Woche 4

A digital Technology, reaching across various industries therefore important enough to have a long aggregated impact on the entire economy and society

• Exponential
• Digital: Product can be consumed by unlimited number of people at the same time = Non-Rival / low cost of reproduction that allows mass distribution
• Combinatorial: Multi-functional and mutli-purpose z.B Google Maps with a link to restaurant, rezession etc. (all in one) / Network effects: The more people are using something , the more interesting it is. Example: Telephone Network. Indirekt network effect: When the value of a product or service increases as more users join not just on one side of the market but on multiple sides. (z.B. Air BnB)

Technological Advancement come trough Research and Develpment: The following examples have the most R&D spendings per categorie

• Industries: Chemicals, Energy, Softare/Internet, Health, Transport
• Domains: Computing power/information technology, Robotics and automatization technology, Energy renwables, Biotech and pharma
• Companies: Amazon, Alphabet, Microsoft, Apple
• Countries: R&D Spendings in absolute numbers:
•  1. USA 2. China 3. Japan 4. Germany 5. South Korea
• Most Patent Activity:
• 1. Japan 2. USA 3. China 4. South Korea 5. Germany
• R&D expenditures compare to GDP:
• 1. Israel 2. South Korea 3. Switzerland 4. Germany 5. Sweden 

The strategy defines 10 core industries in wich China wants to achieve major breakthroughs and create globally competitive companies.

Key aspects of made in China 2025:

• Research and innovation
• More quality than quantity
• Development of key industries: Energy, Transportation, ICT (information and communication technologies), robotics, biomedicine
• Enviromentally friendly energy production and CO2 emission reduction
• Development of core materials and industrial components to increase economic independence form foreign countries

• Energy supply security and lower energy costs
• Global market leadership in th field of future industries such as green energy / grid energy (Ultra high voltage technology)
• Additional income form patents and technology export
• Risk: Geopolitical Leverage -regional grid that includes Russia, Mongolia, North/South korea, Japan

• Quality growth over speed
• "Moderately developed" economy by 2035 (30'000 / Capita GDP)
• Technological Powerhouse (Specific field where countrys want to push companies to a certain direction and controll the market)
• "Dual Circualtion": Export driven growth/Domestic demand driven growth
• Green Transfomration: Carbon neutrality by 2060

• By 2030 1200 GW green energy expansion
• Emission peak by 2030 (China is by far the largest Co2 emitter worldwide)
• Net Zero by 2060

• Sustaining technologies are innovations that improve the performance of existing products 

Disruptive Technology:

• Disruptive technologies are innovations that fundamentally change existing markets and business models, often by introducing new products or services that outperform existing solutions.

• Schumpeter and Kondratiev claim since the 1930s have emphasized that economic growth is cyclical.
• Schumpeter coined the term "creative destruction", which shows how innovation and entrepreneurship disrupt existing industries and create new ones.
• Kondratiev introduced Kondratieff waves, long-term cycles of around 50 to 60 years driven by technological innovation.
• Both emphasized the key role of technological progress in economic growth and that capitalism is inherently cyclical, with phases of expansion and contraction. These ideas continue to shape our understanding of economic development and technological change today.