning has to be the key process. Hence, the key challenges in transforming Kerala to a knowledge economy include; First, creating an institutional architecture that facilitates learning of individuals and organisations regardless of their economic and social status. Secondly, and more importantly, to ensure that all types of knowledge are fully utilised to guarantee an inclusive knowledge economy with shared prosperity. Kerala budget 2021-22 aimed at addressing these challenges through building the infrastructure for the knowledge economy, innovation system and facilitating the process of skilling, re-skilling and upskilling. Addressing these challenges is easier said than done because the road ahead is rocky. Hence, Gulati Institute of Finance and Taxation (GIFT) organised an international consultation towards articulating the know-how of transforming Kerala to a knowledge economy by harnessing its unique characteristics. Jointly organised with GLOBELICS (an international network of innovation scholars; www.globelics.org), the consultation had the participation of the Chief Minister and Finance Minister of Kerala apart from senior policy makers and, technocrats. The deliberations and sharing of experience by the scholars of eminence from about 25 countries from Japan to Costa Rica was especially insightful. This special issue of Kerala Economy, co-edited with Dr. P V Unnikrishnan, intends to present succinctly the outcome of the international consultation while full deliberation will be brought out as a book. The issue is broadly organised into three parts. It opens

5 Kerala Economy Vol.2 No. 2&3, February-March, 2021 with the addresses that set the context for the new vision for Kerala. The second part articulates the key pillars of the knowledge economy and the reflections from scholars of eminence followed by the last part highlights the way forward. It is our hope that the readers will find it useful.

K J Joseph and P V Unnikrishnan

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Part I - Knowledge Economy: setting the context

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Democratizing digital space, prelude to transform Kerala to a knowledge economy Pinarayi Vijayan

The government of Kerala has a vision sector and innovation induced production and is committed to turn the same into a process. Internet and connectivity have reality. Our vision is not a distant dream. brought about a sea change in the way we But a time bound plan to realise the aims. work and how work is being organised. We cannot wait long. Here and now we One can stay connected and work in start our leap towards transforming tandem with others from his home or any KeralaKerala into a knowledge economy. When other place of his choice. Certain countries wewe say this, it may appear to many that we of the world have transformed themselves areare day dreaming or being Utopian. It is into knowledge economies and this neither.neither. We have a plan and we need knowledge diffused fast to other parts of suggestionssuggestions and and expertise to the world. While saying this, I am not operationalizeoperationalize it. Our budget which was ignoring the inequalities of opportunities presentedpresented on on January 15, 2021 had often called the digital divide, which unveiledunveiled plans for transforming Kerala impede the entry of many into the world intointo aa knowledgeknowledge economy. When we say, of connectivity. KeralaKerala hashas to become a destination for We fully appreciate the fact that the state goodgood quality higher education, if there are has to provide the brick and mortar to sceptics,sceptics, they need to take a brief look at build the bridge to cover the divide, which ourour history. They can see the pioneering has closed the door of the digitalised world effortsefforts taken in making primary education to many. The government of Kerala has universal.universal. Our initiatives in the field of recognised access to internet as a citizen's higherhigher educationeducation have also a history of one right and is committed to provide free andand half half centur century.ies . We We have have initial internet to the poor and at affordable rate comparativecomparative advantage like high literacy to others through our project called K- ratesrates andand basic technical skills in certain FONE. We recognise that democratizing sectorssectors.. WeWe needneed toto start on this and build the digital space is the first step to thethe basebase forfor aa knowledgeknowledge economy.economy. transform our state into a knowledge WorldWorld is witnessing fast changes. Factories economy. We want to encourage research andand assemblingassembling units, the face of the in new and sunrise areas and transform modernmodern industryindustry have given way to service 9 Kerala Economy Vol.2 No. 2&3, February-March, 2021 them into innovations which will catalyse higher education. I assure you that you our economic growth. We propose to have a government that cares for this. I establish centres of excellence in various look forward to your valuable suggestions fields of learning and create an eco-system in making our aim a reality in the shortest which will attract best of talents from all possible time. I am not elaborating any over the world. If we could achieve quality further. With utmost happiness I declare schooling, nothing can prevent us from this meeting open. Thank you. upgrading the quality of our higher education and transform Kerala into a knowledge economy. (Text of the speech delivered by Shri. Pinarayi Vijayan, Chief Minister of Kerala, while People who graduated from our inaugurating the post budget international institutions have become world famous. consultation on transforming Kerala to a The list is long and I am not venturing into knowledge economy.) the exercise of citing names. The aim is to make Kerala a destination for quality

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Transforming Kerala to a knowledge economy; a manifesto T M Thomas Isaac

Most of you are familiar with the social cent, the female unemployment rate is as sector achievements of Kerala which are high as 19.1 per cent. It is shameful to note very well known in development literature. that while the labour participation rate of Despite the relatively backward economic men is 73.5 per cent, that of women is only conditions, Kerala has been able to 28.5 per cent. provide much better education, healthcare Therefore, there is always a concern and social security for its citizens. These whether this redistributive path could be are comparable to developed countries sustained. Hence, there is an urgent need rather than most parts of India and this for a restructuring of the economic base has been achieved through a process of and shift in the development path from redistribution and public action. And this low productivity. We must transform to a redistributive strategy of growth has development path which is more in tune ensured that the honorary citizen in the with the resource endowment of the state, state is assured of the basic needs. This both natural and human. Therefore, we very proud heritage we want to take have come to the conclusion that the most forward. suitable industrial structure would be the But there are problems. The economic one dominated by knowledge intensive base has remained relatively stagnant, slow activities. growing and less productive. As a result, It requires huge investment in the unemployment of the educated is the infrastructure, because for the last one biggest developmental challenge faced by century Kerala had focused on social sector Kerala. The present employment schemes spending. We are capital expenditure are inadequate to resolve unemployment deficit. So, five years back we made a bold of the educated. While the national level initiative to mobilize resources outside the unemployment in the age group of 15 to budget through special purpose vehicle- 59 was 5.8 per cent in 2018-19, it was 10.4 Kerala Infrastructure Investment Fund per cent in Kerala. The main reason Board (KIIFB)- that has led to attributed to this is unemployment among unprecedented growth in the investment women in Kerala. While the male for building physical infrastructure. The unemployment rate in Kerala is 5.8 per 11 Kerala Economy Vol.2 No. 2&3, February-March, 2021 total amount would come to roughly half whole process of transforming Kerala to a a trillion rupees. knowledge economy will be coordinated and monitored by K-DISC. The knowledge We are attempting to do two major economy in turn will be built on three key interventions; first one is to create the pillars- digital infrastructure with K-Fon global job portal. Within this small state at its center, a vibrant higher education of Kerala, the total number educated system and finally the Kerala innovation unemployed, including women who are society. just forced to remain in the houses would come to 5 million. So, they will be skilled Digital infrastructure through intensive program of skilling and For transformation into such a society, it placed on this job portal trying to make is essential to have a suitable information an intervention in the new drift or shift in and digital ecosystem. The digitalization the labor market towards say working of schools is a decisive step towards this near home or working at home. Secondly, goal. The new generation can develop we would also want to promote knowledge expertise in information technology and industries within the state. So, we have a access the vast universe of knowledge very big program of promoting opened by it. Internet will be provided free innovation start-ups and knowledge of cost to below poverty line (BPL) industries. And the basis of all this would families. 30,000 government institutions be restructuring of the higher education will be connected by high-speed intranet in Kerala, a very bold program to change facility. The internet speed will range from the entire higher education sector. 10MBPS to1GBPS. The government will The government aims to utilize all the facilitate the growth of fields such as possibilities created by work near home Artificial Intelligence, Block chain and and work from home. Opportunities will Internet of Things. E-commerce and digital be created for companies to recruit services will be made available to employees for centralized or decentralized industrial, commercial and tourism jobs. An extensive scheme is being enterprises including small scale sector of initiated to provide employment to at least Kerala. K-Fon will become a shot in the 20 lakh persons through digital platforms arm for our e-governance system. within 5 years. Changes happened in Towards excellence in higher education global job market and the fame attained by Kerala in COVID defense will help in Our next aim is to transform higher the success of this employment strategy. education in line with our achievements There was no other time the brand Kerala in school education over the past five got discussed even among the common years. Several different indicators are now men. Kerala Development Innovation available globally for measuring the Strategy Council (K-DISC) will be standard of higher education. The most restructured as a registered society with prominent among them is the ranking of the Chief Minister as its Chairperson. The global universities published by Times

12 Kerala Economy Vol.2 No. 2&3, February-March, 2021 higher education. Only one university from new process, new form of organisation or Kerala figures in the list and the ranking a new marketing method. Incessant for this is between 600-800 range. Another innovation needs to be made at all levels prominent ranking is by the Shanghai for the rapid growth of Kerala. Binder-less Ranking Consultancy, which ranks 4000 board made of coconut pith is a product universities across 54 subjects. Not even that can deeply influence the development one university from Kerala finds a place in of Kerala. This idea was born in a these 54 subjects. Investment many times laboratory at the Wageningen University. higher than the present one is inevitable Foam Mattings Limited had converted this in higher education. Similarly, the idea into a prototype in their pilot plant. It approach to teaching and research needs has been proved that a strong plank can a paradigm shift. Both are not easy. We be made from the pith of coconut or from ought to move towards this goal with dust of dry husk of coconut without using resolve. The enrolment ratio in higher any chemicals. When it is turned into a education sector shall be raised to at least product on commercial basis, the change 75 per cent. The all-India average is 26 per in the plywood industry of Kerala will be cent. At present the enrolment ratio in phenomenal. This will not only lead to Kerala is 37 per cent. industrial growth but also ensure at least one more rupee for the coconut even if it To make the higher education more vibrant, a number of fully autonomous has dry husk. Inter University Centres and Schools This budget puts forth a four-point action are being envisaged within plan for creating an environment for universities.The appointments to these integrating innovation in all sectors. Any institutions will be made from experts at person who find a solution to any of the the national level through a search problems in agriculture, industry, service, committee. These centres/schools will business of their locality will have a develop under the leadership of top- platform to upload their innovation. K- experts in the respective fields. DISC will classify and evaluate such new ideas and techniques with the help of Further 500 ‘Nava Kerala’ post-doctoral experts of concerned sectors. In the next fellowships are being instituted with stage, Startup Mission and Kerala Digital support for establishing laboratory and Transformation Mission in unison will other facilities. These post doctaral grade these innovations and ensure fellowships, with a duration of two years, mentoring and financial assistance for will be open to experts within and outside developing them into products. They will the country with a view to facilitate brain take the initiative to spread these products circulation. in society as soon as they get 5-star rating. Kerala - an innovation society Conditions will be created for Government Innovation means the translation of new and Semi-Government institutions to buy or existing knowledge into a new product, such products at a specified rate without

13 Kerala Economy Vol.2 No. 2&3, February-March, 2021 tendering. There will also be a scheme for concepts are utilized. Kerala has remained providing diffusion subsidy in proportion at the top of national rankings for the past to turnover of services and technologies. two years in the creation of environment This is a conscious intervention to ensure for promoting start-ups. that, there will not be any digital divide in integrating new technologies. (This article is based on the budget speech made Start-ups will be encouraged to transform by the Finance Minister of Kerala, Dr Thomas the products coming from innovation Isaac and the opening remarks made by him in promotion schemes into commercial the post budget international consultation on ventures. Start-ups are relevant not only transforming Kerala to a knowledge economy) in the IT sector, but wherever innovative

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Knowledge economy based on Kerala’s unique strengths Bengt Ake Lundvall

Only once before, have I been in this am happy to note that this is not the case unique situation to have a chance to in Kerala!). The neoliberal turn resulted discuss the knowledge economy with a in much weaker emphasis on building a Prime Minister. It was in Lisbon in the year knowledge economy and it implies that 2000 together with Luc Soete who is on governments looked at the labour, not as the program later today. We were invited people or humans who know things and by the Prime Minister of Portugal to can do things - labour is seen just as a discuss how to develop a long-term number. And this is the view which strategy for Europe. One of the main prevailed. themes was to establish knowledge based In 2003 I was invited to China to become development in Europe. The then Prime professor at Tsinghua University in Minister is not completely unknown to Beijing. During this period, I realized that you. It was Antonio Guitteres, now the the Chinese people had inherited a culture Secretary General of The United Nations. with great respect for knowledge. When From the very beginning, there were two this was combined with policies promoting competing framings over economic science and innovation, it resulted in a very policies. One was a knowledge economy strong investment in innovation and framing which aimed at more and better knowledge. To some degree that has to do jobs through investments in knowledge with the fact that most of the leaders in and through building what we call China, had education in science or egalitarian learning economies. But the engineering, not like in the West, in other one was a neo-liberal framing economics or law. The main reason why aiming at more jobs, through structural China today can aspire to become world reform and weakening the position of leader in strategic technologies such as workers in labor markets through what's artificial intelligence is massive investment called 'flexibilization'. Halfway through the in knowledge and infrastructure and the planning period, it became clear that the willingness of ordinary people to invest in neoliberal view had become the dominant. education. Within governments it is normally One of the things I think is utterly propagated by the Ministry of Finance (I 15 Kerala Economy Vol.2 No. 2&3, February-March, 2021 important is to give the concept knowledge performance of private and public economy a broad understanding. I think organizations. that in Europe, China and United States So, I want to emphasize that knowhow for there is a tendency to understand should be regarded as a very important knowledge as closely related to science and part of knowledge when we talk about the high technology. This means that knowledge based economy. Therefore, scientists, engineers and R&D managers and I think very much that this is in line are seen as the main actors. In the with the thinking of Kerala as I just heard education system, there is a strong focus it presented by the Minister of Finance, on universities. I think there are two the knowledge economy is for all and reasons why one should be aware that this there is a need for lifelong learning. It is perspective is too narrow and therefore important to understand that all people problematic. One is economic and the have knowledge. The concept of unskilled other one is political. On the economic worker' is wrong. There are no unskilled side, the diffusion and use of technologies workers. We are all working with which actually is what results in economic different levels and kinds of skills. And performance and social wellbeing will everybody have a potential to contribute reflect the skills and competencies of to the knowledge economy. workers and farmers not only those of scientists and engineers. Second, the One implication is that investment in political is that the knowledge strategy that formal knowledge in the form of only promotes academic training risks to education and research should be alienate the majority of citizens and to combined with building 'learning create social and political polarization. organizations'. We should try to design organizations in private and public Knowledge is more than science and sectors in such a way that people learn information. It is important to know about from what they do and that they get the world, scientists and experts have - strong incentives to learn from what they what we have called know why and know do. As I mentioned before, in the what knowledge. But it is at least as neoliberal economic models, labor is important to know how to change the reduced to a number, but it's not the world. All of us have elements on know- number. It is humans with many qualities how. The housewife's skills are important which can be further developed. Of to determine the health and wellbeing of course, this is general, but I think fits well the family. Workers', fishermen's and into the Kerala model. farmers' skills are critical for making use of new technology. Skilled workers', Concepts such as knowledge economy, technicians' and designer's skills are learning economy, national innovation crucial for absorbing and adapting new systems draw upon theoretical reflection technology. Managers' and public and empirical research from very different servants' skills are crucial for the parts of the world. But before applying

16 Kerala Economy Vol.2 No. 2&3, February-March, 2021 such concepts and transforming them into enterprises, and use them as good political action, I think it's necessary to give examples showing that it pays off to make full attention to the reality of Kerala. I extraordinary efforts. Mobilize knowledge believe very much in pragmatism, which and build skills with equal opportunities, means that the focus should be on what disregarding gender, ethnicity class, caste works best. I think this has to do with how and religion and build trust in society and you mix market with plan, the private to aim at zero tolerance of corruption and the public, and the openness of the abuse of power. I think these are very much economy versus protection. It is more in line with how things are done already in helpful to have pragmatism as basic Kerala. approach rather than specific narrow and Social sustainability is important to rigid ideological principles. transform towards a knowledge economy I have had the pleasure and it was with social cohesion. Ecological fascinating to read the budget speech for sustainability is an important change with 2021- 22, which is a wonderful contrast in respect for the natural environment, not style to standard documents from just treating natural resource in nature as mainstream Ministry of Finance kind of input in the production process, documents. The budget speech is but show some respect for the ambitious. There is strong focus on higher environment. Economic sustainability is education and on research related to to eradicate poverty and create better jobs science, technology, engineering and and cultural sustainability to modernize management. But there's also, which I find and transform society with respect for extremely interesting, a strong gender cultural heritage. perspective on the knowledge economy. I am extremely proud in taking part in this I think when you build a knowledge communication. I think it is nothing less economy in Kerala; you should start from than a historical moment that Chief the unique strength of Kerala. You should Minister and the Minister of Finance take mobilize social entrepreneurship and time off to think creatively about how to grassroot organizations in the transition. use wisdom and knowledge to transform You should leave room for local Kerala. It is great and I am very, very happy experimentation and I think that you for this initiative. Thank you very much. already do that. That is one of your specific ways of governance; you leave room for local and regional experiments and draw (Bengt Ake Lundvall is a Professor Emeritus in lessons from what works in different parts Aalborg University Business School, Denmark of Kerala. Make visible successful efforts and Founder of GLOBELICS) for individuals, organizations and

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Strengthening the learning and research base V K Ramachandran

If Kerala is on the map today for its One of the most striking developments outstanding achievements in the overall in India's public education scenario over field of development, a large part of that the last five years, and perhaps over a progress must be attributed to the much longer period is that since 2017, emphasis that public action paid to the more than 500,000 school pupils in the State led formal education. The state of Kerala have transferred from the combination of land reform and formal fee paying private system to government education, referred to by Professor Isaac schools. Now this is an absolutely and the freedom and progress that comes extraordinary situation to compare what from that has been the basis of the exists in the rest of India. To the sparkling progress of our State with respect to modern structure that now exists in health, social welfare, and the growth of many parts of the state with new desks disposable incomes. Our international and school furniture with electronic participants should also know that, whiteboards in schools. This is surely one Kerala also has the highest per capita of the most moving and perhaps most consumer expenditure among all the important signs of what can be achieved states in India. So that is developed from by a combination of investment, political our progress in what we have called will and people's participation in the field human development indicators. Progress of knowledge. The Chief Minister has been most striking in school mentioned briefly something about education, of course, in the 1980s and experience in higher education, and I see onwards Kerala is the only state that Professor Isaac, but despite our progress, fulfilled investment levels in school despite our history, the overall experience education, that were comparable to that has been that the state is yet to establish of South Korea, Japan, Taiwan, etc. In itself as an outstanding location for recent years, the impact of the present higher learning and research. government policy and the investments The knowledge economy must be based that have been made in upgrading on a strong, independent flourishing and infrastructure and the quality of inclusive system of higher education with education, have been extraordinary. systematic, that is not ad hoc state 18 Kerala Economy Vol.2 No. 2&3, February-March, 2021 support. It is, as Professor Lundvall said The next area which is very important for that may not be a sufficient condition, but us is institutional innovation. Learning certainly this is a necessary condition for from and establishing successful our knowledge economy and knowledge institutional innovations to make society. Kerala's universities academically autonomous and develop flexible The broad themes that are of immediate administrative regulations that are importance to us in the area of higher transparent and responsive to the education are as follows. One is the whole requirements of teachers and students. problem with higher education finance. The next area in which we are trying to This is an enormous problem particularly study and concentrate our attention is in the state in an economic structure networks for teaching, research and where we are perpetually in a state of student exchange that is to substantially financial stringency and difficulties. Take expand our national and transnational for instance, a university that serves in networks for teaching, research and the northern district, Kannur University. student exchange. We are looking very We spend about Rs.75 crores non plan seriously at how to expand innovations and Rs.22 crores plan expenditure. This in libraries, technology and information is what we allocate or what we spend to availability to college students, university something else. So the plan expenditure that we allocate to a university that serves students all over the state. Finally, we need to retain and strengthen the socially about 25000 to 30,000 people on the main inclusive character of higher education, campus and is accountable to about which is our historical heritage and 150,000 people altogether. We spend only legacy. about Rs.22 crores in the plan and about Rs.75 crores on regular expenditure in a We recognize the crucial role that skill year. How we're going to break through training and development play. We have this is an enormous question. certain strengths here. A relative abundance of educated and skilled The second area is that of curricular workers, a long history of innovation strategies to strengthen our entrepreneurship and exposure to the specific disciplinary knowledge, while wider world. We are quite interested in simultaneously introducing some of the International Labor methodological development from other Organization (ILO) proposals in the area disciplines at later stages of education of of skill development and employability, the higher education system. The third particularly the need to link training to area is trying to explore how new current labor market needs as well as technologies of instructions moves for anticipating and building competencies instance, but can best be introduced in for jobs for the future. A key aspect of the colleges and universities and set up inter ILO framework is to expand access to university groups for sharing knowledge. formal employment related training in

19 Kerala Economy Vol.2 No. 2&3, February-March, 2021 order to equip women and men to work development. Then that force in this state in the formal economy. becomes unstoppable. Let me end by saying that where there is a Thank you very much, and I wish you all combination in Kerala particularly of success to this to this deliberations, and I government will from above and the civic look forward to learning from the results cooperation in people's participation of your deleberations. from below. Where these are joined together, as I believe they will now join in our striving for a knowledge economy for (Prof. V.K. Ramachandran is the Vice- a better system of higher education and a Chairperson of Kerala State Planning Board, huge improvement in system of skill Government of Kerala)

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Knowledge based vision for the future of Kerala K M Abraham

Precisely eight days back, we saw a historic Now in the last few budgets, I would say, budget been unveiled in the legislative you could clearly see that the state has assembly hall. It is actually painting a taken some very important steps to finally vision for the future of Kerala before us. arrive at a conclusion in this budget 2021- This vision is focused on the theme of 22 that it is time for the state to make this knowledge economy, Kerala attaining the big leap. kind of heights and position on the Looking at the literature, we can find that international map as the frontier place for Kerala is approaching close to the knowledge economy. necessary condition to move towards My thoughts go back to the budget speech knowledge economy. Most of the wherein I really find that the ingredients knowledge economy transitions, we find of the knowledge economy are beautifully in states, in regions and in economies, captured. Currently, knowledge economy where the service sector is a predominant is a very overused word and is part of the domestic product. And here we underachieved as well. One of the things have exactly achieved that. The other one that has baffled me about the idea of is the society that promotes a learning knowledge economy is that there is no culture. And I can say in Kerala, probably starting point and no ending point. When one of the thing that stands out is it's do we start becoming a knowledge questioning mind, it's discerning mind, it's economy and when do we end becoming a very insightful mind that the society in knowledge economy? That is a million Kerala as such can collectively boast of. dollar question and I don't think there is a The third element is about the society that very definite specific answer, at least in the is willing to make significant investments limited readings that I have done. in higher education. The fourth ingredient Therefore, I come to this inference that the I would say is, what is the level of evolution whole idea of knowledge economy is a of connectivity in terms of internet moving target. The target keeps moving connectivity, in terms of telephone and as a society, you got to keep on connectivity that characterizes the society. addressing that transition and I think on all these four ingredients, we are dynamically pursue it. 21 Kerala Economy Vol.2 No. 2&3, February-March, 2021 at a stage wherein we will be soon achieving the Vice-Chancellors of the universities the degree of necessary conditions. and the directors and the CEOs of the key skill or research institutions of the state. Now, at this juncture, assume a scenario where we would not have focused on Now, over the last eight days I would say knowledge economy. Kerala at some point me and my colleagues have been trying to in time, like any other society, will become find out the appropriate design for a skill a knowledge society. So what this budget, portal that will essentially focus not only actually does is to compress the gestation on conventional skills, but on what are the period for this big leap and that is where things that we need to clearly address in the tricky part comes. It is not an easy job. when we plan for the transition of the state After the budget was announced, a few of into a knowledge economy. One of the us have been meeting and deliberating mandates that the Honourable Chief about what is the next step. Minister has given us in the meeting is that we have got to hit the road running and We are particularly happy that our efforts we got to start and launch this program in in the last three years are bringing in the first or the second week of February. innovation in several spheres. We have We are gearing towards organizing a very now about 1000-1500 students selected for generic skill platform without getting their innovative projects. We have a ourselves logged into rigidities or into couple of social projects which are specificities, so that the platform can grow happening in various districts of Kerala. organically, interact with the thousands of We have some innovation programs for institutions and local communities in the differently abled children, and we have Kerala and probably, be one of the first about 20 very high-tech emerging decentralized skill platforms in the world. technology initiatives and innovations, That is the aim that we have set for that's going on. Perhaps one of the reasons ourselves now. I am confident and sure why the Honourable Finance Minister that the deliberations of this seminar will chose K-DISC as a coordinating agency be of great and of invaluable strength. for bringing in the various aspects of skill, or meeting skill deficiencies and improving Thank you very much. I wish the seminar the skill base of the state perhaps comes all success. Thank you. out from this recognition. The K-DISC that we are going to get transformed into is going to be chaired by the Honourable (Dr K.M. Abraham is the Chairman of Kerala Chief Minister, it will comprise of very key Development and Innovation Strategic Council ministers of the Council, and it will have (K-DISC)) the Vice-Chairman of the planning board,

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IT stimulus for the knowledge economy Deepu Zacharia

I would like to first start off by saying to population (4.4 million IT techies). This Dr. Thomas Isaac, the promises and the is the highest in the world for the very foundation for laying down this concentration of IT talent in one single knowledge economy as a roadmap for country. Kerala is welcomed by the IT industry of Where does Kerala stand? Three billion Kerala, thank you Sir. Before I go into the in revenue from IT, 1.5 percent of the very ideology of emerging economy, Indian IT population comes from Kerala. knowledge, tourism or IT, all this will need Developed markets are high cost and high a stimulus to start the growth and the revenues, but Kerala is high cost and low stimulus is exactly what Kerala as a state revenue. How do we counter this? This is is searching in all of us. The budget is the bigger question that we have in front certainly aligned towards this stimulus. of us on how to derive this knowledge And for a better understanding of what economy. I'm going to focus on this special address today and I'm supposed to be focusing Let me compare two geographic locations- on the IT industry because I come from Kerala, and New Zealand. The population there. of both these locations are spread like 34 million in Kerala and 5 million in New I want to put down some numbers. The Zealand. The GDP of Kerala is at 140 IT spends globally, if I look at traditional billion dollars, whereas in New Zealand, it and new technologies put together for the is 193 billion dollars. The productivity is year 2019, stood at staggering 3816 billion that 4,170 US dollars versus 38,600. What US dollars. In 2020, it had a small dip and are the sectors that we work in? The it went to 3609 billion US dollars. But in sectors that we are work in Kerala are 2021 it is supposed to be growing to 3755 agriculture, tourism, IT and manpower billion US dollars. In India, the market exports whereas if you look at New size for IT in 2019-20 was about 191 Zealand, it is agriculture, tourism, and billion US dollars aiming for 350 billion dairy products alone. So IT is the biggest US dollars by 2025. This means that 8 boost that we have in Kerala that needs to percent of India's GDP is being be tapped for boosting the economy. contributed by 0.34 percent of the 23 Kerala Economy Vol.2 No. 2&3, February-March, 2021

About 30 percent of the total population and pick a space like what Andhra of companies like Infosys, Microsoft, and Pradesh is doing. We need to support Wipro consists of Keralites. We need to local companies to set up shops and these capitalize and increase our footprint in costs needs to be looked at and we need Kerala to take it to 10 percent or more of to bring down the cost that becomes more GDP. We have got few connectivity issues attractive for people to set up shops here which the government is definitely in Kerala. Incentivize industry-academia working on. We should have them partnerships. We need academia resolved quite soon. This opens up easy partnership for driving innovations. If I air connectivity to the Far East and the look at it, India is a top most offshore west. The potential for Kerala's IT destination for IT companies across the opportunities are still unexplored. We world and it is just going to grow and the have to speed up and for this we need to dependency that the world is going to increase the availability of supporting have one India to provide outsourcing is infrastructure of the state to bring out going to grow in the coming years. The the talent that we have inside of us. industry is expected to grow by 350 billion by 2025. Kerala needs to be a key Now, transforming our state to become a contributor in this space and for this we knowledge economy is key in ensuring need to transform the state into the best that we meet the targets of goals that the state is set to achieve in 2020-25. And knowledge economy. some of the visions that I would like to To close my remarks for the day, I would table for 2025 are the vision to make like to open up this thought to everybody. Kerala IT a 10 to 15 billion dollar industry The pandemic did not put the IT industry in the span of next 7- 10 years. This will in the back foot. Instead, it has accelerated directly create 3 lakh or more IT jobs and the need for states like Kerala to wake up 15 lakhs indirect alternate jobs. For this, and run faster. Thank you. the government needs to invest in consolidating existing IT parks and infrastructure around it. We should make (Deepu Zacharia is joint Secretary, Group of it attractive for large investors to come Technology Companies (G-TECH) Kerala.

