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Driving high-tech exports: The pivotal role of R&D

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High-tech exports serve as a critical driver of economic growth and global competitiveness for nations. In an era marked by rapid technological advancements and globalization, the ability of a country to expand its high-tech exports hinges significantly on its investment in research and development (R&D). By fostering innovation, enhancing product quality, and improving production efficiency, R&D plays a pivotal role in determining a country’s success in the high-tech export sector. This essay explores the significance of R&D in driving high-tech exports, highlighting its impact on product innovation, international competitiveness, and economic sustainability. Figure 1 compares High-Tech Exports among India, Malaysia and Sri Lanka. (See Graph 01)

The Link Between R&D and High-Tech Exports

R&D is the backbone of high-tech industries, enabling firms to develop cutting-edge products and services that cater to evolving global market demands. Technological innovations, resulting from R&D investments, enhance the quality, efficiency, and uniqueness of products, making them more attractive to international buyers. Countries with robust R&D ecosystems, such as the United States, Germany, and South Korea, have consistently led the world in high-tech exports. Their ability to create and commercialize innovative technologies underscores the direct correlation between R&D spending and export growth in the high-tech sector. Figure 2 compares High-Tech Exports and Research and Development expenses among India, Malaysia and Sri Lanka. (See Graph 2)

Figure 3 shows a comparison of High-Tech Exports and Research and Development expenses of Sri Lanka with Germany, Malaysia and the US. (See Graph 03)

Other Factors Influencing High-Tech Exports

While R&D is the primary driver of high-tech exports, several other factors also influence a country’s ability to compete in global technology markets. These include:

* Infrastructure and Logistics:

Efficient infrastructure, including transportation networks, digital connectivity, and advanced manufacturing facilities, is crucial for exporting high-tech products. However, without strong R&D, infrastructure alone cannot drive technological advancements.

* Trade Policies and Regulations:

Favourable trade policies, such as low tariffs, export incentives, and intellectual property protections, facilitate high-tech exports. Yet, without continuous innovation from R&D, trade policies alone cannot sustain competitiveness.

* Human Capital and Skilled Workforce:

A highly educated and technically skilled workforce is essential for high-tech industries. While talent is important, it must be complemented by R&D investments to create and commercialize innovations.

* Foreign Direct Investment (FDI):

FDI brings capital, expertise, and market access, enhancing a country’s ability to export high-tech products. However, nations that do not invest in R&D risk becoming mere assembly hubs rather than innovation leaders.

* Access to Capital and Financial Support:

Access to venture capital, government funding, and financial incentives supports high-tech industries. Yet, financial resources alone do not guarantee technological progress without active R&D efforts.

Why R&D is the Most Powerful Factor

Despite the influence of these factors, R&D remains the most powerful driver of high-tech exports because it is the source of continuous innovation and competitive advantage. Infrastructure, policies, human capital, and financial support can facilitate high-tech exports, but without groundbreaking research and new technological developments, a country risks stagnation in global markets. Nations that lead in high-tech exports—such as the US, Japan, and China—have consistently prioritized R&D, enabling them to pioneer new technologies and set industry standards.

Enhancing International Competitiveness

A strong R&D culture equips businesses with the ability to maintain a competitive edge in global markets. By developing proprietary technologies and advanced manufacturing processes, firms can reduce production costs, improve product functionality, and increase overall efficiency. This, in turn, enhances their competitive standing in international markets, allowing them to secure long-term trade relationships. Additionally, R&D-driven innovation fosters brand reputation and consumer trust, leading to increased demand for high-tech exports.

Economic Sustainability and Knowledge-Based Growth

Investing in R&D facilitates long-term economic sustainability by transitioning economies from resource-based models to knowledge-driven ones. High-tech exports contribute significantly to GDP growth, employment generation, and foreign exchange earnings. Countries that prioritize R&D in their high-tech sectors experience increased productivity, reduced dependency on traditional industries, and higher value-added output. Moreover, R&D fosters entrepreneurship and the development of start-ups, further strengthening the high-tech export ecosystem.

