Innovation, technology and global competitiveness

Introduction: A new dawn for private sector growth

As Bangladesh comes out of the political transitions of recent times, probably in no time in its history has the need for rejuvenation of the private sector become urgent. The private sector in Bangladesh, anchored by the industries such as RMG, textiles, agriculture, and SMEs, has contributed reasonably to GDP growth, employment, and export earnings for the country. Yet, international markets are changing, driven by technology, innovation, and new economic paradigms that come with challenges and opportunities for Bangladesh's private sector.

This article explores how innovation, digital transformation, and strategic partnerships can position Bangladesh as a globally competitive economy. It highlights the critical role played by technology hubs, innovation centres and academic-industry collaborations in nurturing an ecosystem conducive to sustainable growth. As the country steps into a new political era, it becomes imperative for the private sector to embrace these changes to maintain competitiveness and promote long-term economic sustainability.

Bangladesh's success in adapting to technological advancements will not only ensure its relevance in international markets but also foster inclusive economic growth at home. A forward-looking private sector must align with global trends in automation, artificial intelligence (AI) and sustainable business practices. By doing so, Bangladesh can effectively meet the evolving demand of both local and global markets, ensuring that its economy thrives amid dynamic changes and emerging challenges.

The role of SMEs: Backbone of Bangladesh's economy

There are substantial contributions of SMEs in Bangladesh to employment and income generation. They contribute nearly 25 per cent to the GDP and absorb about 85 per cent of industrial employment. However, SMEs are beset with a number of problems: limited capital access, outdated business models, and technical backwardness amongst others. These constraints have led to a situation whereby their response to modern technologies has been minimal, hence their competitiveness in the international market.

Essentially, therefore, unlocking the full potential of SMEs requires that financial inclusion should be at the forefront. The new regime under Dr. Muhammad Yunus is expected to launch a slew of policies and programmes in the form of access to reasonable finance through microfinance institutions, digital lending platforms, and public-private partnerships. In addition, there is a need for SME innovation funds and business incubation programmes to facilitate enterprise ability to invest in modern technologies for scaling operations efficiently.

Case study example: The SME Development Fund of Vietnam played a very vital role in encouraging enterprise development; loans at subsidized rates are granted to startups and small enterprises. Such a model can be emulated by Bangladesh in order to make its SMEs more competitive in foreign markets.

Driving innovation through technology hubs and innovation centres

One of the surest ways to engender innovation is by setting up technology hubs and innovation centres. The ecosystems for startups and SMEs provide them with resources, mentorship, and networks they need for developing innovative solutions. Leading examples include the Bengaluru tech hub in India and the One-North innovation clustre in Singapore; these have transformed their respective economies into innovation-driven growth engines.

Dhaka and Chattogram have the potential to become regional tech hubs in Bangladesh. This shall catalyze the transformation by investing in technology parks, research facilities and co-working facilities. Furthermore, the incentives would include exemptions in taxes for IT startups and providing grants for R&D (research and development) activities that will attract investment in innovation sectors, both locally and internationally.

Equally important to the success of technology hubs would be a talent development focus. It would mean an alignment of universities and research institutions with curriculum changes so that skill sets get built in AI, data analytics, blockchain and IoT (internet of things) technologies. Such an alignment will ensure a continuous flow of professionals capable of leading Bangladesh through its digital transformation.

Academic-industry collaboration: Building bridges for growth

Collaboration between academia and industry in the cultivation of innovation, improvement of workforce preparation, and attainment of sustainable economic progress is critical. Partnerships in higher education institutions and businesses have catalyzed R&D, provided innovations with commercial value, and produced employable graduates in many countries. These partnerships make sure that theoretical education answers to the practical needs of the industry for continuous talent flow into the market.

A very good example is South Korea's KAIST, which, in cooperation with such large companies as Samsung and LG, develops the most advanced technologies. The purpose of such collaboration is not only to make South Korea a leader in this field but also to increase the competitiveness of its industries in world markets. At KAIST, students and faculty work out solutions to real problems through joint R&D projects that make the transfer of innovation from academia to industry smooth and effective. Similar models in other countries, such as Germany and Singapore, demonstrate how academia-industry collaboration catalyses an entrepreneurial ecosystem with a competent human resource base to address emerging challenges.

Bangladesh's private universities: Catalysts for innovation

In Bangladesh, a number of private universities are singularly poised to play a similar transformative role. Institutions such as North South University (NSU), BRAC University, Independent University, Bangladesh (IUB), East-West University, American International University-Bangladesh (AIUB), and the Institute of Business Administration (IBA) of Dhaka University could become strategic partners with the private sector in industries like fintech, agribusiness and technology.

