Tan Sri Munir Abdul Majid, Mr. Takiya Sumita and Mr. Piotr Stryzowski
For the session “What is the nature of the economy of intangibles and why is it important for Malaysia to make the leap to this economy?”, Tun Dr. Mahathir Mohamad made a telephone call to Washington to talk to Dr. Jean-Eric Aubert on his presentation, “Knowledge-Based Development Strategies: Lessons from the Global Experience”.
Common features:
- Education system with full literacy and world-class universities
- ICT with world class infrastructure and massive applications
- Innovation ecology (R&D, global knowledge networks)
- Business environment (good IPR protection, efficient regulations, low bureaucracy)
Companies that don’t fully succeed only focus on one or two pillars and not all four.
Key attitudes of successful transformation:
- A strong sense of identity
- Ambition
- Mobilisation
- Speed
Strategic dimensions:
- Industrial strategy: (Natural resources: Finland) (FDI: Ireland)
- Societal strategy: Entrepreneurial spirit, climate of trust and confidence
All these create a virtuous cycle for a critical mass of projects.
Datuk Syed Zainal Abidin Syed Mohd Tahir, Datuk Badariah Arshad and Tan Sri Dr Salleh Mohd Nor
The world is facing a serious challenge in the economic recession which creates deficits in government budgets. One other challenge, among others, is the climate and environmental change. There is thus a need to review the knowledge economy strategies and innovation strategies, and new approaches are necessary.
Among what are important, based on research experience: a Consensus at the national-level (change of mindsets of the policy-making communities necessary) and need for massive engagement with youth, managers and students (again to create mindset set, which needs an emotional engagement).
Prof. Danny Quah and Prof. Mahindran Nair with New Club of Paris members
During the Q&A, Professor Danny Quah asked what the flags are for Malaysia. Although not an expert on the country, Dr. Aubert stressed that education reform needs to be expanded. Malaysia, compared with the rest of the world in terms of enrollment rates and literacy rates are not as good as it should be. Secondly, ICT investment needs to be reviewed to see whether it has generated sufficient new enterprises, new areas of growth. Third, Malaysia needs to diversify beyond its traditional successful sectors (manufacturing) and looking at how to exploit other parts of the economy (ie: agriculture). Finally, Malaysians need to have more confidence to try new things and take risks, but to keep the risks balanced.
Professor Ahmed Bonfour was next to present on the “Dynamic Capabilities of Nations”. Dr. Bonfour presented a chart of the evolution of intangible investment in USA from 1959 to 2003. In the US, since the beginning of the ’90s, the investments in intangibles surpassed that of the tangibles. Globally, intangibles contribute around 10% to 12% of GDP.
Dr. Bonfour defined the knowledge economy in various ways. As an economic concept, where there is a predominance of three factors: Research and Education, Relationship to growth, and learning and capabilities, and as an organisational concept. He went through the socio-economic systems, and highlighted neo-communities (such as Facebook). He stressed the importance of leadership in guiding nations to a transformation to a knowledge-based economy.
Prof. Dato' Dr. Aziuddin Ahmad and Dr. Shukri Abdul Wahab
For Malaysia, there is an opportunity space to develop its knowledge agenda in a very unique way, and highlighted the entrepreneurial class as one item that should be on Malaysia’s agenda.
Professor Mahindran Nair of Sunway Monash ran through his proposal for a National Innovation Ecosystem, stressing that the new economies like Finland moved from “places” to “spaces” with ideas, innovation and information as the key building blocks.
For the National Innovation Ecosystem (NIE), Professor Mahindran outlined 7is:
- Infrastructure (Foundation)
- Intellectual capital
- Interaction
- Incentives – Catalysts for creativity
- Institutions
- Integrity – Doing the things that you promise to the best of your abilities
- Innovation
Mahindran said each one of the building blocks are inter-linked to one another due to their complementarity. As countries get more innovative, their competitiveness increases and standard of living (wealth) rises.
Countries with weak DNA would lose capital and good labour.