24 Kerala Economy Vol.2 No. 2&3, February-March, 2021 Vol.2 No. 2&3, February-March, 2021

Part II - Pillars of knowledge economy

25 Kerala Economy Vol.2 No. 2&3, February-March, 2021

26 Kerala Economy Vol.2 No. 2&3, February-March, 2021

A. Digital Infrastructure

S Somanath

I am really happy to be with all of you to import a lot of these equipment, and the panellists to chair this session. In assembling them and provide the type of building up a knowledge economy for the services that we hope to provide. The state, I’m really glad that a lot of people market is much more in building those are showing enthusiasm. I had the ground infrastructure by ourselves in our opportunity to listen to all those people own industries. So we have to look at how in the inaugural session. It has set the ball the need for this network or the rolling with regard to what the infrastructure will actually enable the government is looking for. It is really very industries to grow. This is one area which interesting and I’m really happy that we we should address. are discussing on the infrastructure for Similarly, when you want to look at the knowledge economy in the first session. space-based infrastructure, there is When we talk about the infrastructure of something that is coming up very fast. the knowledge economy, there are many How can we give the required connectivity elements to it. In this session we are directly from the space. And this is one talking about the two of the important area which we are all interested in looking building blocks. The first speaker will deal at how the new thought process in with the telecommunication networks providing network connectivity directly and the second speaker will deal with the from the space routes. When it really electronics manufacturing activities that happens there is another area which is the KELTRON stands for. going to develop. This is basically the Infrastructure, however, is not limited ground-based data reception systems these two areas alone. There is much that the networks and the corresponding more in this area. Of course we can build equipment which are required for those into it the networks and connectivity, the type of nano systems. In addition, there servers, the storage systems, the satellite is a large amount of infrastructure networks that actually can bring about requirements which don’t directly deal the real connectivity. These are all part of with the IT and IT enabled services. But the important IT infrastructure. Now, for there is quite a bit of other building IT infrastructure, it is not enough 27 Kerala Economy Vol.2 No. 2&3, February-March, 2021 establishments that we need to look when manage it? So, the technical and you talk about the infrastructure which organizational structure of this whole was discussed earlier. This is basically the system that we are thinking about is educational system, the transport something which actually puzzles me. network, the services sectors, among How do you really want to create it on others. Now, all of this really contribute our own, and not to merge with overall to building the right type of global system? I’m really sure that the infrastructure for this knowledge eminent panellists are going to deal with economy to start. it. I don’t want to make a big talk on it. I only It’s not enough that we create all this want to point out some points which infrastructure. We should also create the could be deliberated upon. To begin with, specific knowledge, which is required for there is the need look at the investment serving the whole knowledge society. In that is needed in creating such an fact, the creation of the knowledge is also infrastructure. The question is whether requiring its own infrastructure. For we go ahead and create it in an example, the type of the data that you incremental manner and then grow to a want to create; when the lockdown came, bigger size? Another important issue we are short of the lectures which are which we need to tag is about the required to be delivered to students; we obsolescence and hence the update that were finding it difficult to create required is required for the infrastructure. Is it not materials for them. For creating those enough that you actually put in place large amount of data, which is required some infrastructure which could be for the changing world, we need to look updated periodically? Such an outlook is at what are the type of infrastructure justified especially because we are dealing needed to create the information or the with a fast-changing technology. Yet knowledge itself to serve the needy another issue is related to scalability. Of people. So, these are the points which I course, you cannot plan a massive want to highlight today and I don’t want network to start with. You start with to elaborate. something, then progressively increase it to cover larger areas and what should be the architecture in such a system? And (Author is the Director, Vikram Sarabhai Space how do you really look at the Centre) performance and how do you really

28 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Design and vision of Kerala-Fibre Optic Network (K-FON) Jayasankar Prasad and Santhosh Soman

Kerala government wants to create a state is the poor fiberisation of the telecom knowledge powered digital society through towers. Nearly 36% of the towers are digital empowerment of citizens and connected to fiber and remaining are promote digital lifestyles and e-commerce. connected through microwave which can This is possible only if we have a proper provide only limited bandwidth (50 to information infrastructure in place for 100Mbps). So fiberisation of all the towers effective communication, processing, and with the existing fiber infrastructure is not dissemination of information. Kerala possible. Government has done a study on existing Hence, Kerala Government has decided to TELCO infrastructure and found that there move forward for building a proper fibre is only limited fiber infrastructure in rural infrastructure to bridge the digital divide areas. 4G services in many places are not and provide proper connectivity to all proper available. The Government / Government institutions and leverage the Educational institutions are now getting infrastructure for TELCOS so that they can broadband services from various TSPs. deliver proper broadband services in all Existing Kerala State Wide Area Network parts of the state. The main scope of the K- (KSWAN) infrastructure provides FON project includes the creation of a connectivity to nearly 3800 offices. KSWAN highly scalable and resilient core fiber infrastructure is not scalable to provide infrastructure, provision of high speed connectivity up to 30,000 institutions. connectivity to 30,000 Government Department of Telecommunications (DoT) institutions and to be an infrastructure has conducted a comparative study with provider and share the infrastructure for respect to broadband density among these TSP/ISP/MSPs. high teledensity states and Kerala is not in a back position. In urban areas, we have 92 While designing KFON infrastructure, and rural areas it is 57. This is not sufficient main considerations are 1. Reliability and to achieve the vision of Kerala Government’s availability perspective. 2. Optimize the fiber “Knowledge Powered Digital Society”. consumption and also optimize the cost and time. Considering these points, KSEB One of the main reasons why Kerala is not infrastructure has been selected as the having proper 4G connectivity across the 29 Kerala Economy Vol.2 No. 2&3, February-March, 2021 platform for laying fiber since KSEB 5G is the upcoming technology. TSPs are in infrastructure reaches most of the areas of the final stage of designing and the State. Accordingly, it has been decided implementation of 5G in India. 5G requires to lay fibre on KSEB Poles (Transmission large number of towers/ small cells because and Distribution network ) and construct it is high speed connectivity and it is PoPs in KSEB substations, because the operating at a high frequency. So we need to power failures in substations are very rare. have more number of 5G towers/ small cells Having decided to lay backbone fibre over to cover the entire geography. Since we have transmission line which is more safe, there fiber infrastructure across the state and it is only a remote chance of Fiber cut over is laid over KSEB poles, small cells can be transmission line. installed on the pole itself. TSP can reduce a lot of CAPEX on 5G Roll out. In order to cover the entire geography of the state, it has been decided to go for tiered With this infrastructure in place, we are architecture which includes Tier I (Core), expecting many benefits to the citizen which which connects all the districts, Tier II include 1. Human capital development: (Aggregation), Tier III (Pre- Aggregation) Remote delivery of education, job creation, and Spur for the inter-district connectivity. skills enhancements and remote access to Also while choosing the technology we had health care etc. 2. Infrastructure a lot of deliberation on various technologies development: which basically smart cities, currently available and conducted smart villages, smart grids and workshops with major technology transportation management all can be providers. Finally, it was decided to use addressed using KFON infrastructure 3. DWDM technology for the inter- district Infotainment: Proper information sharing traffic, IP-MPLS for intra-district traffic and and best practices related to e-governance, GPON technology for access network. agri-techniques etc. Also building a platform for delivering services like IPTV, Expected outcomes of K-FON include OTT, Content delivery services etc. 4. bridging the digital divide by providing free Innovation will happen with the internet to 20 lakh households, leveraging collaboration of communities like K-FON infrastructure to TSPs on a non- researchers, developers, product discriminatory basis so that they can development etc. Hence KFON is going to provide high speed broadband connectivity be the key enabler for the knowledge-based to households in rural areas, providing a economy. scalable bandwidth from 10Mbps to 1Gbps to the government institutions, depending upon their requirement, providing high (Dr Jayasankar Prasad is the Managing Director speed connectivity to Start-ups, IT Parks, of Kerala State Information Technology airports, and Wi-Fi Hotspots. K-FON also Infrastructure Ltd (KSITIL) and Mr Santosh provides free access to the e-learning, e- Soman is the Implementation Head, BEL.) health, e-Governance applications which are hosted at SDC.

30 Kerala Economy Vol.2 No. 2&3, February-March, 2021

A vision for electronics systems design and manufacturing T R Hemalatha

I would like to deliberate on the dream improving the infrastructure is or vision of Kerala State Electronic important. I also would like to dwell upon Development Corporation (KELTRON) the R&D eco-system in the state which is and how the electronics can thrive in the of paramount importance for this state because, more than manufacturing industry. we are supposed to be an umbrella Then, second is the current challenges of organization which is to promote other electronics industry. Ford is shutting segments of other suppliers in the state. down the plants in India for want of The demand for electronic goods in microchips. Due to chip shortage, general, especially that of mobile phones laptops production is getting delayed by and computers, are growing in an five months. This is typically a pandemic exponential manner and India is situation because the global demand for emerging as a second largest market. Of laptops and mobile phones have gone up late, in Kerala also there is an uptick in and everybody wants to be at home with electronic system and design the classes and work from home. manufacturing with 268 new units were Similarly, the delivery period has established since 2014. Our Hon’ble Prime increased from 26 to 30 weeks for Minister said by 2020 India’s import bill microchips and power device. for electronics will be more than Expanding Kerala’s footprint in petroleum. I think we are fast approaching electronics, KELTRON, as everybody says to that state. If the country is not was the dream company in India itself preparing itself, we are going to find our during 1970s and now due to various foreign exchange eroding in a very big reasons it slipped back. The slippage has way. I think that both the state and the not been with the KELTRON alone, but Centre are taking the right steps in for the country as a whole. Hence, it’s not identifying drivers and providing that the KELTRON alone but the entire encouragement to establish a stable and country has gone back. In this process robust electronic manufacturing eco- why not Kerala’s electronics takes the system. The rising middle-class lead. This is especially important given population is surely again a driver and 31 Kerala Economy Vol.2 No. 2&3, February-March, 2021 the commitment of the government to hardware which are going to be in heavy provide employment to all those who are demand. The State can incentivize them educated but remaining unemployed. so that they come here and give the mass employment which is a key requirement Why not the state promoting Make in of the state. The MSMEs could be Kerala brand for the electronics. It should expected to play the feeder role. I have finally contribute to the economic growth seen 88 new chip design companies of Kerala. This is especially important located in Bangalore itself. So why not because our good talent is going outside Kerala also have an ecosystem in which the state and outside the country to grab big companies establish their R & D and the opportunities. Why not we create an chip design and other electronic design R & D and innovation system so that our facilities which doesn’t require much talent stays here and contribute to the infrastructure. This is something which state. There is a lot of potential in all we can really focus and develop easily. segments of electronics; consumer electronics, industrial electronics, Then let me come to the manufacturing. strategic electronics, communication and Develop three clusters on a focused broadcast electronics, computer approach. Why I say focused because hardware and electronic components. while the requirement of each sector of electronics is specific, the common Let’s come to the plan and strategy. We facilities are almost the same. We could can build a good ESDM ecosystem. So, list certain things that may be required what is this ecosystem? Encourage ESDM here. Then the FDI and other large start-ups and MSMEs while existing companies should be incentivized to companies are given support from the make additional investments. industry and institutions in Kerala. Build the skill and quality talent pool along Finally, I would like to summarize, stating with electronic manufacturing clusters by that this is not impossible, given the right encouraging domestic and FDI funding. focus we can develop the much needed Establish three, at least minimum two, manufacturing ecosystem. Thank you. electronic manufacturing clusters in South, Central and North Kerala. Let us ensure that FDI and major players are (T R Hemalatha is the Managing Director of invited to the state so they are part of the Kerala State Electronics Development consumer, components and computer Corporation Ltd)

32 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Reflections from experts across the world

Hideki Esho Professor, Hosei University, Tokyo, Japan

Although I am a Kerala lover, my historical, and cultural heritage and knowledge on Kerala is quite limited. So uniqueness of Kerala, such as the highest my remarks on Budget speech of Dr. overseas remittance economy (20.7% of Thomas Isaac are quite general. NSDP in 2013-14) and the highest per capita consumption economy among My first remark is on the object of Indian states, a highly service sector transforming to knowledge economy. I dependent economy (62.1% of SGVA), and should say the final object of a highly urbanized society (47.7% of the transforming the knowledge economy total population of Kerala), higher should be placed on an enhancement of population ratio of Christians (18.4%) quality life of the people. In other words, and Muslims (26.6%), and a decentralised transforming to knowledge economy is government. means of enhancing quality of life of the people, not the object itself. And finally, transforming to the knowledge economy could be attained My second remark is how to make use of even by making use of disadvantages of uniqueness of Kerala society and Kerala, such as second highest economy to transforming to knowledge unemployment ratio and the highest economy. Transforming to knowledge income inequality among Indian states economy could be attained by making use (Kerala's income equality is driven by the of competitive advantages of Kerala, such super-rich, top 1%), highly dependent on as highest literacy rate (93.1%) or the inflow of migrant labourers from other highest human development index states especially in construction sector, (0.779), relatively higher income per the highest labour cost and the lowest capita, low poverty incidence (BPL 7.05% population growth rates among Indian in 2011-12, compared with 21.92% in states. Kerala is approaching to an aging overall India), gender-bias free society society preceding other states. (1,084 female per 1,000 male), and abundance in tourism resources. All these things show that Kerala is an exception among Indian states. So I Also transforming to knowledge economy could be attained by making use of would say all these competitiveness, 33 Kerala Economy Vol.2 No. 2&3, February-March, 2021 uniqueness, and disadvantages of Kerala coir, spices, coffee, tea, rubber) where clearly indicate the necessity and competitive advantages of Kerala lies. The inevitability of transforming Kerala to purpose is to upgrade the quality of knowledge economy to further goods and services to the global strengthen competitiveness as well as to standard, that means to realize a "higher overcome the weakness. Brand Kerala quality-higher profit" economy. campaign would be required in a big way And fourth suggestion is to further to attract foreign as well as domestic promote the Kerala start-up mission. investment. Also knowledge economy Kerala is ranked as one of the top should be inclusive. performers in the start-up ranking. Under Now, I would like to present some the banner of KSUM there are more than suggestions. Maybe these are already on 2,200 registered start-ups. However, the agenda or are in progress. The first presence of IT/ITeS companies is still suggestion is to set up Kerala platform, limited compared with other top which means a collection of open API, performers such as Maharashtra or depending on Aadhaar. The main Karnataka. Availability of funds and purpose of this digital platform is to skilled workforce remains a challenge. To promote innovations of private develop applications corresponding to companies. smart phone is one of the most promising area in start-up business. Especially My second suggestion is to make use of promoting e-commerce is required. E- Non Resident Keralites, their knowledge, commerce has a huge potential of expertise, and savings. It is necessary to regenerating employment, especially that create some mechanism to channel of women. Women are able to work from overseas remittances to entrepreneurial home, which is enabling them to activities. simultaneously meet demand of their The third suggestion is to promote home and their carrier. E-tail creates not practical use of ICT knowledge in many only direct employment opportunities, fields, not only in medical services, but also create employment in logistics nursing, health care, education, but also and warehousing, and also create in tourism (including medical tourism, technology and corporate jobs. Ayurveda tourism, domestic pilgrimage That's all. Thank you very much. tourism, Kerala cuisine tourism), food processing (including marine products), and plantation crops (such as cashew,

34 Kerala Economy Vol.2 No. 2&3, February-March, 2021

G Vijayaraghavan Honorary Professor, Gulati Institute of Finance and Taxation.

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35 Kerala Economy Vol.2 No. 2&3, February-March, 2021 look at China, where you see a lot of small manufacturing, which they were able to companies and start ups coming up. A do, the quality of the of the product which company out of Shanghai, which I visited came out of the Penpol, now Terumo two years ago, is able to prepare a design Penpol, was of the highest international ڀfor a product and the product prototype RVBMJUZ is ready within a day, not in Shanghai, but We need to be clear as to how the state is the manufacturing is happening in going to support business here. How do Shenzhen, where there are companies we support companies to get out of the who will convert this design within a day state orbit to get into the national level into a prototype. For us, anywhere in the and how do we then get out of that orbit country, it will take at least two weeks plus. for the products of the company to be Ultimately, the prototype comes from competitive internationally. In the BOZ
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36 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Raja Rasiah Distinguished Professor, Asia Europe Institute, University of Malaya- Malaysia

I shall address a few points in relation to schools but was overtaken in this area by the knowledge economy, and I am sure latecomers, such as Taiwan, Korea and having been to Kerala many times, a state Singapore. popularly referred to as Gods own Taiwan and Korea did not just lay Country, and, of course, having read broadband digital infrastructure and Amartya Sen's very articulate book, the provided computers with internet Argumentative Indian where he glorifies support as in Malaysia, but importantly Kerala, I believe that the structures are connected and enabled the members of there. Quoting what Deepu Zacharia society, including school children with the mentioned in the earlier session, 'that knowledge nodes in their countries. 30% of the skilled personnel working in Listening to Dr. Hemalatha, I see that she IndianIT firms are actually are from has a good idea as to how that can be done Kerala. Hence, the latent potential is there in Kerala. I am speaking from meeting for hiring, provided you can offer the hundreds of design engineers I met while ecosystem that Vijayaraghavan giving a public lecture at IIM Bangalore mentioned just now. Now I think even in 2005. Kerala very much has the that can be created, but let me just put it capability for appropriating synergy in the context of how I have done my from that experience and provide the research on this topic. initial incentives to attract a critical mass Looking at the proliferation of IR 4.0 of such engineers, which should then technologies, the digital infrastructure snowball into a viable IT supporting required, especially broadband community. Connections and infrastructure, along with the other coordination between firms, important instruments like cloud intermediary organizations and related computing and a range of other things government instruments are very that are done in Malaysia, I believe important. adapting what countries are doing higher The transformation of Taiwan to in the technology trajectory will help embrace robots and drones began Kerala cheapen and quicken catch up. intensively since 2017, which even Malaysia started early in 1999 with smart 37 Kerala Economy Vol.2 No. 2&3, February-March, 2021 extended to agriculture. They intensified in science parks. Instead of completely self-sufficiency strategies aggressively reinventing the wheel, something we from 2017 when Trump declared trade members of the Globelics advocate, we war with China. Similarly, in can shorten, cheapen, and simplify the manufacturing Trump's trade war catching up process by looking at literally forced Taiwanese from selling successful organizations higher in the microchips to Chinese firms, including development trajectory. Keralites can and Huawei. Hence, Taiwan re-shored food- will of course create new stocks of based agriculture and manufacturing well knowledge but in a manner where they before the COVID-19 pandemic struck. evolve collectively with adapted While drones and robots are extensively knowledge from abroad. deployed in farming, manufacturing is I am confident that this God own loving increasingly driven by robots in Taiwan. country will do well to achieve IT I think you will need to look at why and integration with positive synergies in the how they were able to have robots space of little time. I encourage the milking cows, ploughing fields, and intelligent leaders of Kerala to visit both drones playing a key role in farming. successful (e.g. Taiwan and Korea), and Small farmers and small firms engaged not very successful (e.g., Malaysia) in farming and agriculture in Taiwan countries to develop a profound remind me of the organization of understanding of how effective industrial districts in Italy, though the ecosystems can be planned to support the structures and players are different. development of digital infrastructure to My kind of research requires me to visit appropriate IR4.0 synergies. the place, I go into the firms and farms, Thank you. and also map the links between all the components of the ecosystem in which they operate in, including the incubators

38 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Sreejith Nair CEO, Coconics Private Limited, India

Taiwan and Kerala share a lot of geo- of manufacturing clusters. There are political or rather demographic huge electronic manufacturing clusters, equations. Taiwan is just 90 per cent the led by Original Design Manufactures size of Kerala and where were they in (ODMs); which are those huge companies 1970s, and where are they now. So this that use the design or what is known as point rises to another interesting part - the master reference design given by big why I believe that Kerala has much to do corporations and produce. They are not with fourth industrial revolution? Kerala Original Equipment Manufacturers has a DNA of electronics manufacturing (OEMs), they are ODMs. Foxconn, the system and also the DNA coupled with third largest company is not an OEM it something which is suited for hardware is an ODM. So we need to have a concrete manufacturing or assembly. I like to use steps to attract Foxconns, Restonds and the word finger dexterity; workers of Pegatrons. We could have been somewhat Kerala are very good at traditional near Taiwan or Malaysia when five or six business like cashew, spinning wheels etc. years back when the multinational We have a unique skill of the finger companies started the strategy of China dexterity. We do have an ecosystem. We plus one. China is no more labor cheap. have skilled people. We are going to create The industry started moving out of China skilled people, to create a lot of skilled clearly shows the higher cost of assembly manpower. Are we going to just use them of electronics. Kerala is at par or cheaper for human resource export? Are we going than China and we can do quality to remain as a region with four airports products better. At least 100 companies and we are going to export this skill have moved out of Taiwan and China. abroad or are we interested to create They have moved to countries like some industry in this state, whereby these Vietnam, Malaysia and Mexico. They people can get jobs? The answer is, yes. moved to Thailand and many of them are Electronics industry is the answer to this. moving to India. We should have a clear cut strategy probably led by K-DISC to We have a few other electronics attract those companies to Kerala. Kerala manufacturing sectors. Why can't all this has everything, like people who are come under a cluster town or a country 39 Kerala Economy Vol.2 No. 2&3, February-March, 2021 spending abroad. Lot of people are operation; you will take at least two to coming back to Kerala, not only with three years. The first two years you need money, they are coming with skill sets nurturing from the government. If an also. These people are willing to work at industry has to come to a state, you need much affordable sideways in Kerala. So firmly committed nurturing from the there is a market which we need to tap. government. Secondly, you need to make The government has to demarcate what sure about investment flows. What is not the government is going to do, what the available in this country is working private enterprises going to do and what capital. Young entrepreneurs have ideas, is private- public participation going to they have skills, why they cannot scale is do, so that there is no conflict of interest. due to unavailability of affordable, or rather easily available working capital. Taiwan caters for approximately 60 per So, I request the government or the cent of the production of electronics policymakers to facilitate finances. When equipment and Taiwan has only a we have a knowledge economy, we should population of 24 million. The question is also have an electronics industrial base demand aggregation. If an industry has for which you do not need huge to thrive in Kerala, there has to be investment, you don't need big area, you demand aggregation. So when you start are not polluting industry. All you need to crawl, you are in the nascent stage and that is when the government has to pull to have is consensus decision by the people. and don't expose you as the world is not fair. The competition is not fair for the company to have commercially viable

40 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Rasigan Maharajh Professor Extraordinary, Centre for Research on Evaluation, Science and Technology, Stellenbosch University, Republic of South Africa

