The document discusses how ASEAN nations need to develop indigenous innovation to transform their economies but are doing little currently. It notes that ASEAN economies have relied on government infrastructure projects, foreign direct investment, and local conglomerates, but there is little innovation. Research and development lag far behind other major economies. To develop innovation capabilities, ASEAN nations will need to rethink economic policies, abandon assumptions, and nurture a culture that encourages creativity, meritocracy, collaboration, and risk-taking. Education systems and workplaces will need reform to develop an innovative society and workforce.

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Post Categories: Asia 1 Lebanon’s Red lines, Bared: What a Difference a
Prof. Murray Hunter | Monday, October 15, 2012, 11:40 Beijing Week Can Make in the Middle East
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2 The Dollar Will Collapse from Washington’s Abuse of
Its Role as Reserve Currency: “China Will Have
Defeated Superpower without Arms Race or Firing a
With the exception of Singapore, which can be considered a Shot”
developed city-state, most members of ASEAN are still
developing nations, with a few still in the under-developed phase 3 Nerve Gas and Phosphorous Bombs Reportedly Used
of growth. In addition, there is great range in the level of in USNATO-sponsored Destruction of Bani Walid:
prosperity within each ASEAN nation, particularly between rural War Crimes Continue
and urban areas. On face value[1] the ASEAN region looks
4 Sudanese Demonstrate Against Israeli Bombing in
potentially poised to become a major trading partner within the Khartoum: Tel Aviv suggests it was responsible for
global economy, or is it? attacks on weapons factory
Economic development within the individual ASEAN states has 5 UN Special Investigator on Human Rights in Palestine
been heavily dependent upon government infrastructure (rather Call for a Int’l Boycott against All Companies That
than private) development, foreign direct investment, and the Help Israeli Settlements
growth and diversification of local conglomerate firms.
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Very few ASEAN governments adopted the “Hong Kong” infrastructure development model which
7 US, “the second most dangerous nation after Israel,”
in many cases turns infrastructure from a cost to a profit centre. ASEAN governments have opted
Secretly Deployed Nuclear Missiles to OKINAWA
to borrow and provide basic infrastructure from their own fiscal budgets.
Aimed at CHINA
Where some infrastructure projects were privatized in countries like Malaysia, most were
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undertaken by firms with little or no experience in developing infrastructure like roads, water First Vote Was Cast: US Election Culture
distribution, and ports.
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Actual construction work is often sub-contracted to foreign firms which bring in turnkey technology America
in with them and return to their home countries with it when projects are completed.
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In addition, infrastructure projects are seen by some officials as an opportunity to personally benefit Lawless, Systematic Murder as the AMERICAN WAY
where costs often blow out . There have been numerous scandals reported over the years in many OF LIFE
ASEAN countries over infrastructure development.
Video +MORE
The second driver of economic development, foreign direct investment (FDI) has been primarily
attracted to the region because of the availability of infrastructure, semi-skilled labour, and a
relative low cost base. Innovation has been rarely on the agenda, where the region has been seen
by international manufacturers more as a production rather than research and development hub.
Thus many hi-tech clusters have not successfully catalyzed the creation of vibrant local innovation
based companies as sub-contractors and suppliers, except for local freight forwarding industries.
Foreign MNCs that have set up to focus upon ASEAN as a market would set up a head office in a
platform country like Singapore and establish agents, distributors, joint ventures, manufacturing
facilities and distribution networks in the other ASEAN markets. Again there is little local innovation
as most products and brands MNCs launch within ASEAN are adapted from other markets.
‘Death and destruction in Bani Walid’ as
The third facet of ASEAN economic development are the locally owned Chinese conglomerates media silent
which commonly started off with some form of simple trading or natural resource exploitation. As
Bani Walid civilians bombed with gas – RT source
the ASEAN economies grew and diversified so did these activities. The Chinese families of the
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region vertically integrated into both manufacturing and supply chain activities, later evolving into
Terror Op
property, real estate, banking, and finance opportunities.
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These firms primarily developed through selecting low risk opportunities as the economy expanded After Kraft Foods Leak in Germany
and diversified, undertaking very little, if any real innovation, except in the area of branding. The
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Clashes at Anti-Merkel Protest
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2. The 4th Media » ASEAN Nations Need Indigenous Innovation to Transform Their Econo... Page 2 of 5
advancement of these businesses in the past has often relied upon strong connections with VIDEO: 4,000 tons of Shells Explode in Central
politicians, the military, or royalty. Today many of these conglomerates prefer to expand in the Russia, Leave Mushroom Cloud-like Plume of
lucrative service industries rather than develop costly and risky new technology. Smoke
As a consequence, the present capability to develop transformative innovation indigenously within VIDEO: Iranian PressTV Reporter Killed On Air by
the ASEAN region is low. There is very little new innovative technology being developed and Syrian Rebel Sniper in Damascus
emerging industries like mobile communications are consumers of turnkey technology rather than
producers of new innovations. Photos +MORE
As the ASEAN economies will still need to rely upon the global market for continued economic
growth in the future, there is a great need for businesses and researchers within ASEAN to develop
the capability for indigenous innovation. Without indigenous innovation long term per-capita income
may even decline relative to other regions as the traditional agro, resources, and manufacturing
sectors cease to contribute substantial growth to the economy.
