Why frontier firms in developing East Asia are falling behind

(Francesca de Nicola, Aaditya Mattoo, Jonathan Timmis – East Asia Forum) The most productive firms in developing East Asia are falling behind their global peers. Despite the spread of advanced technologies, especially in digital-intensive sectors, the region’s frontier firms are struggling to turn them into productivity gains. Regulatory barriers shelter unproductive incumbents and limit incentives for innovation, while weak capabilities, particularly in management quality and digital infrastructure, constrain firms that do try to innovate. Without synchronised reforms that strengthen incentives, skills and infrastructure, the foundations of the region’s growth will remain weak. – Why frontier firms in developing East Asia are falling behind | East Asia Forum