Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang

How can Penang upgrade and diversify its economy? This paper addresses this question using a number of methodologies that have been developed for assessing competitiveness and identifying the direction of future industrial evolution. The results sh...

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Bibliographic Details
Main Authors: Yusuf, Shahid, Nabeshima, Kaoru
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
AT
IP
IT
LAN
R&D
SAN
WEB
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090619092524
http://hdl.handle.net/10986/4165
id okr-10986-4165
recordtype oai_dc
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACADEMIC RESEARCH
ACCESSORIES
ADVANCED TECHNOLOGY
AGRICULTURAL
APPLIANCES
APPLIED RESEARCH
APPLIED RESEARCH IN ELECTRONICS
APPROPRIATE TECHNOLOGY
ASSEMBLERS
AT
AUTOMOTIVE
BASIC
BIDDING
BIOCHEMISTRY
BIOLOGY
BIOTECHNOLOGY
BROADCASTING
BUSINESS
BUSINESS ACTIVITIES
BUSINESS CLIMATE
BUSINESS DEVELOPMENT
BUSINESS PROMOTION
BUSINESS SERVICES
CAPABILITY
CAPITAL FUNDING
CAREER
CAREER PROSPECTS
CENTRAL PROCESSING UNITS
CITIES
COLLABORATION
COLLEGES
COMMERCIAL INNOVATION
COMMODITIES
COMMODITY
COMPETITIVE ADVANTAGE
COMPETITIVENESS
COMPONENTS
COMPUTER
CONSULTANTS
CONTENT
CURRICULUM
DATA
DATA PROCESSING
DATA PROCESSING EQUIPMENT
DEVICES
DIGITAL
DIGITAL DATA
DISCIPLINES
DISK DRIVES
DOCTORAL PROGRAMS
ECONOMIC ACTIVITY
ECONOMICS
EDUCATIONAL INSTITUTIONS
ELECTRIC LIGHTING
ELECTRICAL MACHINERY
ELECTRICITY
ELECTRONICS
ELECTRONICS INDUSTRY
ELITE UNIVERSITIES
EMPLOYMENT
ENGINEERING
ENGINEERS
ENTRY BARRIERS
EQUIPMENT
EXPORT MARKET
EXPORT PROMOTION
EXTENSION
FACULTIES
FERTILIZERS
FIELDS
FINANCIAL INSTITUTIONS
FINANCIAL MANAGEMENT
FINANCIAL RESOURCES
FINANCIAL SUPPORT
FISH
FLOW OF INFORMATION
FOREIGN DIRECT INVESTMENT
FOREIGN STUDENTS
GLOBAL MARKETS
GOVERNMENT FUNDING
GRADUATE
GRADUATE PROGRAMS
GRADUATES
GRANTS
GRAPHICAL REPRESENTATION
GROUPS
GROWTH PATH
GROWTH POTENTIAL
GROWTH STRATEGY
HARD DISK
HEALTH
HIGH TECHNOLOGY
HIGHER EDUCATION
HUMAN RESOURCE
HUMAN RESOURCE DEVELOPMENT
IMAGING
INCOMES
INDUSTRIAL DEVELOPMENT
INDUSTRIAL TECHNOLOGY
INDUSTRY ASSOCIATION
INFORMATICS
INFORMATION
INFORMATION EXCHANGE
INFORMATION TECHNOLOGY
INSTRUCTION
INTEGRATION
INTELLECTUAL PROPERTY
INTERFACE
INTERMEDIARY ORGANIZATION
INVENTION
IP
IT
JOINT VENTURES
KNOWLEDGE CREATION
LAN
LICENSES
LIFE SCIENCES
LOCAL UNIVERSITIES
LOCALIZATION
MANUFACTURING
MANUFACTURING INDUSTRIES
MARKET SHARE
MARKETING
MATERIAL
MATERIALS
MEDICAL DEVICE
MEDICAL DEVICES
MEDICAL SERVICES
MEDICINE
MICROBIOLOGY
MONITORING
NATIONAL ACCREDITATION
NETWORKS
NEW TECHNOLOGIES
NEW TECHNOLOGY
PAPERS
PARTNERS
PAYMENTS
PERFORMANCE
PILOT PROJECTS
PLANNING
PLANS
PLANTS
POLICY
PORTABLE RADIO
PREFERENTIAL TREATMENT
PRINTED CIRCUITS
PRIVATE HIGHER EDUCATION
PRIVATE HIGHER EDUCATION INSTITUTIONS
PRIVATE SECTOR
PRIVATE SECTORS
PROCESSORS
PROCUREMENT
PRODUCT DESIGNS
PRODUCT DEVELOPMENT
PRODUCT INNOVATION
PRODUCT SPECIFICATIONS
PRODUCTION
PRODUCTION PROCESSES
PRODUCTIVITY
PRODUCTS
PROFIT
PROFITS
PROTOTYPE
PROVINCIAL UNIVERSITIES
PUBLIC UNIVERSITIES
QUALITY ASSURANCE
QUALITY OF EDUCATION
QUALITY OF INSTRUCTION
