Economists often describe innovation as the key driver of economic growth, and rightly so. While land, labour and capital have long been considered the fundamental inputs of production, it is innovation that transforms these resources into engines of prosperity. From the steam engine of the industrial revolution to today's artificial intelligence tools, innovation has consistently expanded the boundaries of what economies can achieve. In this context, it is disheartening that the common people of this country, by and large, hardly innovate, even though they are quick to adopt innovative technology and outputs from elsewhere. Social media, AI, and other technologies that make life easier have been embraced here with remarkable speed. The ready-made garment (RMG) industry, the backbone of the country's economy, illustrates another glaring failure in innovation. Although the RMG sector is the second-largest exporter of garments in the world, it has remained largely a stitching hub, with product designs supplied by foreign buyers. Moreover, as the sector lags in innovation, it continues to export primarily low-value apparel items and has so far had little success in moving into the high-end market.
The country's poor track record in innovation has once again been reflected in this year's Global Innovation Index (GII) prepared by the World Intellectual Property Organization (WIPO). Although Bangladesh has climbed from the 116th position in 2020 to 106th in 2025 among 139 countries, it still remains one of the least innovative countries in the world. For a country that spends less than two per cent of its GDP on human capital development, this outcome is hardly surprising. The ranking reflects Bangladesh's chronic inability to nurture ideas, resulting in a society that thrives on imitation and shows little appetite for innovation. Deprived of opportunities to spread their wings, many creative minds have left for foreign shores - where Bangladeshi scientists, educators, innovators and artists are making their mark. The question, then, is: if Bangladeshis can flourish abroad, why not at home?
Bringing innovation to fruition requires an idea-friendly environment. Such an environment depends on an education system that fosters curiosity and scientific rigour, infrastructure that facilitates learning and an economy that enables new businesses to grow. Unfortunately, in Bangladesh, investment in research, development and education has never been a priority. How, then, can we expect innovation to take root in this soil? Capital, too, is essential to transform great ideas into real-world enterprises. Yet in Bangladesh, start-ups are often starved of funds. By contrast, countries at the top of the GII rankings - such as Hong Kong - have developed robust financial ecosystems, offering diverse channels of funding through angel investors, venture capital and private equity at every stage of growth.
Bangladesh, however, holds a distinct advantage that few nations can claim: its vast youth population. Nearly 65 per cent of the people are of working age. This demographic dividend could be a powerful driver of growth, if properly harnessed. If Bangladesh aspires to climb the development ladder, it must urgently invest in human capital to build a knowledge-based economy. With the right skills and education, young Bangladeshis could infuse the much-needed dynamism across all sectors and accelerate economic growth by creating high-value products and services.
