jat consulting frost and sullivan
TRANSCRIPT
Panacea: The World’s Innovation HubKey challenges and solutions for the consideration of the Panacean Prime Minister’s Office
Cabinet Secretary Team: Nattawut Arunanondchai | Tan Kwan Hong | Vishal Jain
Sources of Innovation1
Five crucial factors that determine the innovativeness of a country
Institutions
Human Capital &
Market Sophistication
VISIONVISIONVISIONVISIONTo Become an Innovative Service-
Driven Export EconomyCapital & Research
Business Sophistication
Infrastructure
Sophistication
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
Possible through INNOVATIONINNOVATIONINNOVATIONINNOVATION
Current State Analysis2
Where we are and where we want to be in the future
Components Components Components Components 1111 Desired Desired Desired Desired Outcome Outcome Outcome Outcome 3333
Institutions� Political environment� Regulatory environment� Business environment
� Strong, committed government � Effective law enforcement� Efficient interworking environment
Human Capital & Research
� Education� Tertiary education� Research & development
� 99% literacy rate* � Education covers all relevant skills� 2-3% of GDP spending on R&D**
ICT 25% broadband penetration***
Present Time Present Time Present Time Present Time 2222
� Strong & committed government � No information in the case study� Poor interworking of various M&As
� 76.8% literacy rate� Does not cover relevant skills� 1.6% of GDP spending on R&D
20.3% broadband penetration
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
* Benchmarked against Switzerland** Benchmarked against Switzerland & Singapore*** Benchmarked against Singapore
Infrastructure� ICT� General infrastructure� Ecological sustainability
� 25% broadband penetration***� 15 SEZs for services� Sustainable eco-development
Market Sophistication
� Credit� Investment� Trade & competition
� High availability of credit funding� Available funding mechanisms� 20% by 2020 and 25% by 2030
Business Sophistication
� Knowledge workers� Innovative linkages� Knowledge absorption
� Abundant knowledge workers� Abundant innovative linkages� 60% of import are high tech***
� 20.3% broadband penetration� Low no. Of SEZs for services � No information in the case study
� No information in the case study� Lack of SME funding mechanisms� 20.2% of exports from high tech
� Low no of knowledge workers� No formal linkages� 56.7% of import are high tech
1 Components derived from INSEAD Research2 Taken from Case Study3 Healthy Situation (based on existing country data)
The i4 Initiative3
Our solutions packaged into four distinct functions
SEZs for ServicesSEZs for ServicesSEZs for ServicesSEZs for Services Innovation Platform for ServicesInnovation Platform for ServicesInnovation Platform for ServicesInnovation Platform for Services
IIII4 4 4 4
SystemSystemSystemSystem
InnovateInnovateInnovateInnovate
InvestInvestInvestInvest4444
IntegrateIntegrateIntegrateIntegrate
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
SME Stock ExchangeSME Stock ExchangeSME Stock ExchangeSME Stock Exchange
Public Public Public Public CrowdfundingCrowdfundingCrowdfundingCrowdfunding International Standardization International Standardization International Standardization International Standardization Screening (ISS)Screening (ISS)Screening (ISS)Screening (ISS)
Central AgencyCentral AgencyCentral AgencyCentral Agency
SystemSystemSystemSystemInvestInvestInvestInvest
ImproveImproveImproveImprove
IntegrateIntegrateIntegrateIntegrate
UUUU----CitiesCitiesCitiesCities
Innovate4
How we can help foster innovation among industrial players
4444Invest
Innovate
Integrate
Improve
• Target high-technology and services sectors
• Tourism, Healthcare, and ICT
• Development towards a tertiary economy will attract FDIs
SEZs for Services SEZs for Services SEZs for Services SEZs for Services
• A Multi-stakeholder collaborative platform (SME/Individuals/MNCs/Universities) under each special economic zone
• Managed by SEZ Agencies that reports to the Government
• Begin with services-related R&D to fulfill Neo-Panacea Framework KPI
Innovation Platform for ServicesInnovation Platform for ServicesInnovation Platform for ServicesInnovation Platform for Services
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
SEZ Agencies
UniversityTalents
Industrial Professionals
IdeasInnovation
Real ExperienceKnowledge Transfer
Special Economic ZonesSpecial Economic ZonesSpecial Economic ZonesSpecial Economic Zones
• Fosters academic-industry collaborations on R&D projects
• Industry-education alignment in skills development
• Reduce asymmetric information for better resource allocation
Positive ImpactsPositive ImpactsPositive ImpactsPositive Impacts
• Companies’ reluctance to set up operations in Panacea � Unlikely, as Panacea is a big market with a lot of growth potential. Moreover, the supply of talent will be plenty with new initiatives from the government.
