2018 Globalization Trends

240_F_6103632_ib328fMRJVHjrJSvj2VORJI21LaeKU1sIn this blog we will take a look at some top trends in globalization that are facing national and corporate strategies.  Globalization had massive momentum before the 2008 economic recession.  While many economies have recovered and are growing there are new forces today that are creating challenges to continued global integration.

Strategic Considerations:

  • The rise of nationalistic goals and causes has created more international tension and is slowing collaboration for united efforts towards shared opportunities and global challenges.
  • Many existing agreements like UK Union (Brexit), Trans-Pacific Partnership (TPP), and North America Free Trade Agreement (NAFDA) are falling apart without a new solution to advance the relationships.
  • Companies are increasing learning of the difficulties to understand localization of new markets, partnerships and navigating foreign policies.  Size alone may not be enough to successful globalize vs. regional relationship and relevance.
  • Population growth in BRIC to ICASA is creating new billion+ people markets and equal number of ecological challenges.  These areas of opportunity will be disrupted by their own sustainability crisis.  Compounding this trends is that the shift to urbanization is no where near complete in these countries and yet their cities and infrastructures are already beyond capacity.
  • Development of the middle class is a global concern for both developed and developing nations.  Economic growth without opportunity for an aspiring middle class has proven to be unsustainable long term.
  • Growing populations have a near term crisis of improving education to make the emerging workforce relevant, as well as, the need to develop new services for their aging populations.
  • Corporate involvement in Social causes and infrastructure will increase in terms of time, investment and focus in all regions.  Stability, prosperity and livability are key to corporate survivability.
  • The competition for natural resources will become ever more at the forefront of all strategies.  Both in securing and security the resources a nation has, but to also secure the relationships and collaborations needed to exchange resources with others.  This also drive innovation in shifting to new forms of sustainability to reduce critical dependencies on current resources.  This will continue to create new opportunities or disruptions for companies that either can or cannot respond to the demand.
  • Last century was dominated by the growth of global vertical players.   Today the rise of horizontal players and integrators will generate new forms of partnerships and disruptions for the classic business models that will reform business ecosystems.
  • The disruptive power of new digital currencies could unseat may traditional financial business models.   It does offer potentially a long term promise of a more integrated and audible world of finance, there is still the shorter term maturation and security issues that economies will have endure if they begin down that path.
  • While trade and migration are under strain,  the rise of data exchange continues to expand exponentially.   This is creating new opportunities to understand the worlds big data insights to make better decisions and investments.
  • The dark side or dark web continues to rise along with the growth of data exchange.  Global investment in securing digital transactions and traceability will be required to maintain stability of markets and economies.

Sources:  Harvard, McKinsey, Inc

 

 

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Canada Announces Five Superclusters

waving canada flag
Canada commits to its vision to develop five new superclusters:
  • Ocean Supercluster (based in Atlantic Canada)
  • SCALE.AI Supercluster (based in Quebec)
  • Advanced Manufacturing Supercluster (based in Ontario)
  • Protein Industries Supercluster (based in the Prairies)
  • Digital Technology Supercluster (based in British Columbia)

Together the superclusters represent more than 450 businesses, 60 post-secondary institutions and 180 other participants in sectors covering 78 percent of Canada’s economy.

“The Innovation Superclusters Initiative created an important dialogue between industries, companies, and communities focused on building the next generation of manufacturing firms in Canada,” said Jayson Myers, CEO, Next Generation Manufacturing Canada. “These vital conversations have set the stage for new partnerships, customer relationships, and investment opportunities that will shape the future of advanced manufacturing in Canada.”
Source: SSTi

Great Lakes Water Controversy

United-States-Map-2Wisconsin Gov. Scott Walker  is proposing that the City of Racine be allowed to divert 7 million gallons of Lake Michigan water everyday as part of the Foxconn deal in southeast Wisconsin. However, conservation groups oppose the plan, and argue that it not only undercuts the Great Lakes Compact of 2008, but also such a diversion for private industry use is unprecedented.  Source: SSTi

