1. A Fresh Economic Growth Model
Singapore’s
Unique Institutional Strengths
Can Grow Meta-Ideas for
Superior & Sustainable
Long-Term Growth
Mark Lee (mlee@alum.mit.edu)
July 2009
www.innovatesingapore.com

2. Summary
Fresh Economic Growth Strategies
Over Generic Strategies
For Superior Economic Growth
Growth Model Approach Predictions
Conventional Generic
Inferior
• Land “wannabe” &
Economic Growth
• Labor “more of the same”
(diminishing returns)
• Capital strategies
Fresh Distinctive
• Ideas Singaporean Potential
• Institutions Institutional Strength for Superior
• Population “Meta-Idea” Economic Growth
• Human Capital Strategy

3. Economic Growth Models Need to Evolve
as Knowledge Becomes More Important
Paul Charles
Albert Romer Jones
Winsemius
Economy
Becomes More
Knowledge-Based
Fresh Growth Model
Ideas (aka knowledge)
Output Diminishing Institutions
Returns Population
Human Capital
Land, Labor, Capital
1960’s 1970’s 1980’s 1990’s 2000’s 2010’s

4. Meta-Ideas Drive Economic Leadership
Meta-Ideas
“ideas about how to
support the production
and transmission of other ideas”
the country that
Might NOT be Technology-Centric takes the lead
Peer Review in the 21st century
…
implements an
Patents Innovation that
Modern Research Uni more effectively
& Land grant colleges
Copyrights supports
the production of
new ideas
in the private sector
(Paul Romer)
17th 18th 19th 20th
Century

5. Conventional R&D Strategies
Focus Upon Creating Ideas
WHO
Does the Research?
Educate, Train & Can Singapore
Use Compete
the Best R&D Effectively
Personnel Against R&D
Powers
WHAT With
Is Researched? Conventional
Invest in the Highest R&D Strategies?
ROI
Target Markets

6. Fresh Thinking I
Create a new “Meta-Idea” R&D Dimension
WHO (Manpower)
Does the Research?
(Research Fellowship)
WHAT Markets/Industries)
Is Researched?
(RCE, CRP)
HOW (Means)
To Research,
Innovate &
Transform?
(Meta-R, I, T )

7. Fresh Thinking II
Leverage Singapore’s Institutional Strengths
To Grow Meta-Ideas
Opportunity for
“Economic Institutions”
Meta-Ideas
Diagram Source: Acemoglu, et al
“Institutions as the Fundamental Cause of Long-Term Growth”

8. Singapore’s Unique Oppt’y To Grow Meta-Ideas
“… next to impossible to
transplant the Singapore wonder elsewhere.
… senseless to launch
an economic development programme
Albert in a country which lacks political stability and
Winsemius does not have a government
that sticks to that programme” (Link)
“a dominant party
that can form a strong majority government
that expects to be in power in the future, …
it takes a long view in addressing problems.
Paul Your political equilibrium would be
Romer difficult to replicate in most other countries.” (Link)

9. Impact of Fresh Thinking
Leverage Singapore’s Institutional Strengths
The World’s
Sui Generis
Meta-Innovation Center
Singapore’s Value
as a Global City
Innovation
MM Lee 2007 Speech
London: International
Paris: Elegant
New York: Business

10. Meta-Idea Opportunity: Biotech Industry
The Biotech Industry
Is Structurally Unprofitable
Figure 6.2
“Science Business”
Biotech Industry
Aggregate Profit
With Amgen
Biotech Industry
Aggregate Loss
Without Amgen

11. Biotech Needs New Meta-Ideas
(Opportunity for Singapore)
Scientific revolutions
like biotechnology are
only partly about science.
Inextricably linked ..
Are experiments in
HBS institutional arrangements,
Professor organizational forms,
Gary Pisano business models, and
management practices
(p. 183)
Organizational and institutional innovations
are needed to unlock the potential of biotechnology
(p. 202)

12. Project Bio-MeRIT
Meta-Research, Innovation & Transformation
HBS Professor
Pisano
Results
Successful
Team Meta-Ideas
Singapore Govt
Enables a
√
Test-Bed Unsuccessful
Biotech
Industry
X
Needs
Research & Learning
Ram Charan
Opportunities

13. www.innovatesingapore.com
Mark Lee
(mlee@alum.mit.edu)
July 2009