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Bangladesh may become more technologically advanced without becoming more technologically independent. Its factories can adopt sophisticated machinery, public institutions can introduce artificial intelligence, and businesses can expand digital operations, yet much of the underlying knowledge, intellectual property and economic value may remain controlled elsewhere. This is the paradox at the heart of Bangladesh’s technological ambitions: greater adoption does not necessarily translate into greater domestic capability or economic returns. The next global economic divide may therefore be between countries that develop and control advanced technologies and those that primarily purchase and use them. According to the United Nations Conference on Trade and Development (UNCTAD), the global artificial intelligence market could reach $4.8 trillion by 2033. Yet technological innovation and its commercial rewards remain concentrated among relatively few companies and economies. For developing countries such as Bangladesh, the challenge is to secure a meaningful share of the value generated by technological progress.
The World Artificial Intelligence Conference in Shanghai in July 2026 brought this concern into international discussion. Its emphasis on open technologies, international cooperation and equitable access acknowledged the widening technological divide. Bangladesh participated in these discussions, calling for technology transfer and capacity-building. However, access alone cannot guarantee economic benefits. Countries must develop the capacity to adapt, improve and commercially apply the technologies they acquire. Technological ownership does not mean producing every machine, software platform or AI system domestically. No modern economy operates independently of international technology markets. For Bangladesh, ownership should mean developing sufficient knowledge, technical expertise and institutional capacity to negotiate favourable terms, create local solutions and retain a greater share of the economic value generated. The objective is technological capability and economic agency, rather than self-sufficiency.
Bangladesh has made considerable progress in expanding digital connectivity, public services and technology-enabled activities. The proposed National AI Policy 2026–2030 addresses domestic innovation, data governance, computing infrastructure and technological sovereignty. Earlier drafts also proposed an AI Innovation Fund, open technological standards and measures to reduce dependence on individual vendors. In November 2026, the ICT Division established a new committee to formulate the national AI policy. These initiatives indicate growing recognition of the country's technological challenges. Yet an important distinction remains between expanding technology adoption and developing domestic technological capabilities. A country may improve digital connectivity, establish modern infrastructure and introduce sophisticated systems while continuing to depend on foreign suppliers for software, technical expertise, maintenance and future development.
UNCTAD's Technology and Innovation Report 2025 ranked Bangladesh 112th among 170 economies on its frontier technology readiness index, behind India, Sri Lanka and Nepal. The ranking points to weaknesses in skills, research, infrastructure and industrial capacity. However, the deeper concern is whether technological investments can help domestic enterprises move beyond purchasing ready-made solutions towards developing and adapting technologies themselves. Bangladesh's ready-made garment industry illustrates this paradox. Garments account for approximately four-fifths of the country's merchandise exports. International brands increasingly rely on digital design, automated quality inspection, demand forecasting and advanced supply-chain management. Bangladeshi manufacturers are also investing in modern machinery to improve productivity and competitiveness.
Consider a garment factory that introduces automated production systems. Its output may increase, costs may decline and product quality may improve. These are genuine economic benefits. Yet the machinery supplier may retain control over specialised software and technical systems, while international brands continue to dominate design, marketing, distribution and customer relationships. The factory becomes technologically more efficient without necessarily gaining greater bargaining power or capturing a larger share of the final product's value. This distinction matters because technological upgrading does not automatically change a country's position within global value chains. Bangladesh must therefore pursue higher-value activities, including industrial design, technical textiles, product development and specialised supply-chain services. Similar opportunities exist in pharmaceuticals, agro-processing and light engineering. The objective should be to strengthen domestic expertise and enable enterprises to capture more value from their production and innovation.
Emerging AI investments could support this transition. In August 2026, Bangladesh and the Korea International Cooperation Agency signed a $13 million grant agreement to develop AI expertise, strengthen university-industry collaboration and support practical applications. Such initiatives offer opportunities to build domestic capabilities, provided their success is measured beyond training numbers, research publications or newly established facilities. More meaningful indicators would include commercially useful innovations, sustainable enterprises, employment outcomes and the ability of local institutions to maintain and improve technological systems. A technology centre that helps domestic businesses develop marketable solutions would contribute more to economic transformation than one assessed primarily through infrastructure expenditure. However, institutional incentives often favour technology imports over domestic innovation. Businesses facing limited financing and uncertain returns may prefer established foreign solutions rather than investing in research. Universities may lack resources or incentives for commercially relevant research, while smaller enterprises struggle to access technical expertise. Competitive applied-research funding, shared testing facilities and stronger university-industry partnerships could help address these constraints.
Technology procurement deserves equal attention. Licensing arrangements, maintenance costs, access to technical documentation, data portability and opportunities for skills transfer determine whether investments strengthen domestic capabilities or deepen supplier dependence. Public procurement should encourage interoperability, competitive access and local technical participation where feasible. These measures would improve institutional bargaining power without discouraging the use of valuable foreign technologies. The distribution of economic gains among workers must also remain central. Automation can improve productivity and create specialised employment, but it may reduce demand for routine tasks. Women in labour-intensive manufacturing could face particular adjustment pressures. Industrial incentives should therefore connect technological investment with workforce training, occupational mobility and fair employment practices. Productivity gains should create opportunities for workers rather than leave them bearing a disproportionate share of the adjustment costs.
Bangladesh needs an innovation strategy that connects AI ambitions with industrial policy, research financing and workforce development. Public investment should prioritise sectors where domestic enterprises can develop practical expertise and generate measurable economic returns. Independent evaluation and continuity across policy changes would help distinguish initiatives that build lasting capabilities from those that merely expand technology consumption. Bangladesh's technological future will depend on more than the speed at which it adopts artificial intelligence, automation and digital systems. Imported technologies can improve productivity and create opportunities, but their lasting contribution depends on the knowledge, capabilities and bargaining power developed at home. Otherwise, Bangladesh risks becoming increasingly sophisticated in using technologies whose greatest economic rewards are captured elsewhere. The real measure of technological progress is not how much technology a country adopts, but how much capability it develops, how much value it retains and how widely those gains are shared.
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The writer is an academician and development strategist, currently serving at a foreign diplomatic mission in Dhaka. He can be reached at [email protected]