KNOWLEDGE creation is not a new phenomenon in Asia. Ancient Indian civilisation made significant contributions at the frontiers of knowledge. Fundamental mathematical concepts such as the number zero and the decimal system, as well as inventions such as rocket artillery and coins, can be traced back to India.

Ancient China was arguably the most technologically advanced society in the world. This pre-eminent status lasted for at least 2,000 years until around the 15th century. The long list of its discoveries and inventions includes: the magnetic compass, gunpowder, paper, printing and porcelain. They were all available in China centuries before they became known in the West.

However, China did not realise the full potential of the ingenuity and inventiveness of its people. Instead, under the Ming and Qing dynasties, China closed itself to the outside world. Chinese society stagnated, and eventually decayed and broke down.

In contrast, Europe from the 16th century onwards saw dramatic advances and breakthroughs, as scientists such as Copernicus, Galileo and Newton laid the foundations of modern science. This set the stage for the Enlightenment, and later the Industrial Revolution, and today's modern developed economies.

Today, Asia continues to lag behind the West in science, engineering and technology. But this is changing.

Both China and India have deep talent pools. Top Chinese and Indian universities such as Beijing University and the Indian Institute of Technology (IIT) have student bodies which are collectively at least as bright as the top universities in the West.

Statistically, their admissions are indeed more competitive. Indian students are known to apply to IIT first, and only if they fail, go to MIT.

However, what the universities in China and India have not yet succeeded in doing is to create the environment of open enquiry and experimentation, conducive to, and indeed essential for, cutting- edge research and major breakthroughs.

Researchers in these countries have yet to win Nobel Prizes in the sciences, or Fields Medals in mathematics, although Chinese and Indian scientists and mathematicians working abroad have done so.

One reason is that these universities have a less diverse academic community. Unlike the top Western universities, they do not draw the best students, researchers and professors from around the world. The intellectual ferment and exchange required to challenge great minds to do great things is not yet there.

The growing scientific and technological prowess of China and India is an important factor in their economic takeoff. India was not long ago seen as the world's back office for low-end business process outsourcing, but it is now doing more and more knowledge-intensive work, like interpretation of medical scans, data mining and modelling and writing of legal briefs.

Similarly, China is not just growing low-end industries, but making rapid inroads into high-tech sectors. MNCs are setting up not just manufacturing plants in China, but also R&D centres to take advantage of the abundant supply of talented Chinese engineers. We are starting to see home-grown Chinese high-tech firms, which design new products using indigenous technology.

In South-east Asia too, countries are striving to upgrade through education and technology. Malaysia, which decided to use Malay to teach all subjects in state schools a generation ago, has now switched back to using English to teach mathematics and science. This switch has not been easy, either politically or practically.

Vietnam, which is on the verge of economic take-off, is also emphasising education. Vietnamese students are highly motivated and quick to learn. They have an aptitude for science and mathematics, and consistently excel in international Olympiads.

Click here for part 2: Singapore's approach

This article was first published in The Straits Times on Apr 12, 2008.