Foreign firms and the local Chinese conglomerates within ASEAN show no signs of providing this
necessary indigenous innovation that is needed to produce a competitive economy and assist the
transformation into a fully developed region. 1 2 3 4
The Winner of the Election George W. Bush: The
If indigenous innovation is to be a future key driver of economic development, then future ASEAN
Election Looks Pretty Close But That’s an Illusion
government economic, research, education, and industrial policies and subsequent implementation
strategies need to be reconsidered. This requires the abandonment of many existing economic and
social assumptions held by those in executive power and at the public administration levels[2]. Most Popular
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As mentioned in the introduction, most industries within the ASEAN region have been developed as 2 US, "the second most dangerous nation after
consumers rather than innovators of technology. The communications, computer, aviation, and
Israel," Secretly Deployed Nuclear Missiles to
automobile industries are all consumers reliant upon outside technologies, either through the
OKINAWA Aimed at CHINA
purchase of turnkey plants or licensing.
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As such there is little organizational learning that actually takes place and thus the development of innovative
internal innovation competencies within ASEAN firms is inhibited. Indigenous technological
development just doesn’t occur. Likewise, many studies have shown that ASEAN SMEs are users 4 US Behind the DIAOYU Islands Dispute: To
rather than creators of technology. Contain China, to Obstruct Renminbi from
Becoming a International Currency
The industries of the future will be in the hands of those who control the technology. Whether
manufacturing, exploiting natural resources, or providing services, the key to any competitive 5 Power of MONEY Rules: LAW Serves the
advantage will be control of present and access to future technology. Without this any industry will Powerful, NOT Justice: Police State USA
struggle to contribute to a nation’s global competitiveness, and enhance the export base.
6 DISTURBING & DEVELOPING: OBAMA
One of the major differences between the ASEAN region and other major trading nations like CAUGHT ARMING AL QAEDA, REASON FOR
China, Japan, Korea, the US, and EU is in the area of research and development. LIBYA COVER-UP: "Benghazigate"
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The ASEAN region is still nascent when it comes to research. Researchers at higher education and
other research institutions tend to imitate previous research undertaken in other regions of the
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world.
Revealing Truths
Much research is undertaken on an ad hoc basis aimed toward fulfilling career and promotion 9 'Death and destruction in Bani Walid' as media
requirements rather than focusing on commercially orientated and national development issues.
silent
There is very little collaboration with industry and most research projects are abandoned at
conceptual level where even prototypes are not built. 10 Nerve Gas and Phosphorous Bombs Reportedly
Used in USNATO-sponsored Destruction of Bani
Expert panels screening applications from research funding agencies are conservative and
Walid: War Crimes Continue
discourage avant-garde research projects, usually knocking them back due to lack of evidence or
from commercial ignorance, preventing researchers pursuing new ideas.
Consequently research output within the ASEAN region lags greatly behind other major trading
nations indicating an horrendous gap in indigenous innovation as measured by resident patent
applications filed through the Patent Cooperation Treaty procedure with various nation patent
offices.
2004 2005 2006 2007 2008 2009 2010
ASEAN 2,573 2,737 2,904 3,100 3,286 3,572 4,114
US 189,536 207,867 221,784 241,347 231,588 224,912 241,977
CHINA 65,786 93,485 122,318 153,060 194,579 229,096 293,066
INDIA 4,016 4,721 5,686 6,296 6,425 7,262 -
JAPAN 368,416 367,960 347,060 333,498 330,110 295,315 290,081
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EU 103,367 101,232 100,678 110,731 111,880 110,319 98,894
Korea 368,416 367,960 347,060 333,498 330,110 295,315 290,081
Figure 1. resident patent applications filed through the Patent Cooperation Treaty procedure of
major trading nations[3]
With the exception of Singapore, university standards are low in the region. In contrast, Chinese,
Korean and Hong Kong universities are rapidly rising within the world rankings. This research gap
is likely to widen rather than narrow.
At the industry cluster level the Malaysia’s Multimedia Super Corridor (MSC), regional corridors,
and Biotech clusters have to date achieved very modest results, and it is still too early to tell
whether Singapore’s massive gamble on the Biopolis will bring enough biotechnology IPOs to bring
sufficient financial returns from the research being undertaken.
The development of mega-cities within some ASEAN countries should be hotbeds of creativity and
innovation[4]. However as the patent figures above indicate, the growth of mega-cities within
ASEAN has not brought with it a culture of creativity that many other growing mega-cities around
the world have experienced[5].
Further, ASEAN mega-cities have brought traffic jams and urban problems of crime and poverty.
This appears to be corroborated by performance within other creative domains like the arts,
theatre, music, and sport. This apparent lack of any culture of creativity will potentially cost the
region dearly in the quest to participate in the next stage of world development based on innovative
sustainability.