QUALITY OF TEACHING
R&D
RADIO
REGISTERS
RESEARCH
RESEARCH CAPACITY
RESEARCH EXPENDITURES
RESEARCH FINDINGS
RESEARCH INSTITUTE
RESEARCH INSTITUTES
RESEARCH INSTITUTIONS
RESEARCH PROGRAMS
RESEARCH SECTOR
RESEARCH UNIVERSITIES
RESEARCH UNIVERSITY
RESEARCHERS
RESULTS
SAN
SCHOLARS
SCHOLARSHIPS
SCHOOL
SCIENCE
SCIENTIFIC EXCELLENCE
SCIENTIFIC JOURNALS
SCIENTISTS
SERVICE PROVIDERS
SILK
SITES
SKILLED WORKERS
SKILLS
SMALLER NUMBER
SOCIAL SCIENCE
STUDENT
STUDENT BODY
STUDENT SUPPORT
STUDENTS
SUPERVISION
SUPPLY CHAIN
SYSTEM
SYSTEMS
TECHNICAL EXPERTS
TECHNICAL KNOWLEDGE
TECHNICIANS
TECHNOLOGICAL CAPABILITIES
TECHNOLOGICAL DEVELOPMENT
TECHNOLOGICAL INNOVATION
TECHNOLOGIES
TECHNOLOGY
TECHNOLOGY DEVELOPMENT
TECHNOLOGY LICENSING
TECHNOLOGY MANAGEMENT
TECHNOLOGY TRANSFER
TECHNOLOGY TRANSFERS
TECHNOLOGY USERS
TELECOMMUNICATION
TELECOMMUNICATION EQUIPMENT
TELECOMMUNICATIONS
TELECOMMUNICATIONS EQUIPMENT
TELEVISION
TERTIARY EDUCATION
TERTIARY INSTITUTIONS
TRAINING
TRANSACTION
TRANSFER OF TECHNOLOGY
TRANSISTORS
TRANSMISSION
TUITION
TUITION FEES
UNIVERSITY
USERS
USES
VALUE CHAIN
VIDEO
WEB
WOOD
WORKERS
spellingShingle ACADEMIC RESEARCH
ACCESSORIES
ADVANCED TECHNOLOGY
AGRICULTURAL
APPLIANCES
APPLIED RESEARCH
APPLIED RESEARCH IN ELECTRONICS
APPROPRIATE TECHNOLOGY
ASSEMBLERS
AT
AUTOMOTIVE
BASIC
BIDDING
BIOCHEMISTRY
BIOLOGY
BIOTECHNOLOGY
BROADCASTING
BUSINESS
BUSINESS ACTIVITIES
BUSINESS CLIMATE
BUSINESS DEVELOPMENT
BUSINESS PROMOTION
BUSINESS SERVICES
CAPABILITY
CAPITAL FUNDING
CAREER
CAREER PROSPECTS
CENTRAL PROCESSING UNITS
CITIES
COLLABORATION
COLLEGES
COMMERCIAL INNOVATION
COMMODITIES
COMMODITY
COMPETITIVE ADVANTAGE
COMPETITIVENESS
COMPONENTS
COMPUTER
CONSULTANTS
CONTENT
CURRICULUM
DATA
DATA PROCESSING
DATA PROCESSING EQUIPMENT
DEVICES
DIGITAL
DIGITAL DATA
DISCIPLINES
DISK DRIVES
DOCTORAL PROGRAMS
ECONOMIC ACTIVITY
ECONOMICS
EDUCATIONAL INSTITUTIONS
ELECTRIC LIGHTING
ELECTRICAL MACHINERY
ELECTRICITY
ELECTRONICS
ELECTRONICS INDUSTRY
ELITE UNIVERSITIES
EMPLOYMENT
ENGINEERING
ENGINEERS
ENTRY BARRIERS
EQUIPMENT
EXPORT MARKET
EXPORT PROMOTION
EXTENSION
FACULTIES
FERTILIZERS
FIELDS
FINANCIAL INSTITUTIONS
FINANCIAL MANAGEMENT
FINANCIAL RESOURCES
FINANCIAL SUPPORT
FISH
FLOW OF INFORMATION
FOREIGN DIRECT INVESTMENT
FOREIGN STUDENTS
GLOBAL MARKETS
GOVERNMENT FUNDING
GRADUATE
GRADUATE PROGRAMS
GRADUATES
GRANTS
GRAPHICAL REPRESENTATION
GROUPS
GROWTH PATH
GROWTH POTENTIAL
GROWTH STRATEGY
HARD DISK
HEALTH
HIGH TECHNOLOGY
HIGHER EDUCATION
HUMAN RESOURCE
HUMAN RESOURCE DEVELOPMENT
IMAGING
INCOMES
INDUSTRIAL DEVELOPMENT
INDUSTRIAL TECHNOLOGY
INDUSTRY ASSOCIATION
INFORMATICS
INFORMATION
INFORMATION EXCHANGE
INFORMATION TECHNOLOGY
INSTRUCTION
INTEGRATION
INTELLECTUAL PROPERTY
INTERFACE
INTERMEDIARY ORGANIZATION
INVENTION
IP
IT
JOINT VENTURES
KNOWLEDGE CREATION
LAN
LICENSES
LIFE SCIENCES
LOCAL UNIVERSITIES
LOCALIZATION
MANUFACTURING
MANUFACTURING INDUSTRIES
MARKET SHARE
MARKETING
MATERIAL
MATERIALS
MEDICAL DEVICE
MEDICAL DEVICES
MEDICAL SERVICES
MEDICINE
MICROBIOLOGY
MONITORING
NATIONAL ACCREDITATION
NETWORKS
NEW TECHNOLOGIES
NEW TECHNOLOGY
PAPERS
PARTNERS
PAYMENTS
PERFORMANCE
PILOT PROJECTS
PLANNING
PLANS
PLANTS
POLICY
PORTABLE RADIO