The Role of Government Policies and Industry Collaboration

Governments play a crucial role in fostering R&D through policy frameworks, financial incentives, and strategic collaborations. Public-private partnerships, tax incentives, and funding for research institutions are essential mechanisms that stimulate innovation. Additionally, collaboration between universities and industries facilitates technology transfer and the commercialization of research outcomes, leading to the development of exportable high-tech products.

The most appropriate and suitable types of R&D for driving high-tech exports include:

1. Applied Research

Applied research is crucial for fostering high-tech exports as it focuses on developing new technologies with immediate commercial applications. Unlike basic research, which is theoretical in nature, applied research is directed toward practical outcomes that enhance global competitiveness. For example, advancements in nanotechnology and artificial intelligence (AI) have significantly contributed to the global expansion of semiconductor and automation industries. Furthermore, applied research helps in bridging the gap between scientific discovery and market implementation, ensuring that new technologies can be effectively utilized in high-tech exports.

2. Product Development R&D

Product development R&D plays a key role in creating innovative products with unique features, enabling firms to differentiate themselves in international markets. It involves activities, such as prototype testing, performance enhancement, and feature innovation, which contribute to the competitive advantage of high-tech firms. For instance, the global smartphone industry continuously invests in R&D to develop new functionalities, improve user experience, and introduce cutting-edge designs, thereby sustaining consumer demand in highly competitive markets. The strategic focus on product innovation allows firms to maintain premium pricing and brand loyalty in high-tech sectors.

3. Process Innovation R&D

Process innovation R&D enhances production efficiency and cost-effectiveness, making high-tech exports more competitive in price-sensitive markets. This type of R&D focuses on improving manufacturing techniques, reducing waste, and integrating automation to optimize resource utilization. For example, the use of additive manufacturing (3D printing) in aerospace and biomedical industries has resulted in cost reductions and faster production cycles, leading to improved market penetration of high-tech exports. Companies that invest in process innovation are able to achieve economies of scale and maintain long-term cost advantages in global markets.

4. Collaborative R&D

Collaborative R&D, involving partnerships between academia, industry, and government, accelerates the commercialization of new technologies. Public-private partnerships (PPPs) facilitate knowledge exchange, reduce R&D costs, and increase the likelihood of successful innovation. A notable example is the European Union’s Horizon 2020 programme, which funds cross-border collaborative research to enhance industrial competitiveness and technological leadership. Additionally, collaboration between multinational corporations and research institutions has led to breakthrough innovations in biotechnology, renewable energy, and telecommunications. By leveraging diverse expertise and shared resources, collaborative R&D enhances the scalability and global reach of high-tech exports.

5. Market-Driven R&D

Market-driven R&D aligns research efforts with global consumer trends and regulatory requirements to maximize export potential. Unlike traditional R&D approaches that focus solely on technological advancements, market-driven R&D emphasizes consumer needs, sustainability, and compliance with international standards. For example, the increasing demand for environmentally friendly products has prompted R&D investments in electric vehicles (EVs) and sustainable packaging solutions, ensuring market acceptance and regulatory approval in various regions. Companies that integrate market intelligence into their R&D strategies are better positioned to develop products that meet international demand, enhance brand reputation, and drive high-tech export growth.

Conclusion

R&D stands as a cornerstone in driving high-tech exports, shaping a nation’s ability to compete in the global economy. While factors such as infrastructure, trade policies, human capital, FDI, and financial support play a role in high-tech exports, they are secondary to the fundamental necessity of continuous innovation. By fostering technological advancements, enhancing competitiveness, and promoting economic sustainability, R&D investments serve as the ultimate catalyst for high-tech export growth. Countries aiming to strengthen their high-tech export sectors must prioritize R&D policies and create an ecosystem that supports innovation, ensuring long-term prosperity in an increasingly technology-driven world.

