The organisation for economic cooperation and development

Pursuant to Article 1 of the Convention signed in Paris on 14th December 1960, and which came into force on 30th September 1961, the Organisation for Economic Cooperation and Development (OECD) shall promote policies designed: – to achieve the highest sustainable economic growth and employment and a rising standard of living in Member countries, while maintaining financial stability, and thus to contribute to the development of the world economy; – to contribute to sound economic expansion in Member as well as non-member countries in the process of economic development; and – to contribute to the expansion of world trade on a multilateral, non-discriminatory basis in accordance with international obligations. Kingdom and the United States. The following countries became Members subsequently through accession at the dates indicated hereafter: Japan Permission to reproduce a portion of this work for non-commercial purposes or classroom use should be obtained through the Centre français d'exploitation du droit de copie 3 FOREWORD Following a Forum discussion by the OECD Industry Committee, the Directorate for Science, Technology and Industry (DSTI) published a report in 1999 entitled Asia and the Global Crisis: The Industrial Dimension. This study pointed to key structural weaknesses in the development of knowledge-based industries, especially those based on information and communications technologies, in the Asian industrialising countries. The present study – which covers Korea, Singapore, Chinese Taipei, Malaysia, Thailand and China – goes one step further in examining the status of technology-intensive sectors in Asia and highlighting issues important to their continued development. While Asian countries have made considerable progress in developing knowledge-based industries, they are still faced with a number of major challenges. The study considers four key areas: improving information infrastructure; investing in education and carrying out educational reform; strengthening core innovation capacities; and benefiting from foreign direct investment.