The Race towards a Knowledge Based Economy: A Comparative Study between Malaysia and Thailand

Abstract

This paper has attempted to study the development and growth of a knowledge based economy in two developing countries, namely Malaysia and Thailand. A summary of different economic theories states that the best theoretical grounding for a knowledge based economy is the endogenous growth theory. The conceptual framework established for statistically measuring the success of knowledge-based economy comprise of the following variables: 1). innovation, 2). information and communication technology, 3). human resource development and 4). business environment. Recommended additions to the framework were proposed in this paper based on integrating the following variables: 1). government incentives, 2). better human capital, and 3). institutional factors. The last section of the paper proposes policy recommendations and conclusions. [PUBLICATION ABSTRACT]