I want to preface my comments by sharing submitted by my fellow eminent panellists. with you all that I am speaking to you from These concerns are: 1) the importance of a continent of approximately 1.4 billion planning, and development; 2) the people in the midst of the global covid-19 essential function of high-quality and pandemic. As I speak, much of the core ubiquitous public infrastructures; 3) capitalist economies of world systems and recognising the significance of social many from the semi-periphery, including shaping of technology and continuously Brazil, Russia, India and China are improving the progressive engagement preparing their citizens for vaccinations. between science and society; 4) redefining Africa has neither the vaccines nor the and expanding local productive productive capabilities for their competences within planetary boundaries, production. Whilst we face the gloomy and most generally: 5) learning from prospect of being left behind or relegated doing, and doing better through learning. to back of the queue, we all know that none Firstly, the State of Kerala is universally of us is safe from covid-19 until all of us acclaimed as a strong teacher of are safe. This sad reflection at this time in developmental praxis. As we now venture our contemporary conjuncture provides further into the 21st Century of our a useful segue to the comments I want to Common Era, skills require nurturing and offer on the presentations by our upgrading to meet the technological colleagues on the electronics sector and the advances and economic dynamics that knowledge economy. inform world systems in our I want to emphasise the contextual and contemporary conjuncture. We, in the historical nature of our developmental global South, look to Kerala to learn more, experiences. I want to challenge the and benefit from, the lessons generated in misstatement that suggests we in the praxis of state capability improvements global South missed the first industrial through planning. revolution. I would like to raise five main Secondly, high-quality public points arising from the presentations by infrastructures which are universally our colleagues. Builds upon the previous accessible and ubiquitous perform an pertinent and critical comments already 41 Kerala Economy Vol.2 No. 2&3, February-March, 2021 essential function in world systems that boundaries whilst simultaneously seeking are in the main, essentially neoliberal, and the expansion of domestic productive underpinned by global corruption and the competences. The comparative malevolence of private accumulation. advantages of Kerala suggested by our fellow panellists reveal a wealth of The South African situation stands in capacities, capabilities, and competences stark contrast to the positive depiction of forged over a long period of development. progress in the Kerala-Fibre Optic As Kerala has been a knowledge economy Network. We must also learn how to better for most of its existence, ramping up the align our propensity for innovation with intensity of knowledge production and the mundane yet crucial requirement of utilisation suggests even exploring a maintenance and upgrading of critical circular vision even for the digital public infrastructures. Have we put in ecosystem. place the necessary apparatuses, equipment, and software interfaces to Fifthly, and finally, Kerala's equitable allow and encourage greater utilisation of development history need to sustain and high-quality public infrastructures and advance in the current epoch through are these reconciled against our internal more learning from doing, and by the demands whilst advancing our utilisation of knowledge, doing even better possibilities of enabling autonomous through improving our competences for sovereign policy and technological choices shared learning. History has afforded based on our revealed realities? Kerala the brand value of progressive Establishing and maintaining critical values and this stands the State in a better public good infrastructures such as the position than other brand-labels that are fibre network of Kerala must be lauded unfortunately marred by their respective and protected from the predatory and exploitative praxis. Our localisation of rent-seeking instincts of private productive capacities, capabilities, and entrepreneurship and as well, the competences offer many more advantages stagnancy of bureaucratic state capture to Kerala and these also require further which serves to maintain the semblance of attention and support. We are all proud power whilst disempowering the masses. of Kerala and its developmental pathway. As a guiding light to us all in the global Thirdly, in recognising and acknowledging South, we look forward to learning more that technologies result from social from you and your experiences. Thank you shaping, we must consistently seek to all again for the opportunity to participate expand and improve the progressive in this significant engagement and I wish engagement between science and society. all the best in advancing a better life for all Fourthly, we must embrace a continuous through ICTs.Thank you process of defining and redefining our developmental trajectory to keep within the ecologically defined planetary

42 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Prince Joseph Chief Information Officer, SFO Technologies, India

I believe that the speech by Honourable We are now looking very seriously at the Chief Minister and Honourable Finance industry 4.0 solutions. This is the time to Minister has laid the background for a get hyper-connected. So internally we are digital platform for Kerala. What sparks a vertically integrated manufacturing our interest and catches the signals on company in all sense of the word, for our antenna is things like the explicit products and for process. And now, we mention in the State's Budget about want to expand on that, spread out and Digital Platforms and trying to pave the become horizontally integrated, linking way for a whole new set of job creations our supply chain with higher integration in this area. and data sharing with our suppliers and our customers. In fact, our approach Enabled by the understanding of what went through a couple of iterations and happened through the pandemic and the we finalised at the moment on seven '(WFH) work from home', '(WFA)' work streams, where we actually need to focus from anywhere kind of culture, there is a on for our core business. readiness now for the new normal. This means a great commitment for ensuring We have heard of Foxcon and Keltron that the K-FON project goes through and SFO and they have all had different seamlessly, and the socially ambitious journeys in the past two and a half plans such as provision of laptops and decades. The way ahead requires a new internet connectivity across the state to set of thinking, capability, skill set, and all the families that need it. There is a real strategy. There is a need to migrate from drive and momentum in this space. a legacy mindset into a growth mindset. What is needed for the future and by our How do we keep that production line next set of customers is to demonstrate running? That disruption actually forced industry 4.0 capabilities. us to start innovating, to start thinking about how to improve, to think about On exactly what can be reused, optimised, how to reduce the dependency on some one example is a better view on inventory, of these risks that we encountered, which across locations, sites, divisions and will affect our bottom line. production stages and utilising this

43 Kerala Economy Vol.2 No. 2&3, February-March, 2021 knowledge on material availability to having segregation and a good layer of gain benefits. There was a study and cyber security coming in all these analysis that we did and, we came up with elements. So the investment suddenly on a solution that to a good degree of that front has also garnered more accuracy projected what output we can weightage. produce based on the material at hand The helpful fact is that investment in IT irrespective of demand. So, how much and IT projects or technology projects can we potentially convert at any given which is going to be enabling new lean point of time. modern production operations is not So a lot of that is gone into Integrations hampered; there is recognition of that of data systems and tuning of processes. from all stakeholders. There's an So I was listening to Madam Hemalatha awareness and an appreciation that, it is and the plans at Keltron and I was also necessary for us to maintain even the thinking, there are some battles. There are position that we have today. And only some lessons. There are however some then can we even imagine or expect to have important steps that we can probably future growth. work on at the moment. My focus has So, I look forward to listening to more of always been about trying to ensure that the expert panels. I went through the the operations are geared towards our names and I thought this is an incredible customers' needs and most of our target array of experts from across the globe customers are overseas or export who is weighing in with their inputs. I oriented. probably don't fit in this elite Another critical element, I think nobody academically brilliant panel. So I'm really touched on till now is on the cyber humbled and these are the thoughts that security. One of the areas where we need I just wanted to share and I'm happy to to have a heavy focus is on cyber security take any questions or participate in the as we are stepping more into OT, which is future discussions. Thank you. becoming automated and integrated to the IT layers. You can't do that without

44 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Keun Lee Director, Center for Economic Catch-up, Seoul National University, South Korea &Vice Chairman, Presidents Economic Advisory Council

Actually, I was supposed to be in the efficient means to achieve this. You can session one, but I had a meeting with the make education not only efficient but also Council (of Economic Advisors), so I based on mass customization. Another couldn’t join that time. Now I’m glad to thing is digital labor market. Nowadays, be able to join this last concluding there are many web or app-based service session. As introduced by KJ I have been matching between tasks and people recently appointed as the vice chairman supplying that task or service. of the National Economic Advisory Another topic we can discuss is about Council of Korea, which is like the CEA start-ups and entrepreneurship. Every in the USA. Mr. President himself is the country tends to have its own policies for chairman and I am the Vice Chairman start-ups and we may learn from from this week. experience in China or Thailand. They are As a policy response to the Covid-19, the creating something like a start-up centres Korean government has proposed a new or spaces where they supply potential policy line, called K-New Deal, which has entrepreneurs with basic devices like 3D three components. One is the digital printing machine, laser cutters, and other infrastructure, and the second is the new basic devices for new entrepreneurs. growth engines including bio-technology In the meantime, when we talk about and the third component is new social knowledge-based economy, it is often safety deal. So, the government is putting useful to distinguish two types of a lot of budget on these three aspects of knowledge, namely scientific knowledge the new deal. (represented by academic articles) and Today, we have had many discussions technological knowledge (often about the importance of education and represented by patents etc.). Then a re-skilling and up-skilling in a knowledge- related issue is how to translate them into based economy. In this context, one practical usages by industries, namely the essential issue is making education more issue of commercialization. Unless there accessible, and e-learning system by is an effective national innovation system, digital technology is one of the most scientific knowledge tends not to be

45 Kerala Economy Vol.2 No. 2&3, February-March, 2021 utilized but remain within the ivory countries. In this regard I would say tower. China might be an obvious bench-mark case for India to derive and take some Last, I would like to mention that to be lessons. As is well-known, may policies effective in policy making and in Korea used Japan as a benchmark, implementation, one simple but effective which is cost-effective way. approach is bench-marking preceding success stories from neighbouring

46 Kerala Economy Vol.2 No. 2&3, February-March, 2021

B. Innovation system

M S Rajashree Vice Chancellor, APJ Abdul Kalam Technological University, Kerala

I am extremely happy to participate in towards development at the local and this international consultation on regional level. Once the industry is transforming Kerala to a knowledge enabled to use the knowledge created economy and feel privileged to chair this from education and research the industry session dealing with innovation system, will be able to offer knowledge intensive the key pillar of a knowledge economy. businesses and service activities. Studies The need to innovate is the basic have shown that manufacturing prerequisite of a knowledge economy. industries, especially MSMEs, are Kerala has the history of chartering an becoming increasingly innovative with innovation system centered around its higher R & D expenditure and greater people. Education and health were the integration with knowledge providers viz primary emphasis for development. educational institutions and R&D Along with public funds, private funds centres. were also channeled for affordable health Knowledge System can be strengthened care and education thus making Kerala a by the creation of common infrastructure development model in these sectors for and developing missions/entities rest of the country. responsible for facilitating greater Innovation and technological changes are connect between components of the the key drivers for knowledge economy. Knowledge System. Kerala has In order to leverage from these two demonstrated this through the elements Kerala needs to develop an establishment of Kerala Startup Mission ecosystem based on an efficient (KSUM) and Kerala Development knowledge system. A knowledge system Innovation and Strategy Council (K- that connects industry, education, DISC). KSUM has developed a vibrant research institutions and government is startup ecosystem in the state. The state a critical element in contributing to has initiated a startup movement regional and local innovation system. The through the KSUM for forging and efficiency of this knowledge system is implementing forward-looking policies predominantly determined by how well related to startups. KSUM supports the the knowledge is organized to contribute startups though a plethora of activities 47 Kerala Economy Vol.2 No. 2&3, February-March, 2021 for strengthening them in the state understanding of new interventions through infrastructure, funding, linking required in furthering developments of startups to businesses and by providing the economy through infrastructure all other support services. The present creation, policy making etc. focus is to foster the growth of innovation The competencies required for driving led, technology startups. Kerala possesses innovation and embracing technological a unique model of connecting academics, advancements towards the development industries, R&D institutions and of all sectors require a robust Higher startups through the KSUM. KSUM is Education System. The Higher Education also responsible for the setting up of system should (i) enable the creation of major infrastructure facilities and other talents with innovation mindset (ii) allied services necessary for startups. The produce agile work force with facility thus set up is shared by all the competencies in digital technologies (iii) stakeholders across the state. lay emphasis on IP based research (iv) Kerala Development Innovation and facilitate strong industry connect (iv) Strategy Council is a strategic think-tank generate entrepreneurs capable of and advisory body constituted by the creating businesses which can bring in Govt. of Kerala. K-DISC brings out sustainable economic development with strategic plans, identifies new directions access to national and international in technology and creates a conducive markets. These issues I hope will taken ecosystem in Kerala for fostering up in next session. innovations through various Industry 4.0 is transforming the way engagements with academia, research businesses work and also the and development organizations and with manufacturing landscape as a whole. the government. Adoption of digital technology in all In knowledge economy, research sectors, empowering such sectors will be priorities and policy issues should be a game changer in Kerala's journey explored by a group of institutions which towards Knowledge Economy. In this form part of the knowledge system. effort, Inclusive development can be made 'Knowledge' as a concept should be possible if the digital divide is properly unfolded into elements that can be addressed. Kerala's proposed analyzed and applied to both industry infrastructure for connectivity will and regional innovation. Fundamental address this. Traditional manufacturing research is needed to understand how technology will be accelerated by the knowledge is transforming innovation Industry 4.0 technologies such as processes enabling sustained economic intelligent robots, autonomous drones, development. The outcome of this sensors and 3D printing which are research will lead to improving all the proven to be exponentially growing components that are part of the technologies. The convergence of these knowledge system. This will lead to the digital technologies and existing industry

48 Kerala Economy Vol.2 No. 2&3, February-March, 2021 will have positive impact in the local and and development based on Knowledge global value chain. The innovation Economy. Such a vibrant ecosystem will activities around these converged areas reinvent itself with the dynamics of each will need to be channeled to the global of its components and also reorganize the innovation system thus creating open organization of Knowledge and its flow innovation culture in Kerala. in the value chain from time to time for the state's economic development. With An open innovation ecosystem which is this background I would like to invite Dr connected to global innovation system P V Unnikrishnan. especially in high technology areas will be a promising base for Kerala's growth

49 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Evolving an innovation ecosystem for Kerala P V Unnikrishnan

I shall start off with some brief comments bags using IoT devices. The second one is on Kerala Development and Innovation a collision avoidance pilot with Intel for Strategy Council (K-DISC). It’s a rather KSRTC wherein using telematics the new organisation initiated in the state in possibilities of collision between vehicles 2018. It is only one of its kind because, is reduced. This is going to be State Innovation Councils established at implemented in new vehicles for KSRTC the instance Sam Pitroda in 2010 in all financed by KIIFB. Third one is a real time other states have been wound up retinal image quality assessment and throughout the country. The only state feedback system for government with the remnants of the State Innovation ophthalmological hospital Trivandrum. Council is Kerala where it has been This is done with support of C-DAC. remodeled. That is how K-DISC These projects undertaken by us belong originated. Brief introduction about K- to Industry 4.0 technology adaptation in DISC activities has already been made by government departments. Dr K. M Abraham, our founder My focus however is on the innovation Chairman. Hence, I will not attempt to ecosystem, which is primarily for make a comprehensive overview of K- democratizing the innovation system in DISC activities. the state. It’s a flagship program of K- To give a taste of the activities leading to DISC. The objective of this program is innovation promotion in government basically to nurture young talents done by K-DISC, I will touch upon three interested in pursuing avant-garde projects; a project called the Blood Bag research academics and business model traceability, where we work with the building. We have promised a three-year General Hospital and the Parasalla hand holding for idea creation, Community Health Centre. They work in prototyping, testing and launching. a hub and spoke mode to meet the needs Prominence is also given to social of blood transfusion. In this project we innovation, along with business have used a technology developed by development. We partner with the Bagmo Private limited, a startup in maker Startup Mission. Capacity Building of village to reduce perishability of blood 50 Kerala Economy Vol.2 No. 2&3, February-March, 2021 mentees is around the Stanford University are our ambassadors who have been Methodology of design thinking which trained in the industry 4.0 and the has now become the de-facto standard innovation methodology. We have tried for real life problem solving. We have a working out a hub and spoke mechanism program for mentoring of mentors wherein eventually the hubs would specially developed for us by the IIM emerge as Centers of Excellence. This Calicut. This looks at a new product would be linked to various partner development framework integrated with institutions making the spoke a fuzzy front-end. Basically, we are trying mechanism. We have developed a very to draw practices from the industry for clear methodology not only for screening product development, trying to weed out the ideas, but also for improving the the fuzziness of the ideas and to put the group dynamics within the ideas through process in the discipline of new product group techniques. development. This is the architecture of the young We have a program in which any new innovation program which we have built innovation can be fostered with its focus up. We have a completely electronic on democratising innovation, it cannot platform for doing all our operations. We be a blueprint program. It has been have a digital idea platform, which is continuously evolving. Over the years, connected to high schools’ polytechnics there has been an increase in the number and higher education institutions and of ideas that came up; 1391 ideas in the research centers. We have District first year (2018) which increased to 2000 Innovation Councils, which are going to during the second year and almost come into action from this year onwards doubled that in the third year. We have a in the evaluation programs. We also have very strong funneling approach of a mentor mentee platform, which is removing ideas which might not work and completely electronic. One of the very which are not worth pursuing. Thus, we important things that we have found as a had to reduce the ideas in 2018 to 204 part of the first few years of the program which increased to 371 in the second year is that very systematic mentoring is and 800 in the third year. We have put in required, both from the industry experts a mechanism of generating ideas from as well as from the academia for schools, colleges and universities. We translating ideas to clear targets. We have have a network of 1143 institutions during not been able to put that in place during 2018 we just now enhanced this to 2900. the first year. But during the second year, Around 400 of them in our network are we have been able to put in place an professional colleges and university electronic platform for this. We hope that departments and the rest of them are the quality of delivery would schools, polytechnics and other substantively relate to mentoring. The institutions. From each of these mentors have been trained and institutions we have, two facilitators who positioned.

51 Kerala Economy Vol.2 No. 2&3, February-March, 2021

One of the weaknesses of the program is substantively and we are restructuring that we don’t really get good ideas. YIP in 2021 to meet his dream. YIP is a Essentially people pick up ideas from the mix of challenges. Right now, following google and them; these are not really real- the idea challenge, we have the accelerated life ideas. So we have brought into two the innovation track. But beyond that, we methodologies, one a methodology of are also now bringing in team-based creating real life problem statements with hackathons, and a coordinated the help of practitioners through programme of rapid proto-typing jointly community practices. This is an with fab-lab and startup mission. With internationally renowned methodology this we are hoping that the Young of situated cognition. Then secondly, we Innovation Program is going to make a are trying to create a process of major transformation. innovation sandbox, which is a The outcome so far; 31 products have methodology of improving the real life, been structured for priority funding and real time, problem solving experience we could hardly spend 1 million rupees using crowdsourcing and open for this process. That is one of the innovation and bringing in vital user limitations of the programs. We have experience. been able to do the democratization reach Now, thanks to the efforts of the out to the campus, bringing together the Honorable Finance minister, who has teaching Community and the students, made an evaluation of the program. He but in terms of converting the ideas into wanted us to scale up this programme innovations, we are lacking, and that is 52 Kerala Economy Vol.2 No. 2&3, February-March, 2021 why we want to get into a sandbox And the last programme is the local methodology for deepening the innovation program. The design of the innovation process. program is as follows. We crowdsource ideas from anyone capable and interested. Now, coming to the next program which There is a panel of experts at the State caters to the ecosystem building in the level and at the District Level. There is a MSME sector. In One District One Idea rating scheme and based on which we Program, we have identified 266 clusters come up with a local market place for the throughout the state. It covers handicraft POC and the pilot and which will be taken handloom Kudumbasree service clusters, up through various local governments Kerala Bureau of Industrial Promotion and public sector. One of the most manufacturing clusters and other important things is that the first product manufacturing clusters. These have been which K-DISC has initiated is ready to selected for a challenge. Digital University get into manufacturing. Rajeesh Rajan, a had come up with an excellent training Polytechnic diploma holder, who had program for the core group. We have developed a ragas engine. A two-stroke brought in professors from commerce elliptical IC engine. We had sent his design department, economics department and for computer fluid dynamics studies. And also from the engineering college to work basically, this has helped him improve and in the field with these clusters and develop innovation action plans for them. Thus, patent the engine. He wants to take it up to the aircraft engine manufacturers and we are bringing in academia in a big way to work with DRDO. Yesterday he came to work with the industry to solve their and presented that to us. And so, the local problems- Making the triple helix model innovation promotion program, which a reality. The objective is to come up, not with the incremental growth as the we kicked off three years back, has just started bearing fruits. Honorable Minister was discussing in the previous session. It is not incremental Let me conclude by talking about the growth but exponentially growing three pillars of focus in the budget. One is clusters, that we are focus i.e., innovation the Innovation Economy, the Digital clusters. Transformation and Creating the new workforce. The innovation economy Now, coming to the one local government component is the one which I talked one idea program. The design of the about primarily. I also briefly touched program is similar. We start off with a upon digital transformation, because the shelf of projects which have been ODOI program looks at digital identified by local governments, run transformation of MSMEs. The local hackathons across specific domain government One idea one Local sectors, go to a local government Government program also takes up marketplace, select products for support digital transformation. We have been and then theses goes back to the local involved in a small scale in developing the government for implementation.

53 Kerala Economy Vol.2 No. 2&3, February-March, 2021 new knowledge economy workforce. We session- if we focus only on scaling the have been working with KBA and ICT Knowledge Workforce and strengthening Academy for developing the Accelerated the ICT industry, there is a possibility of Blockchain Competency Development alienation from a section of the non- program. Now the new knowledge digital economy. A huge section of the workers skilling program has been also citizenry will be left out of the knowledge passed on to us. So, this is a great revolution. It’s a very important point. opportunity for K-DISC along with its Through the higher education partners to have been involved in the strengthening, digital transformation, three pillars, so our final objective would innovation building programme as well be essentially to involve with the Kerala as the Social Security initiatives we have Knowledge Economy building process looked at this in totality in the budget. I through skilling of knowledge workers, would congratulate the Honorable driving innovation ecosystem, Finance Minister for coming with such innovation collectives and startups and an excellent blueprint for the Kerala also moving towards digital Knowledge Economy. Thank you. transformation of various sectors. Last, but not the least, let me touch upon (Dr. P V Unnikrishnan is Strategic the very specific critical point which Advisor, K-DISC) Professor Lundvall had raised in the first

54 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Kerala start-up ecosystem Tom Thomas Project Director, Kerala Start-up Mission

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Maybe, a student who is really good in where we really need to be, because if you technology and we tried to get them into look at the state you have a favorite of other programs like FAB Academy software coming up. We are starting to summer school for the various be known as the startup hub but that is universities across the world. The FAB not enough from our perspective. We academy programs are very important. need to be known as the hub for one of TP
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56 Kerala Economy Vol.2 No. 2&3, February-March, 2021 marketing support. We used to take them the state. Other states have a outside India for various conferences and concentration in one city like Bengaluru that have been a really good platform for or Hyderabad. Kerala is making sure that UP
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57 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Reflections from experts across the world

Xiaolan Fu Director, Technology & Management for Development Centre, University of Oxford, England

Looking at the first presentation which These are excellent plans, but they are very has given a very comprehensive much focussed on the domestic activities introduction about the various programs in India. My research about innovation introduced in Kerala that included among in China explains why China has been others, young innovators program of the able to catch-up. One of the lessons that K-DISC, one district one idea, and the we could learn from China is the role of local government program. I am really an open national innovation system. In impressed to see that you are doing all my book, China's path to innovation, I the right things. I think Kerala may described that Chinese national become another star in India, like, India innovation system is linked with the has Bangalore. I think Kerala will be global innovation system and global another star in the fourth industrial knowledge pool through various links revolution. All the technologies for the such as international trade, foreign direct future and the ecosystem for the start- investment and both. You are aware that ups are being set in place. India is becoming an attractive destination for the MNCs and Indian India's economy has taken off since 1990s. MNCs are increasingly investing in other It's really going very fast, and India now countries. is one of the emerging countries and I believe India will continue to grow very We could observe the active involvement fast. India has a lot of world class minds of Indians in some of the major and it has not reaped the potential. I have innovating countries and building their been thinking about how to help in this national innovation system. This is aspect. Here one of the major aspects is facilitated by the movement of people. the implementation of the great plans. Such mobility of people facilitate the Implementation issue is not something exchange of ideas especially the tacit that is confined only to the innovation or knowledge that otherwise rarely cross the science and technology sector. We need borders. And then looking at China's the right institutional, economic, and experience in trade, it is evident that political background to enable all these China has the highest level of trade to bright plans to deliver. 58 Kerala Economy Vol.2 No. 2&3, February-March, 2021

GDP ratio among major developing both the domestic and international countries and it's higher than Japan and resources, talents, and markets. There are the US. China is the largest recipient of two major drivers in this process. One foreign direct investment and in recent driver is market and another driver is years, also become a large investor the state, although they have different abroad. Further, China has also benefited roles. The role however changes at from diasporas exchange in the recent different stages of innovation. The state years. in the early stage plays more important role in heavy investment and high risk I think India’s experience is the same while activities and that of market is more at during the early years there was much lower end of commercialization. So, I worry about brain drain, which now think this open national innovation increasingly being brain circulation. It's system approach and could be considered also correctly used to teach the in Kerala. technology to accelerate the knowledge exchange and also innovation. Another In UK and in many of the other innovative key factor is international collaboration. countries, the Indian scientists are Now countries, increasingly using excellent. They are good in science and international collaboration to foster good in management and the leading role innovation. This is not only for in the technology companies. I think the developing countries to stay where they start-up ecosystem design is also are. They want to collaborate with the brilliant. However, it is also important advanced industrialized countries for to bring the international dimension and innovation. So industrialized countries put it in the broad context. I think that like OECD, European Union and US very the support needs to come from the whole much emphasize on collaborative country, especially the industrial innovation and what my research which foundation and infrastructure to make it part published last year also finds really deliver the full potential. Chinese firms benefit from innovation collaboration. So, this kind of open national innovation system in China uses

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C Balagopal Founder and Former Managing Director, Terumo Penpol Ltd

