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Economic impacts of science and engineering. The value of a strong science and engineering community has many benefits to the economy - directly and indirectly. Many countries are focusing their future economic plans on advancing their scientific, engineering and technology communities and creating environments that support scientists and engineers.
Recommended posts: The Future is Engineering - Engineering the Future Economy - Economic Result of Shifting Scientific Status Worldwide - Economic Strength Through Technology Leadership - Economics, Politics and Science Research - Education, Entrepreneurship and Immigration
Related: Economic and Investing Glossary - Curious Cat Investing and Economics Blog - Management Improvement Blog economics posts

Posts exploring the economic impacts of science and engineering. The value of strong science and engineering practice has many benefits to the economy – directly and indirectly. Many countries are focusing their future economic plans on advancing their scientific, engineering and technology communities and creating environments that support scientists and engineers.

Silicon Valley Shows Power of Global Science and Technology Workforce

Even with the challenges created by the culture in Washington DC against non-European foreigners the last 15 years Silicon Valley continues to prosper due to the talents of a pool of global science and engineering talent. Other countries continue to fumble the opportunity provided by the USA’s policies (largely a combination of security theater thinking and a lack of scientific literacy); and the strength of Silicon Valley’s ecosystem has proven resilient.

Software Is Reorganizing the World

an incredible 64% of the Valley’s scientists and engineers hail from outside the U.S., with 43.9% of its technology companies founded by emigrants.

5 things to know about the Silicon Valley economy

64 percent of college-educated professionals working in Silicon Valley science and engineering positions were born outside the U.S. as of 2011. That’s compared to the national average of 26 percent.

The Kauffman foundation’s recent study America’s New Immigrant Entrepreneurs: Then and Now shows evidence the anti-global culture in Washington DC is negatively impacting the economy in the USA.

The drop is even more pronounced in Silicon Valley, where the percentage of immigrant-founded startups declined from 52.4 percent to 43.9 percent.

The Immigrant Exodus: Why America Is Losing the Global Race to Capture Entrepreneurial Talent, draws on the research to show that the United States is in the midst of a historically unprecedented halt in high-growth, immigrant-founded startups.

… launched a website — ImmigrantExodus.com — as a resource for journalists and a voice for immigrant entrepreneurs.

As I have written for years, I expected the USA’s relative position to decline. The huge advantages we had were not sustainable. But the very bad policies of the last 15 years have negatively impacted the USA. The only thing not making the results much worse is no strong competitors have stepped into the void created by the policies of the last 2 USA administrations. It isn’t easy to create a strong alternative for technology startups but the economic value of doing so is huge.

The USA has created the opportunity for others to grow much faster, now some just have to step into the void. Will Brazil, Norway, Korea, Chile, Malaysia, Finland, New Zealand, Singapore, Germany, India… step up and create conditions for entrepreneurial scientists and engineers? Each country has been doing some good things but also continue to miss many opportunities. Some countries also have more challenges to overcome – it is much easier if the economy is already rich (say in top 20 in the world), speaks English, has a strong science and technology workforce… The innovation stiffing legal system in place in the USA is absolutely horrible and presents a huge opportunity to anyone willing to stand up to the USA’s continuing pressure to force countries to burden themselves with equally bad (or even worse) policies (such as the Trans-Pacific Partnership). It is possible to succeed with numerous weaknesses it just requires even more offsetting benefits to attract technology entrepreneurs.

Some things are probably absolutely required: rule of law, strong technology infrastructure (internet, etc.), good transportation links internationally, stable politically, freedom of expression (technology entrepreneurs expect to be able to try and say crazy things if you want to control what people say and publish that is very counter to the technology entrepreneurial spirit – especially around internet technology)…

Related: The Future is EngineeringUSA Losing Scientists and Engineers Educated in the USAScience and Engineering in Politics

Earnings by College Major – Engineers and Scientists at the Top

graph of earnings by college-major

Median annual income by major based on data from the Georgetown Center On Education And The Workforce – via blog post: The Most And Least Lucrative College Majors.

