Beyond Commodities: Argentina’s dynamic biotech industry

argentina-10

Source: feelgrafix

By Jerry Haar and Krystal Rodriguez

The dictionary definition of crucible is “an extremely difficult experience or situation; a severe test or trial”. This is precisely where most of Latin America finds itself with its excessive dependence on commodities as the linchpin of its economy. In good times governments spend commodity windfalls on projects or programs to garner support for the political party in power. In bad times, politicians engage in handwringing and scapegoating, and the governing party borrows excessively to make up the shortfall in revenue from commodity sales.

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A Wall: Constrain, Protect, or Lead

Source: ChinaDaily

Picture Source: ChinaDaily- Cracks appear in the Great Firewall of China

“God created the world, the rest was made in China,” sings Lourd de Veyra. The concern about the Asian factory has lingered for decades. Overlooked has been its gradual strategic transformation from imitator to integrator, or even innovator.

Will China overtake the U.S. and become the new No.1 economy of the world? This anxiety seems as misplaced as earlier forecasts such as Japan’s economy surpassing the U.S. by 2000.

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For Your Long-Term Success Sponsor Innovation And Enter Asian Markets, with Peter R. Dickson

In a recent column in Marketing Management we explained the inevitability of the rest of the world catching up to us in business and technical expertise and why it is imperative that we increase the productivity of our innovation commercialization as a nation. We suggested nationwide innovation scholarships that create thousands of new businesses started by American engineers, scientists, artists, artisans and other innovators.

In this column we expand on our proposal by explaining how CEOs like yourselves in collaboration with universities can gain great benefits by increasing the innovativeness of your company by sponsoring and working with innovators. For, say $25,000 you can support the commercialization of an innovator’s idea. The University pays another $25,000 because Universities must be forced to invest at least some of their endowment in innovation and walk the talk when it comes to a re-structuring of the U.S. economy. So what you get is a $50,000 scholarship in your name to help start-up an innovative idea in your industry. Such collaboration can then work in local incubators or by developing a cluster of innovations in order to accelerate social ventures as the S&R foundation does at Halcyon House in Washington D.C.  Good idea? No it’s not a good idea, it’s a great idea so this is what you have to do.

Get together with other local CEOs and approach your local University Presidents and insist they develop such a program that you as a group can support 50:50. It will happen. If you persist it will happen and you will be forging a much better future for the United States by serving your own self-interests as well.

Oh and another thing. Almost all of the growth in consumer product and service markets over the next 50 years will be in China and India and it will be huge. Are you in on the ground floor on this? Do you have a Chinese partner yet? An Indian partner If not, then you are giving away these market to, by then local Chinese and Indian companies that in 10 years will be coming  over here and to all those international markets which you serve now. If you’re not prepared, they will eat your lunch. This is a certainty.  They will be the largest consumer product and service companies in the world. And if they learn by doing and they do a lot more than us, they will be best in the world at doing things well. Think about an Indian partner and investing in these markets. Think about a Chinese partner and investing in these markets. You owe it to your customers, your employees and your successor.

Peter Dickson (dicksonp@fiu.edu) is an Eminent Scholar and Professor at Florida International University

Michael Czinkota (czinkotm@georgetown.edu) is a Professor of international marketing at Georgetown University

This article is also published by CEOWORLD Magazine. See at: http://ceoworld.biz/2016/04/18/long-term-success-sponsor-innovation-enter-asian-markets

Assault at the Cathedral

On New Year’s Eve, there were mass attacks on women in Cologne, Germany. More than a thousand young men, many of them with an apparent migration background, congregated next to the famous cathedral of Cologne where they assaulted, groped and even raped women passing by. Local police, far outnumbered, did not intervene in the mayhem. In the days to follow, police, press and government tried to downplay the disaster, in order to avoid controversy about migrants, of which Germany admitted more than one million in 2015, with many more to come.

Since then, statements by police who had been ordered to stand down,  by eye witnesses and by social media, have emboldened the victims to file more than 625 criminal complaints with 40% of them related to sexual assault. Many of the alleged attackers are Arab or North African, which has led to severe discontent with the government and its migration policy. There have been a series of protests, particularly in eastern Germany, blaming Chancellor Angela Merkel’s government and her open-door refugee policies.