I want to specifically talk about one The second thing is the ability to aspect, which is from the perspective of recognize the value of an innovation as a high-tech manufacturing industry property of business and industry. Only operating in Kerala. More specifically, when you're looking for something, will what kind of support and what kind of you be able to recognize what you're synergistic role the state can play with the seeing. So the problem here is we have a innovation ecosystem? I think the biggest dichotomy. We have R&D centers and user of all the innovative science and high tech labs of research institutions technology products and facilities which which are working on projects, and are sought to be created by K-DISC and somewhere else we have industry, which by the Kerala Startup Mission is going to has got problems. And the two are not be the MSMEs. I have been associated talking to each other, not meeting to with the startup Mission right from it's discuss these problems. So my very beginning and I am impressed at the recommendation is that both K-DISC progress which has been made, but I and Kerala Startup Mission must create think we are losing something by this such a platform to bring industry and the almost exclusive focus on startups. As I institutes together. I'm talking from first- said earlier, the biggest user of knowhow hand experience because I set up a small and innovation is going to be the existing startup, that later grew to global scale high tech manufacturing industry. There before I sold it as the world's largest is a saying in innovation, that necessity is maker of high quality blood bag systems. the mother of invention! So somebody I had the great good sense to develop a must be feeling the pressure. Somebody personal excellent working relationship must be feeling a problem burning a hole with Sree Chithira Tirunal Institute in their balance sheet so much so that they research labs. I also used the Keltron tool are always seeking a solution. That room, which today houses GIFT. I used burning 'necessity' to innovate can never the facilities and expertise of the Indian come from a young guy who's studying Institute of Science, Bengaluru, and in college or younger or someone who several other top R&D establishments. So may have some idea. I think what's very important is that the

60 Kerala Economy Vol.2 No. 2&3, February-March, 2021 platform must be created which will clusters that may or may not be enable MSMEs which are already contiguous. And there are natural successfully working within Kerala to be clusters already existing: you can have a able to access and continuously have an medical device cluster around interaction with research institutions, Trivandrum based on TPPL, HLL, and research labs and even the Maker Spaces, TTK Healthcare; a steel casting products Maker Village and all the other facilities. cluster around Calicut around PeeKay Steel Castings; spice extracts and food The second proposal, which I have, is processing cluster at Kozhencherry, and related to the first one. These MSMEs then a garment cluster at include companies with revenue up to Rs Kizhakkambalam. If you create these 2000 crores and which are globally clusters, then I think that would enable successful, with huge balance sheets, some common facilities to come up, which operating in very diverse areas ranging K-DISC can provide which will be from steel casting, medical device beneficial to these clusters, since it will be manufacturing, electronics hardware, difficult for an MSME to set up a lab or a medical diagnostics, dental prostheses, testing facility. etc. Now, here you can have a system of internships, fellowships and sponsored To sum up, many elements of science, projects for which the platform can again technology, and innovation eco-system be provided by K-DISC. These industries are already existing here. The point is to will be very happy to welcome young connect the dots. So you have elements of bright students from engineering colleges a beautiful startup ecosystem, you have and science research laboratories to go very successful high tech companies, you over to their facilities to work on their have one of Asia's premier research projects and learn by working on the institutes in Trivandrum for medical shop floor with their scientists and devices, and so many others in other technologists. Similarly young advanced fields, if you can create a technologists from industry can go to platform for them all to talk to each other R&D institutes and do such programs. and exchange ideas, you will find a Unfortunately, today they are all working tremendous amount of cross fertilization in silos. of ideas happening which will lead to very good things. Thank you. Third, if you take the successful high tech manufacturing sector already operating in Kerala, they can be grouped into certain

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Erika Kraemer-Mbula DST/NRF/Newton Fund Trilateral Chair in Transformative Innovation, the 4IR and Sustainable Development, South Africa and Vice President, Globelics

It’s really fascinating to hear and to learn for entrepreneurs has been quite intensive about Kerala’s experience. It’s also given during the pandemic in Kerala. an opportunity to reflect from the I would like to just make three points and environment in South Africa. It is also some of them have been raised by the helping to think about our own previous commentators. The first point ecosystems and highlight how important relates to the time span of the it is to have this collaboration and commitment that we need to build local sharing of experiences. innovation ecosystem. Supporting an I was very glad to listen to the innovation ecosystem is not a once off presentations about the innovation initiative. It requires a long-term ecosystem. Two initial presentations that commitment, and it is quite challenging spurred the discussion and it appears when the conditions are changing. that the state has done a lot in pioneering Sustainability of this effort is also being to support the startups at various levels. raised by others that has to do with I can see from the presentations that there implementation. I would like to is quite a good and deep understanding emphasize here that for local ecosystems that supports the local innovation to be sustainable in the long run and system, not only about creating survive the changes over time in terms of incubators and accelerators but also prioritization and financial resources, it’s requires the broad understanding of the important to empower not only the local resources and the actors at different levels businesses, but also the whole that they are, and also have an in-depth constellation of organizations and actors and real time understanding of the that’s around. This includes the challenges affecting the business entrepreneurial centers, training community and the local entrepreneurs. organizations, the chambers of I think, this has become very evident in commerce, the NGOs, the tech the time of COVID. I just had a quick look communities, the centers of institutional at the news which show that the support 62 Kerala Economy Vol.2 No. 2&3, February-March, 2021 research, the providers of funding and so survivalists but some others are testing on. The empowering and supporting of and trying new ideas. And we often leave these organizations is essential because these actors out of the way in which we they will carry the load and they will fulfill think about entrepreneurs in local the functions that are needed for a local innovation systems. And again, I think ecosystem to thrive and survive even in there’s a lot of room to think about how the absence or in cases where government do we bring in this new and emerging support may be weaker than others. technologies, including digital technologies but also more advanced I think from my point of view, there is a technologies that we are referring to here. very important role that government can And with this large pool of play in terms of empowering the entrepreneurial resources that we have in constellation of actors that surround our context in being formal economy and firms. Another important role that this brings us ideas about how to make government can play, as raised by others, our local innovation systems more is to guide the direction of this local inclusive and how to think about innovation ecosystem. So, a lot has been upscaling reproducing and so on. Some discussed about the outcome. Preserving of these businesses and connecting them the quality of natural and social more successfully with their new and ecosystems must be a part and parcel of the way in which innovation systems are emerging technologies. conceptualized, supported and The final point that I want to say again is maintained. Others have talked about a stronger rooting of our local innovation environmental sustainability as the systems with the reality that we live in, in natural environment and society cannot the sense of connecting to the informal only be seen as resources but also as part economy and bringing that inclusion into of the outcomes. So, do we maximize it. I don’t think there is a contradiction profit only for firms? or do we also between supporting and routine local maximize profit for environment and for innovation systems with the global society? Here we bring up all dimension dynamics. I think there’s a lot that can be of inclusion and this is a point that I gained in terms of exchanging ideas. I see would like to reflect on the context in a lot of room for south-south which I am. collaboration for fusion of ideas and social innovations. There is quite a lot of We often talk about the needs to create similarity and a lot of room to share and entrepreneurs and I usually sit to learn and embedding these dynamics uncomfortable when I hear that in how we conceptualize and support expression. Because I only need to step local innovation systems is also very out of my house and go and buy bread important. I’m going to stop there. Thank and I walk past at least 20-30 you. entrepreneurs. Many of them are informal and many of them are

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Srikumar Chattopadhyay ICSSR National Fellow, GIFT

Kerala's achievements in the social sector interdependence among the components of have met most of the criteria envisaged under natural resources. A linear approach often social sustainability. However, on the fails to take into account this complexity. As ecological front, there are perceptible gaps a result, several problems crop up and that warrant due attention in the course of ecosystem services are affected. The change transiting to a knowledge society. that is taking place with respect to natural The natural resource base provides the resource use in Kerala warrants proper attention to improve the knowledge base. foundation for economic development. The Natural resources-based economic nature and type of these resource use, changes development trajectory in several countries with the progress of civilization and underscores the importance of combining technological advancement. The social, cultural, economic, and ecological orders of useful knowledge with strategies to develop capabilities by transfering technology and the world are changing with the production knowledge from other (leading) economies of knowledge and its useful application. The as well as local scientific organizations transformation from a resource-intensive relevant for natural resource-based society to a knowledge-intensive society is deeply innovative, dependent on the use of industries. human knowledge, sensitive to natural and It is important for Kerala to examine the environmental resource use, and ecologically present use of natural resources and reorient resilient. present practices, wherever necessary, for contributing to the knowledge economy. Kerala is blessed with strong natural Here, we attempt to briefly indicate some of resource endowments. The state has the areas to initiate actions. successfully harnessed the traditional natural resources including hydropower 1.Bridging the knowledge gap in existing generation. However, management of natural resource useed sectors natural resources is not prudent always. Bridging the knowledge gap assumes great There is a complex ecological significance in pursuing a natural resource

64 Kerala Economy Vol.2 No. 2&3, February-March, 2021 based knowledge economy. For example, it gathered for the Vizhinjam area. It may be is important to search for a coastal tract to explored for other areas also. Solar power is site a seaport, which is neither accreting nor another energy-producing sector with huge eroding. Accretion and erosion along the potential for the state as it enjoys long hours coastline are related to sediment movement. of sunshine. The sediment transport pattern along the 4.Green economy Kerala coast varies temporally and spatially. Knowledge-based economy, green economy, Some parts of the Kerala coast experience green technology and creation of green jobs domination of net northerly drift whereas are interrelated. The importance of a green in some cases the movement is southerly. economy is well appreciated to transit into a Although, there are some studies pointing low carbon economy and reducing that the site-specific knowledge is lacking in environmental risk and ecological many cases. It is important to generate a drawdown. Many countries are gradually detailed knowledge base to suggest shifting to a green economy as part of the appropriate locations for siting of ports, knowledge economy. It warrants the particularly fishing ports. Otherwise, the involvement of higher education centres and port may be affected and will need huge sustainability-oriented research investment for keeping it operational. departments. 2.Precision management for traditional 5.Reorientation and building of institutions natural resources To accomplish all these tasks it is necessary Precision management is an emerging area to set up processes that support interactions in traditional natural resource management among the existing organisations, facilitates of land and water. Agriculture is one sector access to the existing knowledge, creates new where precision management has brought scientific knowledge, build-up capabilities out significant results manifested in and new institutions for interactive learning, enhanced productivity and optimum use of and disseminate and share knowledge. One inputs. Irrigation, water management, of the strengths of Kerala is its education fertiliser use and cropping system are areas system and academic base with stong focus warranting the introduction of precision on science and technology. There are management. professional organisations dealing with 3. Harnessing new natural resources every major sector of natural resources like Kerala has a long coastline of 560km. The land, water, forest, fisheries, minerals, etc. exclusive economic zone spreads over 2.18 University departments are imparting lakh K.M. There is huge scope for developing higher education in many of these sectors the blue economy. It not only the fisheries and allied disciplines. Natural resource- sector, tourism, and maritime transport but based industries are set up. However, there also the offshore renewable energy, is hardly any meaningful interactions/ aquaculture, seabed resources, marine collaborations among these organisations. biotechnology, and bioprocessing. The Strengthening of collaboration and sharing tapping of wave energy deserves urgent of useful knowledge is important. Thank you. attention. Experimental data have been 65 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Thankom Arun Professor, University of Essex, UK

It is good to see the Kerala state is taking and organisational structure changes is many steps in developing a knowledge part of a more comprehensive innovation economy framework. It is undoubtedly a approach. We can relate the knowledge much-awaited one, and Dr Isaac’s budget economy idea in Kerala’s context beyond would be considered a game-changer to a narrow and measurable path. the States’ vision in explicit terms. The Paul Romer, the economist who got Nobel presentations are awe-inspiring, and I Prize has published two seminal articles have learned quite a lot about innovation in the Journal of Political Economy in in the State’s ecosystem. The term 1986 and 1990 on long-run growth and knowledge economy brings the images of endogenous technological change. He Silicon Valley, the tall rise buildings and approached the knowledge economy like high-tech startups. But these are part of the one built around ideas that do not a wide range of activities that foster have a diminishing return (Jones, 2019). economic growth based on the knowledge This is a turning point from our economy. understanding of Solow’s growth model We may need to support the knowledge and diminishing returns to capital. economy concept in a more holistic spirit, Kerala is a unique case in this context. and the entire society needs to embrace Over time, the state popularized many the idea. The European Bank for ideas with people’s help; the most Reconstruction and Development common feature of these ideas is the (EBRD) considers the increase in total generation of networks. factor productivity as an indicator of the The networks across individuals and knowledge economy. Most times, more institutions need to be further developed than the leading innovations, what we into sustained knowledge hubs. Our require is technological dynamism and a universities and research institutions broader approach to innovation. The have the daunting task of knowledge development or adaptation of a new production. Ideally, this has two steps. product, process, marketing methods, 66 Kerala Economy Vol.2 No. 2&3, February-March, 2021

The first one is to achieve the local it’s a long way to go. Over time, Kerala knowledge’s full potential, followed by built a fantastic alternative model for engaging and contributing to global social and economic development, and knowledge production. We have our ideas attract global attention. The transformed and made some significant pandemic reveals the gaps in the public inroads in utilizing tacit knowledge and health system of very advanced local ideas compared to many other economies. But the management of the regions in the world. However, pandemic and states preparedness with considering our underutilized the limited resources is an indicator of infrastructure of public sector enterprises, our inherent strengths and the right there is further scope for developing policies. So I wish the same applies to the research collaborations with the knowledge economy in the coming years. Universities and other institutes. Many Creating an inclusive knowledge public sector enterprises can provide economy should not be a technical domain support to begin start-ups with agenda, but it’s more about enhancing an the University talent using their unspent individual’s potential or a household or resources, opening up new ideas. Our a society through collective imagination. mammoth global exposure as a Thank you, Professor Joseph and GIFT, community would be a useful asset in for arranging this kind of session with linking up with global networks. Taking industry, policy and academicians. advantage of digital technology, we may link up more closely and regularly with I hope this will support the the leading knowledge networks. comprehensive development of an integrated environment for policies and The fact is that markets provide less practices on the knowledge economy. finance for innovation that would be socially desirable. The venture capitalists are not willing to invest significant References: amounts in startups in India. That is why many governments use different Jones, C.I (2019) Paul Romer: Ideas, intervention types to increase the amount Nonrivalry, and Endogenous Growth. of finance available for innovation The Scandinavian Journal of Economics, activities. Although institutions such as https://doi.org/10.1111/sjoe.12370 KIIFB can address some of these issues,

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Anoop Ambika Chief Executive Officer, Clap Research and Genpro Research, Kerala

I think the whole industry as well as the ecosystem is that connect with the early young and the old of the state are equally adopters, or the industry or whoever is excited about the possibilities that Dr. going to be the users of the innovation. Isaac opened up through the budget. And Often innovation is misunderstood as I think we have a lot of work in IT or software or digital technologies. We implementing it. I think there is a need to have a serious campaign, saying disconnect between the industry and the that Kerala Startup Mission is not just a innovation ecosystem. We have tried technology mission. It's beyond that. You multiple methods and some of those can go into manufacturing, solid waste methods included, presenting these management, go into any kind of innovations to the corporate in the past. innovations that happen across multiple Kerala Startup Mission has introduced a processes. There needs to be a campaign process wherein companies can come and that happen either from K-DISC or from present their problems to the existing Startup Mission which will empower innovators and see if there is an already people to try out things beyond existing solution that can be provided but technology. none of that seems to be working very well. IIT Hyderabad recently came up with a We had some reasonable success in the model, wherein they will provide a past, but I don't think it has worked to professor, along with three or four the extent that we needed it to work. students as part of a course curriculum Product sustainability or the product wherein they can engage with a startup. market fit is not often tested before The startup can tell the problems and they developing. We need to have an early fail will build the prototype for you. There mechanism where the customers will are various sensitive issues like IPR, validate the idea and say that it has a involved in this, but that could be possibly potential to bring in revenue to sustain one of the easy ways of getting a product in the future. One of the things we need to prototype without spending too much implement as part of the innovative 68 Kerala Economy Vol.2 No. 2&3, February-March, 2021 money. If our higher education to engage with these innovation centers institutions like KTU can come up with of the large companies and expose our such a plan it is going to be an easy innovations to those on a routine basis. method by which we will be able to IQ has tremendously multiplied over the prototype some of the products. years and some of the future innovations A group of entrepreneurs said that they could even come from the 10th or 12th have a product and got orders and standard students. We need to have an something to do with testing of machine. ongoing mechanism by which we will But they had no clue that they had to engage with centers like Atal Tinkering apply for startup India and they had to Labs, which will be established in schools, get a unique ID in order to get access to pick up innovations from them and create capital . I suggest startup mission to come an innovative or an entrepreneurial up with a handbook which can be an ecosystem within schools. We are electronic booklet so that people can later putting a lot of spotlight on Artificial modify and circulate to entrepreneurs. Intelligence, Machine Learning and analytics. We need to start seriously Mentorship is another area. We have had thinking about collecting data. We have very poor experience in finding mentors a lot of data; we have data coming in from and holding the companies. We should satellites, data being collected about our also seriously consider providing equity livestock, our flora, fauna and all that for these mentors. Based on a discussion stuff. Unless, we have this data curated, between the startup founders and the collected and stored in a data hub, mentor if they see value of this mentor nobody will be able to develop what is being involved in the startup company. I called an Artificial Intelligence model. We think we should have a formalized need to have this data collected and stored mechanism by which we will be able to in a cloud platform which can be give equity to these mentors. controlled by the government and open We have to identify some of the sectors to everyone so that people can come in where we had huge success and then put and do innovations on top of that data. more trust on those sectors, and this is A data hub is something that the where the cluster concept will come into government and industry can join the picture. A lot of companies have together and create which can be used by already started their innovation centers everybody to create AI and ML models. in Bengaluru. We should have a mechanism by which we should be able

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Rainer Walz Deputy Director, Fraunhofer Institute for Systems and Innovation Research, Germany

I want to start with some remarks, picking combination of the sectoral and key up what has been said earlier in the first enabling competences. Fourth, we also see comments about taking up the that innovation policy is changing with international dimension. From my regard to the goals we have. We have the perspective, a transformation process, and newly debated paradigm of mission- each program within it, has to think about oriented innovation policies. We have the positioning itself within the global sustainable development goals, and megatrends, which are taking place all over innovations are a key issue if we really want the world. I see the following important to address the grand challenges. aspects: First, when we talk about Another major issue is that it is not enough transformation, it is not only about to look on the supply side of new technological innovations. It is also about innovations only. With regard to the social innovations and indeed the Corona application of the competences, which are crisis shows the importance of changing building up in the programs, it is very behavior. Second, we see changing important that we have an early demand patterns of trade. South-south trade is for these applications. Start-ups need a increasing. Third, in a lot of countries, we perspective, that there will be demand for see that digital competencies are seen as a their products. But also from a systemic key enabling technology which has to be perspective, learning in the market is a key combined with very specific competencies prerequisite; you need communication in within each country. the innovation system, and producer-user In my country for example, in Germany, interaction to improve your innovation the machinery industry is a core area of continually. Finally, early market demand, competence. Thus, a lot of the emphasis or even better, announcement of future put on digitization is its application in the market demand which specifies the machinery industry, and the slogan of characteristics of products or services in industry 4.0 is a very important aspect in advance, at the start of the innovation Germany because it reflects the specific 70 Kerala Economy Vol.2 No. 2&3, February-March, 2021 process, are also important. And here I see very high competences in developing frugal the need for an integrated policy of the innovations. Thus, I think it would be a state of Kerala, to think about a whole set good opportunity to look into the of products with challenging new programs you have established, what the specifications for which Kerala would be role of such frugal innovations could be. willing to promise procurement if the So again, it is combining the strengths of innovators are able to come up with new Kerala with global trends and with the solutions which fulfill these specifications. build-up of a knowledge economy, where future success can be found. Building a Applications of the innovations also combination of programs which make involve different sectors and segments of Kerala into something like a hub of the economy. It is the combination of the sustainable frugal innovations - would ideas developed in high-tech industries that not be a vision to go for? together with the competencies in traditional sectors what makes an We have seen that the knowledge economy economy successful. But we also know is associated with many innovations. from the experience with a mission What does the goal to transform Kerala oriented innovation policy, that this poses into a knowledge economy mean to the a big challenge for governance. With "Kerala modelof development"? I have regard to policy making, you have to pointed out the need to combine key integrate policies which support enabling digital competences with innovations with policies for specific innovations and traditional sector sectors. There is a need to integrate the strengths. I think the same holds for the policies of different Ministries. And "Kerala model of development". If Kerala steering such integration also means that is able to enhance its successful you need strategic intelligence and development model now with the institutions coordinating different competencies of a knowledge economy, it ministries. Finding the successful might come up with the "Kerala model of combinations of existing competencies in development 2.0". Thus, Kerala might traditional sectors, new competencies to become a very important role model for be developed in innovation programs, and achieving the SDGs. Surely, this requires a strategic positioning within the lot of work to be done, and does not come megatrends becomes a key challenge for easily. I think Kerala has done quite a lot transforming Kerala to a knowledge based of good things with regard to establishing economy. the "Kerala model of development" already in the past, and it will be doing so Green innovations are increasingly again, if it successfully combines the coming from countries of the South. Some "Kerala model" with the new opportunities research at our institute also shows that of a knowledge economy. especially the role of frugal innovations in green innovations is increasing, India as a Thank you very much. country has a very important history and

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Rasmus Lema Department of Business and Management, Aalborg University, Denmark

The sections of the Kerala budget 2021- implications for types of change that are 2022 that pertain to 'Transforming Kerala needed can help us determine what kinds into a Knowledge economy' contain of knowledge that the Kerala knowledge vision of a knowledge economy which is economy should produce and diffuse and both ambitious and laudable. This vision role that higher education can play in is unfolded in the budget speech by Dr. doing so. The strategy for the Kerala Issac and among various important knowledge economy needs a clear elements, higher education and identification of needs. The first step is innovation features prominently. My mapping of challenges and prioritization intervention will be focusing on of them. The next step is thinking about transforming higher education for the implications for innovations. knowledge economy. There was considerable attention paid to I saw this consultation as an opportunity the need for transforming higher to read through the budget speech and education in line with Kerala's recent come with some quick thoughts. achievements in school education. The Importantly, when I hear the notion of speech emphasized that to make progress the knowledge economy, then the towards the knowledge economy, higher question for me immediately is: education is key: knowledge for what and knowledge for Undoubtedly, transformation to a whom? Certain types of knowledge, more knowledge economy, requires a lot of important than others and certain types investment - huge investments - in higher of knowledge are more strategic than the education. Investment in higher others in any given context and point in education will increase, as is clear from time. the budget. But how teaching and From my perspective, starting from the research will shift to a new paradigm and societal challenges that Kerala is facing is what the paradigm is, is less clear. critical. Both economic, social and Naturally, this is also something which is environmental challenges. Thinking beyond the remits of the Ministry of through these challenges and their Finance, but I think we should appreciate

72 Kerala Economy Vol.2 No. 2&3, February-March, 2021 that it is highlighted in the speech. how students can work together across different disciplines and how they can I would like to propose the heading of a connect much closer to the needs to challenge-driven higher education 'burning platforms' of the private and system which plays an active part in public sectors. So, the key elements are: mission innovation. It should include (a) forging closer ties with 'users' of both teaching and research. It is about university-graduates in private, public making closer connections to other and social sectors and (b) transforming stakeholders in key challenge-driven curricula, including interdisciplinarity missions. When reading through the and project work. These could be budget speech, a very good example of fundamentals of a new paradigm what such challenge-driven learning can university teaching. achieve is the example of the bandicoot robot (page 35). From the starting point Innovation efforts should not only seek of a key challenge, which has to do with to address local challenges but also to the sewage system in Kerala, a group of bring these innovations to markets with engineering students sat together to try similar challenges. Research and teaching to deal with the problem and invented this could connect closely to both local robot. They worked together with users, problem-solving and to national and private sector stakeholders and others to global commercialisation of innovations. produce this invention. This is exactly the This is about how to enable the business type of challenge driven innovations I side of local problem solving. have in mind. It can be used for all sort of I am thinking about this in connection problems and include many different with some work we have been doing types of teaching and research. together with Xiaolan Fu who was What does it require for the higher speaking just a few minutes ago. We were education system to think in these terms, looking at 'green windows of opportunity' to reorient the entire curriculum towards in China: how Chinese enterprises were such societal challenges? Now, of course, able to benefit economically from we cannot completely move away the addressing local and global sustainability existing curriculum elements. They have challenges. Government and other to be in place. But nevertheless, the ties stakeholders implemented institutional with the users of university graduates - and technological innovations to address in public and private and social sectors - of sustainability, local pollution are very important. The ties should be challenges, energy security etc. Starting built into teaching. University students with local mission-driven innovation, the working together on real-life problems next step was exports of these green are very important. And they should be technologies to the rest of the world. students working from different Universities should be engaged in both disciplines. So, transformation of the steps, working with the key stakeholders. curriculum is important, including also They can play key roles in a challenge-led

73 Kerala Economy Vol.2 No. 2&3, February-March, 2021 window of opportunity creation strategy key challenges and mission-driven for economic and social development. innovation programs guide the transformation to a knowledge-based In sum, I applaud the ideas in the budget economy. and suggest that we think about how we can situate transformation of higher education to match with a strategy where

74 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Nanditha Mathew United Nations University – MERIT, Netherlands