ConcernsConcernsConcernsConcerns
• Begin with services-related R&D to fulfill Neo-Panacea Framework KPI
Invest5
How we can assist in creating new funding opportunities
4444Invest
Innovate
Integrate
Improve
• Allows for SMEs to be listed with less stringent constraints than they would face on the main board
• Creates a platform to raise equity funding at an earlier stage
• Targeted investors are sophisticated enough to understand the risk of investing in SMEs
SME Stock ExchangeSME Stock ExchangeSME Stock ExchangeSME Stock Exchange
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
The Public
ExportMarket
Innovative Businesses
Rapid Product Commercialization
Funding MechanismsFunding MechanismsFunding MechanismsFunding Mechanisms
• Increases the investment options for retail and institutional investors
• Easier for SME to raise funding necessary for growth
• There can be more incentives for entrepreneurs to start businesses
Positive ImpactsPositive ImpactsPositive ImpactsPositive Impacts
• Early failures can affect the adoption rate � There is a list of criteria for companies to fulfill before being listed
• Investors who don’t understand the risks might come to invest and lose money � A minimum investment criteria is imposed
ConcernsConcernsConcernsConcerns
Public as Investors
Public as Crowdfunders
Domestic Market for Services
Invest (continued)6
How we can assist in creating new funding opportunities
Positive ImpactsPositive ImpactsPositive ImpactsPositive Impacts
4444Invest
Innovate
Integrate
Improve
• Citizens can elect to contribute 1% of their income taxes towards selected SMEs in exchange for benefits/equity/debt depending on the companies (Free market mechanism)
• Catered towards very young startups at the early stage where raising funds through other mechanisms is almost impossible
• Beneficiary details to be distributed via newspaper and websites
Public Public Public Public CrowdfundingCrowdfundingCrowdfundingCrowdfunding
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The Public
ExportMarket
Innovative Businesses
Rapid Product Commercialization
Funding MechanismsFunding MechanismsFunding MechanismsFunding Mechanisms • Kickstarts innovative projects
• Makes it easier for socially good but not commercially viable projects to attain funding
• Easier to start a new business
Positive ImpactsPositive ImpactsPositive ImpactsPositive Impacts
• Few companies’ failure can affect the program’s adoption rate � There is a list of criteria for projects to pass before being considered eligible
• Crowdfunded companies do not honor the agreement � A regulatory board is set up to enforce companies to honor the promises
• Public not adopting the crowdfunding option � Unlikely. Tax payment is sunk cost, so instead of paying everything to government you can choose to give to a company and get something in return
ConcernsConcernsConcernsConcerns
Public as Investors
Public as Crowdfunders
Domestic Market of Services
Integrate7
How we can enhance interworkings between ministries and agencies and cut red tape
4444Invest
Innovate
Integrate
Improve
• Approvals/Permits don’t need to be applied for in Panacea if they are held by the same company in another “guaranteed country”
• This is similar to the Schengen Agreement
International Standardization Screening (ISS)International Standardization Screening (ISS)International Standardization Screening (ISS)International Standardization Screening (ISS)
• Approvals which cannot be gained through ISS will go through this Agency
• A “one-stop-shop” for companies requiring information or permit approvals
Central AgencyCentral AgencyCentral AgencyCentral Agency
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
ISSApprovals from Guaranteed Country
Central Agency
Cut Red tape &Enhance interworking
Integrated Interworking MechanismsIntegrated Interworking MechanismsIntegrated Interworking MechanismsIntegrated Interworking Mechanisms
• Reduce administrative barriers to entry for companies
• Create a business-friendly environment since day one
• Enhance collaboration between M&As and reduce red tape
Positive ImpactsPositive ImpactsPositive ImpactsPositive Impacts
• Unable to effectively reduce red tape � Unlikely. This initiative has been tried and tested in many other countries (Refer to Appendix 9)
ConcernsConcernsConcernsConcerns
approvals
• Board comprised of representatives from each ministerial department to coordinate efficiency-enhancing activities
Improve8
How we can improve our human capital
4444Invest
Innovate
Integrate
Improve
• Exist to foster knowledge creation between tertiary institutions and industry players to provide the development of a relevant skill set
• Create an ecosystem for interactions between individuals from various institutes and drive innovative thinking through competition
• The execution would be segmented into three different stages:
UniversityUniversityUniversityUniversity----Cities (UCities (UCities (UCities (U----Cities)Cities)Cities)Cities)
Digital Gap Physical Gap International Gap
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
Local University Staffs/Students
Pool of Knowledge
UUUU----CitiesCitiesCitiesCities• Increase the knowledge base in Panacea
• Enhance level of education
