IMA International Management Conclave 2013

(Indore, January 19 – 20, 2013. Transforming Leadership–Getting Future Ready)

“How Switzerland is Tackling the Challenges of Globalization through Innovation”

Dear Mr. President (Shamit Dave, President IMA and MD of Davesmen India)

Dear IMA members,

Dear Entrepreneurs & Students

Ladies and gentlemen,

1. It is an immense pleasure for me to be here today and to address such

a distinguished audience of entrepreneurs and students. I would like to

thank the organizers of the IMA International Conclave for the invitation

to speak on IMA’s 50th anniversary – an esteemed honor to which I

attach a lot of value.

2. While it is my first visit to Indore, the Consulate General of Switzerland

and the Swiss Business Hub have already engaged in a dialogue with

the Indore business community last year in an effort, not only to

promote Switzerland as a favorable business and investment

destination, but to also look beyond the traditional favorite “hot-spots” of

Swiss companies in India like Pune and Bangalore. Such interactions

give us a better understanding of the business and investment

opportunities in Madhya Pradesh.

3. The purpose of my visit is however not only to reach out to the local

business community but also to explore the rich cultural heritage and

natural beauty of Madhya Pradesh, a state that is probably not yet

getting the attention it deserves.

4. Looking at the students in the audience, my mind goes back to my own

student days more than two decades ago and to all the changes

between those times and today. The world has changed, India and

Switzerland have changed, Indore has changed. Since change, as they

say, is the only constant in life, managing change is by far the biggest

challenge we face in today’s interconnected world. A world that has not

yet become “flat”, as Thomas Friedman famously put it, but gives more

and more an impression of a “global village”.

5. I would like to start my speech by providing you with a nutshell overview

of the Swiss-Indian trade & investment relations and outline select

competitive advantages that Switzerland offers as an investment

destination for fast emerging Indian companies in their quest to go

global. In addition, and in line with the topic of this management

conclave, I would like to emphasize on the phenomenon of globalization

and outline how Switzerland is dealing with its challenges and

opportunities. I will conclude with considerations on the importance of

innovation as a crucial driver for growth and enhanced competitiveness

of both, developed and emerging economies.

6. Ladies & gentlemen, it might come as a surprise to you, but Switzerland

was actually the first country in the world to conclude a friendship treaty

with independent India, in 1948. Initiated by India's first Prime Minister

Nehru, it defined the fundamentals on which our bilateral relations were

built and which are still valid today, namely: friendship & mutual respect

and mutual benefit & equality. Since then, Switzerland and India have

concluded numerous bilateral agreements such as the Double Taxation

Avoidance Agreement, the Social Security Agreement and the

Investment Promotion and Protection Agreement. And we have, along

with the EFTA states, progressed even a step further by launching

negotiations on a broad-based Trade and Investment Agreement with

India - which will eventually mitigate tariff barriers and improve market

access for goods and services as well as the overall framework

conditions for businesses for both sides.

7. Speaking about relations between Switzerland and India involves

comparisons between a small alpine nation and an 80 times larger sub-

continent in terms of size and a 150 times larger country in terms of

population. In economic terms, however, India is only about three times

bigger than Switzerland. Switzerland and India are both democracies.

Both nations know how to “argue to convince” and to be “convinced by

better arguments”. Both nations - Switzerland and India - are traders by

historical tradition and in both countries, family businesses are the

backbone of the economy. Such similarities, ladies and gentlemen,

build common ground to facilitate communications and simplify

negotiations. And all this creates opportunities for doing business. But

it's not only the similarities that create opportunities. To benefit from

market opportunities, it’s equally important to understand cultural, social,

political, and other differences. For a successful penetration of the

value-conscious Indian market, innovative Swiss technologies have to

be combined with Indian cost-competitiveness so as to offer affordable

solutions also at the lowest strata of the demographic pyramid.

8. As you might be aware, ladies and gentlemen, Switzerland is one of

India’s most important trade partners: Since the opening of the Indian

economy, the bilateral trade volume has increased multiple times and

exceeded 4 billion US dollars in 2011. While total Swiss exports grew in

2012, it is true that Swiss exports to India have suffered a bit - at a

minus 10%. This does not really come as a surprise to me considering

the global economic environment, the relatively lackluster Indian growth

and the enormous challenges Swiss exporters have been facing in the

last two years due to an overvalued Swiss Franc. However, in view of

the huge potential of the Indian market and the still remarkable

competitiveness of the Swiss economy, I’m convinced that the current

downturn will prove to be a temporary hiccup and that our exports to

India will resume the growth path of the recent past very soon. On a

positive note, I can say that exports from India to Switzerland have

increased by 20% in 2012.

