OECD Reviews of Innovation Policy: Malaysia 2016
The OECD Reviews of Innovation Policy offer a comprehensive assessment of the innovation system of individual OECD countries and partner economies, focusing on the role of government and concrete recommendations to boost innovation performance and R&D policies.
While Malaysia successfully transformed its economy from agriculture and mining towards manufacturing and more recently services, it is currently facing an economic slowdown and new competition. Mobilising new sources of growth will allow Malaysia to respond to these challenges and re-energise its economy through innovation-driven productivity gains.
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Macroeconomic performance and framework conditions for innovation in Malaysia
This chapter provides an overview of Malaysia’s macroeconomic performance. It begins with an examination of Malaysia’s rapid growth and structural change in the context of its long-term economic trajectory since its independence. It next looks at the significant challenges the country has been facing since the 1997 Asian financial crisis, in particular due to the weakening of two of the main sources of growth: capital accumulation and productivity. The chapter then considers the current state of framework conditions for innovation.
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