Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang

How can Penang upgrade and diversify its economy? This paper addresses this question using a number of methodologies that have been developed for assessing competitiveness and identifying the direction of future industrial evolution. The results show that although Penang was successful in attracting foreign direct investment to the electronics industry, this has not translated into a deepening of industrial capabilities or the nurturing of innovation capacity in Penang. No large Malaysian firms in Penang have taken the lead in innovation and there is little new entry by local firms, despite incentives provided by local and national governments are generous. Universiti Sains Malaysia, the principal university in Penang, is contributing through provision of skills, and it is beginning to multiply university industry linkages. However, the university s research activities are too limited and too diffuse to significantly initiate innovation by local industry. Under the current circumstances, and given its relatively small size, Penang will have to try much harder to strengthen its competitive advantage in its most important industry -electronics- through actions that build research capital. It will also have to increase its efforts to develop the potential of other value-adding activities, such as medical services and tourism. A strategy focused on localization economies is likely to be the most feasible option.

Bibliographic Details

Main Authors:	Yusuf, Shahid, Nabeshima, Kaoru
Language:	English
Published:	2009-06-01
Subjects:	ACADEMIC RESEARCH, ACCESSORIES, ADVANCED TECHNOLOGY, AGRICULTURAL, APPLIANCES, APPLIED RESEARCH, APPLIED RESEARCH IN ELECTRONICS, APPROPRIATE TECHNOLOGY, ASSEMBLERS, AT, AUTOMOTIVE, BASIC, BIDDING, BIOCHEMISTRY, BIOLOGY, BIOTECHNOLOGY, BROADCASTING, BUSINESS, BUSINESS ACTIVITIES, BUSINESS CLIMATE, BUSINESS DEVELOPMENT, BUSINESS PROMOTION, BUSINESS SERVICES, CAPABILITY, CAPITAL FUNDING, CAREER, CAREER PROSPECTS, CENTRAL PROCESSING UNITS, CITIES, COLLABORATION, COLLEGES, COMMERCIAL INNOVATION, COMMODITIES, COMMODITY, COMPETITIVE ADVANTAGE, COMPETITIVENESS, COMPONENTS, COMPUTER, CONSULTANTS, CONTENT, CURRICULUM, DATA, DATA PROCESSING, DATA PROCESSING EQUIPMENT, DEVICES, DIGITAL, DIGITAL DATA, DISCIPLINES, DISK DRIVES, DOCTORAL PROGRAMS, ECONOMIC ACTIVITY, ECONOMICS, EDUCATIONAL INSTITUTIONS, ELECTRIC LIGHTING, ELECTRICAL MACHINERY, ELECTRICITY, ELECTRONICS, ELECTRONICS INDUSTRY, ELITE UNIVERSITIES, EMPLOYMENT, ENGINEERING, ENGINEERS, ENTRY BARRIERS, EQUIPMENT, EXPORT MARKET, EXPORT PROMOTION, EXTENSION, FACULTIES, FERTILIZERS, FIELDS, FINANCIAL INSTITUTIONS, FINANCIAL MANAGEMENT, FINANCIAL RESOURCES, FINANCIAL SUPPORT, FISH, FLOW OF INFORMATION, FOREIGN DIRECT