Innovation in Southeast Asia

image of Innovation in Southeast Asia

The Southeast Asian (SEA) region is one of the most dynamic in the world. It is in a period of transition as its national economies become strongly integrated into global knowledge networks. Science and technology (S&T) offer opportunities for countries to ‘move up the value chain’. A better understanding of existing capabilities helps enhance mutually beneficial S&T and innovation co-operation between SEA and OECD countries.

This review provides a quantitative and qualitative assessment of Southeast Asian countries’ capacity in S&T and innovation. A regional synthesis highlights current performance and intra- and extra-regional knowledge circulation, including flows between the Southeast Asian region and the established centres of knowledge production such as the EU, Japan and the United States. The country profiles describe the dynamics of national innovation systems and their relation to international knowledge flows, taking into account the wider framework conditions for innovation.



Business sector innovation

The effectiveness of innovation systems depends on the depth and diversity of innovation capabilities that are accumulated by, and deployed in, business enterprises. This chapter provides a brief introduction to the business landscape of Southeast Asian countries and explores the reasons for their diverse performance in R and D and patenting. Next, it discusses the role of foreign firms and subsidiaries, which are a defining feature of the industrial landscape in the region and are a central pillar of government strategies to upgrade national innovation systems. The role of large indigenous firms is then discussed, with a final section covering entrepreneurship and investment financing.


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