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    Economic Impact Magellan

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    Pilo Pilko Pilic
    The document discusses Portugal's Magellan project which provided 500,000 locally-built netbook computers to primary school students. It led to over 1,500 new jobs, 30,000 trained teachers, and €2.3 billion in economic activity. The project helped boost Portugal's technology industry and move the country up the global competitiveness rankings.

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    Economic Impact Magellan

    Uploaded by

    Pilo Pilko Pilic
    48 views16 pages
    The document discusses Portugal's Magellan project which provided 500,000 locally-built netbook computers to primary school students. It led to over 1,500 new jobs, 30,000 trained teachers, and €2.3 billion in economic activity. The project helped boost Portugal's technology industry and move the country up the global competitiveness rankings.

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    Economic Impact Magellan

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    The document discusses Portugal's Magellan project which provided 500,000 locally-built netbook computers to primary school students. It led to over 1,500 new jobs, 30,000 trained teachers, and €2.3 billion in economic activity. The project helped boost Portugal's technology industry and move the country up the global competitiveness rankings.

    Copyright:

    © All Rights Reserved
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    48 views16 pages

    Economic Impact Magellan

    Uploaded by

    Pilo Pilko Pilic
    The document discusses Portugal's Magellan project which provided 500,000 locally-built netbook computers to primary school students. It led to over 1,500 new jobs, 30,000 trained teachers, and €2.3 billion in economic activity. The project helped boost Portugal's technology industry and move the country up the global competitiveness rankings.

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    Vital Wave Consulting

    Field Teams

    Latin America
    Argentina
    Brazil
    Chile
    Costa Rica
    Dominican Republic
    Mexico
    Peru

    Measuring the Economic


    Impact of Magellan

    Asia
    India
    China
    Cambodia

    Eastern Europe
    Estonia
    Uzbekistan
    Ukraine

    Africa
    Egypt
    South Africa
    Nigeria
    Kenya

    Middle East
    United Arab Emirates

    United States
    California (Headquarters)

    Intel International eLearning Summit


    Porto, Portugal
    11 November 2009

    Portugal Education & Economic Ecosystem


    Before Magellan

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Portugal Education & Economic Ecosystem


    After Magellan
    The Magellan Impact on Portugal
    Over 1,500 jobs created, 30,000 teachers trained, 2.3 billion
    in economic activity, 4 million computers exported and a
    computer for every primary school child

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    ICT Investment and Economic Growth


    Relationship to GDP and Productivity Growth

    % of GDP

    As
    As nations
    nations develop
    develop their
    their knowledge
    knowledge economies
    economies to
    to attract
    attract higher
    higher paying
    paying jobs
    jobs and
    and improve
    improve
    standards
    standards of
    of living,
    living, research
    research is
    is showing
    showing that
    that investment
    investment in
    in ICT
    ICT is
    is critical
    critical to
    to improving
    improving economic
    economic
    prospects.
    prospects.

    AA 2006
    2006 OECD
    OECD study
    study revealed
    revealed aa positive
    positive correlation
    correlation between
    between high
    high levels
    levels of
    of investment
    investment in
    in ICT
    ICT and
    and
    higher
    higher economic
    economic and
    and productivity
    productivity growth,
    growth, with
    with high
    high investment
    investment countries
    countries like
    like the
    the US,
    US, Sweden
    Sweden
    and
    and Finland
    Finland showing
    showing higher
    higher rates
    rates of
    of both
    both than
    than nations
    nations such
    such as
    as Portugal,
    Portugal, Germany
    Germany and
    and France.
    France.
    3

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Economic Benefits to Technology in Education


    Technology Education Improves Competitiveness

    1
    IT
    IT education
    education investments
    investments are
    are reflected
    reflected in
    in international
    international
    competitiveness
    competitiveness rankings,
    rankings, such
    such as
    as the
    the World
    World Knowledge
    Knowledge
    Competitiveness
    Competitiveness Index,
    Index, which
    which both
    both reflect
    reflect and
    and influence
    influence
    global
    global executive
    executive opinions
    opinions

    Germany
    Hong Kong
    Hungary

    41.5
    110.1
    31.0

    41.8
    111.1
    31.2

    23
    14
    26

    42.8
    113.7
    32.0

    21
    13
    24

    Iceland
    India

    366.0
    0.1

    369.2
    0.1

    1
    33

    Ireland
    Israel

    27.9
    78.9

    28.2
    79.6

    Italy
    Japan
    Korea

    94.1
    101.6
    5.3

    95.0
    102.5
    5.3

    44.1
    166.6
    27.7

    0.1
    28.9
    81.5

    29

    27
    18

    25
    17

    31.6
    35.6

    17
    15
    32

    97.3
    104.9
    5.5

    16
    14
    28

    63.2
    84.8
    10.8

    2
    Global
    Global firms
    firms increasingly
    increasingly consider
    consider aa tech-literate
    tech-literate workforce
    workforce
    essential
    essential when
    when deciding
    deciding on
    on foreign
    foreign investments,
    investments, evidenced
    evidenced
    by
    by Intels
    Intels review
    review of
    of Vietnams
    Vietnams tech
    tech curriculum
    curriculum during
    during its
    its
    factory
    factory investment
    investment process
    process