• Increase collaboration between local and overseas universities
Positive ImpactsPositive ImpactsPositive ImpactsPositive Impacts
• Low adoption rate in Phase 1 � Can be mitigated by having participating universities make it compulsory for students to do research based on the knowledge available in the online platform
• Students might not travel for joint research in Phase 2 � Can be mitigated by encouraging shared research facilities in different areas
• Overseas universities might not be interested in Phase 3 � By then, Panacea should be a vibrant economy with a lot of industrial players which can be attractive for overseas universities
ConcernsConcernsConcernsConcerns
Overseas University Staffs/Students
Experienced Professionals
Digital Gap Physical Gap International Gap
Solution Framework9
How we envision Panacea’s future innovation-driven framework
SME IndividualMNC(Local)
MNC(Foreign)
Panacean Innovation Platform for Service-based R&D
Universities (U-Cities)
University supplies skilled talent to companies for innovation
Foreign MNCs trainPanacean students
SEZ
One agency in each SEZ runs the platform in that SEZ
New TechSEZs
Special SEZs set up by govt. to provide a platform for innovation.
Primary beneficiaries who want to innovate
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
International Standardization Screening
Central Agency Approvals & IPApprovals & IP
Innovation
Citizens
� Crowdfundingvia tax redirection
Private Sector
� SME Stock exchange
SEZAgencies
Funding Funding
Timeline10
How and when our initiatives will pan out
Click here for detailed Timeline including KPI and
Individual Workflows
SME Exchange trading begins
Central Agency’s operations begin
YEAR ENDED 2014YEAR ENDED 2014YEAR ENDED 2014YEAR ENDED 2014
Final phase of U-Cities completed
YEARS 2025YEARS 2025YEARS 2025YEARS 2025----2028202820282028
2012 2013 2014 2015 2016 2017 2018 2019
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
International Standardizational
Screening established
YEAR ENDED 2012YEAR ENDED 2012YEAR ENDED 2012YEAR ENDED 2012
Local U-Cities operations begin
(Phase 2)
SEZ and Innovation Platform Agencies begin operations
YEAR ENDED 2017YEAR ENDED 2017YEAR ENDED 2017YEAR ENDED 2017
2012201220122012
(Present(Present(Present(Present))))
Digital U-Cities’ operations begin
(Phase 1)
Public Crowdfundingbegins
�Handles I4 Committee� Ensures NPF initiatives are fulfilled�Monitors public sentiment
Organizational Structure11
How the government offices would handle different solutions
Prime Minister
I4 Committee
Oversees all
Central Agency Board
Deputy
Minister of Finance
Public Crowdfunding
Minister of Trade and Investment
Director of
Minister of Education
University
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
Oversees all projects and reports to Prime Minister for checks and balances
� Manages International International International International Standardization Standardization Standardization Standardization Screening Screening Screening Screening operations
� Updates the system every year with new countries
ISSCommittee
� Oversees Central Central Central Central Agency Agency Agency Agency operations
� Acts as point of contact for escalation
Deputy General of Central Agency
� Solely responsible for SME ExchangeSME ExchangeSME ExchangeSME Exchange Board
� Manages application and approval system for potential listings
� Manages the private partners
SME Exchange Corporation
CrowdfundingCommittee
� Solely responsible for Public Public Public Public CrowdfundingCrowdfundingCrowdfundingCrowdfunding
� Selects a list of projects to receive crowdfunding
Director of PanaceanEconomic Zone Authority
� Directly in charge of maintaining Services SEZsServices SEZsServices SEZsServices SEZs
� Compiles monthly performance reports for Minister of Trade and Investment
SEZ Agency Deputies
Each deputy manages an SEZ agency which facilitates the innovation platform innovation platform innovation platform innovation platform and
manage the private partners
University Governing Board Committee
�Manages foreign universities
� Strategic planning for UUUU----CitiesCitiesCitiesCities
U-City Director(s)
Each director runs his/her own UUUU----CityCityCityCity and reports to UGBC
Risk Environment12
The four major risks we foresee and how we can manage it
Mitigating Mitigating Mitigating Mitigating Implementation RisksImplementation RisksImplementation RisksImplementation Risks
�Document before proceeding
�Utilize reputable subcontractors
�Purchase insurance beforehand
� Ensure clear communication
Implementation RisksImplementation RisksImplementation RisksImplementation Risks
Risk that the projects won’t go as planned. This includes set-up and
operational failure
Political RisksPolitical RisksPolitical RisksPolitical Risks
Risk that political will is not strong enough to maintain the i4 initiatives
Mitigating Political RisksMitigating Political RisksMitigating Political RisksMitigating Political Risks
�Binding contract between govt. and contractors
�Agreement between bicameral parties1 2
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
communication
Mitigating Market RisksMitigating Market RisksMitigating Market RisksMitigating Market Risks
� Increase domestic consumption. Reduce reliance on global econ.