Investing in different types of R&D is essential for fostering high-tech exports. Applied research drives technological advancements, product development R&D ensures market differentiation, and process innovation R&D enhances cost efficiency. Additionally, collaborative R&D accelerates innovation through strategic partnerships, while market-driven R&D ensures alignment with global consumer trends and regulatory standards. A comprehensive approach that incorporates all these R&D types will enable firms to sustain their competitive advantage and expand their presence in the global high-tech market.

(The writer, a senior Chartered Accountant and professional banker, is Professor at SLIIT University, Malabe. He is also the author of the “Doing Social Research and Publishing Results”, a Springer publication (Singapore), and “Samaja Gaveshakaya (in Sinhala). The views and opinions expressed in this article are solely those of the author and do not necessarily reflect the official policy or position of the institution he works for. He can be contacted at saliya.a@slit.lk and www.researcher.com)



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Fractious West facing a more solidified Eastern opposition

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An Iranian attack on a neighbouring Gulf state. Image courtesy BBC.

Going forward, it is hoped that a reported ceasefire agreement between the US and Iran would provide a basis for a degree of stability in the Middle East and pave the way for substantive peace talks between the powers concerned. The world is compelled to fall back on hope because there is never knowing when President Donald Trump would change his mind and plans on matters of the first importance. So erratic has he been.

Yet, confusion abounds on who has agreed to what. The US President is on record that a number of conditions put forward by him to Iran to deescalate tensions have been accepted by the latter, whereas Iran is yet to state unambiguously that this is so. For instance, the US side claims that Iran has come clear on the point that it would not work towards acquiring a nuclear weapons capability, but there is no official confirmation by Iran that this is so. The same goes for the rest of the conditions.

Accordingly, the peace process between the US and Iran, if such a thing solidly exists, could be said to be mired in uncertainty. Nevertheless, the wider publics of the world are bound to welcome the prospects of some sort of ceasing of hostilities because it would have the effect of improving their economic and material well being which is today under a cloud.

However, questions of the first magnitude would continue to bedevil international politics and provide the breeding ground for continued tensions between East and West. Iran-US hostilities helped highlight some of these divisive issues and a deescalation of these tensions would not inevitably translate into even a temporary resolution of these questions. The world community would have no choice but to take them up and work towards comprehending them better and managing them more effectively.

For example, there are thorny questions arising from the Treaty on the Non-Proliferation of Nuclear Weapons (NPT). Essentially, this treaty bans the processing and use of nuclear weapons by states but some of the foremost powers are not signatories to it.

Moreover, the NPT does not provide for the destroying of nuclear arsenals by those signatory states which are already in possession of these WMDs. Consequently, there would be a glaring power imbalance between the latter nuclear-armed states and others which possess only conventional weapons.

Such a situation has grave implications for Iran’s security, for instance. The latter could argue, in view of the NPT restrictions, that the US poses a security threat to it but that it is debarred by the Treaty from developing a nuclear arms capability of its own to enable it to match the nuclear capability of the US. Moreover, its regional rival Israel is believed to possess a nuclear weapons capability.

Accordingly, a case could be made that the NPT is inherently unfair. The US would need to help resolve this vexatious matter going forward. But if it remains, US-Iran tensions would not prove easy to resolve. The same goes for Iran-Israeli tensions. Consequently, the Middle East would remain the proverbial ‘powder keg’.

Besides the above issues, the world has ample evidence that it could no longer speak in terms of a united NATO or West. Apparently, there could be no guarantee that US-NATO relations would remain untroubled in future, even if the current Iran-US standoff is peacefully resolved. US-NATO ties almost reached breaking point in the current crisis when the US President called on its NATO partners, particularly Britain, to help keep open the Hormuz Straits for easy navigation by commercial vessels, militarily, on seeing that such help was not forthcoming. Such questions are bound to remain sore points in intra-Western ties.