9. Switzerland is also one of the most important investors in India: 200

subsidiaries and joint ventures of Swiss companies and more than

66’000 created jobs provide evidence of both: the importance of

Switzerland as an investor for India and the importance of the Indian

market for Swiss entrepreneurs. Many Swiss companies have realized

that a successful market entry requires a direct presence close to their

end customers. For this reason, Swiss companies will continue to invest

and create additional jobs in India in an effort to mitigate the

consequences of the strong, overvalued Swiss franc and to ensure

competitiveness in the value-conscious Indian market – a market which

offers promising growth opportunities even in challenging times of an

insecure global economic environment. Thus, investments by Swiss

companies are driven by both: cost saving and market consideration

but mainly aimed at tapping the full potential of the promising growth

opportunities that India offers as an emerging market.

10. India, on the other hand, has emerged as an important global

investor as well - ranking in 2011 for the first time among the top 20

global sources for outbound investment. Switzerland is proud to be one

of the preferred “gateways” to the European market for close to 100

Indian companies and I am pleased that Switzerland regularly ranks

among India's top 5 European investment destinations. So what are the

reasons for Indian entrepreneurs to invest in Switzerland, what are the

main drivers and what does Switzerland offer in terms of investment

climate and business environment?

11. At the onset, let me be very clear: Switzerland is neither a tax

heaven nor an offshore destination. Switzerland has concluded more

than 80 double taxation avoidance agreements and the recently revised

Double Taxation Avoidance Agreement with India provides for full

fledged information exchange in the case of both, tax fraud as well as

tax evasion. Thus, Switzerland is fully compliant with the latest OECD

standards and the reason for the growing number of investments from

India to Switzerland has certainly nothing to do with issues related to

tax evasion.

12. The main driver for investments from India to Switzerland is

market access. Switzerland has a comparatively small home market

and is not a member of the European Union but has through various

bilateral treaties full access to the European Market. And the European

Market with more than 500 million consumers, ladies and gentlemen,

offers for Indian companies attractive margins and growth opportunities.

By choosing Switzerland as a gateway to the European market, Indian

companies take advantage of Switzerland’s competitiveness - which

has been rated by the World Economic Forum, for the fourth

consecutive year, as the most competitive economy in the world. In

addition, Indian investments to Switzerland are often driven by the aim

to strengthen an investor’s technological capabilities, innovation

capacities and product portfolio.

13. Let me briefly elaborate on Switzerland’s competitive advantages.

Situated at the cross-roads of Europe and fully integrated in the

European market, Switzerland has one of the most liberal and business

friendly environments, with an outstanding capacity for innovation,

world class education and R&D institutions, a highly qualified labor

force, flexible labor law, a developed financial center, an excellent

transportation infrastructure, a high quality of living and, last but not

least, competitive tax rates. For this reason, ladies and gentlemen,

global multinationals such as IBM, General Motors, Kraft Foods, Phillip

Morris, Procter & Gamble, Dow Chemicals, Amgen, Baxter, DuPont,

Nissan, Yahoo and Google have established their European or global

headquarters in Switzerland.

14. Innovation, ladies & gentlemen, is one of the new drivers of Indo-

Swiss Partnerships. Let me illustrate this by giving you two excellent

examples of particular importance:

Glenmark: An important innovation driven investment from India

was the establishment of a research & development centre by

Glenmark Pharmaceuticals in 2006. Glenmark was the first Indian

company to establish a Biologics Research Center outside India

and employs more than 60 highly qualified scientists in

Switzerland. In 2012, I had the pleasure to confer the Swiss

Ambassador’s Award on Mr. Glen Saldanha, Chairman and

Managing Director of Glenmark in recognition of the company’s

contribution to Switzerland.

Tata: The Tata Group was the first Indian company to invest in

Europe through an outward foreign direct investment. Starting

with Switzerland in 1961, the group has, in the meantime, eight

Swiss subsidiaries active in different sectors. In 2009 Tata

invested in a start-up company, Flisom (a spin-off of the Swiss

Federal Institute of Technology), which aims at developing the

next generation of lightweight and flexible, thin-film photovoltaic

solar modules.