�Run a stress test semiannually
How to monitor the success of each initiativeHow to monitor the success of each initiativeHow to monitor the success of each initiativeHow to monitor the success of each initiative
Establishment of an inter-ministrial committee (i4 committee) which oversees the execution of all projects and reports directly to the Office of the Prime Minister
Market RisksMarket RisksMarket RisksMarket Risks
Risk that the world volatility will adversely affect the i4 initiatives
Liquidity RiskLiquidity RiskLiquidity RiskLiquidity Risk
Risk that cash flows will be insufficient to cover the costs of maintaining the i4 initiatives
Mitigating Liquidity RisksMitigating Liquidity RisksMitigating Liquidity RisksMitigating Liquidity Risks
� Establish emergency reserves for future
� Lock in long-term interest rates
34
Resource Requirements13
What you will need to commit to get the work done
InitiativesInitiativesInitiativesInitiativesCapital InvestmentCapital InvestmentCapital InvestmentCapital Investment(millions of USD)(millions of USD)(millions of USD)(millions of USD)
Source of FundsSource of FundsSource of FundsSource of Funds Funding Funding Funding Funding MechanismMechanismMechanismMechanism
International Standardization Screening
0.5 Public Equity
Central Agency 62 Public Equity
SEZ for Services 53,909 PPP Equity + Debt
Innovation Platform for Services 274 Public Equity
Public Crowdfunding 21,950 Public Equity
SME Exchange 671 PPP Equity
U-Cities 10,642 Public Equity + Debt
Notes:Notes:Notes:Notes:1. From our calculations, there will be enough budget surplus each year to commit to most initiatives2. The cost here includes the investment cost and the operation cost accrued over a 18 year period3. Consult attached .xlsx file for elaboration on stated figures
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Impact Assessment14
What the economic and social impacts are and how we can curtail them
Key Perform
ance Indicators
Economic
Impact
Social Impact
� Create a net benefit of $183Bn USD for the economy
� SEZs would be able to increase the employment level of the country
� ISS should help increase the productivity of foreign companies
� U-Cities will increase the education level of the population as a whole
� U-Cities will create a knowledge spillover effect and encourage more sharing of knowledge between different entities (e.g. industries and institutions)
� Public Crowdfunding would induce a sense of ownership in each citizen
Key Perform
ance Indicators
Innovation
Factor
Impact on
Business
Creation
Impact on
Budget
Deficit
� All the initiatives in synergy will enhance R&D spending from the industry and academia
� All the initiatives will increase the export of Panacea’s services and technology R&D� Attractive FDI would create knowledge a transfer network to bolster innovation
� Public crowd funding will help support startups financially in the early stage� By reducing red tape, it would be easier to start a business.� The SME Exchange will help small businesses raise early stage equity capital� The SEZ Innovation Platform will encourage entrepreneurship directly
� By doing PPP for many of the big initiatives, the government would be able to limit its involvement in running those initiatives
*Note: All calculators for Impact Assessment can be found in the attached .xlsx document
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
Impact Assessment15
Real Cumulative Value Added to the Economy
$200,000.00
$250,000.00
$300,000.00
Worst Case
(in USD millions)
$88 $88 $88 $88 BnBnBnBn