In other words, it would be imperative for the US’ NATO partners to help pull the US’ ‘chestnuts out of the fire’ going ahead. The question is, would NATO be willing to thus toe the US line even at the cost of its best interests.

For the West, these fractious issues are coming to the fore at a most unpropitious moment. The reality that could faze the West at present is the strong opposition shown to its efforts to bolster its power and influence by China and Russia. Right through the present crisis, the latter have stood by Iran, materially and morally. For instance, the most recent Security Council resolution spearheaded by the US which was strongly critical of Iran, was vetoed by China and Russia.

Accordingly, we have in the latter developments some marked polarities in international politics that could stand in the way of the West advancing its interests unchallenged. They point to progressively intensifying East-West tensions in international relations in the absence of consensuality.

It is only to be expected that given the substance of international politics that the West would be opposed by the East, read China and Russia, in any of the former’s efforts to advance its self interests unilaterally in ways that could be seen as illegitimate, but what is sorely needed at present is consensuality among the foremost powers if the world is to be ‘a less dangerous place to live in.’ Minus a focus on the latter, it would be a ‘no-win’ situation for all concerned.

It would be central to world stability for International Law to be upheld by all states and international actors. Military intervention by major powers in the internal affairs of other countries remains a principal cause of international mayhem. Both East and West are obliged to abide scrupulously with this principle.

From the latter viewpoint, not only did the West err in recent times, but the East did so as well. Iran, for instance, acted in gross violation of International Law when it attacked neighbouring Gulf states which are seen as US allies. Neither Iran nor the US-Israel combine have helped in advancing international law and order by thus taking the law into their own hands.

Unfortunately, the UN has been a passive spectator to these disruptive developments. It needs to play a more robust role in promoting world peace and in furthering consensual understanding among the principal powers in particular. The need is also urgent to advance UN reform and render the UN a vital instrument in furthering world peace. The East and West need to think alike and quickly on this urgent undertaking.

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Science-driven health policies key to tackling emerging challenges — UNFPA

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Dr. Dayanath Ranatunga

Marking World Health Day on April 7, health experts have called for a stronger commitment to science-based decision-making to address increasingly complex and evolving health challenges in Sri Lanka and beyond.

Dr. Dayanath Ranatunga, Assistant Representative of the United Nations Population Fund, stressed that health is no longer confined to hospitals or traditional medical systems, but is shaped by a broad spectrum of social, environmental, and technological factors.

“This year’s theme, ‘Together for Health. Stand with Science,’ reminds us that science is not only for laboratories or policymakers. It is a way of thinking and a tool that shapes everyday decisions,” he said.

Dr. Ranatunga noted that modern health challenges are increasingly interconnected, ranging from infectious diseases such as COVID-19 to climate-related risks, demographic shifts, and emerging forms of online violence.

He warned that maternal and newborn health continues to demand urgent attention despite progress. Globally, an estimated 260,000 women died from pregnancy and childbirth-related causes in 2023 alone—many of them preventable through timely, science-based interventions.

“In countries like Sri Lanka, where fertility rates are declining and survival rates improving, every pregnancy carries greater significance—not just for families, but for the future of communities and economies,” he said.

The UNFPA official also highlighted the growing threat of Technology Facilitated Gender-Based Violence (TFGBV), including cyber harassment and online abuse, noting that these forms of violence can have deep psychological consequences despite lacking visible physical harm.

He emphasised the need for multidisciplinary, science-informed approaches that integrate mental health, digital safety, and survivor-centered care.

Turning to demographic trends, Dr. Ranatunga pointed out that increasing life expectancy is bringing new challenges, particularly the rise of non-communicable diseases such as diabetes, cardiovascular illnesses, and cancers.