Beyond the very serious criminal charges which are for the police and judiciary to resolve there additional serious questions. First, are European countries such as Germany ready to accept so many refugees both mentally and physically? Second, given the huge number of migrants still in motion, who will provide them with a domicile? Third, and most importantly, the desire for temporary tranquility has invalidated the fight for the equality of women, shod the aversion  of violence against women, and done so at a dangerous cost to societal transparency and progress.

For decades, even centuries, western countries have been trading partners with authoritarian regimes in the Middle East, selling weapons, automobiles and other lucrative products. But the encouragement of an Arab Spring has led mainly to an Arab Fall. Yet, a large financial overhang, mainly resulting from international business, has not led to an assimilation of values and behavior. Instead many funds are used to help the distribution of fierce rhetoric, giving rise to Osama bin Laden and many other extremists. These developments are paired with an asymmetry of political correctness in the Western World, leading to new rope which the victim sells to its miscreant.

With decreasing demands for mutual integration, concurrently rising migration and outdistanced procreation, there are fewer viable landing strips for students, women and willing economic participants.

Right now, many of the migrants seek out primarily Germany and Sweden as asylum territories, which is understandable in light of the accommodations and benefits offered. But there are also important cultural milestones and preferences of governments and citizens who receive the human wave. Integration means that hosts learn more about their visitors, but also requires the new arrivals to accept key standards and expectations of their hosts. Though large immigration is likely to dilute rigid norms, it also must lead to asymptotic movement towards established standards.

The EU,  taking on a leadership role consistent with the Treaty of Lisbon,  should pr0otect the human rights of asylum seekers, but also has  right to determine where this protection should take place. For example, the Middle East and Africa have many locations where refugees can be housed, fed and clothed, and protected. Countries such as China and India could develop entire settlement policies for the resolution of a global problem. These are not meant to create new colonies, but rather endorse the establishment of pop-up protectorates, to temporarily provide succor, shelter and peace to refugees.

Third, and perhaps most chillingly because it can set the future rails for disaster, is the failure of the public media to distribute honest information rapidly. An almost week-long delay of media reports was broken only when too many other sources broke the mantra of keeping bad news about migrants out of the public spotlight. This is wrong! Silence is a blow to the victims of violence, and lets them be hunted like game. Women deserve better.

The violent, brutal and sexist treatment of women must be combated radically.The event in Cologne reveals a major flaw societal shortcoming which cannot be tolerated. Germany is an internationalized country due to the composition of its population and its dependence on foreign trade. If it wishes to continue with its international leadership role, Germany must recognize that such role is one of immersion into the world which must result in simultaneous juridical, social and economic leadership. Female equality is a crucial entitlement for more than half of the population. To declare otherwise is wrong for the native locals as well for the wave of newly arriving migrants. The events in Cologne must not become the opening act for continued misery and disrepute.

The attempt to muffle the powerless laments of the victims with the blanket of public silence is most treacherous. One should not cry ‘fire’ in a cinema, but doing so is  encouraged when the flames are in the roof. The suggestors, the targets of the suggestions as well as the self-motivated absconders with truthful information must recognize how their behavior has fertilized the ground for future misinformation and knowledge abuse. Effective steps must be taken to truly make a difference. It is time for such action with specific details clearly spelled out by democratic transparency. As was already promulgated by St. John:” And you will know the truth and the truth will make you free.”

Professor Czinkota presents international marketing at Georgetown University in Washington D.C. 

How Companies Can Befriend A Trend

Trend research is a booming business. Many agencies and self-appointed gurus announce the latest trends from their perspective, generating publicity and awareness. This can be particularly confusing for multinational corporations because, apart from local and regional trends, they have to identify international and cross-regional trends, and incorporate them into their strategic planning and decisions. But trends and trend research are an integral part of business int he global marketplace. If companies miss out on market developments that fundamentally change customer interactions, they are doomed to fail…

How Companies Can Befriend A Trend

Published in Marketing Management