This is particularly important to the South Asian region, as the favourable demography of the  3/5  BIS - Central bankers' speeches  region would require that production processes must be labour-intensive while being globally competitive.
Third, while free trade and FDI have been conventionally congenial for diffusion of technology and augmentation of productivity, the region's investment on R&D must also increase from the current low levels, and the policy environment for scientific research and start-ups must be made more rewarding.