In Sri Lanka, nearly 13.9% of mothers develop diabetes during pregnancy, a trend attributed to obesity and unhealthy lifestyles, underscoring the urgent need for preventive healthcare strategies.

“Are we investing enough in prevention?” he asked, noting that early intervention and healthier lifestyles could significantly reduce long-term healthcare costs, especially in a country with a free public healthcare system.

He underscored the importance of data-driven policymaking, stating that scientific research and analytics enable governments to identify gaps, anticipate future needs, and allocate resources more effectively.

The UNFPA, he said, is already leveraging tools such as Geographic Information Systems (GIS) to improve access to maternal healthcare, including mapping travel times for pregnant women to reach health facilities.

Digital innovation is also transforming healthcare delivery, from telemedicine to real-time data systems, improving efficiency and ensuring continuity of care even during emergencies.

In Sri Lanka, partnerships between the government and development agencies are helping to modernise training institutions, including facilities in Batticaloa, equipping healthcare workers with both clinical and digital skills.

However, Dr. Ranatunga cautioned that technology alone is not a solution.

“It must be guided by evidence and grounded in equity,” he said, pointing out that women’s health remains significantly underfunded, with only about 7% of global healthcare research focusing on conditions specific to women.

He also drew attention to the growing health impacts of climate change, including extreme weather, food insecurity, and displacement, describing it as an emerging public health crisis.

“Health does not begin in hospitals. It is shaped by the environments we live in, the choices we make, and the systems we build,” he said.

Calling for renewed commitment, Dr. Ranatunga urged stakeholders to invest in prevention, embrace innovation, and ensure that science remains central to policy and practice.

“Science is not just about knowledge—it is about ensuring that everyone has the opportunity to live healthy, dignified lives, and that no one is left behind,” he added.

 

By Ifham Nizam

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Sharing the festive joy with ‘Awurudu Kaale’

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The visually impaired who make up Bright Light Band in Awurudu attire

Melantha Perera is well known as a very versatile musician.

He was involved with the band Mirage, as their keyboardist/vocalist, and was also seen in action with other outfits, as well, before embarking on a trip to Australia, as a solo artiste.

I now hear that he has plans to operate as a trio.

However, what has got many talking about Melantha, these days, is his awesome work with the visually impaired Bright Light Band.

They have worked out a special song for the Sinhala and Tamil New Year, aptly titled ‘Awurudu Kaale.

Says Melantha: “This song has been created to celebrate the spirit of the Sinhala and Tamil New Year and to share the joy of the Awurudu season with all Sri Lankans”.

Yes, of course, Melantha composed the song, with the lyrics written collaboratively by Melantha, Badra, and the parents of the talented performers, whose creative input brought the song to life during moments of inspiration.

Melantha Perera: Awesome work with Bright Light Band

This meaningful collaboration reflects the strong community behind the Bright Light Band.

According to Melantha, accompaning the song is a vibrant video production that also features the involvement of the parents, highlighting unity, joy, and togetherness.

Beyond showcasing their musical talents, the visually impaired members of Bright Light Band deliver a powerful message, through this project, that their abilities extend beyond singing, as they also express themselves through movement and dance.

Melantha expressed his satisfaction with the outcome of the project and looks forward to sharing it with audiences across the country during this festive season.

He went on to say that Bright Light Band extends its sincere gratitude to Bcert Australia for their generous Mian sponsorship, the CEO of the company, Samath Fernando, for his continuous support in making such initiatives possible, and Rukshan Perera for his personal support and encouragement in bringing this project to completion.

The band also acknowledges Udara Fernando for his invaluable contribution, generously providing studio space and accommodating extended recording sessions to suit the children’s availability.

Appreciation is warmly extended to the parents, whose unwavering commitment from ensuring attendance at rehearsals to supporting the video production has been instrumental in the success of this project.

Through ‘Awurudu Kaale’, Bright Light Band hopes to spread festive cheer and inspire audiences, proving that passion and talent know no boundaries.

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