In my presentation, I hope to show how India that produces cars, could use their Kerala can climb the ladder to a knowledge capabilities to produce trucks as well. So, economy. The economic growth and it's very important to understand the development of a country do not happen "already existing capabilities" to in one day. It involves different steps. One understand where one stand in terms of could think of a ladder, where at each step, firms, individuals, to see where one can go individuals and indeed the country itself, next, which is the step that Kerala can take learn and accumulate knowledge while next given where she is now? moving towards a knowledge economy. Capabilities and skills are difficult to And likely, you cannot jump to the final measure. Even though we don't observe step directly from the first. Here I will talk capabilities, we know which firms produce about the capability approach to which products. From this information, development from a micro or firm-level we can try to derive the capability structure perspective. Indeed, when we talk about of firms. Such a data-driven approach production, firms are the actual actors helps in measuring relatedness between behind the production and they play a products and overall coherence of the crucial role in the accumulation of production of the firm i.e, how related are knowledge at a macro level. the products they produce. Here It's intuitive to think that business firms relatedness (or proximity) of products know how to build things: they let us fly depicts proximity of capabilities, (or ability from one continent to the other, build to produce products). For more details on computer networks to communicate from this measure, please refer to Dosi, Mathew different parts of the world and they have & Pugliese (2020). We find that firms a central role in the mass production of producing a coherent set of products vaccines to fight a pandemic. Let's take an perform better because when they example of the firm Luxor. Luxor produces expanded their production, they moved to pens now. If it were to enter a new market, products that were similar in terms of likely it can produce sophisticated capabilities to the ones they were already calligraphy pens for drawing and likely, it producing. This is why it is important to cannot produce trucks. Instead, BMW understand the existing capabilities of 75 Kerala Economy Vol.2 No. 2&3, February-March, 2021 firms in Kerala to understand where individual level - given the abilities of an Kerala stand, to look into which are the individual, which are the skills that will help next steps in the capability ladder she can her to - let's say - climb the next step of the move to. ladder. To repeat, it is important to understand which step of the ladder you On one side there are firms who provide are in, because, only then you can evaluate jobs, and on the other side, we have a lot of which is the next level you can achieve. This educated unemployed. Clearly, there is a is true for both firms and also for lot of discrepancy between these two, or in individuals. other words, a matching issue between the jobs that are created and the skills that No doubt, there are several challenges people have. The problem of educated ahead. But what one could hope to build unemployment is one of the biggest is an ecosystem that will foster innovation challenges in Kerala. The question is which and growth. As Marianna Mazzucato kind of policies can absorb all these argues, states should create markets educated unemployed people? When we rather than fixing them and when the state look at the opportunity space in front of wants to create markets it will be able to us, we should not only look at firms, but when it has the ecosystem that surrounds also what people in Kerala can do. I believe it. that the Government of Kerala is on the I want to conclude by emphasizing this right path with the idea put forth in the point - at a policy level, it is important to budget on providing the right skills to the create all the building blocks necessary. people. However, one should be very What is required is to prepare a fertile soil careful in understanding which are the to be able to grow a seed when a chance right skills. The skills should not only relate arises, because "chance favors the prepared to the individual abilities of the people but mind" (Louis Pasteur). What one expects also relate to what organizations or firms from Kerala is to lead and show the way want, relating to what firms and forward so that this model can be used also organizations do now and what they can for other states and for countries around do in future. the world. In the same way we measure capabilities of firms, this can be done, also at the

76 Kerala Economy Vol.2 No. 2&3, February-March, 2021

C. Skilling, reskilling and upskilling

Saji Gopinath

It’s an honor to be among this eminent number of post-doctoral fellowships in the panel on this International Consultation areas which are going to be very relevant in on Transforming Kerala into a Knowledge the context of the current Kerala’s Economy. We had two very excellent development puzzle. Now, in all these discussions which were looking at two key discussions today, I think one key element aspects of a knowledge economy; the which has come out is that for any infrastructure aspect and later on the development to be inclusive, the innovation ecosystem aspect. Now, I think knowledge economy or knowledge society the third and perhaps one of the most has to be extremely inclusive. Perhaps that important aspects is what we will be was one of the reasons why there is a focus discussing in this session - about people. In on setting up of key centers of excellence in the budget, honorable Finance Minister has areas which are going to take Kerala basically looked at three key aspects of how forward. The centers are expected to be in we actually develop the people to drive the areas which are going to affect multiple knowledge economy. This includes focus on sectors of Kerala. Be it the areas of disaster the creation of the knowledge and on the resilience or the area of marine development knowledge workers. And in this context, I or on to support the traditional art forms, think one of the key elements if our strategy, how do you actually look at doing high- proposed in the budget is to strengthen the end research to enable high-end knowledge higher education institutions by creating creation so that these sectors can actually research centers of excellence and move up in the value chain. This, I think is augmenting the infrastructure in higher the second key proposed in budget. education institutions. In the morning, Unfortunately, we may not be discussing Prof Lundvall presented as how China has these two aspects in this session; perhaps actually made a very successful model in may be the last session will discuss these in the knowledge economy. I think our model more detail. is also very similar to that, where we are The third element of knowledge society looking at enhancing public investment in proposed, I think may perhaps solve a the higher education sector. paradox, which Kerala was facing all these We are also looking at setting up a large years. So, creation of a large number of 77 Kerala Economy Vol.2 No. 2&3, February-March, 2021 knowledge workers or knowledge resources Nandita rightly pointed out in her is actually going to be the key challenge, observation in the last session, they have to when we wanted to create this knowledge be skilled in the right things and there should economy. We know that the higher amount be a continuous feedback between the of state investment in education will create industry, the work givers and work more knowledge workers. We already have demanding units, in a continuous manner. very high level in secondary education; even This is another aspect, this session is going in the higher education GER(Gross to discuss. Enrolment Ratio) of around 37% is much Based on this broad theme we have two more than the national average. And the presentations. One which looks at what attempts are being made to raise it to 75%, would be the type of skilling strategy for the which means three out of four people in state and going forward, how do we actually Kerala will actually have access to higher ensure that we will make the correct number education. While this enhances the of knowledge workers and exploit these numbers, we are also concerned that we opportunities which is emerging from have a high unemployment rate and the lack different parts of the globe. The second part of participation of educated youth, is how we create decentralized workspaces, especially women, in the economic activities. so that the people can actually remain in This basically is the one of the key areas, the state, even though they may be this session is going to address. delivering their work output elsewhere. The knowledge economy is basically They can contribute to the knowledge different from an industrial economy which creation; they can actually look at the jobs all of us know pretty well. We know that around them. At the same time, they could from large industrial centers which basically also look at the participation in the global concentrate work in a few places, there is a economy without even moving out of the transition happening in the work place with state. So, these two things are basically the work is getting distributed all around, getting presented now. And then we will get through new work from homes and work into the comments from the various near homes modes. Distributed members of the expert panel from different employment centers are actually getting parts of the world. So let me first invite Sri created in many places, provided you have Santosh Kurup, the CEO of ICT Academy people with the right skills in those places of Kerala. ICT academy a public private to take the type of work which is available partnership which looks at skilling on across the globe. I believe that this is an area various levels of knowledge economy. So where Kerala should actually focus in over to you Mr. Santhosh. serious manner. The budget has put some very ambitious targets to do that. (The author is the Vice Chancellor, Kerala We have a large number of educated youth, University of Digital Science, Innovation and but they may have to skilled. I think Dr. Technology)

78 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Kerala workforce strategies for the fourth industrial revolution Santhosh Chandrasekhara Kurup

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81 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Work near home infrastructure for Kerala

P M Sasi

I will start with work from home. It has been the companies. Apart from productivity, there for quite some time, but the difference some of the companies are also saving many is that the work from home facility was of the other expenses like transportation offered by very few companies and was costs, administrative costs, etc. And some offered to very few people. Techno Park had other companies have scaled down their plan for constructing a building, and we had rented office spaces as they are not using the surveyed on the demand for space. We had a complete space now. lot of the discussions with many industry But there are certain concerns also starting leaders, who stated that work from home from the issue of infrastructure at homes to will become popular in the coming years, the connectivity issues, issues of working which has to be taken into account. Covid 19 overtime, issues resulting non- socialization made these changes happen all of a sudden. of people, etc. One of the main concerns which We postponed our decision to have our own has been raised by the companies is in building. developing the organizational culture and Most of the IT companies in Kerala are the organizational values. Normally these working from the IT parks set up by the are developed when people come to the office, government. There are three major IT parks- they interact with others, they collaborate Techno Park, Info Park and Cyber Park, with each other, they create a bonding, they accommodating about 900 companies also learn from the seniors, and so on. But in employing more than 110,000 employees. the virtual environment when we you are Due to the pandemic, most of the people are working from home, these do not happen now working from home and only 5 to 10 and it is very difficult to imbibe the culture per cent are working from the offices. We and value among the employees. were expecting that by early 2021 most of the Dr. Santosh was saying that 44 per cent will people will be back to office. But the pandemic be working from home even after COVID 19 threat still exists and the IT companies have is controlled. But there are various research postponed decision on working from office. / studies conducted on this and the general The productivity of work from home has consensus is that between 70 to 90 per cent been reported to be very good by almost all of the people will be coming to office, once

82 Kerala Economy Vol.2 No. 2&3, February-March, 2021 the situation is under control and the also want to use the facility temporarily or remaining people will be working from for a longer period as the demand rises. They home. Demand for huge campuses may not also will need the facilities like conference be there in the short term, especially in the rooms, training facility other services on case of IT. demand. But then it is going to be the hybrid mode of The new age employees are looking for working in the future, as we discussed, some facilities where they can walk to work, so that of the employees will be working from home they are not far away from the comfort of or other places and some of the employees their home, and they also don't have to worry will be working from their offices. This may about issues of commuting to their be on rotation basis also. workplaces. They also are looking for proximity to all the amenities so that they The industries are now hesitant to commit can walk to buy and the time for commutting for long term investments. They are looking can be saved. for minimal commitments in the short term, till the COVID scare is over. They're also The traditional jobs have been regular, full looking for space on demand so that they time or part time. But in gig economy, people can upscale/ downscale the space availability can take variety of short-term jobs and as per the requirement. This will be of projects. Indian freelancer market is expected immense help to industry as they have to to grow to US dollars 20 to $30 billion by pay only for their usage. 2025. Work from home may not be suitable for many because of the issues that I said This is the same situation where we migrated earlier. from own / dedicated infrastructure to the cloud infrastructure. For the dedicated Interestingly, companies are turning to tier infrastructure, we had to pay the cost up two and tier three cities for their expansion, front, for the whole infrastructure. Even if which was never the case before. Earlier, you are using the infrastructure for possibly many of the companies were looking for a day or an hour, you need to pay for the places like Bangalore and Hyderabad and whole infrastructure and the infrastructure the tier two and tier three cities were not in will be with you whether you are using it or their plan, which has changed now. It is also not. understood that majority of the freelancers in India are from tier two and tier three cities. The cloud facility offered the flexibility for user community to procure resources as per In the Kerala context, there is abundant talent demand without any upfront commitment available. Because of the reverse migration, and the flexibility of paying as per usage. I from many of the foreign countries, mainly think this is coming in the physical from the Middle East countries, there has infrastructure space also, these days. Now been a jump in skilled and high skilled human the industry is looking for flexibility of usage, resource. There is a big push for digital such that space may be utilized by any of economy, as we have seen in the recent budget. their employees as per the requirement. They A skill mission is planned, for meeting the

83 Kerala Economy Vol.2 No. 2&3, February-March, 2021 requirements of the knowledge economy. We plan the WNH centres to be small modules, so that occupancy and return on The work near home facility is a proposal investment can be ensured in minimal time. for interconnected centers distributed across We have identified that 5000 square feet is Kerala. All centers are connected to the cloud the minimum space which would be and these we will offer flexible workspaces to economically viable. This can seat around organizations as well as individuals. 60 to 70 people. As demand grows, this can Definitely this will strengthen the freelance be replicated in other places in the same ecosystem in Kerala, because the freelancers town. We had a lot of designs from the Indian may not be comfortable to work from home Institute of Interior Designers. We are for various reasons as explained above. If planning to go for all digital operations so they get a space where they can work with that this can be scaled up at minimal time sufficient security, sufficient safety, with high based on demand to anywhere. level of connectivity, definitely, this could be the place where the freelance workers can We had the first level demand assessment operate from. through two sources. We conducted a survey among the IT companies, where we asked This will attract employment to Kerala, as them which are the cities they would like to employee can work from anywhere in the new have smaller facilities like this. We also had mode of working. So, a Keralite staying in feedback from individuals working outside Kerala can get work anywhere in the world, Kerala to see what kind of environment they yet still work from Kerala. With the support are looking for and which cities they prefer. of proper infrastructure, Kerala can be a We have created the heat map of demand centre for freelancers working for across Kerala. We start with the cities of organisations anywhere in the world. For higher demand and then go to the next cities organisations, this gives the option to scout in that order. for the best talent and they can optimize the cost for human resources. We are convinced that this is going to be the infrastructure facility for the current and The facilities proposed to be available in future generations, working in the knowledge these centers may be available from other economy. This will definitely help in giving a coworking centers also. But what makes it boost to the industry, stimulating the unique to the Work Near Home concept in growth, creating employment and for cost Kerala is the service support which will be optimization for the users. offered to the users, especially the freelancers and startups. They will need lot of support in legal assistance, taxation and filing, (Mr P.M Sasi is the CEO IT Parks and Director, company registration, consulting, among International Centre for Free and Open Source others. These services will be offered to the Software (ICFOSS), Kerala) users as a central facility.

84 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Reflections from experts across the world

Charles Edquist Ruben Rausing Chair in Innovation Research at CIRCLE, Lund University, Sweden

I will raise a couple of issues that are a is not a separate activity - but a part of all little more generic, that are related to the ten activities. Today, I want to deal briefly knowledge economy, and that are of with two things that have been neglected relevance also for Kerala. The issues are very much in research and policy related highly relevant for the future of the to innovations, innovation systems and knowledge economy in Kerala, innovation policy. And one of these is particularly for policy actions that will education and training. In the literature be necessary to realize objectives in this on innovation systems, you will not find field. much about education and training. So, education and training is a very I want to place my comments in the important thing to focus upon - which context of what I call activities or you are obviously doing here in Kerala, functions in innovation systems. As I see as we have also heard from other speakers it these activities are the following: in this consultation. 1.R&D, 2. Education and training, 3. But another thing that also has been Formation of new product markets, 4. highly neglected in innovation studies Articulation of quality requirement, 5. and innovation policy is the demand side. Creating and changing organizations, 6. And that's number three and four in the Interactive learning, 7. Creating and list, i.e., "formation of new product changing institutions, 8. Incubation, 9. markets" and "articulation of quality Financing of innovation processes and requirements". 10. Consultancy services Activities three and four include what I These activities are the hypothetical call functional public procurement. This determinants of the development and the diffusion of innovations. Together they is an enormously neglected issue in policies in the field of the knowledge may be said to define an innovation economy and innovations in basically all system. countries of the world. Public This is a very wide definition of a system procurement is around 15% of the global of innovation. It may be noted that policy GDP, i.e., an enormous sum. This means

85 Kerala Economy Vol.2 No. 2&3, February-March, 2021 that public procurement is much more operate. From a policymaker point of important than global Research and view, it's a matter of identifying those Development (R&D). These enormous activities that are not working well. If resources are being used by the public something is working very well, the sector to buy things from private firms. policymakers do not need to do anything This made me interested in how this could about it and should instead concentrate be used as a policy measure for getting on those things that are not working well. more innovation dynamism in the Some people call this market failure. economy. And I found out that this 15% That's a too narrow term coming from of GDP is almost not at all used to economics and I think it should be used enhance innovations. The reason is that in a wider sense and it could be called when public sector agencies buy things policy problems, that should be from the public sector, they describe a addressed by innovation policy. That is product and they get the exact that being done to some extent. But in many product. And it cannot be an innovation cases public policy is just duplicating because you cannot describe an what private actors are doing. And that's innovation - since it does not (yet) exist. not needed. That's not a good use of What they should do instead is that they resources. Public policy should be should describe a problem that they want additional to what private actors are to get solved by means of the products doing. In pursuing innovation policy, it which they buy. If they describe a problem is important to make a distinction instead of a product, then they get many between policymakers and politicians. proposals for how that problem can be And it's the politicians who are pursuing solved, and some of the proposals are innovation policies. I want to conclude innovations. This is potentially a very by mentioning the establishment of a new important thing. We argue that such kind of actor that has been created in functional procurement is potentially the Sweden: The National Innovation most important public innovation policy Council (NIC), chaired by the Prime instrument that can be used in all Minister and including four additional countries. ministers and 10 external advisors. All the 10 activities listed above: R&D, Thank you very much. education, demand side, institutions, organization, financing - are all necessary for a dynamic innovation system to

86 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Zhang Liyan Professor and Director, Center for Innovation and Entrepreneurship, Tianjin University of Finance and Economics, China

Hello everyone. The earlier presentations universities with more than 2 million students mainly discussed on the theory part, I would participating each year. like to give some feedbacks from the practical Achievements display, technology transfer, aspects. I will share some institutional and technological entrepreneurship have arrangements in China and propose some brought the "Challenge Cup" competition suggestions accordingly. from campus to society, and promoted the 1. "Challenge cup" competition transformation of scientific and technological About 30 years back, when the concept of achievements of colleges and universities into venture capital came into China, the real productivity. " "Challenge Cup" National University Students 2. "Internet+" innovation and Extracurricular Academic Technology entrepreneurship competition Competition (hereinafter referred to as the With the widespread penetration of the "Challenge Cup" Competition") was co- Internet into all aspects of the Chinese sponsored by the Central Committee of the economy and the emergence of the Communist Youth League, the Chinese importance of innovation and Association for Science and Technology, the entrepreneurship, the China "Internet +" Ministry of Education, the All-China College Student Innovation and Federation of Students and local governments. Entrepreneurship Competition was launched The "Challenge Cup" competition has two in 2015. As of 2019, a total of 9.47 million college parallel projects in China, one is the "Challenge students and 2.3 million teams participated Cup" Chinese college student in the five competitions, and a large number entrepreneurship plan competition, and the of high-quality projects with high other is the "Challenge Cup" national college technological content, large market potential students' extracurricular academic and good social benefits have emerged. technology competition. The national According to the survey data of 528 projects competitions of these two projects are carried that won the gold and silver awards in the out alternately, and each project is held every previous four years, about half of the two years. Since the first competition was held companies that established companies after in 1989, it has grown from 19 colleges/ the creative projects completed financing, and universities to more than 1,000 colleges/ 87 Kerala Economy Vol.2 No. 2&3, February-March, 2021

19% of the projects completed financing of critically important, so are the involvement more than 50 million yuan; the annual income of the university students, young people full of practical projects in 2018. The proportion of energy as they want to contribute to the of more than 50 million yuan is 13%, and the society. The challenge both for the youth in annual revenue of the highest project exceeds China, India and other countries is that they 200 million yuan. are far away from the real society. Government Since 2019, the Internet+ Contest has evolved organizations try to narrow the gap. from a national competition to an Therefore, I'd like to propose 3 suggestions: international one. In 2020, college student (1) Organizing innovation and teams from 100 plus countries participated entrepreneurship competitions in the competition. Competition may become one of the solutions for building a knowledge based The sixth competition (2020) hosts a series of economy. Organizing innovation and competitions, which are for the university entrepreneurship competitions is a low-cost, students, the vocational college students and quick-effective, highly-participated and easy- high school students. The poverty alleviation to-manage activity. competition is also organized. The At the same time, attracting companies competition mainly adopts the three-level participate in the competitions. They will give competition system of school-level challenges they are facing to the students and preliminary competition, provincial semi- finals, and national finals. School-level let them provide solutions. (2) Providing innovation and preliminary competitions are organized by entrepreneurship training each school, provincial semi-finals are Innovation and Entrepreneurship training is organized by localities, and national finals are to train people with the intention of starting a selected and recommended according to the quota determined by the competition small business and small business managers in the aspects of business creation ability, organizing committee. market management quality, etc., and give 3. Innovation and entrepreneurship platform them certain policy guidance in the process of In China, every university/college has a maker- business establishment and operation. space, and almost all the universities of science (3) Providing Platforms and engineering have science and technology Innovation and entrepreneurship need a parks. An university S&T park is more like a platform and an environment. The transitional entity between an incubator and government needs to provide support to a science and technology park, which is run encourage colleges and universities to use by a company. In addition, all schools offer existing facilities to set up maker spaces, offer innovation and entrepreneurship courses in courses. Both maker spaces and courses China. should be open to society. 4. Suggestions Kerala is building a knowledge based economy. An innovative eco-system is

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Sushil Khanna Professor, IIM Kolkata, India

Skilling is needed for a knowledge enhance that sector which requires new economy, to go back on it, we have some kinds of skills and new kinds of very renowned international scholars. innovations. I will talk a little bit about The focus here is to improve, what we call, the education system in Kerala. We have the ecosystem. Here, we are looking at the the highest literacy in this country. We educational, skill level for a knowledge are very good primary and secondary economy . education but Kerla actually has not been able to keep pace with the tertiary We should not focus too much on just education. This is a major setback, I think digital issues or remote work and needs attention from the policymakers . teaching. I think many of these trends will be short term and reverse. I do think Kerala has very few accredited colleges universities and everybody wants to go compared to your neighbors, for back the old the face-to-face kind of thing. example, roughly about 200-250 colleges. Offices will be working in an year or two, It has a disproportionately large number but I want to go back to the whole idea enrollment. The higher education survey that Mr. Balagopal was talking about in from 2011 to 2018 shows a sharp increase the earlier session that we need to have a of 10-12 per cent in enrollment. system for high tech manufacturing, high Some very interesting facts come when tech production in Kerala. you look at it. Firstly, the enrollment of Roughly we have tracked about Rs. 4000 woman in undergraduate colleges are crore worth of shipment out of Kerala, twice that of men and in post-graduation high tech products and high tech is fined education, it is three times higher. But a by OECD, What is high tech is that they very few women then get into the labor have some HSN codes they call the high force and more than 35 per cent of them tech industries. But Kerala, like in other stay out of the labor force and have a products has a huge deficiency in high higher unemployment rate. Only 9000 tech products including aerospace and postgraduate students Kerala produces, stuff like that must be going to ISRO. which I think is very small compared to But there is a great opportunity to Tamil Nadu and Karnataka. The State's 89 Kerala Economy Vol.2 No. 2&3, February-March, 2021 population is double, but the number of they were not the people who are accredited colleges are four times or five returning from the Middle East, most of times higher. Post-graduate education is them are Kerala NRIs from North far more widespread. So, I think, the kind America and Europe. Many of them have of skills that these colleges are imparting come back and starting, some are are disproportionate to what I want to collaborating with their former call general education. While we do fairly employers in USA and starting the well with respect to B.Ed, nursing and the hardware production using artificial like, with respect to science, technology intelligence and advanced chemicals and and higher education, there is much to be stuff like that. So there is already a small desired. There are more than 100 trend during the last five to ten years engineering colleges. None of them are and this needs to be strengthened. It needs not known nationally. So there is a great a substantial improvement in the tertiary need to improve the quality of higher education. Kerala spends a lot of money education, tertiary education in Kerala. on the budget. All private colleges also Then also an opportunity to the large get grants and support, but I think we number of Kerala scholars spread all need to use this support more judicially over the world and outside in other to push them towards to get better universities in India and there is an standards, to get accredited, to change opportunity to attract them back. the kind of courses and curriculum that they do and so on. There is a burst of new innovative industries, artificial intelligence. Industry entrepreneurs, I met around Kochi and

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Mammo Muchie DST/NRF Research Professor, Faculty of Management Sciences, Tshwane University of Technology, South Africa

First and foremost, I give my great And then the idea is, I don’t want the appreciation for Kerala. You are a students to just get grades. By writing progressive state, you’re doing many papers, I want them to do something interesting things. The interesting thing practical. In other words, they produce now is that the digital world, the virtual some venture. I must tell you what one of world is becoming universal. Even in the groups did. The initial seed capital agriculture, even if you don’t know how they needed was not available. Sometimes to read and write, you can still use mobile if they don’t get, they used to get some phone. support from my networks. But you know what they did.? They sold their cars What does it mean to have digital skill? and started building their own venture Do we do it through school or through startups. Can you imagine something like otherwise? How do we do it is a very that is happening now? interesting challenge. In other words, our people who are in agriculture, they can So, an interesting time is on us. So, what do digital agriculture. So is digital I’d like to do is that even the courses we manufacturing and digital services. So, are developing now, we’re thinking of the skills, the reskilling, the upscaling making it global virtually because when issue is a serious one. we did it virtually, it is possible that the whole world can join our courses. So, I’m I just want to tell you that in South Africa, I now thinking how I can motivate my have been running Technology venture university to see if we could make it next creation course this semester, and I did it time. So that all of you could get involved. virtually. I formed the students into groups, So, I like some collaboration, very genuine they have created certain new venture collaboration, where all our students if startups. Also, I suggested them not work they’re all engineering students and on the previous activities, but on the new they’re all interesting students, and they’re ones. In other words, the sustainable all motivated, and I like us to develop Development, the green ones. Be some news skills, and it is where we innovators, inventors, creators of venture, collaborate. And I think Kerala can come create the startups, and things like that.