Present Value of the Lifetime Cost (until 2030)
$271 $271 $271 $271 BnBnBnBn
Present Value of the Cumulative Benefits Added to Economy (until 2030)
$183 $183 $183 $183 BnBnBnBn
Net Present Value Added to the Economy by the i4
Initiatives
210%210%210%210%
Return on Investment over 18 years
Numbers at a
Glance*
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
$(100,000.00)
$(50,000.00)
$-
$50,000.00
$100,000.00
$150,000.00
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Worst Case
Moderate Case
Best Case
Moderate Case Assumption:
• Annual GDP Growth at 5 - 6% on
average
• Cost is as projected
Worst Case Assumption:
• Annual GDP Growth at 3 - 4% on
average• Cost is 20% higher than projected
Best Case Assumption:
• Annual GDP Growth at 6 - 7% on
average
• Cost is 10% lower than projected
Your Future16
The future of Panacea
2012
• 25% Services/GDP
• $1,000 GDP/Capita
2030
• 70% Services/GDP
• $6,000 GDP/Capita
2022
• 50% Services/GDP
• $3,000 GDP/Capita
ObjectivesObjectivesObjectivesObjectives Current StateCurrent StateCurrent StateCurrent State SolutionsSolutionsSolutionsSolutions Action PlanAction PlanAction PlanAction Plan ResourcesResourcesResourcesResources ImpactImpactImpactImpact
DiscussionLet us know if you want to see any previous slides or our Appendices
Appendix 1: Your Cabinet Secretary TeamAppendix 1: Your Cabinet Secretary Team
Appendix 2: Complementary SolutionsAppendix 2: Complementary Solutions
Appendix 3: Risks for SEZAppendix 3: Risks for SEZ
Appendix 4: Risks for Public CrowdfundingAppendix 4: Risks for Public Crowdfunding
17
Appendix 5: Listing Criteria for SME Stock ExchangeAppendix 5: Listing Criteria for SME Stock Exchange
Appendix 6: Listing Criteria for Public CrowdfundingAppendix 6: Listing Criteria for Public Crowdfunding
Appendix 7: Framework for Global Innovation IndexAppendix 7: Framework for Global Innovation Index
Appendix 8: KPI for Individual InitiativeAppendix 8: KPI for Individual Initiative
Appendix 9: Examples of Demonstrated Efficiency Measures for the Interworking of Ministries and AgenciesAppendix 9: Examples of Demonstrated Efficiency Measures for the Interworking of Ministries and Agencies
Thank you for the opportunity. We welcome any questions you may have for us.Thank you for the opportunity. We welcome any questions you may have for us.Thank you for the opportunity. We welcome any questions you may have for us.Thank you for the opportunity. We welcome any questions you may have for us.
Your Cabinet SecretariesThe faces behind the ideas
Nattawut Arunanondchai | ThailandSingapore Management UniversityBachelor of Science (Economics)Key Achievements:
• Co-Founder and Managing Director of Casetomise Pte Ltd • Winner of Credit Suisse Q2C Competition and Delta Partners Case Competition
Vishal Jain | ThailandSingapore Management UniversityBachelor of Business ManagementKey Achievements:
• Awarded Deans List placement (‘09,’10,’11) and Krishna Exchange Scholarship• Held two strategy-based positions in Fortune 500 company
Tan Kwan Hong | SingaporeSingapore Management UniversityBachelor of Science (Economics)Key Achievements:
• Awarded with 3 Scholarships, 2 Student Life Awards, and 2 Youth Awards• Co-Author of SIAS Investment Guide Book
Thank you for the opportunity. We welcome any questions you may have for us.Thank you for the opportunity. We welcome any questions you may have for us.Thank you for the opportunity. We welcome any questions you may have for us.Thank you for the opportunity. We welcome any questions you may have for us.
