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The UAE has received high ranking from World Economic Forum in the
recent Global Competitiveness Report. There are many performance indicators on which the competitiveness of an economy is decided, including infrastructure, goods market and labour market efficiency. Two of the key
indexes in which the UAE has been making huge strides is education and technological readiness. These go a long way in putting the Emirates on the path of a knowledge economy, which is in line with the UAE 2021 Vision.
Knowledge economy evolves through research and development in technologies, promotion of vibrant innovation landscape, strengthening of institutional structures and a good ICT (information and communications technology) infrastructure. Such an economy is robust and weathers market volatility. The UAE is investing heavily to give the right boost to the knowledge economy. Apart from the AED300 billion plan which envisages implementation of 100 national initiatives in the educational, health, energy, transportation, space and water sectors, the country is adopting sustainable development that gives it a competitive edge in knowledge economy. More small and medium enterprises (SMEs) are being roped in to
experiment with innovative ventures.
In today’s age, there is a surfeit of information. It is imperative that the stockpile of data available is used in the most efficient manner. Having a policy to utilize ICT is rudimentary and should be placed at the core of all strategies. The success of knowledge economy depends on how well ICT is harnessed to better the lives of people. To make this happen, professional acumen and a huge talent pool would be required. And the educational institutions have to build this talent pool through skill development. The National Innovation Strategy envisions setting up innovation labs in schools and universities that can assist students — the future entrepreneurs — to think out-of-box. The labs have to instill responsible business culture and give thrust to creativity while unlocking potential.
Measures are also under way in the UAE to develop technological research and collaboration. More and more companies must come forward to join hands and share technologies that can be mutually benefitting. A synergy will drive the knowledge economy ahead. If one has the knowhow to produce a fuel-efficient air conditioner, the other can have the design and the third can market it effectively. If the three come together, they can change a green business model into reality. The Ministry of Finance has tied up with the Emirates Development Bank with an aim to support the transition to a knowledge-based economy. It is this cooperation that’s most vital today.
The new competitiveness report indicates that the UAE has achieved the first position globally in the index of government spending on new technologies. R&D is at the heart of knowledge economy. It spurs its growth. And the country is allotting a substantial percent of its GDP in R&D expenditure. Proper research and development will ensure that industrial competitiveness follows and economic diversification fructifies. The knowledge-driven economy paradigm also calls for continual investment in the human capital. Human capital is the cornerstone of progress. It is this capital which will help the country advance towards the goal of being one of the best countries in the world by 2021. The UAE is giving the right impetus to this investment and the efforts are already showing striking results.