As we have posted about for years engineers do very well financially. This chart shows the median income by college major (the data includes those who went on to get advanced degrees) based on data for the USA. See the data on those that only have bachelors degrees. Also see a detailed post from the Curious Cat Economics blog looking at the value of college degrees based on the Georgetown data.

Engineering holds 6 of the top spots in the graph shown above and 8 of the top spots for those that didn’t earn an advanced degree. Pharmacy-sciences-and-administration and Math-and-computer-sciences made the top 10 of both lists. Pharmacology and health-and-medical-prepatory-programs make the list when advanced degrees are included.

The highest earning major, petroleum engineering, with $120,000 doesn’t have an increase for those with advanced degrees. The 10th spot goes to electrical engineering with a $94,000 median income.

Related: No Surprise – Engineering Graduates Continue to Reign SupremeEngineering Again Dominates The Highest Paying College Degree ProgramsEngineering Majors Hold 8 of Top 10 Highest Paid MajorsThe Labor Market for Software Developers

Appropriate Technology Brings a $1.30/month Cell Phone Plan to Remote Village

I love this kind of stuff: smart use of engineering provides cell phone service to remote Mexican village, with 9,000 residents, for $1.30/month (1/13 of the price charge by traditional cell phone service in Mexico City).

The town that Carlos Slim forgot

It’s so remote that there was no cell service. In stepped Rhizomatica, a nonprofit with the goal of increasing “access to mobile telecommunications to the over two billion people without affordable coverage and the 700 million with none at all.”

The U.S. and European experts working with Mexican engineers got the network set up by March of this year. At first, they ruled that phone calls were not to be longer than five minutes each to keep the small network from getting saturated.

By May, local numbers in Mexico City, Los Angeles and Seattle were set up, meaning that Oaxacans in Villa Talea could call relatives in the capital or in California as if it were practically a local call, a few cents a minute.

Given the success they are buying equipment that can handle the volume and will donate the existing equipment to setup a new village (a smaller one, I imagine). This was the first village they setup.

Long-distance is go

After almost two months of fine-tuning, long-distance service is finally ready to launch. This means folks in the town will be able to call out of the coverage area (only around 5-10km) to any phone, anywhere. Likewise we purchased a few DID numbers which allow people to call a Mexico City, Los Angeles or Seattle number and connect right to the village.

This is one of so many great efforts to use appropriate technology to improve people’s lives. It is easy for me to get frustrated at the cash for votes mentality of the USA politicians which creates policies against improvement for society and for protection of obsolete business models (until the bought-and-paid-for politicians make the business models sustainable by legislating against better options). It is great to see these kind of examples for the good work being done outside of the political sphere.

Related: Pay as You Go Solar in IndiaProviding Computer to Remote Students in NepalReducing Poverty Using EntrepreneurshipMonopolies and Oligopolies do not a Free Market Make

Scientific Research Spending Cuts in the USA and Increases Overseas are Tempting Scientists to Leave the USA

Unlimited Potential, Vanishing Opportunity

Globally, the United States invests more real dollars in research and development than any other country. However, in terms of percentage of gross domestic product, the United States is reducing its investment in scientific research. In fact, of the 10 countries investing the most money in scientific research, the United States is the only country that has reduced its investment in scientific research as a percentage of GDP since 2011.

The study by 16 scientific societies surveyed 3,700 scientists in the USA. As a result of the difficult research funding environment 20% of the scientists are considering going overseas to continue their research careers.

I have written about the likelihood of the USA’s leadership position in science, engineering and technology diminishing. As I stated (see links below), it seemed obvious many other countries were more committed to investing in science now than the USA was (which is different than decades ago when the USA was the country most committed). Various factors would determine how quickly others would shrink the USA’s lead including whether they could setup the infrastructure (scientific, social and economic) and how much damage the anti-science politicians elected in the USA do.

The advantages of being the leader in scientific and engineering research and development are huge and long term. The USA has been coasting on the advantages built up decades ago and the benefits still poor into the USA economy. However, the USA has continued to take economically damaging actions due to the anti-science politics of many who we elect. That is going to be very costly for the USA. The losses will also accelerate sharply when the long term investments others are making bear significant fruit. Once the economic impact is obvious the momentum will continue in that direction for a decade or two even if the USA finally realizes the mistake and learns to appreciate the importance of investing in science.

