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Creating a Competitive and Innovative Manufacturing and Service Economy

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  • Johannes Linn

Abstract

This article first considers the current state of diversification of the production and export structure of Central Asian economies. It then explores alternative approaches to the diversification, competitiveness, and innovation transformation challenge. Taking as given the prevailing trends of technological progress at a global level, this article analyzes the relevance of the various overlapping and strategic components of these approaches for the five Central Asian countries, which would allow an effective absorption and adaptation of available technologies and foster a culture of innovation in Central Asia. The key policies common to all the approaches include effective institutions and a favorable business environment for domestic and foreign investors; effective human resource development; strong connectivity nationally and internationally, in terms of transport infrastructure, logistics, and IT access; and the fundamentals of sound macroeconomic policy and a well-developed, resilient financial sector. In addition, this article will consider targeted interventions in support of the development of modern cities, of an internationally competitive innovation system, and of selected manufacturing and service activities.

Suggested Citation

  • Johannes Linn, 2016. "Creating a Competitive and Innovative Manufacturing and Service Economy," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 8(2), pages 126-167, May.
  • Handle: RePEc:sae:emeeco:v:8:y:2016:i:2:p:126-167
    DOI: 10.1177/0974910116634475
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    References listed on IDEAS

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    1. Natalie Leschenko & Manuela Troschke, 2006. "Fiscal Decentralization in Centralized States : The Case of Central Asia," Working Papers 261, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    2. World Bank, 2015. "World Development Indicators 2015," World Bank Publications - Books, The World Bank Group, number 21634.
    3. Indermit S. Gill & Ivailo Izvorski & Willem van Eeghen & Donato De Rosa, 2014. "Diversified Development : Making the Most of Natural Resources in Eurasia," World Bank Publications - Books, The World Bank Group, number 17193.
    4. Coulibaly, Souleymane, 2012. "Shifting comparative advantages in Tajikistan : implications for growth strategy," Policy Research Working Paper Series 6125, The World Bank.
    5. Souleymane Coulibaly & Uwe Deichmann & William R. Dillinger & Marcel Ionescu Heroiu & Ioannis N. Kessides & Charles Kunaka & Daniel Saslavsky, 2012. "Eurasian Cities : New Realities along the Silk Road," World Bank Publications - Books, The World Bank Group, number 11877.
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    Cited by:

    1. Batsaikhan, Uuriintuya & Dabrowski, Marek, 2017. "Central Asia — twenty-five years after the breakup of the USSR," Russian Journal of Economics, Elsevier, vol. 3(3), pages 296-320.

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