Many may not realise that knowledge is big business. In a world economy increasingly driven by knowledge, the production, transmission, and consumption of knowledge form an industry not much different from any other.
The knowledge industry offers significant economic value to the world. Admittedly, unlike most other industries such as manufacturing and farming, few countries have a robust policy to guide and grow the knowledge industry.
The potential is enormous. Research and development (R&D) forms the upstream of the knowledge industry supply chain. R&D essentially produces new knowledge. However, unless such knowledge achieves the necessary added value in the midstream and downstream — where business and society at large benefit — it is deemed wasteful.
In a recent national audit report, it was revealed that about RM140 million worth of investments in R&D was wasted. Many say this is not the first time. There are now calls for a robust policy framework to govern the all-important knowledge industry.
Developing a comprehensive policy for the growth of the knowledge industry is crucial to incite innovation, drive economic growth, and enhance long-term competitiveness in the global economy.
The knowledge industry encompasses sectors that rely heavily on intellectual capital, such as information technology, education, R&D, creative industries, and professional services. The big agenda is to establish a thriving, globally competitive knowledge-based economy that leverages intellectual capital, innovation, and technology to drive sustainable growth and improve quality of life.
The objectives may include inspiring innovation and creativity across all sectors, developing a highly skilled and adaptable workforce, promoting R&D to solve societal challenges, attracting global talent and investment in knowledge-based industries, and ensuring equitable access to knowledge and technology.
What, then, are the key policy pillars?
Education and human capital development is one. Integrating science, technology, engineering, and mathematics (STEM), as well as digital literacy, into school curricula — though challenging — must continue. Lifelong learning allows adaptation to rapid technological changes. Interdisciplinary education is a must.
In higher education and research, there is a need to increase funding for universities and research institutions. Our 1 per cent of gross domestic product (GDP) is too low.
Partnerships between academia and industry are critical to align with market needs. Tax incentives and grants for private sector R&D activities must continue. There is also a need to establish innovation hubs to nurture startups.
Digital infrastructure and technology must not be compromised. Investing in high-speed internet infrastructure is key, while ensuring affordable access to tools.
Then, there is the promotion of emerging technologies by developing policies to support the adoption of artificial intelligence, the Internet of Things, big data, and blockchain. Create regulatory sandboxes to test innovative technologies, while the powers-that-be should strengthen cybersecurity frameworks to protect intellectual property and ensure compliance with global data protection standards.
Intellectual property (IP) protection is an important pillar. Thus, there is a need to strengthen IP laws, streamline patent and trademark registration processes, educate businesses and individuals about IP rights, and enhance enforcement mechanisms.
The creative and cultural industries form part of the knowledge industry. Support the creative sector by providing funding for artists, writers, filmmakers, and designers. Develop platforms to showcase and monetise creative works.
Talent is also critical. We need to attract the best. Simplify visa processes for skilled professionals and researchers. Offer incentives for diaspora talent to return and contribute to the knowledge economy.
That being said, inclusive growth is important. Stakeholders must ensure all regions and demographics have access to knowledge resources and opportunities. Bridge the digital divide through targeted initiatives.
Implementation strategies can include establishing a dedicated Knowledge Economy Development Authority to oversee policy implementation. Create inter-ministerial task forces to ensure coordination. Allocate a national budget to knowledge industry development.
China is now seen as a good model to learn from. Attract foreign direct investment (FDI) in knowledge-based sectors. Set measurable KPIs for policy outcomes.
Regular assessments of impact must be carried out, while annual reports on the state of the knowledge economy must be made public. Launch campaigns to raise awareness about the importance of the knowledge economy. Engage stakeholders — including businesses, academia, and civil society — in policy formulation.
The expected outcomes are rewarding. These include increased GDP contribution from knowledge-based industries, high-quality jobs in technology, research, and the creative sectors, an enhanced position in global innovation rankings, improved access to education, healthcare, and technology, and reduced environmental impact through innovative solutions.
There are many case studies and best practices — including Estonia, South Korea, and even our close neighbour, Singapore.
A comprehensive policy for the development of the knowledge industry is essential for building a resilient, innovative, and sustainable economy. By focusing on education, innovation, digital infrastructure, and inclusivity, nations can unlock the full potential of their intellectual capital and secure a competitive edge in the global economy.
Such a policy framework provides a roadmap for governments, businesses, and stakeholders to collaborate and drive the growth of the knowledge industry. The knowledge industry offers big potential for Malaysia’s economy.
The views expressed here are the personal opinion of the writer and do not necessarily represent that of Twentytwo13.
