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

Yusuf, Shahid ; Nabeshima, Kaoru

关键词: ACADEMIC RESEARCH;    ACCESSORIES;    ADVANCED TECHNOLOGY;    AGRICULTURAL;    APPLIANCES;   

DOI  :  10.1596/1813-9450-4971
RP-ID  :  WPS4971

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

How can Penang upgrade and diversify itseconomy? This paper addresses this question using a numberof methodologies that have been developed for assessingcompetitiveness and identifying the direction of futureindustrial evolution. The results show that although Penangwas successful in attracting foreign direct investment tothe electronics industry, this has not translated into adeepening of industrial capabilities or the nurturing ofinnovation capacity in Penang. No large Malaysian firms inPenang have taken the lead in innovation and there is littlenew entry by local firms, despite incentives provided bylocal and national governments are generous. UniversitiSains Malaysia, the principal university in Penang, iscontributing through provision of skills, and it isbeginning to multiply university industry linkages. However,the university s research activities are too limited and toodiffuse to significantly initiate innovation by localindustry. Under the current circumstances, and given itsrelatively small size, Penang will have to try much harderto strengthen its competitive advantage in its mostimportant industry -electronics- through actions that buildresearch capital. It will also have to increase its effortsto develop the potential of other value-adding activities,such as medical services and tourism. A strategy focused onlocalization economies is likely to be the most feasible option.