Numerous other examples for innovation, technology or R&D

driven Indian investments in Switzerland could be mentioned in

highly specialized fields of ICT, medtech and life sciences.

15. A large number of Indian investments also come from the ICT

sector since Switzerland has become a promising market for the Indian

ICT industry. Indian ICT companies nowadays generate revenues of

more than 500 million US dollars from Swiss customers and have

created more than 2’000 jobs in Switzerland. It might be interesting for

you to note that Switzerland lacks software and computer engineering

experts and that the highest number of work permits granted by Swiss

authorities are allocated to Indian ICT specialists.

16. Speaking about strengthening and deepening economic relations

between India and Switzerland, I shall not forget to mention tourism.

Tourism from India grows fast. In 2012, Indians booked over half a

million overnight stays in Switzerland. And “Incredible India” has, for

good reasons, also seen an increase in the number of Swiss tourists

which hopefully will also translate into more tourists visiting Madhya

Pradesh.

*******************************************************************************

17. Now to get back to the main focus of this address, namely

globalization, the opportunities and challenges it creates and how

Switzerland is tackling them.

18. Kofi Annan once famously quoted, “It has been said that arguing

against globalization is like arguing against the laws of gravity.” So

although globalization is accused of some evil by some, cherished as a

boon by others, it is like a natural force which does exist and also

shapes our lives. It is neither the universal remedy that solves all the

problems of mankind nor is it the catastrophe that sends us to

irreversible doom.

19. Having said this, permit me to define as to what I, personally,

perceive as globalization. For me, globalization is the reduction in

barriers to the flow of goods, money, people and ideas cutting across

national, linguistic and social boundaries, a phenomenon that affects

countries around the globe and which comes with related benefits and

costs

20. In some way or the other, globalization affects us all: It influences

the goods, services, capital and labor markets and, concurrently, it

percolates down to less tangible domains like our way of thinking,

expression, behavior and even dressing. In a certain way, our life styles

become more and more similar – thus, arguably risking an inherent loss

of diversity and cultural identity. Some have coined this phenomenon

the “McDonaldization” of the planet.

21. Certainly, the winds of globalization have and will create winners

and losers among the 200-odd nations of the world. Even within the

countries which successfully grapple with globalization, there are

populations and strata of society that succeed and others who do not

benefit or even lose out. For its supporters, globalization is the best way

forward for collective global prosperity and welfare. For its critics, on the

other hand, globalization is an unmitigated evil which exploits the poor

and weak, destroys traditional livelihoods, accentuates inequalities

within and across nations, leads to environmental degradation,

undermines the sovereignty of the nation-state and benefits mainly

global profit-driven multinational corporations,

22. Like always in life, there is some validity to both sides of the

argument, and the best way forward would be to maximize the positives

and minimize the negatives.

23. All the same, it is worth recalling that world trade has seen a

manifold increase in decadal growth thanks largely to trade policy

liberalization, reduction in customs tariffs and free movement of people,

especially professionals. The world is slowly but irrevocably evolving

into a global village with a distinct shift of paradigm in the sectors of

telecommunication and transport, where today’s costs are only a

fraction of what they used to be five to eight decades ago.

24. I do believe globalization is not a zero sum game; today one

cannot simply win or prosper to the detriment of others. Globalization

has always been an important driver of growth, creating a good deal of

prosperity all around the world. Therefore, without appearing dogmatic,

I would certainly like to believe that globalization has created many

more winners than losers since the 1950s.

25. However, globalization is a double edged sword - it offers

immense opportunities but also poses ruthless challenges. Nothing

illustrates this better than the global financial crisis of 2008/09. You may

recall that in the years before the crisis there was a steady growth in the

advanced economies and accelerating growth in emerging and

developing economies, coupled with low and stable inflation all around.

This was a consequence of globalization - in particular, of the

tremendous boost to world production and productivity as a result of

India and China joining the world labor markets. If this was the positive

side of globalization, the financial crisis of 2008/09 and the recession

that followed were its negative side. That a bubble in a quintessentially

non-tradable sector like housing snowballed into a global financial crisis,

taking a devastating toll on global growth and welfare, is a

demonstration of the ferocity of the forces of globalization.