• Increase tax holidays for specific innovative industries to encourage net FDI inflow
• Allocate short-term government subsidies to increase imports of high-tech goods and services that can increase manufacturing capacity
• Set up global trade offices for effective liaising with global business entities
• Seek alternative forms of government revenues to maintain a healthy tax environment
AdoptIntelligent
Government Intervention
AdoptIntelligent
Government Intervention
Complementary Solutionsi
Solutions to Compliment Panacea’s Future Innovation-Driven Framework
environmentInterventionIntervention
• 5 Seaports of non-international standards: Promote these ports to that of international standards to support SEZs throughout the island, and for future SEZ locations
• Increase Railways and Roadways connecting main SEZs and U-Cities
Develop Solid InfrastructuresDevelop Solid
Infrastructures
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix 2Appendix 2Appendix 2Appendix 2
•Major foreign universities (Harvard, etc) will be invited to set up university cities.
•Enhance inter-university collaborations on research and innovation
•This increase competitiveness will give rise to innovation and will supply talent to the innovation platform too, thus providing a world-class education while benefitting the country.
Enhance Competitive Knowledge
Creation
Enhance Competitive Knowledge
Creation
Complementary SolutionsSolutions to Compliment Panacea’s Future Innovation-Driven Framework
ii
CreationCreation
•Increase ease of getting credit
• Increase Domestic Credit to Private Sector (% of GDP)
•Enhance cross-border credit flows to reduce reliance on precautionary savings
Enhance Financial Services
Enhance Financial Services
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix Appendix Appendix Appendix 2222
• Ensure opportunities for population below poverty line: 28.9%
• Reduce risks of widening Gini Coefficient
Ensure Adequate
Safety Nets
Ensure Adequate
Safety Nets
Complementary SolutionsSolutions to Compliment Panacea’s Future Innovation-Driven Framework
iii
Safety NetsSafety Nets
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix 2Appendix 2Appendix 2Appendix 2
Risks for SEZsWhat specific risks there are any how we can counter them
Risk: Companies don’t want to come to SEZ
Our Response: There are two drivers why a company would want to set up a
base in another country:
1. Access to Talents Pool
2. Attractive Market2. Attractive Market
With our U-Cities and 24 new vocational institutes to be set up, we believe
that we can have a good pool of talents.
Moreover, by the time SEZ is completed, the GDP is expected to reach $1
trillion which is roughly the same size as today Korea (a technology hub). So
companies should find it attractive to go into the country.
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix 3Appendix 3Appendix 3Appendix 3
Risks for Public CrowdfundingWhat specific risks there are any how we can counter them
Risk A: No adoption � Free market so no reason why no one would take it.
Tax payment is sunk cost, so instaed of paying everything to gov you can
choose to give to a company and get something in return. Marketing to be
done from government and smes who are listed as well. Worst case scenario
no one uses, but its not a major cost center, and smes will still apply to use
the system for the slightest amount of income they can receive.
Risk B: Company fails � Firstly, the government chooses company to be
featured thus lowering the risk. Secondly, there is a regulatory board to
ensure the funded companies carry out their promises on the usage of funds
and the benefits in kind.
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix Appendix Appendix Appendix 4444
Listing Criteria for SME ExchangeWhat needs to be submitted by SMEs in order to be listed on the exchange
Listing Criteria for SME Exchange
Quantitative CriteriaNet working capital of $10,000 USD. Revenues must not exceed $1,000,000 USD per annum.
Shareholding Spread Atleast 30% of the shares issued must be held by 500 different entities.
Operating Track Record At least 1 year
Sponsor RequirementSponsorship required. An institutional investor with at least 20% stake in the candidate must apply for a sponsorship permit on behalf of the candidate. The sponsor will assume all liabilities in event of any unfilfilled obligations.
Accounting Standard Panacean or US accounting standards
Offer DocumentAn annual report for the first year (or more, up to 5 years) of operations must be submitted for consideration.
Audit Check Government approved auditor’s report.
Moratorium Period
For pre-IPO investors who obtained their shares within 12 months from IPO date, the capital gains portion of their shares will be subjected to a moratorium period of 12 months after the IPO.
The capital gains portion is defined as the number of shares derived from the difference between the cash paid by the investor for the shares and the value of the shareholdings based on the IPO price.
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix Appendix Appendix Appendix 5555
Criteria for Public CrowdfundingWhat SME’s need to submit to the government to be eligible to be chosen
A company seeking candidacy for the Public Crowdfunding platform must meet the following admission
requirements. All the following factors will judged on a 10-point scale and top submissions will be selected.
(1) Registered Company
Only a registered company may apply to be listed on the public crowdfunding platform. Individuals
may not apply.