PREFERENTIAL TREATMENT
PRINTED CIRCUITS
PRIVATE HIGHER EDUCATION
PRIVATE HIGHER EDUCATION INSTITUTIONS
PRIVATE SECTOR
PRIVATE SECTORS
PROCESSORS
PROCUREMENT
PRODUCT DESIGNS
PRODUCT DEVELOPMENT
PRODUCT INNOVATION
PRODUCT SPECIFICATIONS
PRODUCTION
PRODUCTION PROCESSES
PRODUCTIVITY
PRODUCTS
PROFIT
PROFITS
PROTOTYPE
PROVINCIAL UNIVERSITIES
PUBLIC UNIVERSITIES
QUALITY ASSURANCE
QUALITY OF EDUCATION
QUALITY OF INSTRUCTION
QUALITY OF TEACHING
R&D
RADIO
REGISTERS
RESEARCH
RESEARCH CAPACITY
RESEARCH EXPENDITURES
RESEARCH FINDINGS
RESEARCH INSTITUTE
RESEARCH INSTITUTES
RESEARCH INSTITUTIONS
RESEARCH PROGRAMS
RESEARCH SECTOR
RESEARCH UNIVERSITIES
RESEARCH UNIVERSITY
RESEARCHERS
RESULTS
SAN
SCHOLARS
SCHOLARSHIPS
SCHOOL
SCIENCE
SCIENTIFIC EXCELLENCE
SCIENTIFIC JOURNALS
SCIENTISTS
SERVICE PROVIDERS
SILK
SITES
SKILLED WORKERS
SKILLS
SMALLER NUMBER
SOCIAL SCIENCE
STUDENT
STUDENT BODY
STUDENT SUPPORT
STUDENTS
SUPERVISION
SUPPLY CHAIN
SYSTEM
SYSTEMS
TECHNICAL EXPERTS
TECHNICAL KNOWLEDGE
TECHNICIANS
TECHNOLOGICAL CAPABILITIES
TECHNOLOGICAL DEVELOPMENT
TECHNOLOGICAL INNOVATION
TECHNOLOGIES
TECHNOLOGY
TECHNOLOGY DEVELOPMENT
TECHNOLOGY LICENSING
TECHNOLOGY MANAGEMENT
TECHNOLOGY TRANSFER
TECHNOLOGY TRANSFERS
TECHNOLOGY USERS
TELECOMMUNICATION
TELECOMMUNICATION EQUIPMENT
TELECOMMUNICATIONS
TELECOMMUNICATIONS EQUIPMENT
TELEVISION
TERTIARY EDUCATION
TERTIARY INSTITUTIONS
TRAINING
TRANSACTION
TRANSFER OF TECHNOLOGY
TRANSISTORS
TRANSMISSION
TUITION
TUITION FEES
UNIVERSITY
USERS
USES
VALUE CHAIN
VIDEO
WEB
WOOD
WORKERS
Yusuf, Shahid
Nabeshima, Kaoru
Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang
geographic_facet East Asia and Pacific
Southeast Asia
Asia
Malaysia
relation Policy Research working paper ; no. WPS 4971
description How can Penang upgrade and diversify its economy? This paper addresses this question using a number of methodologies that have been developed for assessing competitiveness and identifying the direction of future industrial evolution. The results show that although Penang was successful in attracting foreign direct investment to the electronics industry, this has not translated into a deepening of industrial capabilities or the nurturing of innovation capacity in Penang. No large Malaysian firms in Penang have taken the lead in innovation and there is little new entry by local firms, despite incentives provided by local and national governments are generous. Universiti Sains Malaysia, the principal university in Penang, is contributing through provision of skills, and it is beginning to multiply university industry linkages. However, the university s research activities are too limited and too diffuse to significantly initiate innovation by local industry. Under the current circumstances, and given its relatively small size, Penang will have to try much harder to strengthen its competitive advantage in its most important industry -electronics- through actions that build research capital. It will also have to increase its efforts to develop the potential of other value-adding activities, such as medical services and tourism. A strategy focused on localization economies is likely to be the most feasible option.
