'Innovation, investment key to Asia's dynamism'

Asian economies need to embrace innovation and invest more in technology so that they will continue to lead the world with their economic miracle, say leaders attending the Boao Forum for Asia conference.

The Jakarta Post

Riyadi Suparno, Boao, Hainan, China

"Rapid and peaceful economic development in Asia is a miracle," Bill Gates, chairman of Microsoft, told the Boao forum, "but it needs more investment in education and technology" to keep the miracle going.

Investment in education, he said, was necessary to improve the welfare of common people as the benefits of educational attainment to wealth creation are beyond doubt, and investment in technology should support that.

Investment in technology, said Gates, should focus on industries related to three big areas that have revolutionized the world: personal computing, the Internet and mobile telephony.

"A PC connected to the Internet is the greatest achievement mankind has ever created," he said, adding that mobile technology has made them even more powerful.

Therefore, he said, Asian economies, especially the big players like China and India, should invest more in research and development, especially in these three areas, to keep the miracle going, Gates said.

Since 2000, Asia's economy has grown by over 6 percent per annum, contributing to 20 percent of world economic growth. Today, Asia's economy, trade and foreign exchange reserves respectively take up a quarter, one-third and three-quarters of the world's total.

Wu Boangguo, the third-most important person in China after the president and prime minister, said that to maintain Asia as the most dynamic region in the world, there should be enhanced cooperation in science and technology.

"The growth of wealth and the increase of people's well-being increasingly hinge on the accumulation of knowledge and innovation," said Wu, currently chairman of the Standing Committee of the National People's Congress.

"In the face of a global trend in scientific and technological development and fierce competition, only by giving top priority to scientific and technological innovation can we Asian countries seize the opportunity and take the lead in development," he added.

On China, Wu explained that his government now gives priority to independent innovation to turn China into an "innovation-based country" by 2020, when scientific and technological advances should contribute to over 60 percent of economic growth, imported technologies should be brought down to below 30 percent and research and development expenditures should increase to over 2.5 percent of GDP.

"It is a national strategy we pursue in all endeavors of modernization," he said.

Speaking at the same forum, Pakistan Prime Minister Shaukat Aziz said that despite technological advancement achieved in many countries in Asia, Asia continues to be seen as a low-cost production house for Western brands and, therefore, it needs to move up the "value-chain" by innovating in products and services.

"Asian companies need to continue acquiring companies in the West and creating their own brands, as brand creation boosts both value and return," Aziz said.