The good news is that many other countries are making wise investments in science. Humanity will benefit from those investments. The downside of the decisions to cut investments in science (and to actively ignore scientific knowledge) in the USA are largely to move much of the economic gains to other countries, which is regrettable for the future economy of the USA.

Related: Economic Strength Through Technology LeadershipScience, Engineering and the Future of the American EconomyGlobal Scientific LeadershipCompetition to Create Scientific Centers of ExcellenceEngineering the Future EconomyWorldwide Science and Engineering Doctoral Degree Data (2005)

Rubber Trees

I think rubber trees are pretty cool, dripping out nice latex is just neat.

photo of rubber trees

Photo of rubber trees in Khao Lak, Thailand

Latex is collected from trees which is then treated to make rubber. Hevea brasiliensis (originally found the Amazon basin in Brazil), the Pará rubber tree, sharinga tree, or, most commonly, the rubber tree, is a tree belonging to the family Euphorbiaceae. Gutta-percha (Palaquium) is a genus of tropical trees native to Southeast Asia. The milky latex extracted from the trees is the primary source of natural rubber. Now refining petroleum is an alternative way for creating products that required rubber previously, but rubber is still economically important.

In 1876, Henry Wickham gathered thousands of para rubber tree seeds from Brazil, and these were germinated in Kew Gardens, England. The seedlings were then sent to India, Ceylon (Sri Lanka), Indonesia, Singapore and British Malaya (now Malaysia). Malaya was later to become the biggest producer of rubber. In the early 1900s, the Congo, Liberia and Nigeria also became significant producers of natural rubber latex.

photo of a rubber tree seed

Rubber tree seed from near Fraser’s Hill, Malaysia, by John Hunter.

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The Wonderful Coconut

One of the treats of living in a tropical climate is drinking coconut water. I love drinking the water from fresh coconuts. This video provides insight into the many uses of all parts of the coconut tree.

The Truth About Coconut Water by Kathleen M. Zelman, MPH, RD, LD – WebMD

[coconut water] has fewer calories, less sodium, and more potassium than a sports drink. Ounce per ounce, most unflavored coconut water contains 5.45 calories, 1.3 grams sugar, 61 milligrams (mg) of potassium, and 5.45 mg of sodium compared to Gatorade, which has 6.25 calories, 1.75 grams of sugar, 3.75 mg of potassium, and 13.75 mg of sodium.

There are some health benefits to consuming coconut water. It’s an all-natural way to hydrate, reduce sodium, and add potassium to diets. Most Americans don’t get enough potassium in their diets because they don’t eat enough fruits, vegetables, or dairy, so coconut water can help fill in the nutritional gaps.

Beyond that, the scientific literature does not support the hype that it will help with a laundry list of diseases. “There is a lot of hype about coconut water, yet the research is just not there to support many of the claims and much more research is needed,” says Cheung.

I have tried bottled coconut water which was pitiful. I don’t know if that was just a bad type and good options exist or the fresh stuff is just much much better. But I’ll stick to fresh coconut water as long as I can.

Related: Does Diet Soda Result in Weight Gain?Can You Effectively Burn Calories by Drinking Cold Water?How do Plants Grow Into the Sunlight?Eat food. Not too much. Mostly plants.

Chart of Wind Power Generation Capacity Globally 2005-2012

Chart of installed wind energy capacity by country from 2005 to 2012

Chart of installed wind energy capacity by country from 2005 to 2012 by Curious Cat Science and Engineering Blog using data from the Wind Energy Association. 2012 data is for the capacity on June 30, 2012. Chart may be used with attribution as specified.

Wind power generation capacity continues to grow faster than the increase in electricity use. The rate of growth has slowed a bit overall, though China’s growth continues to be large.

From 2005-2012 globally wind power generation capacity increased 330%; lead by China with an increase of 5,250%. Of the leading countries Germany grew the least – just 63%. The percent of global capacity of the 8 countries listed in the chart (the 8 countries with the highest capacity in 2012) has been amazingly consistent given the huge growth: from a low of 79% in 2006 to a high of 82.4% in 2011 (2012 was 82%).