format Publications & Research :: Policy Research Working Paper
author Yusuf, Shahid
Nabeshima, Kaoru
author_facet Yusuf, Shahid
Nabeshima, Kaoru
author_sort Yusuf, Shahid
title Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang
title_short Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang
title_full Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang
title_fullStr Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang
title_full_unstemmed Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang
title_sort can malaysia escape the middle-income trap? a strategy for penang
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090619092524
http://hdl.handle.net/10986/4165
_version_ 1764390224261021696
spelling okr-10986-41652021-04-23T14:02:15Z Can Malaysia Escape the Middle-Income Trap? A Strategy for Penang Yusuf, Shahid Nabeshima, Kaoru ACADEMIC RESEARCH ACCESSORIES ADVANCED TECHNOLOGY AGRICULTURAL APPLIANCES APPLIED RESEARCH APPLIED RESEARCH IN ELECTRONICS APPROPRIATE TECHNOLOGY ASSEMBLERS AT AUTOMOTIVE BASIC BIDDING BIOCHEMISTRY BIOLOGY BIOTECHNOLOGY BROADCASTING BUSINESS BUSINESS ACTIVITIES BUSINESS CLIMATE BUSINESS DEVELOPMENT BUSINESS PROMOTION BUSINESS SERVICES CAPABILITY CAPITAL FUNDING CAREER CAREER PROSPECTS CENTRAL PROCESSING UNITS CITIES COLLABORATION COLLEGES COMMERCIAL INNOVATION COMMODITIES COMMODITY COMPETITIVE ADVANTAGE COMPETITIVENESS COMPONENTS COMPUTER CONSULTANTS CONTENT CURRICULUM DATA DATA PROCESSING DATA PROCESSING EQUIPMENT DEVICES DIGITAL DIGITAL DATA DISCIPLINES DISK DRIVES DOCTORAL PROGRAMS ECONOMIC ACTIVITY ECONOMICS EDUCATIONAL INSTITUTIONS ELECTRIC LIGHTING ELECTRICAL MACHINERY ELECTRICITY ELECTRONICS ELECTRONICS INDUSTRY ELITE UNIVERSITIES EMPLOYMENT ENGINEERING ENGINEERS ENTRY BARRIERS EQUIPMENT EXPORT MARKET EXPORT PROMOTION EXTENSION FACULTIES FERTILIZERS FIELDS FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL RESOURCES FINANCIAL SUPPORT FISH FLOW OF INFORMATION FOREIGN DIRECT INVESTMENT FOREIGN STUDENTS GLOBAL MARKETS GOVERNMENT FUNDING GRADUATE GRADUATE PROGRAMS GRADUATES GRANTS GRAPHICAL REPRESENTATION GROUPS GROWTH PATH GROWTH POTENTIAL GROWTH STRATEGY HARD DISK HEALTH HIGH TECHNOLOGY HIGHER EDUCATION HUMAN RESOURCE HUMAN RESOURCE DEVELOPMENT IMAGING INCOMES INDUSTRIAL DEVELOPMENT INDUSTRIAL TECHNOLOGY INDUSTRY ASSOCIATION INFORMATICS INFORMATION INFORMATION EXCHANGE INFORMATION TECHNOLOGY INSTRUCTION INTEGRATION INTELLECTUAL PROPERTY INTERFACE INTERMEDIARY ORGANIZATION INVENTION IP IT JOINT VENTURES KNOWLEDGE CREATION LAN LICENSES LIFE SCIENCES LOCAL UNIVERSITIES LOCALIZATION MANUFACTURING MANUFACTURING INDUSTRIES MARKET SHARE MARKETING MATERIAL MATERIALS MEDICAL DEVICE MEDICAL DEVICES MEDICAL SERVICES MEDICINE MICROBIOLOGY MONITORING NATIONAL ACCREDITATION NETWORKS NEW TECHNOLOGIES NEW TECHNOLOGY PAPERS PARTNERS PAYMENTS PERFORMANCE PILOT PROJECTS PLANNING PLANS PLANTS POLICY PORTABLE RADIO PREFERENTIAL TREATMENT PRINTED CIRCUITS PRIVATE HIGHER EDUCATION PRIVATE HIGHER EDUCATION INSTITUTIONS PRIVATE SECTOR PRIVATE SECTORS PROCESSORS PROCUREMENT PRODUCT DESIGNS