Innovation Key To Become High-Income Nation - Kiel Institute President

KUALA LUMPUR, Sept 5 (Bernama) -- More innovation and less imitation is the way forward for Malaysia and other emerging Southeast Asian countries on the course towards a high-income nation. "Many under-developed countries have to imitate other developed economies by copying their development tracks. "They compete with cheap labour and resources before escaping the poverty trap and move to mid-income level provided that the government's economic transformation efforts pay off," said President of Kiel Institute for the World Economy, Professor Dennis Snower. However, once they attempted to get rid of the middle-income trap, imitation would not get them anywhere further in the race to become a high-income nation, he said. "The challenge is not to produce something cheaper but something new that requires different type of skills, educational systems and organisational efforts. "Innovation at this level is not easy. It should go down to the microeconomic levels, by identifying consumer needs with the applications of new technology and skills," Snower said. He made the comments during a press conference here Friday to announce the three-day Global Economic Symposium starting Saturday in Kuala Lumpur. About 700 delegates from around the world are expected to congregate at the inaugural event hosted by Germany-based Kiel Institute, ranked the top 20 research centres in the world for international trade and top four think tank for economic policy. The symposium will discuss issues spanning from resources depletion and climate change through economic stagnation, inequality and youth employment to geopolitical risks as well as challenges of fast-changing technologies. Previous symposiums were held in Istanbul, Turkey and Rio de Janeiro, Brazil, and it's the first time Malaysia hosts this event. -- BERNAMA