26. I would not like to dwell here on the history of globalization and its

different waves. However, until the year 2000 globalization was

predominantly spearheaded by Europe and North America who almost

exclusively benefitted from it, but the centre of gravity has changed ever

since.

27. As developed and mature economies like the European Union,

Northern America and Japan stagger and stumble from financial or

economic crisis to debt or budget crisis, the BRIC countries are slowly

but surely emerging as centers of growth.

28. Although presently on a slow growth trajectory compared to the

earlier 2000s, China, India, Brazil as well as other Asian and Latin

American economies are emerging with growth rates which developed

countries can only dream of. This has shifted the economic centre of

gravity towards the Asia Pacific region and portends to do so in the

near future too.

29. China is today the world’s workshop increasingly producing more

technologically sophisticated products. India, on the other hand, offers

services on a large scale and is a powerhouse when it comes to IT

solutions, call and accounting centers as well as other professional

back-office services.

30. In fact, what inter-governmental development cooperation or aid

never managed to accomplish, this particular new wave of globalization

is doing. Since 1995 more than one billion people ascended to middle

class levels, working and making a decent living, being able to afford

comfortable housing, send their children to school, benefit from

healthcare services and travel. This spectacular evolution has, for the

most part, also come about in China, India and other Asian countries.

31. However, this does not stop here. As per estimates every year

approximately 70 million people – this is roughly the population of

Madhya Pradesh – make it out of poverty into middle class, with an

annual income that corresponds to a purchasing power between 7’000

and 12’000 US dollars. This is indeed spectacular. But, as mentioned

before, there are obviously always losers and so there are still

hundreds of millions living under the poverty line.

32. Before concluding the topic of globalization, let me mention the

effects it has had on Switzerland. As with most countries, Switzerland

benefitted greatly from globalization and from opening up its economy. I

would even say that Switzerland is a winner because of globalization

since globalization provides the opportunity for companies with

relatively small domestic markets to serve international markets created

by lower trade barriers, lower transportation and transaction costs as

well as greater information access. Globalization also provides

companies with the opportunity to achieve economies of both scale and

scope that otherwise would not be possible if they were restricted to

their small home markets.

33. Thanks to its flexibility and creativity, the diversified Swiss

economy is well placed to remain internationally competitive. But the

Swiss people must recognize that the world does not stand still and in

order to preserve and enhance our high standard of living, we must

remain extremely flexible in every respect. Ongoing innovation and

qualified human capital are of utmost importance in a high-wage

country like Switzerland. Both of these factors will enable our

companies to continue to bring successful new products onto the world

market and to take advantage of the opportunities that globalization

offers.

34. I think it’s fair to say that not only Switzerland but also India has

been a clear beneficiary of globalization. The number of people living in

absolute poverty has in the past thirty years been significantly reduced

and India is nowadays much better integrated in the world’s economy

since it understood to take advantage of the opportunities that

globalization presented.

35. Finally, I would say that a growth dynamic has definitely taken off

which makes the prospect of improving one’s life really tangible for the

entire planet’s population and this, I believe, is the most important facet

of today’s ongoing globalization process.

++++++++++++++++++++++++++++++++++++++++++

36. So how is Switzerland tackling the challenges of globalization?

How is Switzerland ensuring competitiveness? How did Switzerland

foster an innovation friendly business environment? And why was

Switzerland’s economy less affected by the recent economic crisis? Let

me outline some of our innovation driven strategies:

37. Until recently, the theory that “geography is destiny” prevailed.

Switzerland and India are two shining examples that this is not the case.

Due to the lack of significant natural resources – except for water –

Switzerland realized at a relatively early stage and has even proven

practically, that any country can advance and increase its

competitiveness by focused investments in talent and R&D. Continuous

innovation and a highly trained workforce represent the most important

capital for a country like Switzerland. As for India, the latest sweep of

IT-enabled globalization also provides evidence that geography is

irrelevant. No longer is a country’s destiny tied down to its geographical

location or physical resources more so in today’s Internet dominated

era of instant connectivity, easy communication and flow of information.

38. Switzerland has proven that it is possible for countries to

overcome handicaps of geography and lack of natural resources by

exploiting their comparative advantage in human resources.

39. There are several factors that make Switzerland stand out among

industrialized countries.

40. First: Switzerland started early. Its emphasis on research and

innovation has a long history. As early as the 19th century, farsighted

Swiss industrialists focused on innovation and technical excellence.

