Can East Asia Compete?: Innovation for Global Market

This World Bank book, the first in what is to be a series of publications on East Asian economies rebounding after the 1997 economic crisis, focuses on East Asia's industrial competitiveness and the ability of middle- and higher-income economies to resume sustainable growth. It is argued that East Asia can be turned around with a three-pronged approach. An environment that sustains innovation and competitiveness can be created with a focus on continued clustering of firms, which can lead to innovation and implementation of supportive policies. Growth in the services industry, particularly business services in the financial sector, is needed. Banking reform and a competitive, well-regulated financial sector is crucial for growth. The increased use of information and communication technologies (ICT) is important because it promotes innovation through collaboration and competition and is integral to key business services—making all three recommended remedies interrelated.