Global growth in wind energy capacity was 66% in 2008-2010. In 2010 to 2012 the increase was 28%. The second period is just 18 months (since the 2012 data is for the first half of the year). Extending the current (2010-2012) rate to the end of 2012 would yield an increase of 37%, which still shows there has been a slowdown compared to the 66% rate in the previous 2 year period. The decrease in government subsidies and incentives is responsible for the slowing of added capacity, though obviously the growth is still strong.

From 2005 to 2012 China’s share of global wind energy capacity increased from 2% to 27%, the USA 15% to 20%, Germany fell from 31% to 12%, India fell from 7.5% to 6.8% (while growing capacity 292%).

Hydro power is by far the largest source of green electricity generation (approximately 5 times the capacity of wind power – but hydro capacity is growing very slowly). And installed solar electricity generation capacity is about 1/5 of wind power capacity.

Related: Global Wind Energy Capacity Exceeds 2.5% of Global Electricity Needs (2010)Wind Power Capacity Up 170% Worldwide from 2005-2009Wind Power Provided Over 1% of Global Electricity in 2007

System for Approving New Medical Options Needs Improvement

Something Doesn’t Add Up

Not only did the team find that evidence for Infuse’s benefits over existing alternatives for most patients was questionable; they also discovered in a broad array of published research that risks of complications (including cancer, male sterility and other serious side effects) appeared to be 10 to 50 times higher than 13 industry-sponsored studies had shown. And they learned that authors of the early studies that found no complications had been paid between $1 million and $23 million annually by the company for consulting, royalties and other compensation. Carragee, MD ’82, estimates Medtronic has sold several billion dollars’ worth of Infuse for uses both approved and “off label.”

Without a rigorous, data-driven context, medicine’s expensive traditions and hunch-based treatments threaten to bankrupt us. “People say that we shouldn’t delay science; people are dying; we should get new treatments out there. I do not feel the pressure to do that until we have solid evidence,” Ioannidis asserts. “The resources many procedures draw are enormous.” And that leaves insufficient funds for the prevention plans and treatments we know actually work.

I have written about the problems with our health care research system several times. The existing system is in need of improvement and is made much worse by the general state of the broken health care system in the USA. Dr. John P.A. Ioannidis, the focus of the article, is doing fantastic work in this area.

Related: Majority of Clinical Trials Don’t Provide Meaningful EvidenceStatistical Errors in Medical StudiesUSA Spends $7,960 Compared to Around $3,800 for Other Rich Countries on Health Care with No Better Health ResultsDrug Company Funding Taints Published Medical ResearchMistakes in Experimental Design and InterpretationUnderstanding Data

Add Over-Fishing to the Huge Government Debt as Examples of How We Are Consuming Beyond Our Means

Fish are hidden under the water so the unsustainable harvesting isn’t quite as obvious as the unsustainable government debt but they both are a result of us living beyond our sustainable production. You can live well by consuming past wealth and condemning your decedents to do without. That is the way we continue to live. Over-fishing a century ago was not as obviously dangerous as it is today. But we have witnessed many instances of overfishing devastating the fishing economy (when the fishing is unsustainable the inevitable result is collapse and elimination of the vast majority of the food and income that previous generations enjoyed).

The normal pattern has been to turn to more aggressive fishing methods and new technology to try and collect fish as over-fishing devastates yields. This, of course, further devastates the state of the resources and makes it so recovery will take much much longer (decades – or more).

New research shows the existing problems and the potential if we apply science and planning to manage fisheries effectively.

Using new methods to estimate thousands of unassessed fisheries, a new comprehensive study provides a new view of global fish stocks. The results show that the overall state of fisheries is worse than previously thought. Unassessed stocks, which are often left out of global analyses because of a lack of data, are declining at disturbing rates. When these fisheries are taken into account, the results indicate that over 40 percent of fisheries have crashed or are overfished, producing economic losses in excess of $50 billion per year.

The good news is that this decline is not universal: fisheries are starting to rebound in many areas across the globe and we can learn from these examples. Recovery trends are strongest for fisheries where data on the status of the fishery exists, and in which managers and fishermen have made science-based decisions and stuck with them in the face of political pressure.