Having a small domestic market, they realized that they could not

compete with other players on mass production but had to look for high

quality and high value-added products based on research and

innovation.

41. Second: In a liberal economy like Switzerland, private R&D

spending is very high – with approximately 13 billion US dollars per

annum. As a percentage of GDP, Swiss companies spend twice as

much on R&D as the EU27 average. The R&D spending of the 27

Swiss companies which rank among the world’s top 1000 firms

accounts for 5% of the global top 1000 firms’ total R&D investments!

(Source: Booz Company). Private sector expenditure, which contributes

to three quarters of all R&D in the country, is complemented by State

funds for R&D, building strong public-private links in the funding and

conduct of research.

42. Third: Switzerland has some outstanding universities. With a

population of 8 million, it has several top universities among which the

Federal Institute of Technology in Zurich is regularly considered the

best outside the US and UK according to the the Times Higher

Education World University Ranking.

43. And fourth: I also want to emphasize on what I call “the human

factor”. Switzerland, being a small, neutral and non-aligned country with

no colonial past, has always been a safe haven to foreigners from

Europe and all over the world. At the same time, Switzerland has

benefitted a lot in economic terms of the granted hospitality. Many

internationally well known enterprises like Nestlé or ABB have been

founded by foreigners migrating to Switzerland because of its politically

liberal and business-friendly environment. Over the centuries,

Switzerland has always attracted an intelligent, skilled migrant

population of professionals and entrepreneurs and has succeeded in

making them feel at home; this continues even today. Happily, this is

increasingly true for Indians, too.

44. It is also worthwhile mentioning that the economic slow-down did

not impact the Swiss innovation drive. Swiss companies continue to

invest in R&D despite the global downturn and have not cut back on

research budgets. As a result of this persistent emphasis on R&D,

Switzerland has today four strong and unparalleled innovation clusters

Pharma, biotech and medtech

Nanotechnnologies, microtech, precision engineering

Industrial manufacturing and new materials

Information technology and financial services

45. In addition to this world-class R&D investment in the domestic

business environment, Swiss companies have also internationalized

their R&D activities to a great extent - in fact they have more

laboratories outside Switzerland than within! There is also a growing

number of R&D facilities of Swiss companies here in India, the latest

example being the new Nestlé R&D centre in Manesar near Delhi. The

creation of R&D centers abroad by Swiss firms has, however, not been

accompanied by the closure of centers in Switzerland.

46. On the contrary! Swiss and other foreign companies continue to

set up their R&D facilities in Switzerland – I have earlier mentioned the

case of Glenmark and Tata. One other international example of a state-

of-the-art R&D facility is that of Google. When Google was considering

setting up its Europe, Middle East, Africa headquarters that would also

include an R&D centre, Switzerland was a natural choice. Although

Google appreciated Switzerland’s robust broadband infrastructure, it

was the local talent that was the real appeal. As a percentage of GDP

Switzerland has the highest output of patents in the world and is home

to hundreds of start-ups. As the Google CEO put it, “Switzerland is a

key location for the research and development of Google products. This

is where the inventive spirit lives”. It is interesting to note that just after

Google, its competitor Yahoo followed suit with a similar set up in

Switzerland.

47. In line with what is happening in the private sector, the Swiss

government has also increased its efforts in internationalizing its

research and innovation network by establishing a number of so-called

Swissnex offices in Boston, San Francisco, Singapore, Shanghai and

Bangalore which is under the umbrella of the newly established

Consulate General of Switzerland there. Swissnex is a key component

of the Swiss government’s strategic policy on the promotion of

education, research and innovation. Swissnex is a platform for

researchers and research organizations, which aim at strengthening

Switzerland's excellence as a location for science, technology and

innovation by sharing knowledge and forming partnerships in science,

higher education, technology and innovation as well as funding of joint

research projects. Moreover, the Swiss government has also set-up the

so-called Swiss Business Hubs which are integrated in the diplomatic

representation in key markets and aim at supporting both, the Swiss

export industry as well as foreign investors.

48. A true testament that the factors I have mentioned have worked

is the fact that Switzerland is consistently ranked at the top by various

innovation rankings such as the INSEAD’s Global Innovation Index. The

INSEAD analysis shows that Switzerland has not only one of the most

enabling environments for innovation but also one of the highest

outputs in terms of achievements in innovation. INSEAD and the World

Intellectual Property Organization (WIPO) describe Switzerland as a

country where open innovation can thrive and is supported by a

dynamic collaboration between industries, enterprises, governments

and the scientific community.

