How can governments help in technology-driven economic development?

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After graduation, I worked for a few months in the technology startup ecosystem in Pakistan. As a young Pakistani with starry eyes fresh out of college, I have often discussed how policy makers should overshadow and allow entrepreneurs to build and disrupt markets. I imagined politicians coming up with outdated ideas and hindering tech entrepreneurs who were adamant not only to revolutionize existing markets, but also to build new ones with their innovative products and approaches. I have seen entrepreneurs create jobs, introduce new technologies, and foster a culture of experimentation and learning in their communities. It was fair to argue why the government of Pakistan should step back if it hasn’t been able to update its public policy to keep up with the times, but I missed an important point.

For innovation to drive the economy, it is not necessary for government to take a back seat, but rather take an enabling leadership position to support technology-driven economic development. Or at least so says in her work Mariana Mazzucato, also known as the scariest economist in the world. His book The Entrepreneurial State to Mission Economy: A Moonshot Guide to Changing Capitalism, presents evidence of how high-risk, early-stage public funding in research and development has been driving technology-driven and innovation-driven development of United States. state economy.

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How should the government work on tech entrepreneurship?

If the state encourages and rewards risk-taking and innovative ideas, then it’s only a matter of time before tech entrepreneurship and innovation take off to act as a tool to increase productivity and generate better results for the country. For this to happen, the governments of the future need to be entrepreneurial, mission-oriented, and bold that take risks, support and defend even the people who are leading the way for the generation of new knowledge in an economy. As an integral component of a knowledge economy is technology entrepreneurship and innovation, it is imperative that the state work in partnership with the private sector to encourage and facilitate risk-taking and experimentation for economic growth.

This is where the new Authority for Special Technology Zones (STZA) comes into operation in Pakistan. It cannot be denied that technological innovation is the main growth driver for development in the 21st century. Today it is considered to be one of the most important and obvious policy tools for transforming the economy and export base from a low-tech to a high-end, value-added economy. The ability to leverage entrepreneurs and knowledge workers to innovate is a key tool that some developing countries have relied on to be able to leap forward and produce goods and services demanded by global markets; thereby, adding much needed jobs and alleviating poverty.

From China’s Zhongguancun (Z-Park), which has emerged as a supercluster of leading Asian entrepreneurs, to South Korea’s DaedeokInnopolis and Singapore’s Sichuan Hi-Tech Innovation Park, they have all played a crucial role in the rise of their respective countries in economic and technological terms prosperity in competition with the rest of the world. Combined with the vibrant academia and venture capital firms nearby, these super clusters have produced successful start-ups and housed manufacturing and R&D facilities for some of the largest technology companies in the world.

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Understanding STZA and the way forward

Perhaps the main reason for the rise of these innovation clusters has been the role of the government acting as an advocate, facilitator, cheerleader, supporter and investor in entrepreneurship and technology innovation. In light of the success of technology zones around the world, the government of Pakistan established STZA with a mandate to provide world-class digital and physical infrastructure through the creation of special technology zones (STZ) and the inclusion of Pakistan on the technology map global.

Special Technology Zones are meant to be a knowledge ecosystem in a geographic package that includes technology companies, startups, R&D facilities, universities, incubators and other facilities. The respective actors take advantage of tax incentives, establish strong links with each other and participate in knowledge-intensive activities for the shared goals of technological entrepreneurship and innovation which ultimately contribute to the socio-economic development of the country.

The Authority hopes to uphold a customer-oriented mindset in government by translating bureaucracy into a red carpet experience for its stakeholders. It will provide companies with a direct link to the government through its unique structure, mitigating the obstacles that come with red tape and serving as a one-of-a-kind customer-oriented state authority. Ultimately, STZA must demonstrate that the state must be the leader in betting on its talent and facilitating its growth, prosperity and prosperity in today’s world.

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From the United States to China, it is state funding and policies that have been behind the rise of some of the world’s greatest innovators and companies. Mazzucato also argued in his work that governments have played the role of guiding investors in innovation to stimulate the growth of their respective knowledge economies. If Pakistan is to bring to life the greatest innovators of tomorrow, then it is time for the government to take the initiative to invest in its talent. With the support of provincial governments, STZA is a strategic initiative through which the government can pave the way for technology-driven economic development.

The writer works as Manager, Linkages & Publications at the Special Technology Zones Authority (STZA) in Pakistan. He holds a BA in Social Research and Public Policy from New York University. Tweet @ malik_warda7. The views expressed in this article are those of the author and do not necessarily reflect the editorial policy of Global Village Space.

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