    Vietnam

    3
    Technology
    Technology education
    education is
    is key
    key to
    to developing
    developing homegrown,
    homegrown,
    world-class
    world-class IT
    IT companies,
    companies, such
    such as
    as India
    India has
    has done
    done with
    with Wipro
    Wipro
    and
    and China
    China has
    has done
    done with
    with Huawei
    Huawei

    China
    India

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Project Magellan
    500,000 Locally-made Netbooks for Portuguese Students
    In
    In July
    July 2008,
    2008, Portuguese
    Portuguese Prime
    Prime Minister
    Minister Jose
    Jose Socrates
    Socrates unveiled
    unveiled the
    the Magellan
    Magellan
    PC
    PC and
    and announced
    announced aa deal
    deal with
    with Intel
    Intel to
    to purchase
    purchase and
    and deploy
    deploy 500,000
    500,000 of
    of the
    the
    locally-built,
    locally-built, lightweight
    lightweight netbooks
    netbooks to
    to Portuguese
    Portuguese primary
    primary school
    school students
    students

    This new collaboration with Intel underscores


    Portugal's commitment to advance quickly
    toward a knowledge-based economy. By
    equipping our schools with state-of-the-art
    computing technology and Internet
    connectivity, we hope to hasten the transition
    to economic models that benefit our citizens."
    Prime Minister Jos Socrates

    Portugal Prime Minister Jos Socrates and Intel Chairman Craig


    Barrett at the launch of the Magellan initiative
    Source: The Inquirer

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Moving the Needle to 1:1 e-Learning


    Accelerating Portugals Move up the Rankings
    Magellan
    Magellan is
    is part
    part of
    of aa broader
    broader initiative,
    initiative, Plano
    Plano Tecnologico,
    Tecnologico, by
    by the
    the government
    government of
    of
    Portugal
    Portugal to
    to catch
    catch up
    up to
    to and
    and surpass
    surpass its
    its fellow
    fellow EU
    EU members
    members in
    in technology
    technology and
    and
    Internet
    Internet readiness
    readiness and
    and ultimately
    ultimately reach
    reach the
    the goal
    goal of
    of aa computer
    computer for
    for every
    every child
    child

    Student-to-Computer Ratio

    Post-secondary e-school initiative

    Post-Magellan

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Portugal Education Ecosystem


    Education Impact vs. Economic Impact

    Beneficiaries/
    Thought Leaders

    Students
    Parents
    Teachers
    Education Orgs
    Thought Leaders

    Software/Content
    Providers

    OS Providers
    Content Providers
    Application Developers

    Hardware Producers

    Governments

    Training Organizations
    Design Centers
    Education Program Design

    National Gov/MoE
    Ministry of
    Telecommunications
    Local School Systems

    Education Impact

    Hardware Design
    Local OEM/ODM
    Distributor
    Factory/Parts Suppliers

    Service Providers

    Telecommunications
    Providers

    Telecom Companies
    Infrastructure Equipment Manufacturers

    Economic Impact
    2009 Vital Wave ConsultingTM
    Proprietary and Confidential:
    Do not copy or distribute.

    Project Magellan
    Direct and Indirect Economic Benefits
    Direct Benefits
    Project Magellan

    Creation of local jobs associated with hardware


    and software production and support services
    Increased revenues and salaries associated with
    job creation
    Improvements in physical and Internet
    infrastructure
    Export increase/improvement in balance of trade

    Indirect Benefits
    Portugal

    Indirect economic activity (e.g., spinoff jobs)


    produced by creation of new production and
    service jobs
    Enhanced ability to attract foreign investment
    (e.g., JP S Couto) due to stronger workforce skills
    Improvement in international competitiveness
    Build up of local IT capabilities and ecosystem
    Increased tax revenues

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Creating the Portuguese Silicon Valley


    Magellan Gives Boost to Technology Cluster and Jobs

    Design/Innovation Center
    10% increase in jobs

    OEM/ODM
    200% increase in jobs

    Content Provider
    TBD jobs

    Mobile Device Software


    50 jobs

    Hundreds of jobs added to


    improve Portugals 9.1%
    unemployment rate

    Linux OS Software
    25% increase in jobs

    Braga
    IT Integrator/Distributor
    Increase in jobs

    Maia
    Matasinhos
    Porto

    GPS Device Manufacturer


    38 jobs

    Chip Manufacturer
    770 jobs

    Northern
    Portugal

    Research University
    Quantum Chip Lab

    Entities directly benefiting


    from Magellan

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Exporting Magellan to the World