(2) Innovativeness Factor
The applying company’s project should not violate any IP rights of any other entities in Panacea or The applying company’s project should not violate any IP rights of any other entities in Panacea or
otherwise. The suggested use of funds (project) must be innovative in its
approach, design, features, etc. The level of innovativeness will be determined by an independent
panel of judges.
(3) Feasibility of the Project
The project plan and benefits must be achievable within three (3) years after public crowdfunding.
An independent feasibility report must be submitted detailing all, but not limited to:
operational, economic, management, and benefit feasibility.
4) Team composition
The team must have the skill set, or must hire a specialist to complete the outlined goals.
5) Company financials and investor profiles
The company, its managers, and its investors must not have any civil or criminal records in Panacea
or any other country.
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix Appendix Appendix Appendix 6666
Framework for Global Innovation IndexHow can Innovativeness be Measured?
Source: INSEAD Business School: http://www.globalinnovationindex.org/gii/main/framework.html
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix 7Appendix 7Appendix 7Appendix 7
TimelineHow and when our initiatives will pan out
KPI: International Universities establish local base (Phase 3) for U-Cities
KPI: Physical infrastructure (Phase 2) of U-Cities is completed in major areas
KPI: Number of patents from SEZs and number of new businesses set up in SEZs increases by 10% yoy
KPI: Average lead time for R&D license approval decreased by 50% within one year of agency opening.
KPI: Total amount of money invested through SME Exchange exceeds $100M USD
KPI: 30 LOIs from potential companies planning on joining new Technology SEZs
KPI: 20 LOIs from companies who wish to be listed on SME Exchange
KPI: Capital generated from public crowd-funding exceeds $500M USD after one year of operations
KPI: Number of companies with approved licenses increased by 50%
KPI: Online platform (Phase 1) of U-Cities is launched
KPI: Budget for all initiatives approved
Key Perform
ance
Key Perform
ance
Key Perform
ance
Key Perform
ance
Indicators
Indicators
Indicators
Indicators
LEGEND
Competitive Knowledge Creation (U-Cities)
International Standardization Screening (ISS) and Central Approvals Agency
Technology SEZs and Innovation Platform
Public Crowdfunding Platform
SME Stock Exchange (Named: SME Exchange)
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2012 2012 2013 2014 2015 2016 2017 2018 2019 …
• Begin Public Crowdfunding• ISS Introduced in Panacea
Research on International Standardization Screening System (ISS)
Establishment of a Central Agency which issues licenses/approvals
Sourcing for renown universities
Physical Linkages
Clustering
Determine areas (near U-Cities) for new Technology SEZ and source for companies/FDI into SEZs
Construction of Technology SEZs begins
Establish infrastructure for Public Crowdfunding and select SMEs to receive funding
Establish infrastructure for SME Exchange
Source for companies to be listed
Construction of SME Exchange Office
• Begin SME Exchange Operations• Central Agency begins operations
and government suspends licensing
• Local U-Cities operations (Phase 2) begins
• SEZs and innovation platform agencies begin operation
Completions
Completions
Completions
Completions
Individual Project W
orkflows
Individual Project W
orkflows
Individual Project W
orkflows
Individual Project W
orkflows
• Final Phase of U-Cities completed in 2025-2028
Appendix Appendix Appendix Appendix 7777Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix Appendix Appendix Appendix 8888
Central AgencyHarnessing the Inter-Workings of Ministries & Agencies
SpainSpainSpainSpain
�Handled by the Ministry of the Presidency�Appoints spokespersons from each Ministerial Department to co-ordinate reduction activities
�Spokesperson from the Service Inspection division, which is a horizontal body
�A high-level group chaired by the first vice-president leads the process
The NetherlandsThe NetherlandsThe NetherlandsThe Netherlands
�Budget instructions contain specific obligations to report on red tape reductions
�Ministries threatened with budget cuts if they fail to achieve targets
� This clear link to the budget cycle has the advantage of encouraging decisions over how to finance burden reduction projects such as ICT investments
DenmarkDenmarkDenmarkDenmark
�Working groups set up to prepare action plans
� 25% target red tape reduction divided across ministries
�Prime Minister’s commitment to simplification put pressures on ministries
�Performance appraisals on Permanent Secretaries takes into account their Ministries progress, and determines bonus
Panacea: The World’s Metropolis | 18/02/2013 | JAT ConsultingAppendix 9Appendix 9Appendix 9Appendix 9