These universities are already recognised for their academic excellence; however, deeper collaborations with industry would be important in creating an ecosystem of innovation and entrepreneurship. Sharing knowledge platforms, internship programmes, co-operation placements, and joint research initiatives between universities and businesses will bridge the gap between classroom learning and real-world applications. Blockchain research partnerships that involve fintech companies can allow students to develop financial algorithms and solutions, while in agribusiness firms, students could work on sustainable farming with IoT and data analytics.

Besides, the entrepreneurship courses offered in universities will be able to motivate and inspire students to start a venture that will contribute to an active private sector. Innovation labs and incubators set up on campuses will help give life to young entrepreneurs through mentorship, funding opportunities and industry networking. This will definitely enhance not only their learning but also start off a more developed private sector in Bangladesh with innovative ideas injected into it.

Accelerating economic transformation of Bangladesh through collaboration

The industries of Bangladesh, while facing economic challenges wrought by global shifts, need to adapt to innovation-driven models, if they are to remain competitive. Collaboration between academia and industry becomes even more important in sectors like information technology, RMG, and agriculture, where digital tools and ways of sustainable practice are becoming indispensable.

Hence, such partnerships are in good agreement with the vision for a knowledge-based economy that is innovative and sustainable. University-based technology hubs, innovation centres, and startup accelerators can be directed at coming up with solutions to imperative challenges facing the nation, including energy efficiency, agriculture modernisation, and export product development.

Building these collaborative practices will also further align with Bangladesh's strategic goals on its journey toward economic growth and sustainability. As companies in the global economy increasingly invest in nations with a high drive for innovation, the universities of Bangladesh can play a very important role in fostering a pool of workers whose skill sets are matched to the demand for AI, Data Science and smart technologies through industry partnerships. By doing so, alignment between academia and industry can help Bangladesh's private sector stay competitive in an increasingly global and fast-moving economy.

But it is high time that universities and business enterprises viewed strategic collaborations not as a luxury but as a dire necessity toward sustainable growth. The private universities in Bangladesh have the potential to act as catalysts for change through fostering innovation, developing job-ready graduates, and nurturing entrepreneurship. With effective collaboration with the industry, the academic sector can trigger economic progress in the country to stand Bangladesh ready for a future where competition is not regionally limited but globally set up.

Adopting emerging technologies for competitive advantage

The fourth industrial revolution is upon us, and with it, automation, AI, robotics, and big data analytics are changing the face of industries. If Bangladesh needs to hold its own in the global market, these technologies have to be absorbed by the private sector in the country and incorporated into how business is done.

1. AI in manufacturing: AI-driven systems can help the RMG sector in Bangladesh optimise their production lines, reduce waste and improve quality control in order to retain their competitive advantage in the global markets.
2. Blockchain for supply chain management: With blockchain technology, supply chains are more transparent and traceable, while increasing trust with international buyers and meeting ESG (environment, social and governance) compliance requirements.
3. Digital payments and fintech: Through better use of digital financial services, fintechs can drive financial inclusion by making access to credit easier for SMEs and smoothing cross-border transactions.

It will equally be important for the country to adopt green technologies that ensure sustainable growth. To this end, businesses must adopt renewable sources of energy, environment-friendly packaging, and waste management solutions to international standards of sustainability.

Challenges to innovation and technology adoption

Despite opportunities, various challenges have arisen in innovation and technology adoption in Bangladesh's private sector. Some of these include:

• Limited access to capital for technology investments.
• Regulatory bottlenecks, which often delay the deployment of new technologies.
• Easy availability of skilled professionals who have expertise in using advanced technologies.
• Cultural issues, given the centrality of traditional business models.

These will be addressed through a government policy of ease of doing business and, at the same time, ease of compliance. Streamlining regulatory procedures is also needed. Public-private partnerships and different types of financial incentives will be extended to enterprises while they are introducing various new kinds of solutions. Capacity-building programmes, training, and certification in new technologies will make the SMEs both capable and confident in the adoption of digital transformation.

Role of policy support and international partnerships

Bangladesh needs to align private sector growth with SDGs so as to be more competitive in the world. These days, consumers and investors are increasingly demanding sustainability. Enterprises embracing environmental concerns will enjoy a competitive advantage. Private sector can take the lead by investing in green technologies and behaviour of circular economy, reducing carbon emission.

These will open access to resources, expertise, and technology that are needed for sustainable growth in Bangladesh through the partnerships with international organisations such as the World Bank, Asian Development Bank, and IFC. Also, regional trade agreements and innovation and technology cooperation deals with neighbours will be further value additions to competitiveness.