    Portugal as High Value Added Technology Solutions Exporter
    Exporting
    Exporting the
    the Magellan
    Magellan model
    model of
    of
    locally-produced
    locally-produced hardware
    hardware and
    and
    software
    software to
    to countries
    countries around
    around the
    the
    world
    world
    Global
    Global Sales
    Sales
    Project
    Project Design
    Design
    Solutions
    Solutions Implementation
    Implementation

    Hardware Expertise
    Global Partners
    Sugar
    Scratch

    IT Solutions Expertise

    The
    The Portuguese
    Portuguese Magellan
    Magellan initiative
    initiative was
    was the
    the model
    model for
    for the
    the May
    May 2009
    2009 announcement
    announcement by
    by the
    the
    prime
    prime minister
    minister of
    of Spain
    Spain for
    for aa one-to-one
    one-to-one program
    program for
    for primary
    primary students
    students that
    that will
    will also
    also involve
    involve
    job
    job creation
    creation for
    for the
    the Spanish
    Spanish education
    education eco-system
    eco-system as
    as part
    part of
    of an
    an economic
    economic stimulus
    stimulus package
    package
    10

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Moving up the Economic Value Chain


    Magellan Transforms JP S Couto into Europes only ODM
    Magellans
    Magellans manufacturing
    manufacturing will
    will be
    be done
    done by
    by Portugal
    Portugal hardware
    hardware company
    company JP
    JP S
    S Couto,
    Couto,
    transforming
    transforming the
    the company
    company from
    from aa networking
    networking and
    and original
    original equipment
    equipment manufacturer
    manufacturer
    into
    into Europes
    Europes only
    only original
    original design
    design manufacturer,
    manufacturer, leveraging
    leveraging CEIIA
    CEIIA design
    design ideas
    ideas

    2009
    OEM

    2010
    ODM

    Abroad

    Abroad
    Processor manufacture

    Processor manufacture
    Hardware design
    Component design
    Motherboard manufacture
    Configuration

    In Portugal
    Hard drive assembly
    Final assembly

    In Portugal
    Increased
    Value Added

    Hardware design
    Motherboard manufacture
    Configuration
    Hard drive assembly
    Final assembly

    Manufacturing Jobs
    Design Jobs
    Intellectual Capital

    11

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Direct Economic Impact


    Direct Impact Concentrated among Certain Ecosystem Players

    Jobs

    Revenues

    Wages/Salaries

    Local
    Local
    OEM/ODM
    OEM/ODM
    JP
    JP S
    S Couto
    Couto

    Design
    Design Center
    Center
    CEIIA
    CEIIA

    Software
    Software
    Provider
    Provider
    Caixa
    Caixa Magica
    Magica

    +300%

    +11%

    +25%

    +200%

    TBD

    +25%

    +>200%

    TBD

    +20%

    12

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Indirect Economic Benefits


    Manufacturing Expansion Leads to Spinoff Jobs and Activity
    Recent
    Recent studies
    studies indicate
    indicate that
    that each
    each new
    new manufacturing
    manufacturing job
    job may
    may lead
    lead to
    to the
    the
    creation
    creation of
    of 3.2
    3.2 indirect
    indirect or
    or spinoff
    spinoff jobs,
    jobs, while
    while other
    other analyses
    analyses show
    show that
    that the
    the each
    each
    dollar
    dollar of
    of manufacturing
    manufacturing economic
    economic activity
    activity produces
    produces another
    another $1.26
    $1.26 of
    of
    intermediate
    intermediate economic
    economic output,
    output, meaning
    meaning Magellans
    Magellans total
    total economic
    economic impact
    impact will
    will be
    be
    hundreds
    hundreds of
    of millions
    millions of
    of euros
    euros

    Jobs
    Total Economic Activity
    (based on sales of 5
    million units)

    Direct
    Impact*

    Indirect
    Impact

    Total

    350

    1,120

    1,470

    1 billion

    1.26 billion

    2.26 billion

    *Result of manufacturing expansion

    13

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Magellan by the Numbers


    Impacting Jobs, Skills, and IT Readiness in Portugal
    Direct Jobs Created

    Total Jobs Created

    ~350

    ~1500

    Master Teachers Trained

    All Teachers Trained

    850

    30,000

    Direct Economic Activity*

    Total Economic Activity*

    1 billion

    2.3 billion

    Units Manufactured*

    Units Exported*

    5 million

    4 million
    *Total through 2010
    14

    2009 Vital Wave ConsultingTM


    Proprietary and Confidential:
    Do not copy or distribute.

    Interview Notes

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