Over the next five years, as we finally graduate to middle-income status, our growth imperatives must shift toward building on innovations. Our economic growth has been spearheaded by inexpensive labor in the past, which will cease to be a source of competitiveness as we further develop. We must seamlessly transition from a factor-driven to an innovation-driven economy. Research and development (R&D) play a pivotal role in fostering innovations within both academia and industry. However, we have failed to develop a culture of research and innovation in either of them.

In this year’s budget, the government allocated USD 88 million to research in the education sector out of a total allocation of USD 628 million, with the majority (USD 330 million) going to agriculture-based research. To put this into perspective, a mid-tier US university invests more than a billion dollars in research annually.

Lax implementation of intellectual property laws has further hindered the private sector’s ability to invest in innovations, as others can simply copy innovative products and solutions without facing legal repercussions. The commercialization of innovation is also a significant challenge due to the absence of effective academia-industry collaboration and inadequate seed funding and research grants.

It would be nearly impossible to transition to the pedestal of a developed economy without investing in technology, research, and innovation. The government will have to eke out more funding for research and establish transparent governance mechanisms to ensure the proper deployment of funds. But the question remains: What policies and incentive mechanisms can policymakers institute to foster greater industry-academia collaboration and facilitate private sector-led investments in R&D?

What brought us here won’t take us there. It’s time to collaborate to ensure that Bangladesh does not become a victim of the middle-income trap.