91 Kerala Economy Vol.2 No. 2&3, February-March, 2021 into this picture and I think we could do differently. The social innovator. that. The other interesting thing is what Let’s get a few more names. Earlier we our Professor Charles Edquist said, the used to have regional and local concept of holistic Innovation system. I’m innovation systems etc. Let’s move from not interested in national innovation geography to the social world, the unified system since in the digital world, there’s world. The validation criteria should not no boundary, boundaries are finished!. be economics, economics for profit alone As humans are becoming machines, is not good. What does it do? When you machine learning is more important. create some job, you lose some job you All activities are changing and the work create sociological loss. We must make a world is also changing. The speakers also win-win link. Some new approach, some put it how many new jobs are created that new vision, some new idea. is digital. Things are different for the I must tell you, I call Kerala my homeland physical world and the physical work, I must say that from all the progressive what we used to do are changing things you have been doing. Can I just dramatically. Our classrooms are challenge you now? Now with this digital changing, what would be very interesting knowledge economy, you create a new now is the innovation system should be innovation system. The new concept, the developed more with the theory of holistic one, the social one, the social unassigned. innovation system, not the local Kerala And there is loss of jobs from our young innovation system or anything like that, people, we must be careful because if you or Indian innovation system. Let’s move lose jobs, unemployment comes, poverty towards that. Let’s change. I’m saying to comes and inequality comes, it means rethink. Unthink to rethink, unlearn to danger comes. For people many risk relearn, un-engineer to reengineer, un- comes like environmental challenges, science to re-science and un-economics many things. So to avoid it, we need to to re-economics. So, we’re in a new world. rethink, unthink innovation system by Going for the new world. Kerala, Thank using what I really like what Charles you so much. Thank you, all of you. Edquist said, the concept of holistic innovation system. I prefer to call it

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Glenda Kruss Research Director at HSRC, South Africa

I shall begin with by raising a few points said about Kerala, where you have a in comparison with policy processes in problem of unemployed graduates and South Africa that we are grappling and skilled professionals, in South Africa, we similar to that of Kerala. After 1994 South have a large pool of unemployed that do Africa moved towards a democratic not have the right kinds of skills for the government. In 1996 we adopted a new new kinds of jobs. I'm making that point STI policy that foregrounded the to compare some of the strategies we are knowledge economy and the national adopting. system of innovation. In 2019, we Over the past four or five months, I've designed a new white paper that sets out been involved in a province to develop the framework within which we are the economic and social development working with policy instruments and strategy and we are part of a panel that is mechanisms and so on. Our policy aims developing our housing strategy and to promote innovation for inclusive and central to that is skills. I just wanted to sustainable development that promotes share two points that came up in our transformation in the society and we also strategy. One is that we need to develop have foregrounded the fourth industrial our paradigm and our framework for revolution. Our presidential commission thinking about skills development. We has submitted its completed report in have a framework for economic December 2020. development and then we elaborate that There are a lot of parallels with the into thinking about our skills processes in Kerala. Our presidential development. commission has also foregrounded the We have also identified high growth investment in human capital and industry sectors like you have in Kerala, highlighted the need to design, streamline but slightly different. Apart from ICT and and align our education system through digital services, food, beverages Agro a coordinated multi stakeholder process. processing and Agro businesses, we have What's happening here today in Kerala also highlighted sectors such as cultural is such a coordinated multi stakeholder and creative services and the cannabis process. Very differently to what you've 93 Kerala Economy Vol.2 No. 2&3, February-March, 2021 industry. But then what I thought could about is a proposal for our skills be quite useful to insert into the development that enabled discussion here is what is the groupings apprenticeships in South Africa. I know of the types of skills that we need to grow. that the Kerala strategy talks a lot about technical and vocational education and There's a big list of the types of skills that financial commitment to need to be developed in Kerala. In our apprenticeships. In South Africa, we strategy, we have grouped these into four. typically have our apprenticeships One, the technology skills related to focusing on theoretical knowledge on physical, digital and biological practical skills and on workplace dimensions. So we need to develop experience. The way that we do is very advanced digital skills to design, develop different because of technology and and support our technologies that are innovation and because of the underpinning new ways of doing things. innovations that we need in business But what is equally important is the models and processes. So, for example, society dimension and the digital society. we have open courses that use blended In that regard, we need to make sure that learning accessed from Global we are developing the right skills so that universities . people can thrive in the workplace, of the future. But equally in the business skills, We can use digital portfolios for data the business dimension is critical. So, we informed decision making. Blockchain see the omnipresence of digitalization the gives us new tools for accreditation. We've need for digital trust and the need for new got new tools for digital identification and models. authentication and so on. These technologies could support multiple So, we need to develop new skills to take learning and pathways. I just want to advantage of new ways of managing and point that besides those three aspects doing business, and that's equally traditionally of theoretical knowledge, important. And then finally, at the practical skills and workplace experience, governance level, we need new kinds of we actually need new kinds of skills to be policy, new regulation and we need to be developed. To enable apprenticeships life ready to respond to the new skills become much more important, and opportunities and demands of we need to extend that training to include globalization as being stressed here critical life skills like financial literacy, today. Hence, we need to develop skill psycho-social support, etc. Particularly development programs. We have to if you're going to be talking about work include governance skills to can take into from home and work near home, we need account rapidly changing technology in to extend that training to include digital an increasingly global world. skills. So in a country like South Africa, The second point I wanted to make is perhaps less so in Kerala, we need to skill about the nature of teaching and learning. young people very much in the use of The example that I wanted to quickly talk advanced technologies in the workplace 94 Kerala Economy Vol.2 No. 2&3, February-March, 2021 digital safety cyber security, etc. process and going forward, it's very important to theorize and conceptualize There is the need to extend our training a bit more tightly; how it's linked with to include entrepreneurship skills. So ,if the framework for the economics growth we have high levels of self-employment, strategy and how our skills development we young people coming up with skills in itself can use digital means to deepen what business management and financial is possible? Thank you colleagues and we management, etc. I must say I was so look forward to engaging with you and if impressed with the depth of the planning it would be valid, we would love to engage that you had which is evident from the through this state level process,to excellent budget speech. Very clear compare how we are grappling with these planning in terms of numbers and very similar challenges, in significantly approaches and that's something we envy. similar but different contexts. Thank you. We are trying to even build our capacity to use digital means for more effective skills planning. I think that to deepen the

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Dinesh Abrol Professor, Jawaharlal Nehru University, New Delhi

The two points that I haven’t so far heard services. However, we have opportunities are one, the “who-whom” of knowledge and potential in the possibilities of economy and two, the guiding notions of upgrading the system of resources and knowledge economy in use by the knowledge of economic and medicinal professionals and policymakers. Professor plants. There is the possibility of upgrading Khanna reminded us not reduce knowledge the manufacturing capabilities associated to digital. The “who-whom” of the outcomes with the development of traditional health or the use values being gained need to systems. We have opportunities in the objectively assess the possible contribution services and tourism industry as well. Kerala of digital economy in making. The will have to invest in the local system of contribution of IT enabled services are education and competence building to catering to our own economy in a limited further develop these resources and way. They’re upgrading the US or UK capabilities; a higher priority to the building economy. And the workforce has remained of spaces for interactive learning to attain confined to low value-added activities. While transformative innovation outcomes is the the significance of high-tech activities is well positive answer. This will ensure that the understood, the outcomes need a critical benefits are not confined to just a small evaluation. Take the investment in very large section of the upper echelons of middle class. scale integration (VLSI) design activity going The challenge of developing local resources on in Bangalore. India has not been able to and capabilities requires the relevant actors create a high-tech economy due to the lack of to co-produce knowledge and co-design investment in the required complementary solutions. System development rather than manufacturing activities. Is the state heroic approaches is the way forward. But government in position to bring such the process of formulation of science, complementary investments to Kerala? technology, and innovation policy (STIP, Prof. Khanna drew our attention to the 2020) has completely bypassed the states. transient nature of trends like working from The STIP 2020 draft available for public home, online education and other such 96 Kerala Economy Vol.2 No. 2&3, February-March, 2021 discussion has been worked out without capabilities? Can we create a platform interacting with the states. A progressive economy for the benefit of providing government is in place in Kerala, and it is producer services for climate risk reduction expected to make the investments in science, and agricultural services? In Kerala, the technology and innovation to serve the knowledge economy should be connected people. In the given context, the question is with the processes of people planning and how the state government of Kerala should the development of the role and contribution be investing in the local system of education of local self governments. Let us innovate to and competence building to enhance the create a universal basic infrastructure absorptive capacity of the state and capable for a sustainable urban economy. formulate policy programmes for the The vibrant local self governments can enable upgrading of knowledge economy of Kerala. the social cooperatives to develop as social The progressive tradition of promotion of carriers of a circular economy in Kerala. collective action in Kerala is her strength. Development of the nodes of a networked Local self government capacity for the benefit system of group enterprises is also the key to of people’s planning has been attempted in the development of universal basic Kerala. Kudumbshree, the largest woman infrastructure and a pro-people platform solidarity and social economy programme economy. Kerala should not be in the hands of the world, is in place in the state of Kerala. of Uber and Ola, Monsanto and Bayer and How is the state government planning to link so on. The private parties could participate these components of the existing ecosystem and contribute by following the rules of game with the upgrading of knowledge economy? to be determined democratically. The notion How can the state government encourage of innovation has been misused and abused these strengths to actively participate in the to capture the direction of development development of the knowledge economy? process, and so also the notions of knowledge economy and knowledge society. Whose There are the challenges of climate change knowledge should count is not an requiring distributed capabilities but unimportant question? Kerala can provide networked to undertake disaster leadership in mobilizing the higher and management. Health and environmental secondary education system to participate challenges require the knowledge economy in the tasks of mapping, analysis, planning to contribute to build on the resilience and implementation activities. All over the shown during the COVID-19 crisis. world there are models available for the Information and communication integration of education and economy, and technology (ICT) skills and capabilities need we should be open to their import. However, to be harnessed for the benefit of disaster we should be evaluating the “who-whom” of management and climate risk reduction. Can the proposed models. Kerala harness the ICT skills and competences to develop unique strengths and become the source of knowledge and

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Edward Henry Lorenz Professor Emeritus, University of Nice- CNRS French National Centre for Scientific Research, Paris, France & Vice President,Globelics

I was reading the budget report and the these technologies to create jobs, aim of combining a knowledge economy transform employment, to create new with social inclusion and creating good skills and actually to be positive. jobs which was actually the key objective Large firms of course are important of the Lisbon Agenda, which drivers of change. However, one thing that unfortunately, as Bengt-Ake was saying got we've learned from the survey evidence turned towards a more liberal austerity- that's coming out - I would mention the oriented kind of strategy. So, I really UNIDO surveys presented in the congratulate you and I hope this Industrial Development Report for 2020 - alternative will continue to succeed. I is that there's a lot of heterogeneity between understand that poverty has already been large and small firms. Basically, SMEs, and reduced substantially over the last decade. micro firms even more so, are not And I also gather your manufacturing adopting these technologies to the same sector is increasing. So, you aren't facing extent as large firms. This is an important increasing deindustrialization, but issue to address as SMEs create jobs and actually you have a growing are an important part of any economy. manufacturing sector, which is quite an accomplishment in these days. Kerala of course, has an important population of SMEs which it supports I worked a lot on the fourth industrial through its innovation and entrepreneurial revolution. One thing that is interesting policy. The problems SMEs face can be about the data coming out of the research multi-dimensional. It can be finance and sponsored by the World Economic there can be lack of skills, lack of knowledge, Forum is that unlike a few years ago, they're and even lack of awareness of what these now saying Artificial Intelligence is going technologies can do. to create jobs. If we go back five years, most people were talking about the pessimistic In some cases, new technology is not prediction that we're going to destroy jobs. adapted to small scale production. You And especially for AI and robotics aren't going to invest in large industrial researchers didn't think very much farther robots that are suitable for producing beyond that to consider the potential for thousands of identical pieces in the 98 Kerala Economy Vol.2 No. 2&3, February-March, 2021 automobile industry for a small shop provided often by the employer. A lot of that's doing customized work. But in the training that takes place, it is over one's other cases, it's finance and knowledge. So, career. It's not just initial training in the I think there has to be a real focus on universities. It may be provided by policies that are partly focused on external training institutes, but it's also increasing awareness, and party on skills provided within the firm. So I think the development. employers have to be bought into the educational training policies and be And I think that the development of encouraged to adopt policies that are innovation hubs is one way to do it, to appropriate for developing these skills. bring these technologies more deeply into We've seen this in our work on Denmark the economy and to make sure as the where surprisingly training on the job UNIDO survey show that they impact on through interactions with peers is seen by more than a small number of larger firms. most of the people as the most important Even in the case of Brazil, it's just a small source of skill formation. This, of course, minority of firms that are really at the wouldn't be true for data engineers or data cutting edge of what we call the Fourth scientists. We are talking about people Industrial Digital Revolution. using these technologies in daily work In a sense Kerala is very well placed because activities. So, it is important that of its inclusive local banking system investments in STEM skills are balanced wherein, virtually every family has a bank with investments in professional skills and account and this is exceptional. When we experience-based training. look at many developing countries you Vocational technical institutes play an may have 50 percent or more of the important role and are often neglected. I population that are still primarily using want to stress that innovation does not cash, where cash economy dominates. So, just depend on science-based skills. It also I think you have a lot of things that are needs applied skills, experience and skills positive: good infrastructure and financial that are acquired through work activity inclusion. You have an approach that which we refer to as DUI mode innovation stresses at the same time the adoption of (Doing, Using and Interacting), as opposed new technologies and new methods, but to STI (Science, Technology and with social inclusion and I think this is very Innovation). You need both. important. It's been a pleasure to be able to talk with A last point I want to address is on the you. Thank you. educational side. Yes, we need STEM skills. We also need lifelong learning, which is

99 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Anna Kingiri African Centre for Technology Studies, Nairobi, Kenya

My presentation is going to focus on a technological innovation like M-Pesa, few lessons for knowledge development there is this new need to consider the and diffusion and how this can enhance aspect of product development. And of our national innovation system. I would course, these would relate to a number of like to draw some lessons from M-Pesa areas, but mainly on research and innovation, which is a mobile money development. This is very, very critical. service in Kenya, very popular in Kenya That is what has been found out in and is also being used in East Africa and relation to M-Pesa and the other factor other parts of Africa. Of course, questions has to do with our development of the have been asked why this mobile money market related innovation. And this service has been successful in Kenya but particular aspect of innovation has been not in other countries. For those who associated with incremental innovation, are aware, this is a service which was the need to build the capacity of introduced in 2007 and to date it has entrepreneurs, the need to build the skills revolutionized the operations not just in of young innovators which in turn the financial sector, but also in other contributed in a great way in the growth operational sectors in Kenya. When it of M-Pesa in Kenya. was introduced, it was targeted at The other area that has been found to be inclusive financial access, particularly by very critical is the aspect of product the grassroots communities. Some of the development that is driven by lessons that I would want to share I continuous adaptation that users would imagine that they would also be demand. And of course, this is key to the useful for other sectors which are critical process innovation. But more important for Kerala. Like renewable energy sector, is learning and capabilities development; biotechnology sector, and, of course, regardless of being a grassroots actors, other sectors within the Fourth Industrial SMEs or academic institutions. The revolution. capacities and learning must be Starting with a very first factor that has commensurate to the needs of both the been found to be very critical in Kenya technology developers, as well as the uses for the development of dynamic of the technology. This is yet another 100 Kerala Economy Vol.2 No. 2&3, February-March, 2021 factor found to have driven the growth of policy should actually support the factors M-Pesa. that target system failure. That is something which has been very critical The other aspect which I think very for the Kenyan digital innovation. And it critical for the Kenyan case is the policy has been found that these areas must innovation, where the government has change to their capacity and their skills contributed in a very large way in need of the different state. Therefore, promotion of, young innovators and technologists, as well as the developers young entrepreneurs. This has been of the technology must consider the skills found to have supported the ICT and the capacities. So, I believe some of curriculum development across different the factors that contributed to the sectors and also in the development of growth of M-Pesa could be of relevance supportive STI policy that promotes the in the transformation of Kerala to other areas that has been found to be becoming a knowledge economy. I do quite critical for the growth of M-Pesa. It hope that the policymakers as well as the ensures resource for R & D, market researchers can draw from the success of innovation and research, and for policy M-Pesa and inform our discussions and innovation. conversations. Thank you. Finally, for a functional technological innovation system, it has been found that

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Part III -Towards a way forward

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Reflections from experts across the world

Aurora Fernandez Gonzales Advisor to the Minister of Higher Education, Cuba

I will share some views on Cuba regarding human talent and knowledge to promote what we are doing on higher education and its development. Universities are very also on science, technology, and much involved in what we want to achieve innovation. Maybe you are aware that our in our country. They produce more than government is giving high importance to 60% of science and technology results, of science, technology and innovations in the scientific publications, of the order to solve many of the big problems postgraduate studies, including long life of Cuba with respect to social and learning for most of our population. economic development. We have a In recent years, we have worked towards National Plan for Social and Economic strengthening training and research Development until 2030 in which one of agenda to contribute to the objectives of the axes is human potential, science, our national plan to 2030. We have more innovation and technology. The vision of than a dozen universities that have already our nation of Cuba 2030 defines us as created science and technology parks, sovereign, independent, socialist, companies, start-ups, foundations, which democratic, prosper and sustainable. seek to facilitate university`s connection Those important goals demand, of course, with society. This is something new for us strong scientific and technological that started only two years ago, but is now capabilities. We want to promote our giving initial results. socialist project, guaranteeing sovereignty Very important, and relatively new is the and independence. We want to generate role that universities have in our local high levels of prosperity with high levels development. The Constitution of the of inclusion. And we want to promote Republic in 2019 declared the autonomy sustainable development. Those are very of the municipalities. That autonomy ambitious targets and demand strong requires creating capacities. In each Cuban connections between the State, the municipality we have a University production sector and the scientific sector. Municipal Centre, closely related to the I want to highlight the importance of the major universities and their research role of university in a society that needs centres and networks. Each municipal

105 Kerala Economy Vol.2 No. 2&3, February-March, 2021 government has a local development management rests on an Innovation strategy that must be supported by Committee, which is composed of more knowledge and innovation to produce, than 20 institutions. This committee meets food, improve habitat, multiply renewable every week with the President and started energy sources, among other benefits. The in March 2020. The President himself role of the university municipality centre chairs these meetings to discuss medical as the most important ally of the protocols, advanced techniques, and to government is recognized. know what are the results, what is happening? He raises questions such as: The direct participation of our President why are people are still dying? What else in science, technology, and innovation we should do? As of now, we are achieving through a direct and systematic dialogue relatively good results in the control of the with groups of researchers and experts has pandemic, of course, much more than the worked well in the battle against the media of Latin America, which is our Coronavirus pandemic. Of course, region. universities are present. This dialogue has made possible to advance much faster in These experiences have been shaping solving several problems. In particular the Cuba’s a government management system development of new technologies. For based on science and innovation. I want example, Cuba has today four vaccine to share with you that during this year a candidates against the Coronavirus. One National Innovation Council will be of them is in phase two of clinical trials. created directly subordinate to the No other country in Latin America has President. vaccine candidates of their own with this As you see, we have huge challenges ahead, advance. This year Cuba will produce no we are a very poor country, we have human less than 100 million doses. So, our entire talent formed by our revolution and we population will be vaccinated this year and have confidence that we will win. So, we we will be able to help other countries that applaud the aim of Kerala to transform to need help. a knowledge economy. We're sure with all The innovation also helped to produce I've heard today that they will achieve this lung ventilators that our country had to objective. Thank you very much. import at a very expensive amount of money. Almost all the drugs that we use in Cuba in the battle against the pandemic (Dr Aurora Fernandez Gonzales is the Advisor are developed and produced in our for the Minister for Higher Education and country`s biopharmaceutical industry. formerly Vice Minister, Higher Education Cuba) The technical direction of the pandemic

106 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Luc Soete Professorial fellow, UNU MERIT

The most striking feature of Kerala relatively limited income inequality. highlighted in the budget and received However, as outcome, this is one which much attention in the discussion is the most policy makers in the world would highly educated labour force in Kerala. At only dream about. It is an outcome which first sight, it made me think of Richard makes Kerala probably the best placed Freeman's much acclaimed book of 1976 economy in the world today to win the next the "Overeducated American".1 A book "digital" Tinbergen race: to outperform the which led to a lot of discussion in the speed at which a whole range of new digital United States and was more or less proven technologies, including artificial wrong subsequently. But let me quote intelligence, are likely to be impacting from Dr. Isaac's budget speech: today and in the near future all sectors in "Unemployment of the educated is the society. biggest developmental challenge faced by In short, the overeducated Keralite is Kerala. The present employment schemes actually the main guarantee for Kerala to are inadequate to resolve unemployment become over this decennium one of the of the educated." most advanced digital economies and So clearly there is something like the knowledge societies in the world. "Overeducated Keralite". But (s)he (she It will though, as be highlighted in Dr. might be even more appropriate) looks Isaac's budget speech, requires some today more like the successful outcome of specific policy action to exploit this specific Jan Tinbergen's 2 "race between education higher education comparative advantage. and technology" in favour of education. If First and foremost, addressing the high the race is won by technology as it did in levels of unemployment of highly educated most rich countries, inequality would females; second, raising the quality of increase: technological change increasing higher education; third, paying attention the demand for more skilled workers.3 to the need for continuous technological If like in Kerala, the race is won by upskilling and life-long learning (the education, the outcome could indeed result Tinbergen race is never over…); fourth, in an overeducated workforce with invest in the availability of IT equipment

107 Kerala Economy Vol.2 No. 2&3, February-March, 2021 and accessibility of IT infrastructure for This holds a priori for countries with large all. A broad spectrum of actions needed. populations where the potential for innovation, once users/consumers are A second factor complementary to the identified as source of innovation can overeducated Keralite, consists of easily be enhanced. In doing so, innovation attracting (foreign) capital to Kerala. It is is less driven by the continuous search for a factor which again has been given a lot of quality improvements, typical of the old attention in Dr. Isaac's budget speech with mode of technological progress, identified the creation amongst others of the K- with the high-income groups in society, but DISC, the Start-up Mission, the Kerala by broader user needs across society. These Innovation Challenge, the S.B Sen needs are also evident in the poorer, Innovation fund, a venture capital fund bottom or base parts of society." and even paying particular attention to the remittances of non-resident Keralites. So one can only encourage the Kerala government to be creative with measures activating capital, both based on public (Prof Luc Soete is Professorial Fellow, UNU funds, domestically generated private MERIT and formerly Rector Magnificus of savings and foreign capital. Maastricht University, Netherlands)

In conclusion, I quote from the last 2006 1 Freeman R. 1976. The Overeducated Globelics slide: American. Academic Press. "Knowledge sharing… shifts the attention 2 Tinbergen, Jan. 1974. Substitution of Graduate by Other Labour.Kyklos,27 (2). away from the purely technological 3 aspects of research to the broader For more recent analyses see a.o. Sauer, P., N.D. Rao, S. Pachauri, March 30, 2015. The organisational, economic and social Race Between Education and Technology aspects which are today in many cases a Revisited: An Integrated Approach to more important factor behind innovation, Explaining Income Inequality. than the technological ones.

