TechnoVision 2020GIL Latin America

Cristiano ZaroniManaging DirectorFrost & Sullivan Latin America

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TechVision 2020 & Growth Strategy

Apply this information:

New Growth Opportunities

through TECHNOLOGY AS

A ENABLER

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Strategy

Formulation

StrategyImplementation

Evaluate existent investment in

Technology & Infrastructure2

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Micro Environment

Macro Environment

Our Agenda Today

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1.251

1.402

2010 2012

Global R&D Expenditure Growth(US$ Trillion)

Global R&D Expenditure

Global R&D spending

Global R&D Spending Patterns

� Global R&D spending is estimated to increase at a CAGR of 5.8 percent from 2010 to 2012

� Companies and governments are investing despite the turmoil

� Waiting out the global financial storm is just not an option…

Source: UNESCO

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Global R&D spending

Global R&D Spending Patterns

� Global R&D spending is shifting toward developing economies

� BRICS plays a major role

� Developing countries innovating for developing countries – not just low cost off-shoring

82.5%

72.5%

17.5%

27.5%

2002 2010

Share of World Total R&D Spend

Developed countries Developing countries

Source: UNESCO

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Global R&D spending , by region

Global R&D Spending Patterns

� North America experienced the biggest relative loss; Asia the biggest gain

� The transition of many of the Asian economies is driving increased contributions

� Latin America´s relative contribution increased by 14%, reaching 3.2% of Global R&D Spending

37.7%32.4%

2002 2010

North America

Percentage of World Total R&D Spend, Global, 2002 and 2010

2.8% 3.2%

2002 2010

Latin America and Caribbean

0.9% 0.9%

2002 2010

Africa

30.0% 28.4%

2002 2010

Europe

27.2%33.2%

2002 2010

Asia

1.4% 1.9%

2002 2010

Oceania

Source: UNESCO

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Global Patent Applications, selected countries

Global Patent Applications

� There is a significant shift in patent applications from Europe to Asia

� China experiencing a 6 fold increase - driving hard toward become a knowledge economy

� Brazil increased patent registrations by 30%, surpassing United Kingdom volumes

Source: WIPO

17,376 22,686

2000 2010

Brazil

51,906

391,177

2000 2010

China

32,33742,500

2000 2010

Russia

62,142

59,245

2000 2010

Germany

3,2956,383

2000 2010

South Africa

8,538

34,287

2000 2010

India295,895

490,226

2000 2010

United States

Patent Application Filings, Global, 2000 and 2010

32,74721,929

2000 2010

United Kingdom

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BRICS: Contribution and Spend by %GDP

5.0%

1.7%0.3%

1.8% 1.7%

12.3%

2.3%0.5%

2.7% 2.0%

China India South Africa Russia Brazil

BRICS Comparison - Contribution to World Total Expenditure on R&D

2002 2010

BRICS R&D Spending

� China is the largest economy, but also proportionately spends the most on R&D relative to GDP

� What if growing scientific and engineering expertise are combined with low cost labour?

1.1%0.7% 0.7%

1.3%1.0%

1.6%

0.8% 0.9%1.3% 1.2%

China India South Africa Russia Brazil

BRICS Comparison - R&D Expenditure Share of GDP

2002 2012 Source: UNESCO

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Technology Hotspots

0 5 10 15

Sustain Energy

Clean & Green

Health & Well

Info & Comms

Material & Coatings

Med Dev & Image Tech

Micro Elec

Sensors & Control

Adv Man & Auto

Patent Activity Funding Levels Market Potential

5 represents >15k patents 5 represents >$ 1 billion 5 represents >$ 10 billion

Sensors & Control

Clean & Green Environment

Health & Wellness

Sustainable Energy

Information & Communication

Materials & Coatings

Medical Devices & Imaging Tech

Microelectronics

Advanced Manufac-turingand Automation

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4

3

2

1

0

Source: Frost & Sullivan

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Information & Communication

Materials & Coatings

Medical Devices & Imaging Tech

Top 50 Technologies

Top 50

Technologies

Sensors & Control

Clean & Green Environment

Sustainable Energy

MicroelectronicsAdvanced

Manufacturing and Automation

Hybrid Energy Systems

Smart Energy Mgt

Advanced Chemical

Batteries

2nd Generation Biofuels

Advanced Energy Storage

PEM Fuel Cell

Advanced Wind Power

Water Purification

Waste to Energy

Electric Vehicles

Solid Waste

Treatment

Biochemicals

M2M Connectivity

Semantic

Technologies

In memory

Computing

Virtualization

Big Data

Energy Harvesting

CBRNE Detection

Wireless Sensor

Networks

Smart Sensors

Neurostimulators

Hybrid Imaging

Remote Patient Monitoring

Combination Devices

Autonomous Vehicles

Fibre & Disc Lasers

Multi Material Joining

Technologies

Micro Manufacturing

Intelligent Robots

Smart Fabrics

Advanced Filtratation

Active Packaging

Lightweight Composites

Microreactors

Superhydrophobic Coatings

Biofunctionalized Materials

Fuel/Additive/Blending

Next Generation

Sequencing

Next Generation Prebiotics

Adult Stem Cell Therapies

Nanofluidics & BioNEMS

3D Cell Culture Systems

Solid State Lighting

Flexible Electronics

Compound Semiconductors

Advanced Data Storage

Near Field Communication

3D Integration

Haptics and Touch

Health & Wellness

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5

50

2010 2020

Global Objects Connected to the Internet (Billion)

Global Objects Connected

Global Objects Connected to the Internet

� 6 devices per human on earth by 2020

� Automated data assembly and interpretation critical

Source: DeustoTech

Machine to Machine (M2M) Connectivity

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Internet as CNS of M2M Ecosystem

Central Nervous System

Managing complex relation between devices

2 Billion People

Connected

50 Billion Devices

Connected

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M2M as key-element of transformational change:The Healthcare industry example

Current State of Evolving Doctor Patient Relationship

� (Verbal and Written) Communication is a key component of the doctor-patient relationship

� Outcome and behaviour change difficult to monitor and act upon on a frequent basis

� Technology as the ultimate translator – delivery and provision of healthcare services

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M2M as key-element of transformational change:The Telehealth Ecosystem

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HC-ICT industry convergence:The Telehealth Matrix

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Closing remarks…

� Pro-actively tracking technology is clearly essential

� Understand the technology parameters

� Track your own industry as well as (un)related

� Convergence is on the increase

� ‘Wait and see what happens in the US/Europe’ is not

an option any more

� Increase your chances of success exponentially by

understanding the technology parameters and the

pace of development

R & D

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Cristiano Zaroni

Managing Director, Latin America

Frost & Sullivan

+ 55.11.3065-8424

Cristiano.zaroni@frost.com

Thanks for your time. Hope you enjoyed !