PRODUCT DEVELOPMENT PRODUCT INNOVATION PRODUCT SPECIFICATIONS PRODUCTION PRODUCTION PROCESSES PRODUCTIVITY PRODUCTS PROFIT PROFITS PROTOTYPE PROVINCIAL UNIVERSITIES PUBLIC UNIVERSITIES QUALITY ASSURANCE QUALITY OF EDUCATION QUALITY OF INSTRUCTION QUALITY OF TEACHING R&D RADIO REGISTERS RESEARCH RESEARCH CAPACITY RESEARCH EXPENDITURES RESEARCH FINDINGS RESEARCH INSTITUTE RESEARCH INSTITUTES RESEARCH INSTITUTIONS RESEARCH PROGRAMS RESEARCH SECTOR RESEARCH UNIVERSITIES RESEARCH UNIVERSITY RESEARCHERS RESULTS SAN SCHOLARS SCHOLARSHIPS SCHOOL SCIENCE SCIENTIFIC EXCELLENCE SCIENTIFIC JOURNALS SCIENTISTS SERVICE PROVIDERS SILK SITES SKILLED WORKERS SKILLS SMALLER NUMBER SOCIAL SCIENCE STUDENT STUDENT BODY STUDENT SUPPORT STUDENTS SUPERVISION SUPPLY CHAIN SYSTEM SYSTEMS TECHNICAL EXPERTS TECHNICAL KNOWLEDGE TECHNICIANS TECHNOLOGICAL CAPABILITIES TECHNOLOGICAL DEVELOPMENT TECHNOLOGICAL INNOVATION TECHNOLOGIES TECHNOLOGY TECHNOLOGY DEVELOPMENT TECHNOLOGY LICENSING TECHNOLOGY MANAGEMENT TECHNOLOGY TRANSFER TECHNOLOGY TRANSFERS TECHNOLOGY USERS TELECOMMUNICATION TELECOMMUNICATION EQUIPMENT TELECOMMUNICATIONS TELECOMMUNICATIONS EQUIPMENT TELEVISION TERTIARY EDUCATION TERTIARY INSTITUTIONS TRAINING TRANSACTION TRANSFER OF TECHNOLOGY TRANSISTORS TRANSMISSION TUITION TUITION FEES UNIVERSITY USERS USES VALUE CHAIN VIDEO WEB WOOD WORKERS How can Penang upgrade and diversify its economy? This paper addresses this question using a number of methodologies that have been developed for assessing competitiveness and identifying the direction of future industrial evolution. The results show that although Penang was successful in attracting foreign direct investment to the electronics industry, this has not translated into a deepening of industrial capabilities or the nurturing of innovation capacity in Penang. No large Malaysian firms in Penang have taken the lead in innovation and there is little new entry by local firms, despite incentives provided by local and national governments are generous. Universiti Sains Malaysia, the principal university in Penang, is contributing through provision of skills, and it is beginning to multiply university industry linkages. However, the university s research activities are too limited and too diffuse to significantly initiate innovation by local industry. Under the current circumstances, and given its relatively small size, Penang will have to try much harder to strengthen its competitive advantage in its most important industry -electronics- through actions that build research capital. It will also have to increase its efforts to develop the potential of other value-adding activities, such as medical services and tourism. A strategy focused on localization economies is likely to be the most feasible option. 2012-03-19T19:11:05Z 2012-03-19T19:11:05Z 2009-06-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090619092524 http://hdl.handle.net/10986/4165 English Policy Research working paper ; no. WPS 4971 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper East Asia and Pacific Southeast Asia Asia Malaysia