Role of policy support and international partnerships

Bangladesh needs to make private sector growth in line with SDGs for competitiveness at the global level. Consumers and investors emphasize sustainability first, where businesses adopting environment-friendly practices will have leverage over their rivals. The private sector can lead by investing in green technologies, promoting circular economy practices, and reducing carbon emissions.

The partnership that is probable to take place in the context of ties with international organisations, such as the World Bank, Asian Development Bank, and the International Finance Corporation, can be expected to provide Bangladesh with the resources, expertise, and technology to steer growth in a sustainable manner. Participation in regional trade agreements and innovation and technology collaboration with neighbouring countries will further build competitiveness.

Bangladesh's path to global competitiveness requires formidable policy support from the government. In this respect, policies should motivate entrepreneurship, support innovation, and ensure competition. A regulatory sandbox for innovative industries-fintech and AI-driven business-will enable the firms to experiment with innovative solutions without unnecessary regulatory limitations.

The international partnerships will also be very crucial in development of the private sector. Bangladesh should actively engage the development agencies, foreign investors, and multilateral organisations for funding and technical capability. Partnerships with premier organisations like World Bank, IFC, and Asian Development Bank will bring in the much-required financial and technological wherewithal to hasten innovation.

Way forward: Building a resilient and innovative private sector

For Bangladesh to foster a globally competitive and resilient private sector, a holistic strategy that champions innovation, digital adoption, academic-industry collaboration, and progressive policy reforms is essential. As the country's economy evolves, the private sector must adapt by adopting new technologies, implementing sustainable practices, and integrating advanced academic insights to meet international standards. This shift requires breaking away from conventional business models, embracing digital transformation, and investing in green technologies to align with global expectations for sustainable growth and competitiveness.

Key recommendations:

1. Creation of technology hubs: Establishing technology parks and innovation centres is crucial to cultivating an entrepreneurial ecosystem. These hubs will serve as incubators for startups, fostering technological innovation and providing a collaborative space where ideas can flourish and transition into practical, scalable solutions.
2. Enhancing SME financing: Financial inclusion must be prioritised to support the backbone of Bangladesh's economy-its small and medium enterprises (SMEs). Expanding digital lending platforms and strengthening public-private partnerships can make sure that SMEs have reliable access to capital, enabling them to innovate and compete effectively.
3. Strengthening academia-industry linkages: Building closer connections between academia and industry will make sure that university curricula align with market demand. Research partnerships, internships, and real-world projects will help produce job-ready graduates with skills that meet the evolving needs of businesses, fostering a more adaptable and innovative workforce.
4. Promoting green technologies: Incentivising the adoption of sustainable practices is vital. Tax breaks, grants, and other financial incentives for companies transitioning to greener technologies will not only reduce the country's environmental impact but also increase appeal to international investors prioritising sustainability in their investments.

As Dr. Muhammad Yunus famously noted, "We can create a world without poverty, but it requires vision and commitment." To fulfill this vision, the private sector must assume a leadership role, championing sustainable development and innovation as the engines of economic growth. Such a transformation calls for a commitment to sustainable, inclusive practices that lift entire communities while making sure businesses are future-ready.

With targeted investments in technology, workforce development and infrastructure, Bangladesh has the potential to position itself as a regional innovation hub-a model for others on how to balance business growth with environmental and social sustainability. Achieving this requires collaborative efforts, forward-looking policies and a commitment from the private sector to leverage cutting-edge technologies and sustainability practices. Through this approach, Bangladesh can ensure long-term resilience, competitiveness and progress, securing its place on the global economic stage

A vision for future prosperity

The revitalisation of the private sector will, therefore, feature prominently in Bangladesh under new leadership. Innovation and technology are not just enablers of growth but, in fact, imperatives for survival in the ever increasingly competitive global marketplace.

Only through technological integration, partnership-building and alignment of business strategies with sustainability goals Bangladesh will be able to attain a future-ready economy and face 21st-century challenges. The private sector will become an engine for inclusive growth, with Bangladesh surging toward global competitiveness and sustainable prosperity alongside sharp focuses on SME development, academic collaboration and technological innovation.

As Satya Nadella rightly pointed out, "The future is about people collaborating with technology." Bangladesh's private sector is needed to embrace that future and boldly adopt strategies and approaches for collaboration that would steer the nation toward a new era of innovation and success.

Dr. Serajul I. Bhuiyan is professor and former chair of the Department of Journalism and Mass Communications at Savannah State University, Savannah, Georgia, USA.

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