108 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Sabu Thomas Vice Chancellor, Mahatma Gandhi University, Kerala

I strongly believe that start-ups are the I can tell you the story of a great polymer strongest engines for wealth creation, chemist and a good collaborator and employment, and development. Start-ups friend of mine in Belgium, Prof. Gabriel in Kerala is about creating prosperity. Goeninckx. He is a great polymer chemist, Many enterprising people who dream of at the same time he is a great plumber, great starting their own business lack the painter and a great mason too. Professor resources to do so. As a result, their ideas, Groenickx told me that he has learned all talent and capabilities remain untapped - these skills during his college and school and our state loses out on wealth creation, days. China's skilled labour force helps in economic growth and employment. I am boosting its economy. China has made glad that our Finance Minister looked into several industrial parks in the universities. this issue very skilfully and made required Hundreds and thousands of Chinese budget allocations. students are being trained in the science park at the universities and industrial Coming to the domain of skilling, units. My good collaborator Professor reskilling, upskilling, I am of the opinion Yang Weimin, is a well-known polymer that this is extremely important for the engineer, he is a consultant to many state. Probably you all know that, for any polymer companies in China. He gets a lot nation, productive and formal of funding by consultancy for the employment depends on the availability university. As a result, the companies grow of a skilled labour force through sustained and ultimately, universities, faculty investments in skill development and members and students are benefitted. entrepreneurship. Skill development and employability are interrelated. Universities Let me talk about the incentive system in and schools should teach life skills, the universities. In Chinese Universities, if technical skills, and soft skills. We should you publish a paper in Nature, they get also provide vocational education, 20,000 US dollars. I think we should also training schemes, internships and on the give some sort of incentives to our faculty job training. Students have to be taught members. So we have to make dramatic excellent skills during their study. That changes. I think universities have a very can be done through excellent internships. 109 Kerala Economy Vol.2 No. 2&3, February-March, 2021 big role to transform Kerala into a our universities in a big way- by building knowledge-based society. Universities massive infrastructure, providing faculty should be the centres for the production and post-doc positions. If you look at the of knowledge; they should be centres of GER of Kerala, we are actually behind disseminating knowledge to society. Tamil Nadu. The GER of Kerala is 37 per Universities have to build up excellent cent and that of Tamil Nadu is 49 per cent. infrastructure. They should interact with I request Dr. Isaac, we should try to build industry and society. I think Dr. Isaac has a GER of 75 per cent for Kerala, how can succeeded in that; he gave a lot of funding we do that? We must really build up to universities through KIIFB. All our excellent schools, we don't need any newer academic programs should have well universities, but under each university we defined in-built internships, as in Drexel should have excellent schools, University in the US. We should teach the departments and centers. Look at the students extra skills; inculcate the power student strength of our university of creativity, critical thinking and campuses, it is less than 2000. If you look innovation. If you look at the Global at leading universities in the world, the Innovation Index, we are much better. We strength is 25,000, 50,000, 100,000… and are actually ranked 50 in the Global so on. If you look at the University of Innovation Index. We should teach our Pennsylvania (UPENN) in the US, the students to take risks, encourage them to strength is 80,000. So, we need to have ask questions, experiment, observe and excellent schools/departments/centres at network. We should teach the students the universities, we need to have excellent how to manage and plan multifaceted colleges, we need to have state of the art projects. Universities should have polytechnics and ITIs. We also need to incubation cells, science parks as in China. have excellent nursing colleges, para If you look at the American Chemical medical colleges and if you can do that, Society (ACS) statistics, 80 per cent of the definitely our GER will go to 75 per cent. products that you see in the market are I'm sure our higher education can do spin-off from the universities. I think we extremely well if you look at these points should transform the universities into carefully. Thank you so much. It was a excellent places where produced and wonderful conference. And I'm very happy knowledge is transformed into value to cooperate with Finance Minister and added products. your team in all your endeavours. Finally, I think Kerala has never witnessed Thank you Dr. Isaac. such a beautiful budget giving tremendous thrust to higher education. Finance Minister tried his level best to strengthen

110 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Judith Sutz Professor, University of the Republic of Uruguay & Former President GLOBELICS

The budget document is an evidence- Assessment). In my opinion, such change based policy proposal, oriented by a is fundamental for what Kerala is aiming normative vision convergent with the to achieve. International comparisons Sustainable Development Goals. One of push researchers to work on problems the strengths of such document, in my that are of interest for international opinion, is that it is rooted in what Kerala journals; this orients research agendas has achieved so far, in its traditions: it is away from problems of local importance not one more of those wishful-thinking but with little visibility in the northern texts that pile goals without much contact countries. The stress to achieve quantity with reality. Of course, another strength of papers leads also to address short- of the document is the clear identification term, little risky problems, and even to of difficulties and constrains to go along pursue inadequate conducts, like "salami the proposed road. This said, I would like papers". I would love to work with Kerala to make five points. reserachers to help building a new global academic reward systems, convergent 1.- As is rightly put in the document, with open science, where no important universities need to be part of the effort problem is left aside and all research is of transforming Kerala into a knowledge carefully assessed in terms of quality. society. Of course, quality is of paramount importance here. However, assuring 2.- The document put the overcoming of quality is weakly related to international the digital divide in a correct perspective, rankings. These rankings fulfill a very away of a sort of magical thinking by precise role: they are the commercial which digitalization by itself will solve all showcase of higher education systems problems. Digitalization may bring more that have evolved towards business dignity to people if people already have services. Quality is not always measured it: housing, sanitation, good nutrition, by the number of publications in high health, general education need to be there impact factor journals. There is an to allow digitalization to deploy all its international effort going on to change potentialities. The recognition of social the prevailing research evaluation problems in Kerala, including inequality, system, DORA (Declaration on Research and the impressive list of measures to 111 Kerala Economy Vol.2 No. 2&3, February-March, 2021 address them pave the way to a unearthing knowledge demand related to digitalization process that adds to social inclusion problems: we would love development instead of transforming it to put our modest advances at your in a new sort of mirage. service. 3.- To help the revamped knowledge 4.- Innovation and development scholars system of Kerala to address the whole have learned from India the concept of gamut of problems that require new frugal innovation. This leads to pay knowledge to be solved, some problems attention to the heuristics followed to and demands need to be unearthed. This solve problems, to the need for creativity, is so for various reasons, including that to the acknowledgement that never ever people may not know that knowledge can there is a single solution to a problem, even be of help for solving some problems, or if this is what we are told. The mantra of that they do not know how to phrase a "do not reinvent the wheel; if someone have problem in knowledge terms. Unearthing already solved a problem just buy the knowledge demand beyond "strong solution", etc., is misleading. Re-inventing knowledge actors" is not an easy task. But by following different heuristics is simple when knowledge demand is clearly stated, good common sense. Developing frugal research and particularly local research, heuristics to problem-solving, that is, to answers. An Uruguayan anecdote innovation, is something in which we can illustrates the point: a team of young be of service to humankind. I am sure that researchers at the University of the Kerala could excel on that. Republic started developing a new clinical 5.- Governments have always urgencies of test for COVID-19, combining different all kinds; they need to show results in the pieces of evidence in an innovative manner. short term of politics. However, these They did that for two reasons: rich urgencies need not to take all their efforts. countries would overbuy tests kits; they A small protected space, a sort of niche, also wanted to provide a cheaper solution where pursuing demand unearthing, that is available in the market. Their success where heterodox heuristics to solve was impressive. They provided a key piece problems are followed and tested, may in the strategy pursued by Uruguay in the always be allowed. Perhaps, among the six firsts months of the Pandemic. When wide array of Centers of Excellence that Nature, in the issue of December 24, 2020, are envisaged, a Center for Heterodoxy in included Gonzalo Moratorio, the young Innovation (or something like that) may scientific team leader, as one of the 10 be included, centered around problems scientific personalities of the year, the whole defined differently and solved differently. country was thrilled. This reaffirms the You have been so audacious in your conviction that when demand is clearly document that a proposal like that can stated, it may deliver innovative solutions. perfectly fit in. My group at the University Research Council has developed a methodology for

112 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Jayati Ghosh Professor, Jawaharlal Nehru University, New Delhi

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114 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Arun M Kumar Chairman and CEO, KPMG

It is no surprise that recent budget by Dr. divide in Kerala. The state, with its high Isaac has placed the creation of a human development indicators, is knowledge economy as its centrepiece. I’m uniquely poised to take advantage of the very glad to see a focus on higher paradigm shift of the fourth industrial education, that is foundational to a revolution. competitive knowledge economy. The The state is a pioneer in terms of creating a proposed creation of a knowledge proactive policy environment, being the economy fund, ensuring ubiquitous access first in the country to formulate a policy to the internet and advancing the use of AI for the development of technological and Internet of Things are all startups and incubation centres. It is transformational initiatives that you have important to continue to evolve this laid out. Many talks today reflected the fact enabling ecosystem. that the quality of thinking and innovation in Kerala is already many steps ahead of Many successful Kerala entrepreneurs, other parts of the country and in fact many who have made their mark globally, parts of the world. My remarks will be nationally, and regionally, can help lead highlighting a few thoughts on Kerala’s this endeavour. Mention was made today efforts to establish and to successfully of the important need for mentors. execute its ambition to be a knowledge Successful entrepreneurs and experienced economy. industry executives should be tapped in this regard, possibly with incentives for First, I want to highlight the importance their participation. of and applaud the state’s efforts to promote an ecosystem that fosters the My second point has to do with data. digital industry. The ecosystem should Along with ubiquitous connectivity we are help the state ride the wave of the fourth amid the Big Data revolution. The ability industrial revolution that is well upon us. that we now process to collect, curate, and The ubiquitous availability of connectivity utilize what has been called a tsunami of is leading to democratization of data. To unleash the power that this technology; Dr. Isaac asserted his presents, Kerala could consider commitment that there shall be no digital 115 Kerala Economy Vol.2 No. 2&3, February-March, 2021 embracing open data concepts which remotely, through media like the mobile would allow citizens to review, compare, phone. visualize, and analyse government data The COVID-19 crisis has exposed two online and share their findings in real time. other disruptive trends that we need to be In my tenure in the US government, I saw prepared for. Increasing talent and price how President Obama’s policies for open arbitration arising from the ease with data led to a host of new businesses that which skills and work can be delivered grew up to use such data. remotely to clients worldwide, and rising Let me now come to revamping of the popularity of what is called gig working - skilling ecosystem to take advantage of the where services are increasingly being disruptions brought about by technology delivered to firms exogenously, and not by and by Big Data. Talent is becoming staff on the payroll. Kerala should tap into increasingly critical in proportion to these opportunities and serve global capital as a factor of production, while clients working from Kerala, at a scale that robotics and AI are displacing human surpasses what is already happening. endeavour and repetitive work across And last but not least, leveraging the sectors. Studies have predicted that up to educated women population of Kerala. 50% of the current tasks and skills would Kerala has a significant number of qualified be replaced by AI. In this regard, it is women. Dr Isaac mentioned the number important to understand the near-term as 5 million, who are not in formal jobs. In and long-term changes that are likely to the wake of COVID-19, a number of happen and shape the skilling ecosystem remote execution jobs, from data analytics accordingly. and predictive modelling, to design A critical requirement today is to collapse services for various industries that are the barriers between the specialized suitable for women, are emerging. A skilling institutions like the ITIs, and focused attempt to make such universities and industry. The legacy opportunities available, along with a well- paradigm is that of training institutions targeted upskilling initiative, can that deliver programs anticipating the potentially double the formal working needs of industry and then supplying population of women in Kerala. graduates annually. But in this new era, So, I will conclude with my belief that a skilling can no longer be the episodic or new moment for Kerala is well within sight modular and we must embrace a new and the state can build on its favourable paradigm of flexible, customized, and socio-economic base to transform itself contextual lifelong learning. This means into a knowledge economy based on soft all the actors, skilling institutions, skills, technology, and innovation - and communities, and firms must work commitment to inclusivity. together as a coalition. And skilling delivery models can be asset-light, transmitting learning and skills even

116 Kerala Economy Vol.2 No. 2&3, February-March, 2021

José Eduardo Cassiolato Professor, Federal University of Brazil, RedeSist Coordinator & Former Secretary General, GLOBELICS

There have been a lots of attempts to transformation to the knowledge society develop the strategy to deal with the should be seen in a very detailed way. I problems and perspectives of the world think that a focus in local innovation economy. In this context knowledge systems is an important part in my point economy has been discussed and of view, that could constitute one of the implemented in several countries. In my key stones of the program. country, during the bright years of the I think there are a couple of consensuses President Lula and from 2004 and 2015 that are already emerging. The first one several national and state level initiatives could be an outcome of pandemic, which have been developed precisely with the is the development and use of the same type of objectives. There is some disruptive technology or the so called important progress, particularly relating Fourth Industrial revolution having its to the two key points of discussion here: impact on work and how we relate each 1) in terms of skills; 2) in terms of other. infrastructure. We have improved a lot in several parts of Brazil in these two Secondly, although the globalization is ,JO
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118 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Gabriela Dutrénit Coordinator, Management and Innovation Policies, Metropolitan University, Mexico City, Mexico

I would like to focus on one specific aspect as Patrick Heller said. Technology that I consider is important to ensure the includes artefacts and techniques, but success in the dynamics of this also the activities of the individual, groups transformation: the evolution of different and institutions involved in the design, subsystems of society that influence the development, improvement and decisions and actions that are taken. As diffusion. The economic subsystem the Minister described, this process includes institution concerned with the presents the arenas of economy, production, distribution and technology and innovation. But, our consumption of goods and services, and countries are complex and are at the those individuals and institution stage of development where the problem concerned with the organization of these of social inclusion is a key issue in any activities. But other two subsystems strategy, as was mentioned by many mentioned by Freeman include politics colleagues before. Hence, other and the general culture. Politics include subsystems of society may be included ideas, non-values of individuals and into de considerations. institutions concerned with the government and the governance, and the I would like to go back to Chris Freeman, legal and political regulation by the who in 1995 told us that a set of central, local, and international subsystems of society are important in authorities of society, including military the process of change, namely science, affairs. And also, Freeman mentioned the technology, economy, politics, and general culture. I mean ideas, values, general culture. Freeman provided a artistic creations, traditions including different lens on how to analyse the tradition and knowledge that was development process and which mentioned before. This includes components should be included in a education, which is an important strategy. Some subsystems like science aspiration of Kerala. Coming from (which includes ideas, individuals, and developing countries, but also from what institutions) could be more important we are leaving today in the world, we have than knowledge on engineering and math to add two-order subsystems. One is

119 Kerala Economy Vol.2 No. 2&3, February-March, 2021 social aspect that is much a problem of with the emergence of new practices, the developing countries concerning the services and products, which denote income distribution, inclusion, and the greater entrepreneurship and innovation generation of social welfare, but we also than before. In most of the countries, this have to add the environment, which behaviour has overcome the government Freeman didn’t include at that time in measures and incentives showing a 1995 but for us now is a must. different evolution of the subsystems. Each of these subsystems of society has So as a final reflection, I would like to say some independent performance, but they that the transit of Kerala to knowledge interact and influence on the process of economy might require elaborating economic growth. Hence, it can emerge strategies that consider the different either a lack of synchronicity and subsystems of society. It is needed to harmony between the subsystems when better define which are the relevant you are analysing a process of change or subsystems in the case of Kerala, and in contrast, they can converge and analyse how the policy can contribute to generate a virtuous cycle effect on the evolution of these autonomous economic growth and development. subsystems. It is important to identify Hence, which is key with the subsystems clearly which institutions are relevant, of society is not only that they evolve, how institutions favour positive which is important is that they interact bidirectional links, where to make an and co-evolve. But the success of a process investment to strengthen these links of economic growth and development is between different subsystems. It is associated with the extent to which the relevant to reflect on how to analyse the changes in these different autonomous relationship between subsystems, and subsystems of society are congruent also to identify the existence of thresholds instead of counteracting each other. in any of these subsystems that affect the evolution of the country as a whole. What we have seen in our countries is the Hence, we need to design policies that lack of congruence between the political include instruments to promote a institutions that come from the past and synchronous and harmonious the advances in the economy related to development of all the subsystems. Internet of Things or manufacturing 4.0, or the contradictions between high rate We are excited to know and follow up on of growth and the persistence of high level these interesting processes that happens of exclusions, hence the distribution of in Kerala and can be an example for many benefits of the economic growth is other developing countries. Thanks for unequal. And now during the COVID- the opportunity to give an opinion about 19, we have seen in several countries an what is going on in Kerala. interesting response from the business sector, particularly the small and medium enterprises and even the informal sectors,

120 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Patrick Heller Brown University, Director, Development Research Programme at the Watson Institute of International Studies and Public Affairs

I have been learning from Kerala and, in the job done. By state capacity I don't just particular, learning from Professor and mean the conventional focus on now Minister, Thomas Isaac, for almost bureaucratic and technical capacity, but three decades. So, it's an absolute honour also the ability to coordinate across and privilege to be here. I will take the governmental agencies and in particular opportunity to comment on the budget coordinate across levels of government and maybe locate it in a larger context. especially local governments. Third is a focus on expanding human capabilities - So, let me begin with a brief comment both for their intrinsic value of sustaining about the literature on accelerated human freedom and their instrumental economic transformation. That literature value for supporting development. focused on developmental state. But today Fourthly, we need states that are not just we're talking about a very different kind of democratic, but that are deeply embedded a developmental state, that is, the 21st in civil society. And by civil society, I do century developmental state which is not just mean movements and geared not so much to promoting industry, associations, but also autonomous but rather services and a knowledge institutions of knowledge production, economy. In thinking about the 21st most importantly universities. So, let me century developmental state, I think there just make three substantive points along are four features of success that we have to these lines, and then finish with a comment underscore, all of which are present in the about universities in particular. Minister's budget speech. In many respects, Kerala is the prototype The first is having and articulating a of the 21st century developmental state. It specific vision and associated projects is building on its extraordinary grounded in local history and politics. The achievements in welfare and capability budget does just that by specifically enhancement, but also in deepening framing the idea of developing a knowledge governance and specifically by deepening economy as an extension of Kerala's democracy and empowering local overarching democratic project. Second governments. There is now an abundance is having the actual state capacity to get

121 Kerala Economy Vol.2 No. 2&3, February-March, 2021 of comparative and historical evidence to that's not always been the case in India. suggest that the key to promoting more Preserving autonomy from market forces, inclusive forms of economic dynamism is but also from the state itself is essential to local government. attracting the best and creating environments of innovation. The second point, again, building on the successes of Kerala's long-term And then let me make my final point that investment in welfare and capability- goes to the information economy, but also enhancement is precisely finding new ways the particular role that higher education to leverage those investments. The two will play in supporting that economy. In fastest growing sectors in the world are an environment of scare resources, there's education and health. They are labour a tendency in the debate on the new intensive, especially as the nature of care economy to emphasize technology and itself intensifies and education specializes. innovation and in doing so to prioritize There are extraordinary opportunities STEM (science, technology, engineering here to build on those welfare state and mathematics) disciplines at the investments. But I think the key here - given expense of other disciplines. But the the tendencies towards precarity and knowledge economy is not just about fragmentation of the labour force and the technology and innovation. It's also about growth of the gig economy - is ensuring creativity and in particular understanding that there is security for workers in these how the digital interfaces with the social. new highly flexible work arrangements. Creativity today is rooted - more than ever - in culture. And I think it's absolutely Let me then quickly turn to higher essential to invest in cultural capital, to education, which is of course the new invest in pedagogical models that are thrust of the Minister's budget speech, and interdisciplinary and that ground hard here I just want to make two points. First knowledge or technical knowledge in the the budget speech, of course, is about social and cultural fields. broad-based commitments. Next comes the actual detailed programs and the devil Let me finish by observing that given is always in the details. And I think one of Kerala's long-standing history and success the details that really need to be thought as a people-centric model of development, through carefully is the question to the it is uniquely positioned to build a autonomy of institutions of higher knowledge economy, but not just any education and there's reference to this in knowledge economy, but rather a the budget speech. But for those of us knowledge economy that would be more who've experienced working in cosmopolitan, more pluralistic, more universities in the United States and inclusive, and more deeply rooted in a very Europe, we all know that one of our creative culture. Thank you. And again, institutional advantages is the it's a true honour and privilege to be part extraordinary autonomy that we have as of this conversation. faculty and as researchers. And I think

122 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Susan E. Cozzens Professor Emerita, Georgia Institute of Technology, Atlanta, GA, USA Vice President, Globelics

The budget for Kerala for 2021-22 is a for them. Fortunately, that would not be bold document, laying out a distinctive the case in Kerala. The people who hold pathway towards shared prosperity in a the high-wage jobs are able to support the changing global economy. Kerala has long service economy around them - laundry, been a model for human-centered retail, food, transportation services, etc. development; this document continues These are typically low-wage jobs. Thus that commitment. The foundation of the high-technology economy adds fewer Kerala's social cohesion has been its jobs towards the top of the income scale investment in the health and education of and more at the bottom; this increases its people. This new stage of development inequality. is possible because of that investment. Inequality is already rising very fast in Nonetheless, the comments on the budget Kerala. While its human-centric offered in this symposium have raised key commitments give it among the lowest questions. Kerala for what? Kerala for levels of poverty among Indian states, it whom? Whose knowledge will count? Can has the highest level of inequality. Kerala continue to sustain "proactive Inequality increased by ten Gini points equality" and build a Knowledge over the period 1994 to 2005, quite a Economy? remarkable increase seldom seen in the world statistics. These Gini numbers are These questions are critical because of consumption-based; increases in income what we know about the dynamics of and wealth inequality are probably even inequality in high-technology more dramatic. development. High-technology development produces high-skill, high- There are some key elements in the wage jobs; this is inherent in its design. knowledge economy strategy for Kerala Typically, the number of such jobs is small that will help to protect social cohesion in in relation to overall employment. In the face of these income and wealth countries with low general levels of dynamics. The commitment to preventing education, most people do not have access a digital divide is one. Additionally, and to those jobs because they are not prepared perhaps surprisingly, the expectation that

123 Kerala Economy Vol.2 No. 2&3, February-March, 2021 knowledge economy work will often be rich soil for this type of growth. done from home is another, in ways that The massive investment in infrastructure might not be immediately apparent. When that appears in the budget can also be the people can do their high-wage jobs on a site of distinctive innovations. For distributed basis, they will also support example, Kerala's water supply is under local businesses with their spending. stress, in ways that other regions are also Neighborhoods can maintain a mixed- experiencing. Inventing and implementing income, mixed-use character. Mixed- ways to address such challenges could be income neighborhoods make it easier to marketed elsewhere by Kerala-based maintain high-quality public schools for enterprises. Likewise with innovations in everyone; high-income families are less energy, health, and transportation that is likely to flee into private schools and low- suited to Kerala's conditions. These can income families have access to the result in products that can be exported to education that underpins social mobility. markets that European and American Children from different kinds of firms do not understand, along with the households go to school together, know approach of adapting them locally each other, and are more likely to through local knowledge and experience. participate as equals in "the democratic project of Kerala." I am sure from Through all these steps forward in shared everything I have heard today is that innovation and shared prosperity, wealth Kerala does not want to bifurcate. will accumulate. It is essential to "the democratic project" of Kerala to keep the In building a distinctively Kerala wealthy in. On the one hand, Kerala's knowledge economy, some other lessons leaders should keep a close watch on tax from the state's history are important to structures, to make sure that the new keep in mind. Local, craft knowledge has wealth that accumulates is shared back long been a font of innovation in Kerala, into the kinds of investments in people that like the knowledge of farming and fishing. have made Kerala fertile ground for a This will not only be important in bottom- knowledge society. On the other, leaders up innovation in the informal economy of need to exhibit the attitudes and mutual the state, but also needs to be combined respect that will hold the community with more formal knowledge. Innovation together. that is suited to a broad range of economic circumstances is generated best when My best wishes to you in forging this people solve problems using expert and unique way forward. local knowledge together. Kerala's egalitarian social environment should be

124 Kerala Economy Vol.2 No. 2&3, February-March, 2021

A.V Jose Former Director, GIFT

To me sitting right through the webinar of our past development and I am happy was an immensely rewarding exercise. It to note that the state has embarked on was the kind of an immersion course in a that in full force. The budget document is whirlpool of ideas, floated by people from a clear indication that the state and its far corners of the world, all directed political leadership are prepared to go towards making Kerala a knowledge any length to realize that vision. The fact economy, not just for its inhabitants, I that the Finance Minister has said in the believe for the whole of India. The morning session: "forget about the cost knowledge setup that develops in Kerala or the mobilizing resources, I am going ought to be meant for the rest of India. I to make it happen, I am going to ensure am confident that we have the visionaries that the resources are there" is a prepared to underwrite the cost of profoundly significant statement and embarking on such a venture. We have indeed one of the most rewarding the skilled craftsmen or the experiences while listening to the whole knowledgeable persons who can make it discourse here. happen, chart out every step involved in What I wish to say is that in Kerala, the turning an idea into a product, and reach focus is now shifting to the service it to the market. It is a very ambitious economy. The service economy, by the venture that has been planned in the way, is significantly different from the one context of Kerala. I do believe Kerala is we have envisaged as one cantered around ideally suited for that because it is just a manufacturing activities. We might have continuation of the transformation difference of opinion about the relative process, we have had in the past involving importance of different industrial the democratization of the public space divisions. Maybe 10 years down the road, in the education and health spheres. we will still be focusing on What happens next is the sequential stage manufacturing, but the shift is entirely of generating a knowledge economy, towards the services sector based on the where knowledge is made accessible to use of skilled labour. This is the people at the lower end of income culmination of a new industrial distribution. It is a natural consequence transformation where work is moving to 125 Kerala Economy Vol.2 No. 2&3, February-March, 2021 where the people are, unlike in the commendable initiatives. previous industrial revolutions where Another point which Professor Khanna people always moved to where the work raised again in this session is about was located. Therefore, making the raising the quality of higher education. instruments of skill-acquisition This has got to be done with the accessible to people at the lower end of involvement of the existing crew of income distribution is extremely teachers and professors. I have heard the important. That is being pursued in point often raised by very responsible Kerala. people, familiar with the higher education More importantly, they are trying to make setup, that nothing is possible with the it possible for women workers to come existing crew. No, that is not the case. The into the labour force, which Professor point is that they have to be empowered Sushil Khanna made a reference to earlier. to enhance their skill-sets and move up What needs to be done is to make sure the ladder by making it possible to that the reserve prices of women in the interact with the best and the brightest in skilled labor households are met through the academic community in the rest of the what the state has to offer, which means world. This again is eminently doable. We it has to create an ambience to make work are moving into the service economy and far more attractive. This means that more there is an abundance of opportunities than raising the wages, which is part of awaiting us on account of the income an all-India process, we should focus on effect generated through the factor price establishing appropriate institutions for equalization theorem becoming fully social security. This is not just for the operational. And that is something which distribution of state's largesse, but for the Kerala can certainly look forward to. All creation of annuity-based contributory those people passionately involved in pension funds, which is what has been planning for the future and charting emphasized in the budget document. As every step in the transformation, I wish the Finance Minister mentioned earlier them the very best and look forward to in the day that he is going to meet the working with all of you. Thank you very cost of social security payments for all much. the new jobs being created outside the public sector, it is indeed one of the most

126 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Alexandre Oliveira Vera-Cruz Professor, Metropolitan Autonomous University, Mexico

I am grateful for the opportunity to learn actors of the STI sector. To deepen public from the experience of Kerala and be able participation requires fostering the to express some words related to this dialogue between officials and stakeholders strategy of development based on for the decision-making process. knowledge. I'd like to make a point only on Public participation in STI opens space for the topic of public policy, specifically on a dialogue between STI communities public participation in this process, and the (stakeholders) and the officials. Each public policy challenge of transforming community intervene with different Kerala into a knowledge economy. intensity in each stage of the policy cycle. In the decision regarding the design of STI The evidence at the international level policy in our countries, it has dominated a shows a more intense participation in the top-down approach, an approach to stage of definition of the agenda and design, government policy as opposed to public which is the stage in which Kerala is. policy. Therefore, there have been difficulties Today, the generation and management of in recognizing the voice of stakeholders. the dialogue is part of the governance Government policy faces the challenge to capability of the national innovation system. becoming public policy and for these the I believe that public participation is very participation of interested parties is important for this strategy of the required. The public nature of the policy development based on knowledge with the refers to increasing stakeholders' vision of transforming Kerala into a participation in the policy formulation knowledge economy. We are very interested process. Public participation is a political in this process that you are starting now principle or practice. It can be recognized as and I am confident that it will be an example a human right, the human right to public for many developing countries. Thank you participation. It can be seen as a form of very much. empowerment of citizens and there is part of the democratic governance. In order to design a public policy, it is required to think in participation, negotiation, and consensus generation of proposals of the different 127 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Jeffrey Orozco National University of Costa Rica & Secretary General, GLOBELICS

Okay, first a thank you for the invitation. and to remember that we are having a It is an honour for me, and for Globelics Globelics Conference this year in Costa to be part of this activity. I think it is very Rica. We have already sent the call for important for you and also for us in papers. We hope to have a hybrid Globelics to stress their relevance of our conference with some people here in global network. It gives some feedback in Costa Rica and others online. It will still these development challenges. There are be difficult to predict how the situation also many lessons from Costa Rica, but I with Covid would be by the end of the don't have the time now to say something, year (November). But I think this activity especially from our agricultural sector, on is a good example that we can share and how to manage their R&D sector, their the technologies help us to share in diffusion of knowledge, and also, the different ways. I thank everybody, we had attraction of investment. Since you are a lot of feedback from experts from about to be at your midnight in India I everywhere. It's really an honour for am not inclined to elaborate on any of Globelics to be part of this and I hope these aspects. But I am sure later on, we that this dialogue will continue. I look will have a number of opportunities for forward to welcoming all of you in person more intense, elaborate and relaxed in Costa Rica for the conferance, if not, at discussion. least online. Thank you. For now, just to think about this activity