The amount of fish brought to shore could increase 40 percent on average – and double in some areas – compared to yields predicted if we continue current fishing trends.

The management solutions to overfishing are well known, tested and proven to work. While these solutions are not “one-size-fits-all” for fisheries, there are common themes. Specifically, managers and fishermen must: 1. Reduce fishing to allow stocks to rebuild; 2. Set catches at a sustainable level that is based on the best available scientific and economic information rather than short-term political pressures; and 3. Prevent dangerous fishing activities that destroy habitat, wildlife, or breeding fish.

The over fishing problem is difficult because our nature is to ignore problems that are not immediate. But the costs of doing so are very large. If we don’t behave more wisely our children will pay the price. And, in fact, this problem is so acute now that those of us that expect to live a couple decades can expect to pay the price. In rich countries this will be tolerable, a bit less fish at much higher prices. In rich countries food prices are a minor expense compared to the billions of those not living in rich countries. They will suffer the most. As will those that have jobs directly dependent on fishing.

Related: Fishless FutureEuropean Eels in Crisis After 95% Decline in Last 25 yearsLet the Good Times Roll (using Credit)SelFISHingRunning Out of FishThe State of the Oceans is Not GoodChinook Salmon Vanish Without a Trace

Pay as You Go Solar in India

Farmers Foil Utilities Using Cell Phones to Access Solar

In October, Bangalore-based Simpa Networks Inc. installed a solar panel on Anand’s whitewashed adobe house along with a small metal box in his living room to monitor electricity usage. The 25-year-old rice farmer, who goes by one name, purchases energy credits to unlock the system via his mobile phone on a pay-as-you-go model.

When his balance runs low, Anand pays 50 rupees ($1) — money he would have otherwise spent on kerosene. Then he receives a text message with a code to punch into the box, giving him about another week of electric light.
When he pays off the full cost of the system in about three years, it will be unlocked and he will get free power.

Across India and Africa, startups and mobile phone companies are developing so-called microgrids, in which stand- alone generators power clusters of homes and businesses in places where electric utilities have never operated.

Very cool. Worldwide, approximately 1.6 billion people have no access to electricity and another 1 billion have extremely unreliable access. The poorest spending up to 30% of their income on inefficient and expensive means of providing light and accessing electricity. Solutions like this, finding engineering solutions for basic needs that are market based, are great.

That the poor end up owning their solar system after just 3 years is great.

Creating great benefit to society with the smart adoption of technology and sustainable economics is something I love.

Related: Solar Power Market Solutions For Hundreds of Millions Without ElectricityAppropriate Technology: Solar Hot Water in Poor Cairo NeighborhoodsEngineering a Better World: Bike Corn-ShellerWater Pump Merry-go-Round

£50m Package to Attract Scientists and Boost Welsh Economy

‘Star scientists’ £50m package to boost Welsh economy

First Minister Carwyn Jones said the fund would be used to encourage leading professors to move to Wales to work and boost research and the economy. It will pay for specialist equipment, top-up salaries to the level outstanding academics would expect and will fund members of their teams.

our network plans will enable us to attract more talent to Wales to help drive this figure up and in due course create more high quality business and research jobs in Wales.” The strategy sets out three key areas to boost research and businesses – the life sciences and health; low carbon, energy and environment; and advanced engineering and materials.

The Welsh government said it wanted to see more industry-academic partnerships like SPECIFIC led by Swansea University with Tata Steel UK. The £20m project aims to turn homes and businesses into self-generating “power stations” by developing a special coating for ordinary building materials, such as steel and glass, that traps and stores solar energy.

The USA dominated the practice of attracting leading scientists a few decades ago. In the last decade or two Europe stepped up and was able to attract global talent. Lately Asia (Singapore, Korea, China…) has been spending to attract leading scientists. I believe Asia will continue to do so and the benefits of doing so will pay off handsomely for Asia (at the expense of Europe and the USA).

Related: USA Losing Scientists and Engineers Educated in the USAInvest in Science for a Strong EconomyAsia: Rising Stars of Science and EngineeringSingapore Research Fellowships

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