What needs to be done?
The ability to develop indigenous technology is a capability that may be more important than the
issues of trade liberalization and implementing Western notions of democracy within the region.
However ASEAN governments have been employing losing strategies in their policy initiatives. This
all requires a rethink.
The ASEAN region has been bureaucratized almost to the extent of stalled effectiveness. For
example the Ministry of Science and Technology (MOSTI) and Higher education (KPT) in Malaysia
centrally control the allocation of scarce research funds which usually end up funding projects that
have little benefit to industry or national development.
This ego-centric, ‘government knows all approach’ to technology and industrial development is
something akin to the old Soviet era “GOSPLAN” apparatus.
Another great tragedy is the lack of regional research cooperation with few existing mechanisms to
encourage it. ASEAN has a very poor track record of collaborating as a group ever since the pull
out of all the individual nations of the Malaysian initiated ASEAN car project back in the early
1980s. There are deep attitudes of complacency within the ASEAN leadership, contributing to the
failure to synergize knowledge generation within the region.
The key to developing indigenous innovation seems to be culturally linked, which leads to the
question of what type of culture do ASEAN nations need to nurture for the next generation?
A creative society is bound up in the norms, values and lifestyles embedded within the structure of
society and this has been deeply influenced by the social directions ASEAN governments have
encouraged over the last generation.
Creating change involves battling the inertia of society and this must begin with education which is
vital to change. However ideas and curriculum are years behind other regions. Talent and diversity
needs to be cultivated rather than conformity.
It’s no longer enough to guarantee a place in the classroom and achieve high national examination
scores, real creativity must be encouraged and nurtured. This doesn’t necessarily require a
massive increase in funding, but rather reallocation and a cathartic change in the bureaucratic
mindset to adopt new curricula. It may not be a funding problem, but a priority and allocation issue.
Creativity is fundamentally a social process where new ideas are more likely to come through rest
and relaxation rather than strenuous formal meetings.
Consequently workplaces need to be redesigned so that an environment of serendipitous sharing
becomes the norm. This must be supported by the correct motivation systems that reinforce and
truly reward new ideas and promotes high productivity – something deeply lacking in the region
today.
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Nepotistic structures must be overturned with the practice of true meritocracy, where it should be
recognized that creativity doesn’t necessarily increase with experience. Nepotism is a curse that
prevents peer recognition of creative acts and suppresses excellence at the very time collective
creativity needs to be developed within organizations in the region.
The above calls for an almost total revolution within the ASEAN workplace, which would be strongly
resisted by the by the ‘Hongs’, ‘Toukays’, and ‘powerbrokers’ within organization hierarchies.
Through ASEAN citizens studying abroad, travelling, and experiencing the values of other societies
through the media and consumerism, the exposure is there for change. However the experience of
other cultures has yet to bring a complete open mindedness within the region, enabling the mental
flexibility needed to be creative as a society. We are eating the Big Mac without understanding how
and why it came to be.
ASEAN is still plagued by inward thinking which is preventing the possibility of the region breaking
out of old patterns, growing and maturing to become an influential trading block.
Leadership in the region is still taking a risk adverse approach to issues of ASEAN integration and
currently without the visions necessary to create the society as a platform that facilitates the
synergy of new ideas that can potentially lead to untapped multiplier effects and greater diversity.
ASEAN members are still locked within the psychic prison of tribalism and the belief of what has
worked in the past will do so in the future.
This is not about freedom and democracy as some in the “West” deem necessary, as alternative
models of growth and development like China now exist.
Development based upon imported technology will never be able to enable competitive advantage
over the technology providers. The inability to develop indigenous agro technologies concerned
with food production in the face of the changes rising population and climate change is a future
disaster waiting to happen.
At the very least, future agro-industry development without indigenous technology, being solely
reliant upon foreign technology may even challenge the very notion of sovereignty over resources
that ASEAN governments have so zealously protected.
The lack of indigenous innovation may play into the hands of China and the US, where ASEAN will
be militarily dependent upon hardware suppliers thus ensuring the region is weak militarily, at a
time where a new Asia-Pacific order is emerging.
Prof. Murray Hunter
[1] One can see that ASEAN exports to the world are not far away from the US, EU, and China and
surpass India and Japan.
[2] Currently most ASEAN governments must act to restrain wage growth so that FDI will find the
country attract to set up and maintain manufacturing operations. This indirectly encourages the
transfer of inefficient and outdated rather than the most up to date technology. Government policy
is also at the mercy of external economic factors such as the state of the global economy,
particularly the most important trading partners. Consequently government policy tends to be
reactive to external conditions rather than proactive in seeking new technologically driven
industries.
[3] See World bank data: http://data.worldbank.org/indicator/IP.PAT.RESD/countries/1W?
display=graph
[4] See the hypothesis of Richard Florida (2012) in The Rise of the Creative Class Revisited, New
York, Basic books
[5] A culture of creativity could be best described as an environment where people can interact
creative synergies may occur as the result.
Tags: ASEAN development future technology
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