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 1 Kerala Economy Vol.2 No. 2&3, February-March, 2021 2 Kerala Economy Vol.2 No. 2&3, February-March, 2021 Vol.2 No. 2&3, February-March, 2021 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 3 Kerala Economy Vol.2 No. 2&3, February-March, 2021 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 4 Kerala Economy Vol.2 No. 2&3, February-March, 2021 Vol.2 No. 2&3, February-March, 2021 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 6 Kerala Economy Vol.2 No. 2&3, February-March, 2021 Vol.2 No. 2&3, February-March, 2021 Part I - Knowledge Economy: setting the context 7 Kerala Economy Vol.2 No. 2&3, February-March, 2021 8 Kerala Economy Vol.2 No. 2&3, February-March, 2021 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 andand expertise to the world. While saying this, I am not operationalizeoperationalize it. Our budget which was ignoring the inequalities of opportunities presentedpresented onon 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 halfhalf centurcentury.ies . WeWe havehave 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 10 Kerala Economy Vol.2 No. 2&3, February-March, 2021 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.