SPOTL IGHT
Prioritize climate resilience “By investing in climate-smart technologies and practices, SIDS can reduce emissions, enhance their resilience to climate change and create new economic opportunities.” Fiji and Barbados are just two examples of countries that have prioritized climate-resilient initiatives, such as developing sustainable fishing practices. So what are the steps small island nations can take to successfully position themselves as knowledge economies? The study Engines of growth recommends eight ways: 1 5 2 6 Invest in human capital development Developing a knowledge-based economy without prioritizing human capital development is nearly impossible. “Engaging the diaspora through programmes that encourage skilled professionals to return home can also contribute to talent development, such as Jamaica’s Diaspora Knowledge Network,” the report says. Small island nations as knowledge economies
Strengthen digital infrastructure “By investing in digital infrastructure, SIDS can improve connectivity, facilitate innovation and enhance global competitiveness.” Expanding broadband access in the Cook Islands and Cabo Verde has led to improvements in education, healthcare and e-commerce services.
Promote SMEs and entrepreneurship Ensuring access to finance and integrating
entrepreneurship in school curricula helps nurture a culture of innovation in young people, as demonstrated in Jamaica. Elsewhere, Cabo Verde has created the right climate for digital entrepreneurship, “serving as a model for other SIDS.” Foster R&D and innovation Focusing on sectors where SIDS possess strengths and traditional knowledge can help mitigate resource constraints. For example, the Mauritius Economic Development Board provides incentives such as tax breaks and grants to encourage R&D activities. Strengthen data infrastructure Large and reliable datasets can help identify new trends and opportunities to promote entrepreneurship. Accurate data also helps policy-makers make informed decisions and attract investment.
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Strengthen governance and institutions Innovation and investment are helped by effective governance. “By implementing reforms to improve transparency, accountability and the ease of doing business, Mauritius has positioned itself as a leading business hub in the Indian Ocean region.” Leverage international partnerships Cooperation among international organizations helps “facilitate knowledge sharing, mobilise resources, pool resources and develop regional strategies for knowledge economy development”. Additionally, digital technologies can help diaspora networks facilitate knowledge transfer, investment and remittances.
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SIDS Frontier Technology Readiness Index (FTRI)
The UN Trade & Development (UNCTAD) FTRI
Barbados Mauritius Bahamas Fiji Trinidad & Tobago Belize Dominican Republic
assesses a nation’s capacity to adopt and adapt frontier technologies using five key building blocks: • ICT deployment • Skills development • R&D activity
Jamaica St. Lucia Suriname St. Vincent & the Grenadines Maldives Samoa Guyana
Cabo Verde Timor-Leste Papua New Guinea São Tomé and Príncipe Vanuatu Solomon Islands Haiti Comoros Guinea Bissau
• Industry activity • Access to finance
Source: Engines of growth: Building knowledge economies in SIDS ODI Global, March 2025
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0.4 0.5
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0.7
FTRI Score
26
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