This is another example of the growing struggle to jointly manage shared natural resources.   Many cities, both in the USA and Canada rest on the shores of the Great Lakes.  Who dictates that cities uses of their shoreline and access to the water.   In the past law suits have come around pollution claims of an up stream user contaminating the water for those down stream and many of those suits have held up in court with large reparations to the offending party.   While most cities try to regulate water usage for the greater good it becomes more concerning when private industry wants large scale access to those shared resources for their personal profit.   Complicating the matter even more is that multiple nations share natural resources like access to fresh water sources and the seas.

This rising crisis of global sustainability is bringing many of the Grand Challenges to the forefront of national agendas.   The world will need to create a new dialogue and ability to regulate and manage a court of appeals on a global level.   Ownership of shared natural resources will also be contested, as will, the issues of unsymmetrical distribution of many resources.   Today we have some internal bodies like the United Nations,   ICJ/HAG, and  G20 to name a few.   These can serve as models to learn from while exploring a more globally inclusive model to represent all nations.

I encourage everyone to follow and share stories about Natural Resource controversies,  appeals, and deals that will begin to set the precedents for the decades to come.   We all need to be alert to the lobbying forces of private interest over the greater good.

 

Canada’s Manufacturing Supercluster

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On the heals of the top 9 supercluster proposals.  Ontario has been selected as the location for the Government of Canada’s Advanced Manufacturing Supercluster, which is part of a $748 million Innovation Superclusters Initiative. The supercluster will bring together small, medium-sized and large companies, academic institutions and not-for-profit organizations to generate bold ideas, resulting in new jobs, groundbreaking research and a world-leading innovation economy.
The Advanced Manufacturing Supercluster will develop next-generation manufacturing capabilities, such as advanced robotics and 3D printing. Ultimately, the Advanced Manufacturing Supercluster aims to position Canadian companies to lead industrial digitalization, maximizing competitiveness and participation in global markets.
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(Photo: HE Canadian Press/Todd Korol)
Navdeep Bains, Minister of Innovation, Science and Economic Development,
“The Advanced Manufacturing Supercluster will create new opportunities for all the companies involved, help create more than 13,500 new jobs in Ontario and across Canada, and add more than $13.5 billion [US$10.6 billion] to Canada’s economy over 10 years,” said Gould. “This is great news for Ontario’s economy, for Canadian innovation and for our society.”
Source: SSTi

Mayors Lead in Driving Innovation

United-States-Map-2Calling out a few of over 35 cities that have advanced in the Bloomberg Mayors Challenge, a nationwide competition to create innovative solutions for shared problems faced by municipal governments.  With the struggle of the national administration to drive innovation state governors and city mayors are leading the way.

Austin Texas

In attempting to help the local homeless population, outreach workers in Austin, Texas, often struggle to catalogue, access and share information about individuals they interact with.  Forty-plus nonprofits and 20-some government agencies in Austin lack a central mechanism for accurate data sharing about the homeless individuals they serve.  In addition, to personal documentation such as medical records or even social security cards.  Technology has previously reported. Austin, however, is working on a pilot program that uses blockchain to make it easier for homeless individuals to provide information about themselves. City officials say this is likely a first-of-its-kind use case for blockchain, one with the potential to be scaled to other cities throughout the nation.

Cheyenne, Wyo.

The program that Cheyenne will soon pilot with support from Bloomberg seeks to speed up revitalization of these empty properties by matching their owners with local entrepreneurs in need of work space. City officials in Cheyenne have so far identified 17 vacant commercial buildings and 10 partially full buildings as candidates for the work, which involves creating a new website that would connect the owners and entrepreneurs and also potentially facilitate crowdfunding for their projects. The goal for Cheyenne is to have a pilot version of the site up by July, with a full-version to follow by early 2019.

Grand Rapids, Mich.

