Chandrababu Naidu, Chief Minister, Andhra Pradesh

At the recently-held Asia Pacific Economic Cooperation (APEC) summit in Bangkok, the economic committee presented a provocative report concluding that the more advanced a country is in sectors of knowledge-such as computer science, communications and applied research-the better economic performance it has. Today, knowledge-based industries, linked to advanced technology, constitute the single most important factor that can hasten India's progress into the league of developed countries. Moreover, while India remained a bystander to the Industrial Revolution, we have the potential to emerge at the forefront of the Knowledge Revolution by becoming the knowledge hub of the world.

But it is not a given that India will succeed in this new era. What will it take for us to succeed? First and foremost-a vision. Former American President Woodrow Wilson once said, ''There are many voices of counsel but few voices of vision... and little concert of thoughtful purpose.'' We need a coherent national strategy for building and sustaining our value proposition as a global knowledge hub. We also need to change our mindset from 'can't do' to 'can do'. Cynicism and pessimism, which have eaten into the vitals of the country, must be expunged.

One key area of focus must be developing world-class educational institutions. Mohanbir Sawhney pointed out an interesting paradox-India has a fair number of good quality high schools, but other than the IITs there are no world-class universities, unlike the US. Despite the significant achievement of the IITs, we do not have a single Nobel laureate at any of them. Yes, we need to improve research facilities, libraries, Internet connectivity and other resources. Further, the skills should be marketable, so the education should be market oriented. But apart from that, we have to attract world-class teaching staff, the kind who may be termed 'academic entrepreneurs'-people who actually do things that impact industry. I recall the World Economic Forum (WEF) study two years ago on the global competitiveness of nations. Of 53 countries surveyed, India ranked No. 53 on linkages between academia and industry. This is appalling.

Andhra Pradesh has already tried to form alliances with top-flight international academic institutions and companies. The Indian School of Business (ISB) in Hyderabad has affiliations with Kellogg, Wharton and London Business School. The MSIT programme introduced in Andhra Pradesh is in collaboration with Carnegie Mellon University.

Knowledge does not recognise national boundaries. Consequently, when we think of becoming a knowledge hub, we must create the conditions to attract the best minds to our country. This would mean that we improve the quality of life in our cities, and put in place policies that encourage creativity and innovation.

Benjamin Franklin once said that an investment in knowledge always pays the best interest. Andhra Pradesh has been an early mover in the creation of technology parks with high-speed connectivity, uninterrupted power supply, and other infrastructural backing. The state's hitec City, for example, offers fibre optic networks, plug-and-play facilities, and a lot more. This explains our success in attracting investment from the likes of Microsoft and Dell.

Government policy is also important in transforming India into a knowledge hub. I am reminded of a chapter in Thomas Friedman's book Lexus And The Olive Tree, titled 'Buy Taiwan, Hold Italy, Sell France'. Friedman explains how forward thinking on the part of government plays a significant role in the knowledge space.

In India, typically, the government and the bureaucracy tend to hinder rather than help the knowledge economy. Our software industry has grown largely because the government was not aware of it; the story was a success not because of the government but in spite of it.

In Andhra Pradesh, we have 47 levels of bureaucracy. We need to quicken decisions and spur the growth of organisations that create and disseminate knowledge. Unless we do this, we will not attract the best companies and institutions.

By thinking of itself as a facilitator instead of a regulator, the government must work towards a policy environment conducive to growth. It is critical to simplify and rationalise procedures. Transparency is the other attribute business would appreciate. To enhance competitiveness, we need to eliminate outdated laws that constrain growth or inhibit modernisation of industries. At the same time, we need to develop strong enforcement mechanisms that are fair and transparent in order to protect the interests of people and create confidence in investors. If international investors are assured that their ip is safe, that their patents are protected, they would be more willing to invest here.

Finally, to be recognised as a knowledge hub, we need to promote India as one. To compete with other countries, we must market the opportunities we have to offer. A case to point is Malaysia's success in attracting it investment through a blitz led by its prime minister, targeting it communities and companies around the world. The government should set up specialised bodies to boost promotion and interface between the private sector and the government. This will strengthen Brand India.

Indians have been doing extraordinarily well abroad. Distinguished Indians such as Dr. Hargovind Khurana and Dr. Amartya Sen have won Nobel prizes, but have spent most of their professional lives abroad. We need a serious understanding of why Indians perform so well overseas but not in India. I strongly believe that we lack an environment conducive to achieving excellence in different spheres.

The global knowledge economy presents great opportunities for India-but also poses a big challenge. Our ability to rise to it will be determined by our willingness to set world-class aspirations and persevere towards them. We need to radically rethink our approaches and policies if we have to become the knowledge hub of the world. There are no short cuts to success.