INVESTMENT, FOREIGN STUDENTS, GLOBAL MARKETS, GOVERNMENT FUNDING, GRADUATE, GRADUATE PROGRAMS, GRADUATES, GRANTS, GRAPHICAL REPRESENTATION, GROUPS, GROWTH PATH, GROWTH POTENTIAL, GROWTH STRATEGY, HARD DISK, HEALTH, HIGH TECHNOLOGY, HIGHER EDUCATION, HUMAN RESOURCE, HUMAN RESOURCE DEVELOPMENT, IMAGING, INCOMES, INDUSTRIAL DEVELOPMENT, INDUSTRIAL TECHNOLOGY, INDUSTRY ASSOCIATION, INFORMATICS, INFORMATION, INFORMATION EXCHANGE, INFORMATION TECHNOLOGY, INSTRUCTION, INTEGRATION, INTELLECTUAL PROPERTY, INTERFACE, INTERMEDIARY ORGANIZATION, INVENTION, IP, IT, JOINT VENTURES, KNOWLEDGE CREATION, LAN, LICENSES, LIFE SCIENCES, LOCAL UNIVERSITIES, LOCALIZATION, MANUFACTURING, MANUFACTURING INDUSTRIES, MARKET SHARE, MARKETING, MATERIAL, MATERIALS, MEDICAL DEVICE, MEDICAL DEVICES, MEDICAL SERVICES, MEDICINE, MICROBIOLOGY, MONITORING, NATIONAL ACCREDITATION, NETWORKS, NEW TECHNOLOGIES, NEW TECHNOLOGY, PAPERS, PARTNERS, PAYMENTS, PERFORMANCE, PILOT PROJECTS, PLANNING, PLANS, PLANTS, POLICY, PORTABLE RADIO, PREFERENTIAL TREATMENT, PRINTED CIRCUITS, PRIVATE HIGHER EDUCATION, PRIVATE HIGHER EDUCATION INSTITUTIONS, PRIVATE SECTOR, PRIVATE SECTORS, PROCESSORS, PROCUREMENT, PRODUCT DESIGNS, PRODUCT DEVELOPMENT, PRODUCT INNOVATION, PRODUCT SPECIFICATIONS, PRODUCTION, PRODUCTION PROCESSES, PRODUCTIVITY, PRODUCTS, PROFIT, PROFITS, PROTOTYPE, PROVINCIAL UNIVERSITIES, PUBLIC UNIVERSITIES, QUALITY ASSURANCE, QUALITY OF EDUCATION, QUALITY OF INSTRUCTION, QUALITY OF TEACHING, R&D, RADIO, REGISTERS, RESEARCH, RESEARCH CAPACITY, RESEARCH EXPENDITURES, RESEARCH FINDINGS, RESEARCH INSTITUTE, RESEARCH INSTITUTES, RESEARCH INSTITUTIONS, RESEARCH PROGRAMS, RESEARCH SECTOR, RESEARCH UNIVERSITIES, RESEARCH UNIVERSITY, RESEARCHERS, RESULTS, SAN, SCHOLARS, SCHOLARSHIPS, SCHOOL, SCIENCE, SCIENTIFIC EXCELLENCE, SCIENTIFIC JOURNALS, SCIENTISTS, SERVICE PROVIDERS, SILK, SITES, SKILLED WORKERS, SKILLS, SMALLER NUMBER, SOCIAL SCIENCE, STUDENT, STUDENT BODY, STUDENT SUPPORT, STUDENTS, SUPERVISION, SUPPLY CHAIN, SYSTEM, SYSTEMS, TECHNICAL EXPERTS, TECHNICAL KNOWLEDGE, TECHNICIANS, TECHNOLOGICAL CAPABILITIES, TECHNOLOGICAL DEVELOPMENT, TECHNOLOGICAL INNOVATION, TECHNOLOGIES, TECHNOLOGY, TECHNOLOGY DEVELOPMENT, TECHNOLOGY LICENSING, TECHNOLOGY MANAGEMENT, TECHNOLOGY TRANSFER, TECHNOLOGY TRANSFERS, TECHNOLOGY USERS, TELECOMMUNICATION, TELECOMMUNICATION EQUIPMENT, TELECOMMUNICATIONS, TELECOMMUNICATIONS EQUIPMENT, TELEVISION, TERTIARY EDUCATION, TERTIARY INSTITUTIONS, TRAINING, TRANSACTION, TRANSFER OF TECHNOLOGY, TRANSISTORS, TRANSMISSION, TUITION, TUITION FEES, UNIVERSITY, USERS, USES, VALUE CHAIN, VIDEO, WEB, WOOD, WORKERS,
Online Access:	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090619092524 https://hdl.handle.net/10986/4165
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