ABSTRACT
In the race to acquire technological innovation rents in the global production value chain, Pacific Asian countries are competing to appropriate talent from home and abroad for high technology industrial development. Malaysia faces a significant risk of continuously losing the entrepreneurial skills and talents needed to achieve sustainable economic growth. In addition to studies of brain drain that are based on social and political factors, as found in many of the chapters in this edited volume, our chapter provides a context through which to elucidate the correlation between brain gain and technology innovation, analyzing the range and spectrum of gains (returnees or foreign talent) that impact upon the development of new technologies. We observe that China and Malaysia are at the crossroads of whether they are able to appropriate the knowledge of returnees to develop their technology, but currently with different prospects. The experience of China in the post-1978 reform era suggests that achieving a critical mass of indigenous entrepreneurs and a fitting environment for technology innovation are essential for a country striving to appropriate the skills and knowledge of returnees. The highlighted pathways of China provide possible options for Malaysia to consider.
