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 sh...

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Bibliographic Details
Main Authors:	Yusuf, Shahid, Nabeshima, Kaoru
Format:	Policy Research Working Paper
Language:	English
Published:	2012
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 http://hdl.handle.net/10986/4165

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Summary:	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.

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

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