Is looking at existing city data to identify gaps in equality in the community, with an ultimate goal of working to facilitate change.  Their project is, in part, a citywide census of community data that has an ultimate goal of creating a mechanism for stakeholders in the city to apply for more grant moneys.   The goal to really work with the different segments of our community that are affected by poverty. We believe that out of this will come some great applications for our businesses to fill out one type of application for all of the funds that are available from nonprofits.

Philadelphia

Is eeking to find child-centered solutions for youth offenders that focus more on service-oriented solutions than on sending them to regular police precincts for booking.
To do this, Philadelphia wants to create a Hub for Juvenile Justice Services, one that would serve as a national model for how children are treated within the criminal justice system. The goal of the hub would be a “24/7 integrated service center that is trauma-informed and technology driven.  Staff at the hub would be trained in how to respond to youth and families, as well as on how to make referrals to prevention or other social service programs when appropriate. It would be a preventative, non-police facility to provide juveniles with both immediate and long-term access to social services and diversion programs.

Louisville, Ky.

Is launching a pilot program that would build on a recently installed gunshot detection system to quickly dispatch aerial drones to potential shootings.  This program, which has already made headlines, would likely be the first of its kind in the country, and it was developed as a collaboration between the city’s Office for Civic Innovation, its police department, and several community partners.  City officials said that through this program aerial drones could help officers investigate incidents by capturing critical evidence at crime scenes before investigators arrive. The mobile nature of the drones would also allay privacy concerns that arise from static cameras.
Source: govtech

Michigan’s 100M Plan for Talent

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Michigan Governor Rick Snyder proposed a “Marshall Plan for Talent” last Thursday.
The proposal would drive STEM and technology focused tuition.  The money is coming from a state bond refinancing effort.
The plan includes $100 million:
  • K-12 education programs
  • Higher education programs
  • Existing state workforce development
  • Veteran’s education programs
  • Woman’s programs
The plan includes $100 million: (In addition to the state budget proposed last month)
  • $50 million for programs and new equipment for schools and universities
  • $25 million would support student scholarships
  • $20 million would fund career exploration programs
  • $5 million would help address a shortage in teachers in high-demand career fields
Source: SSTi

Wisconsin Water Cluster Growing

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Wisconsin’s water cluster initiative continues to attract companies from across the nation and world to participate in their innovation and education centers,  the growing network of ecosystem development and their growing brand of industry leadership.

A recent example of attraction comes from Austrialia and south east Asia.  With its head office located in Sydney, Australia, a sales and operations office based in Singapore and a contract assembly hub in Shanghai, China, the BioGill team knew it was time for a U.S. office to be established.

In January of 2017 the company established BioGill North America Inc., and in July opened its Milwaukee office within the Global Water Center, employing Annie Weidert as Regional Manager for the Americas. In October BioGill exhibited at WEFTEC, along with The Water Council, in Chicago. After the company delivered a technical paper at the event there was a tsunami of interest in the technology, which has led to the expansion of its U.S. team by adding a second full-time employee in January 2018.

“One of my beliefs in business is that one plus one should equal three. To successfully scale up in business, you need to look for ways to value add, leverage and network. And that’s what the water hub in Milwaukee has delivered to us. We’re plugging into an influential and well- established industry network, helping us to make better informed decisions as we grow our client base in the U.S.” – Paul Hatten / CEO BioGill

“We looked at many locations and states for our U.S. operation, but Milwaukee and Wisconsin best suited our needs,” said Paul Hatten.  “While we have many sites and proven projects around the world, the U.S. is a relatively new market for us. The Water Council has proven to be a powerhouse of knowledge, contacts and advice. In the end, it was an easy decision and made perfect business sense to locate in Milwaukee.”

Source:  The Water Council

Wisconsin continues to lead in the US in terms of cluster development and building a global brand for industry leadership.   They have already launched over 6 cluster initiative in varying cities across the state but have the infrastructure and operational models to continue to move into more emerging industries faster than states that have no vision for cluster development and the regional advantage and attraction it creates.