On September 12 and 13, Dr. Sadahiko Kano, Professor of Global Information and Telecommunication Institute of Waseda University, delivered the lectures on "Trends on Mobile Communication Development" and "The ICT (Information and Communication Technology) and Regional Development" at Institute of Engineering, Tribhuvan University and Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Dr. Kano, renowned specialist on Global Info-Communication Industries such as global info-communication industries, also serves as the Executive adviser of NTT. The following is the extract of his lecture on "The ICT and Regional Development":

The history of science and technology is a record of challenges which human kind has undertaken to push the frontiers into the realm of the "unknown". Recently the "unknown" has been shifting from the far and mysterious such as the space (moon, mars, etc.) to the "near and dear" such as our own human body (in the form of bio-science and bio-technology) and the area and environment in which we live (regional and environmental studies). The ICT (Information and Communication Technology) is not an exception. It is a great tool to assist the study on the "near and dear".

The ICT industry is knowledge intensive rather than capital intensive. Its hardware products are so light-weighted that most of them are transportable by airplanes, while its software products are weightless that they are transportable over satellite and other telecom links. Today, I had an opportunity to visit the Meiken Digital Technology office in Kathmandu, which receives from its headquarters in Japan the original data on gas and water pipes deployed in various cities in Japan, produces digital maps of the cities containing information as to where the pipes are actually being laid, and sends the map data back to Japan via a satellite link. This is a very good example of what ICT can do to countries such as Nepal which is located at a great distance away from where customers are located and without a seaport.

Another aspect worthy of note concerning ICT is a high degree of international standardization. Thanks to the international standards, which define interconnection interfaces of hardware and software component products, one company or one country can concentrate their efforts on a specific focused area, such as semi-conductor components or software packages dealing with, for example, the handling of digital maps. These two factors, namely, the existence of international standards and the light-weight or weight-less products, enable many regions of the world, be they close to big cities or far from them, to be engaged in the production of specific products, thus functioning as an essential node of a global work sharing network.

The third fact to which I would like to draw your attention is that many developing countries and regions in developed countries around the world are developing their countries/regions based on the use of ICT and other related high tech industries such as bio-technology. Up until the age of the Industrial Revolution which was started in the 18th century in Britain, the living standard of people around the world had been more or less the same. According to the World Development Report 2000, per capita income as late as 1820 in China and South Asia was $500, while the richest countries in Europe was $1000 - 1500, the difference being only 2 to 3 times. Now the difference is ten times more, namely, on the average 20-30 times. The industrial revolution brought the disparities. Why? One of the reasons was the effect of "clustering" or economy of "proximity". One individual or one company cannot excel by himself or itself alone. They prosper as part of a "cluster". They need to be in regular contact with other similar minds to improve together, cooperate and compete with one another. Immediately after the industrial revolution, this clustering took place around the mechanical engineering disciplines and industries and led to the emergence of the disparities.

In the past, this cluster was formed naturally through a long history of a region. Recently recognizing the importance of clustering, many regions around the world have started to promote regional development by focusing on a particular segment of an industry, usually based on or related to ICT, and by creating a "cluster" through the establishment of educational and research institutions, by inviting foreign direct investments and offering various forms of incentives to industries. Examples include Kobe Medical City in Japan, Incheon Industrial Park in Korea, Hshinchu Industrial Park in Taiwan, Zhong Guang Cun in China, Cyberjaya in Malaysia, Medical Alley in USA, Silicon Glen in Scotland, UK, High tech cluster in Munich, Germany and Sophia Anti Polis in France.

What are the essential "tickets" one country or region needs to obtain in order to develop a "cluster"? The first is to have a well trained and educated pool of human resources. The second is to be physically able to tap into the global telecom and air transportation networks. The third is to build and continue to be in close contact with the global "human network" composed of world-class researchers and business leaders in each field to know the trends and directions in which the ICT industry is heading, in order to educate and re-educate the human resources appropriately and in advance.

Human resources development takes about a generation (20-30 years). It is interesting to note that the shift of gravity center in a segment of the ICT industry is occuring more or less at the same pace, i.e. at 20-30 years cycle. For example, the shift of gravity center of semi-conductor manufacturing took place from USA to Japan in 1980s, and from Japan to Korea and Taiwan in 2000s. This suggests that any region has the possibility to excel globally if it focuses the right segment, educates its people in and around that segment, takes measures to foster a cluster, and tap into the global knowledge and work sharing network physically and in substance. We should be optimistic because we can see the fruits of our continued efforts in our life-time. Let us note also that there is a competition among the regions in the world, and we should be always on alert, as our original decisions may not always be right and require constant fine-tuning.