These are well developed physical facilities. Particularly, developing countries have been constructing these facilities for hosting multinational high-tech firms. They often offer attractive tax and other incentives to allure foreign direct investments in these facilities. Even upon attracting high-tech multinationals in these firms, developing countries start, and also keep, adding value through labor, as opposed to ideas.
On the other hand, many high-tech firms in their home countries grew out of rural or semiurban areas. Why are developing countries failing to add value in high-tech out of ideas as opposed to labor is a question to investigate. For example, Malaysia‘s successes in turning muddy, paddy fields into fantastic physical facilities for hosting more than 300 high-tech multinationals have not succeeded in adding the value out of ideas.