128 Kerala Economy Vol.2 No. 2&3, February-March, 2021

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kinds of affordances around gendered, How to combat Covid-19: Lessons from affective and networked publics has been Kerala experience by P K Sujathan, Prasad M addressed and a tentative theoretical G and Azad P investigation into possibilities of bringing an effective modality into developmental matrices History and Culture is presented. 3. Sreejith, P. M., & Sreejith, S. (2021). Report Scopus Indexed Journal Articles on Socio-Economic Impact of COVID 19 on 1. Gallo, E. (2021). Kinship as a ‘Public Fiction’. Migrant Workers with Reference to Kerala Substance and emptiness in South Indian State. Journal of Contemporary Issues in Business inter-caste and inter-religious families. /:Contemporary South Asia, 29(1), 81-96. https ڀ  and Government, 27 https://cibg.org.au/index.php/cibg/issue/ /doi.org/10.1080/09584935.2021.1884658 article_7487_050ca8470c0950882ebe3701a4e4b7a9.pdf Abstract: This article explores inter-caste/ FOUFSFE
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130 Kerala Economy Vol.2 No. 2&3, February-March, 2021

the film industry are overlooked while the cine 2. Punathil, S. (2020). Archival ethnography worker’s agency is co-opted by a neoliberal and ethnography of archiving: Towards an system that masquerades as welfare. anthropology of riot inquiry commission 3. Mannil, B. M. (2020). The gendered film reports in postcolonial India. History and worker: Women in cinema collective, intimate Anthropology, 1-19. https://doi.org/10.1080/ publics and the politics of labour. Studies in 02757206.2020.1854750 South Asian Film & Media, 11(2), 191-207. This paper examines the challenges and https://doi.org/10.1386/safm_00028_1 possibilities of combining archival and UP
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‘communal’ violence studies in India. The These studies ignored the slave lifeworld and ethnographic study among the traditionalist conversion history before the abolition period, Sunni Muslims of Kerala, observed the and they argued that through religious emergence of new intellectual critiques of conversion, the former slave castes began Islamic reformism and a revival of ‘traditional’ breaking social and caste hierarchy with the Islamic articulations through a new class of help of Protestant Christianity. From the traditionalist Sunni ulama, claiming to be colonial period, missionary writings bear out ‘turbaned professionals’ who believed in that the slaves were hostile to and suspicious providing epistemic sanctioning to ‘traditional’ of new religions. They accepted Christianity ڀIslamic piety while simultaneously grounding POMZ
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specific caste occupation and engagement of ‘essential’ by the WHO in 2019 was analysed household members in a similar profession and Median Price Ratios (MPRs) were also strengthen the ‘strong kinship ties’ within the calculated. The study finds that on average, community, and they miss out on the benefits the most-sold and highest-priced generics, of ‘weak ties’. Everyone is suffering, but the respectively, were 6.6% and 8.9% costlier than the lowest-priced generics (LPG) and that the ڀBSCFST
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IJU# availability of CVD and diabetes EMs fall short Health of WHO’s 80% target in both the sectors. It also reports on the unaffordable prices in Scopus Indexed Journal Articles comparison to GSDPs despite near-optimal 1. Indu, P. V., Beegum, M. S., Kumar, K. A., availability in private retail pharmacies. Sarma, P. S., & Vidhukumar, K. (2020). 3. Mathew, D. (2021). Yoga as a potential Validation of Malayalam Version of Everyday psychosocial tool: Results from a quasi Abilities Scale for India. Indian Journal of experimental study on victims of flood affected Psychological Medicine. https://doi.org/ state of Kerala. Advances in Integrative 10.1177%2F0253717620973419 Medicine. https://doi.org/10.1016/ This study’s objective was to validate the j.aimed.2021.01.004 Malayalam version of Everyday Abilities Scale Abstract (edited): Natural disasters of any for India (M-EASI) in those aged e”60 years. form leave individuals in agony. Mental and Everyday Abilities Scale for India (EASI) is a social health are among the notable domains scale to assess activities of daily living that is affected by such disasters. Thirty-two employed as screening tools for dementia or participants (Mean age 37.8 years) victims from major neurocognitive disorder (MNCD). A a flood-affected state of India were enrolled total of 304 participants were recruited from a for 15 days of yoga interventions after tertiary care center attending psychiatry, obtaining written consent. Breathing exercises neurology, or geriatric clinic of general medicine and guided relaxation techniques were departments. provided as intervention after obtaining a self- 2. Satheesh, G., Sharma, A., Puthean, S., Ansil rated visual analog scale (VAS) for fear, sadness, T, P, M., Jerena, E., Raj Mishra, S., & anxiety, and lack of sleep. All the participants Unnikrishnan, M. K. (2020). Availability, price completed the study. Statistically significant and affordability of essential medicines for changes were observed in all the VAS- managing cardiovascular diseases and dependent scale variables, such as fear, diabetes: a statewide survey in Kerala, India. sadness, anxiety, and lack of sleep. No adverse Tropical Medicine & International Health, events were reported. 25(12), 1467-1479. https://doi.org/10.1111/ 4. Kiran, P. S., Mohan, B., Abhijith, V., ,.Abraham, A., Anoop, G., Dinesh, R. S ڀtmi.13494 This study uses the WHO/HAI survey Krishnan, S., Mahadevan, K., Peethambaran, methodology to evaluate the availability and M., Kunheen, M., Sidharthan, M., Prathibha, prices of 23 Essential Medicines (EMs) for S., Sukesh, G., Thomas, K. P., Jayaprakashan, cardiovascular disease (CVD) in 30 public K. P., & Jaisoorya, T. S. (2021). Framework for sector facilities and 60 private retail pharmacies strengthening primary health care and across 6 districts in Kerala (Nov 2018- May community networks to mitigate the long-term 2019). Data on six anti-hypertensive fixed- psychosocial impact of floods in Kerala. dose-combinations (FDCs) designated as

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International Journal of Disaster Risk Reduction, prognosis. Studies on pathways to care, seek 52. https://doi.org/10.1016/j.ijdrr.2020.101947 to find out predictors of mentally ill person’s Abstract (edited): Individuals who encounter help-seeking behaviour. This study seeks to disasters experience negative consequences examine this matter in Kerala setting. Four across physical, mental, and psychosocial gateways to care were identified: Psychiatrist- domains. Impacts on mental health and 71.2%, faith healers – 14.8%, non-psychiatrist psychosocial domains are more common, and modern medicine doctors- 9.2%, alternate last longer than physical health problems. In systems of medicine- 4.8%. Median DUI was August 2018, Kerala witnessed unprecedented seven months. Faith healers as first carers were floods that resulted in 483 deaths and more in below-poverty-line (BPL) compared significant loss of property and livelihood. to APL families. Project ‘Pariraksha’ was implemented by the 3. Krishnan, S., Lekshmy, K., Anil, P., Sandhya, Government of Kerala, to mitigate the long- B., & Jayageetha, K. (2020). Self-reported term psychosocial impact of the disaster. This Emotional Experience Among Police paper describes the detailed methodology of Personnel Before and After Attending a Mindfulness Based Intervention (Mindful Life ڀUIJT
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ڀ  Information Quarterly, 38 10.1016/j.giq.2020.101549 emotions among police officers. The This research uncovers the mechanisms at play observational study attempts to assess and as Kerala State Government implemented and compare the subjectively reported emotion used frugal technologies as platforms that and Mindfulness level among police personnel helped decision making and strategy to fight before and six weeks after attending the COVID-19, in partnership with research Mindful Life Management (MLM) institutes and private sector actors, which are workshop.Results of the present study suggest cheap and efficacious. The study defines and a statistically significant association between ڀpromotes the concept of Government Frugal TVCKFDUJWF
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134 Kerala Economy Vol.2 No. 2&3, February-March, 2021

psychosocial risk factors was carried out in a most important contributing factor for tertiary care postgraduate teaching hospital of psychological preparedness. The willingness to north Kerala. Multivariate Regression Analysis respond to the pandemic was found to be was used to identify the risk factors for significantly higher among doctors and nurses postpartum depression (PPD). 27.6% had compared to medical interns. While anxiety postpartum depression, and 18.4% had suicidal was the most common emotional response, ideation. Factors associated with the presence the fear of infecting family members was of PPD included alcohol use of husband, found to be the most common risk perceived marital discord, lack of family support and lack in qualitative analysis. Considering the risks, ,workload, and socioeconomic stressors ڀPG
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After getting written informed consent, socio- most notably those with serious mental illness demographic data sheet, Internet Addiction and substance use disorders tend to present Test (IAT), Schutte Self Report Emotional with more severe nicotine dependence and Intelligence Test (SSEIT) and Perceived Stress nicotine withdrawal than smokers without Scale (PSS) were filled up by the participants. these illnesses. The comparative cross- Completed responses were scored and sectional study was done in Amrita Institute analyzed using SPSS 18.0. In the sample, 42.9% of Medical Sciences & Research Centre, Kochi, had mild internet addiction, and 22.8% had a 1,450-bed hospital for a period of 2 years. moderate internet addiction. There was a There appears to be a relationship between positive correlation between scores of IAT and smoking tobacco and certain clinical features PSS and a negative correlation between scores of bipolar affective disorder. It is possibly a of IAT and SSEIT. A pattern of increased levels bidirectional relation between these two of perceived stress and decreased levels of disorders. emotional intelligence was noticed with 8. Cherian, V., Philip, J., & John, A. (2020). increasing levels of internet addiction scores. Prevalence and factors associated with post- 6. Valsan, N., Thomas, R., Kuttichira, P., Valsan, traumatic stress disorder among flood- C., & James, A. (2020). Willingness and affected adults in a panchayat in Ernakulam psychological preparedness to attend to district in Kerala. Kerala Journal of Psychiatry, COVID-19 patients among healthcare workers 33(2), 147-152. https://doi.org/10.30834/ in a tertiary care private hospital in Kerala-A KJP.33.2.2020.222 mixed method study. Kerala Journal of Abstract: This study aimed to determine the Psychiatry, 33(2), 96–104. https://doi.org/ prevalence and the factors associated with Post- 10.30834/KJP.33.2.2020.204 Traumatic Stress Disorder (PTSD) among Abstract: The study highlights the altruistic flood-affected adults in a panchayat in Kerala. attitude of frontline health workers to be the

135 Kerala Economy Vol.2 No. 2&3, February-March, 2021

This was a cross-sectional study undertaken Sociology in 100 households in a flood-affected community in Kerala. The PTSD Checklist for Scopus Indexed Journal Articles DSM-5 (PCL-5) was administered to diagnose 1. Vijay, D., & Gekker, A. (2021). Playing Politics: PTSD. The intensity of flood exposure was How Sabarimala Played Out on TikTok. measured using a checklist of ten factors. Our American Behavioral Scientist. https://doi.org/ study demonstrates the high prevalence of 10.1177/0002764221989769 PTSD following floods in Kerala and the need Abstract (edited): This article analyses the to conduct post-disaster mental health emergence of TikTok as a political actor in the screening. It highlights those factors that may Indian context and how politics is performed predict the occurrence of PTSD in the affected on TikTok and how the platform’s design population. shapes such expressions and their circulation. 9. Vinuprasad, V. G., Sharadha, N. R., & Eskin, It reviews existing academic work on play, M. (2020). Change in attitude towards suicide media, and political participation and examines with current undergraduate training in the role of TikTok in the contentious issue of psychiatry: a cross-sectional study. Kerala women’s entry into Sabarimala [in Kerala], a Journal of Psychiatry, 33(2), 153-157. https:// temple that women of menstruating age are doi.org/10.30834/KJP.33.2.2020.221 barred from entering on religious grounds. It Abstract: In this cross-sectional study, we goes on to examine the case of Sabarimala looked into the change in the attitude of an through the double lens of ludic engagement undergraduate student towards suicide with and platform-specific features. his/her training in psychiatry with the present 2. Shaji, J. (2021). Evaluating social vulnerability ,5IF
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and comparative criminology. https://doi.org/ Forum, 84. https://doi.org/10.1016/ j.wsif.2021.102437 ڀ10.1177%2F0306624X20981030 The study using life-course theory approach This paper analyses the 2019 general elections is a pioneering one conducted on eight serial and the by-elections that followed in Kerala to killers in India who were inmates in central discern the changing gender dynamics that prisons of Kerala and Tamil Nadu. Biographies produced certain kinds of ‘desirability’ and of the offenders were created chronologically ‘approval’ around the candidature of women using information collected through in-depth politicians. The identification of three specific interviews with serial killers in the prisons, frameworks—‘honorary masculinity, ‘relaxed interviews of relatives of the killers, surviving honorary masculinity’, and ‘welfarist feminine victims, etc that supported the construction of altruism’ —in and through which three a less rigid inclusive motivation model, generations of women politicians entered into explaining the process of individuals evolving public politics and carved out their niches, also TIPXT
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137 Kerala Economy Vol.2 No. 2&3, February-March, 2021 guarantee scheme by launching the Ayyankali Tourism Urban Employment Guarantee Scheme (AUEGS). However, despite being modelled Scopus Indexed Journal Articles on MGNREGS, the implementation of the 1. Paulose, D., & Shakeel, A. (2021). Perceived AUEGS has been a flawed one. So, at a time Experience, Perceived Value and Customer when the demands to introduce an urban wage Satisfaction as Antecedents to Loyalty among employment programme for solving the Hotel Guests. Journal of Quality Assurance in unemployment crisis, the study suggests that Hospitality & Tourism, 1-35. https://doi.org/ it is better to take into consideration the 10.1080/1528008X.2021.1884930 performance of similar wage unemployment Abstract: Despite the hospitality industry programmes and then introduce a national reeling under the impact of Covid-19, few urban wage employment programme that can studies provide practitioner-oriented address the present pitfalls and drawbacks. perspectives capturing dimensions of guest Book loyalty within emerging markets. The Suresh, L., & Suchitra, M. (2021). Suicidal researchers examine the influence of Resistance: Understanding the Opposition perception of value and experience on guest Against the Western Ghats Conservation in loyalty within the context of the Indian hotel Karunapuram, Idukki, Kerala. [Monograph] industry.Analysis using structural equation Ecological Challenges & Local Self-Government modelling confirms that both guest loyalty and Responses, 2. Thiruvananthapuram: Centre for satisfaction continue to be positively inûuenced Development Studies. https://cds.edu/wp- by perception of value and the service content/uploads/Western- experience. Both guest satisfaction and loyalty Ghats_MonographSeries2.pdf are strongest among guests who perceive high ڀڀAbout the book: This is the second in the series TFSWJDF
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Other Journal Articles Environment 1. Azzali, S., Kamble, Z., Thirumaran, K., Wong, Scopus Indexed Journal Articles C., & Wood, J. (2021). Mitigating impact from 1. Sreelekshmi, S., Veettil, B. K., Nandan, S. B., natural disasters, building resilience in tourism: & Harikrishnan, M. (2020). Mangrove forests the case of Kerala. In C. Taha (Ed.), Economic along the coastline of Kerala, southern India: Effects of Natural Disasters (pp. 119-129). Current status and future prospects. Regional /https://doi.org/10.1016/B978- Studies in Marine Science. https://doi.orgڀDBEFNJD
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139 Kerala Economy Vol.2 No. 2&3, February-March, 2021

What is new(s) from GIFT

1.GIFT webinar series A Special session on Federalism and Development Financing, held as part of the Webinar on Post-Budget International international webinar on Kerala Looks Ahead, Consultation on Transforming Kerala to a organized jointly with Kerala State Planning Knowledge Economy, January 23, 2021 Board, February2, 2021 GIFT and GLOBELICS jointly organized a Prof K J Joseph, Director GIFT welcomed the Webinar on Post Budget International participants. The session was Chaired by Prof. Consultation on Transforming Kerala to a M Govinda Rao, former Director NIPFP. Prof. Knowledge Economy. The opening session was TM Thomas Isaac, Minister for Finance and chaired by Prof. TM Thomas Isaac, Hon'ble Coir delivered the inaugural address. Other Finance Minister of Kerala. Prof K J Joseph, panelists included Shri Rajesh Kumar Singh, Director GIFT and President Globelics delivered IAS, Additional Chief Secretary, Finance, the welcome address. Shri Pinarayi Vijayan, Kerala, Professor D Narayana, former Hon'ble Chief Minister of Kerala, delivered the Director, GIFT, Prof C P Chandrasekhar, inaugural address. In his address, Prof. Isaac former Professor, JNU, Prof Sushil Khanna, presented a blue print of the innovative former Professor, IIM, Kolkata, Prof Pinaki strategy of transforming Kerala to a knowledge Chakravorty, Director, NIPFP, New Delhi. Sri economy. The chief guest of the session was P Shaji, Head, Plan Coordination Wing, Kerala Prof. Bengt Ake Lundvall, Emeritus Professor, State Planning Board proposed the vote of Alborg School of Business in Denmark and the thanks. founder of Globelics. Prof. V K. Ramachandran, Vice Chairman, Kerala State Planning Board Webinar on Economic Survey 2020-21 & delivered the keynote address while special Union Budget 2021-22 jointly organized with addresses were delivered by Dr KM Abraham, Department of Economics, University College, Chairman K-DISC and Shri Deepu Zakaria, Thiruvananthapuram, Government College Joint Secretary, Group of Technology for Women, Thiruvananthapuram on Companies. Shri Mohammad Y Safirulla IAS, February 5, 2021 Additional Secretary, Department of Electronics Prof. T M Thomas Isaac, Minister for Finance and Information proposed the vote of thanks. delivered the inaugural address in a webinar Scholars of eminence across the world on Economic Survey 2020-21 and Union Budget participated in the deliberations and shared 2021-22, jointly organized by Gulati Institute of their experience in all the sessions. Finance and Taxation and Departments of

140 Kerala Economy Vol.2 No. 2&3, February-March, 2021

Economics, Government Women's College and report is released during the most difficult time University College. Prof. Achin Chakraborty, when the economy was bordering on a Director, Institute of Development Studies, recession along with the economic challenges Kolkata, delivered a special address at the of pandemic. In fact, the Fifteenth Finance webinar. Prof. K. J. Joseph, Director GIFT Commission (XV-FC) named its report as welcomed the participants. Prof. Alwin Prakash, "Finance Commission in COVID Times". There Prof. Mary George, Prof. D. Narayana, former was much fear among the states based on the director, GIFT, Prof. K.P. Kannan, former terms of reference of XV-FC and the director, Centre for Development Studies led preliminary report submitted by the the sessions based on the various aspects of Commission that the Commission could the Union budget and economic survey report. reduce the states' share in tax devolution. Dr Ravi Raman, member, State Planning Board, However, the commission retained the vertical R Mohan, senior consultant, GIFT, Shri C.P share of 41 per cent of the divisible pool of John, former member, State Planning Board, taxes for the 28 States with 1 per cent Prof. Lakhwinder Singh Gill, University of adjustment for the reorganization of Jammu Patiala, Prof. Thankom Arun, University of and Kashmir. This study tries to analyse the Essex, UK, and various experts, scholars and impact of tax devolution of the XV-FC on the academicians shared their views in various state Finances by looking at two issues. Firstly, sessions. Smt. V Uma Jyothi, Head, the implication of retaining the same share of Department of Economics, Women's College, tax devolution as recommended by the Thiruvananthapuram proposed vote of thanks. preliminary report of XV-FC (2020-21). Secondly, comparing the criteria for horizontal Inaugural programme of Makerspace at GIFT devolution adopted by various finance on February 18, 2021 commissions and its implications on state GIFT initiated a makerspace with a view to finances. facilitate interaction among people with Webinar on Prices, Indirect taxes and Poverty interesting business ideas. Prof. Thomas Isaac, by Professor Nanak Kakwani, University of Minister of Finance inaugurated the New South Wales, Australia on March 19, programme. Prof K J Joseph, Director, GIFT 2021. welcomed the gathering. Shri C Balagopal, (Penpol) gave the special address. Dr Abstract: Every economy produces thousands Ramalingam, Associate Professor, GIFT, the of goods and services every day or even every Coordinator of the programme proposed the hour. The outputs so created are ultimately vote of thanks. consumed by people. They make their purchasing decisions based on market prices. Indialics Public Lecture Series 6: Draft Science Thus, prices play a crucial role in people's lives. and Technology policy: A Critical Assessment People have different economic circumstances by Prof. Dinesh Abrol March 18, 2021; Chair: and consumption patterns, so the impact of Dr. Nagesh Kumar prices on people's lives will differ from one Webinar on Fifteenth Finance Commission person to another. People who are unable to and Tax Devolution: Impact on State Finances meet their basic needs are particularly by Dr Parma Chakravartti, Assistant vulnerable to price changes. Hence, the prices Professor, GIFT on March 10, 2021. can have a signifi8cant impact on poverty. In this lecture, Prof Kakwani discusses a systematic Abstract: The fifteenth finance commission

141 Kerala Economy Vol.2 No. 2&3, February-March, 2021

measurement of the impact of prices on Webinar on Deindustrialization in India under poverty. He measures the effect of prices on globalisation: Does Innovation matter? by poverty measured by the entire class of additive Professor K J Joseph, Director, GIFT and Dr poverty measures. He captures the price impact Kiran Kumar Kakarlapudi, Assistant on poverty by employing the price elasticity of Professor, GIFT on March 31, 2021 poverty He demonstrates that this elasticity can Chair: Prof A V Jose Discussant: Prof D be decomposed into the sum of two Narayana components. The first component is the income effect, and the second component is the Abstract: There is a growing empirical evidence distribution effect. It is the distribution effect, of premature deindustrialization in developing which determines whether price changes are countries wherein the share of manufacturing pro-poor or anti-poor. Thus, he proposes a in GDP and employment declined at a much pro-poor price index to analyze the impact of lower level of per capita income as compared various goods and services prices have on to the trend observed in developed countries. poverty. This study examined the manufacturing performance of India, which has been Indialics Public Lecture Series 7: persistent with industrialization as its catch-up Understanding the Structure and Dynamics of strategy. While the study finds no evidence of Fourth Industrial Revolution: Implications for deindustrialization in the conventional sense, India by Prof. Sujit Bhattacharya on March 20, it presents compelling evidence in terms of the 202; Chair: Prof. Aradhna Aggarwal quality of employment generated and share of Webinar on International Macroeconomics GDP in value added. Therefore, the study and Finance jointly organized with HSS, IIT argues that a realistic analysis of Patna as a tribute to Prof Bandi Kamaiah, on deindustrialization should consider the quality March 27, 2021. of employment, wage share and wage rate along with employment share and GDP share. GIFT organized a one-day virtual conference The study attributes deindustrialization in on International Macroeconomics and Finance India as an outcome of its strategy to build along with the department of HSS, IIT Patna international competitiveness based on price/ on 27/03/2021. wage cost advantage and the failure to build a The conference was a tribute to Professor vibrant learning, innovation and competence Bandi Kamaiah (Former Dean, School of building system. Economics, and University of Hyderabad) and The webinars were coordinated by Smt. Anitha his remarkable journey in academia. Authors Kumary L, Associate Professor, GIFT and from reputed institutes presented their work Anoop S Kumar, Assistant Professor, GIFT on aforementioned themes. The session was chaired by noted economist and former CEO of Asian Development Bank Institute-Japan, 2.Teaching and training Yoshino Naoyuki. The presented papers will programmes be published as an Edited volume by springer. This conference provided an excellent 1. PGDGST program Third Batch opportunity to scholars as well as faculties to Admission for the third batch of the Post have an understanding about the cutting-edge Graduate Diploma in Goods and Service Tax research in international macroeconomics and (PGDGST) is closed. The training program finance.

142 Kerala Economy Vol.2 No. 2&3, February-March, 2021

comprising 120 hours of teaching started 3. Training on Multi-Level Marketing through onlinemode for the 325 students Training on Multi-Level Marketing was initially with 17 more students joined later. Total conducted on 31 March 2021 by Dr Thomas strength of students is 342. Third set of training Joseph Thoomkuzhy. Around 1000 participants for the third batch for 56 hours started on 24 took part in the session. December on online mode. Forty hours of classes have already been completed. Course Co ordinators: Dr N Ramalingam and 3.New Reports and Publications Smt. L Anitha Kumary 1.Kerala Tax Reporter (KTR) For more details: https://www.gift.res.in/ December and January issues of KTR published index.php/course/detail/14/PGD-GST Online and offline. 2. PhD programme https://www.gift.res.in/ktr For the current academic year, seven new PhD 2.Innovation and Development Scholars were admitted in the month of February 2021. A total of 14 scholars are A Routledge journal from GIFT, Volume 11, currently working towards their doctoral thesis No. 1 published, Editor in Chief, K J Joseph. at the institute distributed across three batches. For details, please visit https:// From this year onwards, a rigorous year-long www.tandfonline.com/toc/riad20/current course work focused particularly on Public Economics and Public Finance with a special 3. Weekly update on the Indian Economy focus on Indian Fiscal Federalism is being This is an attempt by the Young Scholar' Forum implemented. The course work also has a non- in GIFT, led by Smt. Shency Mathew to update credited foundational course on Applied on important developments in the national Mathematics for Economics, Statistics and economy. Latest issue: 20-26, March 2021. Economic theory which started from mid- February 2021. The second batch of PhD For details, please visit https://www.gift.res.in/ students have presented their term papers on index.php/publish/publish_list/14/Weekly- February 18, 2021 as part of their coursework. Updates-on-Indian-Economy

Soft copy of Kerala Economy is iavailable in GIFT website. For free download, please visit www.gift.res.in

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