As a result of economic, political unrest and natural disasters, traditional growth industries and their institutions are facing complex challenges. Many entrepreneurs and multinationals are therefore paying greater attention to emerging industries, capital markets, investment financing, as well as management and control of their investment risks across several knowledge-based and services sectors. To address these opportunities, developing governments and institutions must undergo breakthrough transformation of their core regulatory, social, technology and financial systems and processes, or risk losing inward investments or bring back massive potential amounts of capital. In our scenario, we examine this innovation-fed transformation. 

KEY ISSUES 

1. What is required to become more flexible and less susceptible to changing political, regulatory and capital market environments?

2. What are some early examples of public/private sector organizations that are doing the right things to transform themselves?

3. What will be the position and role of disruptive technological innovations and new social trends in this new environment?

4. What have the early adopters achieved, and at what cost?

5. What might the economic diversification landscape really look like in 2010?