High-tech refers to technologies or Innovation which are experiencing rapid progression. R&D is leading to the generation of knowledge in creating Flow of Ideas for improving them. Due to the increasing role of ideas, high-tech is related to large R&D investment, for offering increasing quality at decreasing costs out of ideas. However, to capitalize on the cost, there is a need for scale advantage for dividing the upfront R&D costs on a large number of customers. The scope of high-tech varies from Electronics, Software, Bio-tech to Autonomous Vehicles.
However, often developing countries make a misinterpretation of high-tech. As opposed to ideas, often adding value through labor in producing high-tech products is their target of the high-tech industry. As a result, to them, there is no difference in whether they assemble smartphones or sew fabrics together to produce apparel. In both cases, they use low-skilled labor to produce economic outputs.