49. These and some other strategic factors make Switzerland and its

economy truly competitive. The Swiss strategy for a lasting success

rests on the following six pillars:

a. An open and liberal labor market to ensure that the economy can

quickly react and adapt new evolutions,

b. A well diversified economy with a strong export sector, which has

been forced to internationalize at an early stage and has focused

on high-end, top quality products less sensitive to business

cycles,

c. A dual system of vocational training and university education

which is based on the concrete needs of the labor market and

values practical know-how,

d. An immigration policy which ensures access to top specialists

and researchers who fit the needs of the economy and industries

e. A sophisticated and stable financial sector that meets the

requirements of individuals, micro businesses, SMEs, midcaps

and multinationals

f. A continued investment on maintaining a high quality of

infrastructure to attract investments, human resources and capital.

50. But the Swiss do not take anything for granted. We do not rest on

our laurels knowing that competition is tough and will get even stronger

with the rise of emerging countries. This is also what globalization is

about. We do, however, not perceive globalization and increased

competition as threats. True, there are challenges, but simultaneously

many opportunities, too. And we tend to focus on those according to the

motto “When the going gets tough, the tough get going”.

51. This doesn’t mean, though, that we are sole fighters. There is a

common understanding in Switzerland that especially a small country

like ours needs friends and partners and one such friend we had, still

have and shall continue to have is, of course, India.

52. Ladies and Gentlemen, in order to succeed, Switzerland cannot

only rely on itself and keep its own house in order. Its success depends

on the quality of its relationship with Europe & the world. Switzerland

still needs to meet certain challenges and find the right answers when it

comes to its integration and its role in the world:

a. Redefine its relation with the European Union, its main trading

partner.

b. Adapt to the new rules of the game in the financial and economic

domain.

c. Find its place in the global governance (neutrality, G20, United

Nations, etc.).

d. Modernize its governmental system to make it even more efficient

and responsive.

53. It is, after all, in this rather political domain where the greatest

risks for the evolution of Switzerland’s well-being are hidden. The

economy and the financial system are modern and adjusted to the

challenges of globalization. The political structure and the mentality are

not and remain governed by a thinking of the past. I am therefore

convinced that Switzerland’s success in the 21st century will depend on

a political and mental redesign. But I am even more convinced that

Switzerland has the strength and ability to reinvent itself, partly thanks

to its diversity which to a great extent also derives from its large and

well integrated immigrant population that has made Switzerland in the

course of globalization what it is today.

54. Let me conclude with a positive example for globalization and

innovation. It is the story of a Swiss company with business activities in

Madhya Pradesh: Remei AG, was established in 1991 in Switzerland to

sell fashionable fair trade textiles made from organic cotton.

Concurrently, in 1991 Remei AG also established an Indian subsidiary,

a sourcing company under the name BioRe India Ltd. in Kasrawad in

Madhya Pradesh with the objective to improve the livelihood of small

farmers’ through sourcing of organic cotton. BioRe India works together

with a 5’500 strong farming community in Madhya Pradesh to procure

certified organic cotton from individual farmers by paying them a

premium to the market price. In addition, a BioRe Foundation was

established which then set-up a “Training Center for Organic and

Biodynamic Agriculture” and various social projects in the field of

education, mobile health care, women empowerment and CO2

reduction were rolled out in Madhya Pradesh. In its own small way, this

example of an innovative Swiss SME reflects the opportunities of

globalization and its positive impact right in your own backyard!

55. Ladies and gentlemen, for Switzerland the real challenge will be

to maintain its competitiveness, its innovation capacity and social as

well as economic welfare at the present existing levels. For India on the

other hand, the challenge will be to accelerate its growth rate and make

that growth genuinely inclusive.

56. Undoubtedly the capability to innovate and to bring innovations

successfully to a market will be a crucial determinant of the global

competitiveness of nations over the coming decade. There is growing

awareness among policymakers that innovation is the main driver of

economic progress and well-being. Coming back to the conclave’s main

topic of transforming leadership: the importance of innovation has been

reinforced by globalization and implementing reforms to foster

innovation requires exceptional leadership and excellent governance.

57. Thank you for your attention.