Most industries in Bangladesh spend less than Tk 500 per year on research and development (R&D) per worker, according to the Centre for Policy Dialogue (CPD) [26c710a0]. This low level of investment in R&D could hinder Bangladesh's goal of becoming a manufacturing hub and a developed nation within the next two decades [26c710a0]. R&D and innovation are crucial for increasing competitiveness, productivity, and sustainable wage growth, as well as creating jobs and staying ahead of competition in export markets [26c710a0]. However, in Bangladesh, overall R&D investments accounted for only 0.03 percent of gross domestic product (GDP) in 2022-23, significantly lower than countries like Vietnam (0.54 percent), India (0.70 percent), and China (2.55 percent) [26c710a0].
The low spending on R&D in Bangladesh raises concerns about the country's ability to keep up with global advancements and maintain its competitiveness in the long run [26c710a0]. Without adequate investment in R&D, Bangladesh may struggle to develop innovative products, improve productivity, and attract foreign direct investment [26c710a0]. This could hinder the country's economic growth and hinder its aspirations of becoming a developed nation [26c710a0]. The government and industry stakeholders need to prioritize and increase investment in R&D to foster innovation, enhance competitiveness, and drive sustainable economic development [26c710a0].
A survey report released by the Bangladesh Bureau of Statistics (BBS) reveals that Bangladesh's gross research and development expenditure (GERD) as a share of GDP was a mere 0.30% for the fiscal year 2020-21 [30c19e3b]. This is lower than the GERD for the preceding two fiscal years, which were 0.35% and 0.31% of GDP, respectively [30c19e3b]. The total R&D expenditure for the fiscals 2018-19, 2019-20, and 2020-21 was Tk101.92 crore, Tk98.85 crore, and Tk104.81 crore, respectively [30c19e3b]. The majority of research and development funding in Bangladesh comes from domestic sources [30c19e3b]. The BBS report highlights the need for increased investment in research and development to drive progress and development in the country [30c19e3b].
The common theme in these inputs is the challenges faced in research and development (R&D) and innovation in Bangladesh, India, Gulf countries, and the EU. All three regions have low levels of investment in R&D, which could hinder their economic growth and aspirations of becoming developed nations. In Bangladesh, the low spending on R&D raises concerns about the country's ability to keep up with global advancements and maintain competitiveness. Similarly, in India, the public sector's inefficiency in productivity and innovation in the defense industry has led to a dependence on arms imports and a need for reform. Gulf countries, on the other hand, risk repeating the US's mistake of dismantling corporate labs due to the growth of venture capital, which could hinder long-term thinking and innovation. All regions need to prioritize and increase investment in R&D to foster innovation, enhance competitiveness, and drive sustainable economic development. The article 'Defense innovation and the valley of death' further explores the challenges in defense innovation and suggests widening the base of investment and involving more new firms in the sector to overcome the 'valley of death' and capture the value of innovation. It also highlights the impact of government regulations and the need for incentives to support early-stage research and development projects, as well as fostering the next generation of competitors in the defense industry. Europe, specifically the EU, also faces challenges in innovation, with a middle-technology trap and a need for disruptive innovation. The EU's innovation policy should focus on supporting disruptive innovation and reforming the governance and budgetary resources of the European Innovation Council (EIC) to better prioritize and boost game-changing innovations. Additionally, the study from Denmark highlights the positive impact of imported R&D services and immigrant researchers on firm growth and productivity. Access to foreign ideas through these sources is crucial for firms' engagement in R&D and amplifies the economic effect of R&D subsidies. The interdependence between hiring immigrant researchers and importing R&D services is important for productivity growth [26c710a0] [f5d6783f] [2dc94c89] [b6a0df2a] [504861fd] [63111519] [b6b38275] [30c19e3b].
Malaysia needs to improve in three key areas: technology, research and development (R&D), and digital products [9a5cde98]. While Malaysia has performed well in trade, particularly in the manufacturing sector, it lags behind in these other areas [9a5cde98]. The Toulouse School of Economics Centre of Collective Learning director, Prof Cesar A. Hidalgo, highlighted that Malaysia is not a big exporter of digital products and ranks low in technology and R&D [9a5cde98]. Prof Tan Sri Noor Azlan Ghazali, director of the Malaysian Inclusive Development and Advancement Institute, noted that research is primarily conducted at the university level, with limited involvement from corporate players and industries [9a5cde98]. The lack of a strong knowledge base and research capabilities hinders Malaysia's ability to generate and export products [9a5cde98]. Additionally, the article discusses the challenges of capturing digital trade and the need for Malaysia to focus on manufacturing rather than just assembling products [9a5cde98]. The article also mentions the importance of rewarding talents and attracting skilled migrants to strengthen the country's complexity and promote economic growth [9a5cde98]. The New Industrial Master Plan 2030 (NIMP 2030) aligns with PNB's three-year strategy to position Malaysia as a high-income economy with greater economic complexity [9a5cde98].