After my graduation, I worked in the technolgy startup ecosystem in Pakistan for a few months. As a young Pakistani fresh out of university, I often argued about how policymakers should take a backseat and allow entrepreneurs to build and disrupt markets.

I felt that the policymakers had obsolete ideas and stood in the way of technology entrepreneurs determined to disrupt the existing markets and build new ones with their innovative products and approaches. I saw entrepreneurs creating jobs, introducing new technologies and fostering a culture of experimentation and learning in their communities.

It seemed fair to insist that the government, which was unable to update its public policy to keep up with the times, should step back. But I was missing an important point.

For innovation to drive an economy, there is no need for the government to take a backseat. It should rather assume an enabling leadership position to support technology-led economic development. Or at least that’s what Mariana Mazzucato, also known as the world’s scariest economist, argues in her work.

From her book, The Entrepreneurial State to Mission Economy: A Moonshot Guide to Changing Capitalism, she presents evidence of how it has been the high-risk, early-stage public funding in research and development that drove the technology and innovation-led development of the US economy.

If the state encourages and rewards risk-taking and innovative ideas, then it is only a matter of time for technological entrepreneurship and innovation to take off and act as an instrument for boosting productivity and generating better outcomes for the country.

For that to happen, governments of the future need to be entrepreneurial, mission-oriented and bold risk-takers, who support and advocate for people who are paving the way for generating new knowledge in an economy.

Since an integral component of a knowledge economy is technology entrepreneurship and innovation, it is imperative for the state to work in collaboration with the private sector to encourage and facilitate risk-taking and experimentation for economic growth.

That’s where the newly-established Special Technology Zones Authority (STZA) comes into function in Pakistan. It cannot be denied that technological innovation is the core growth driver for development in the 21st Century. Today, it is viewed as one of the most important and obvious policy tools to transform the economy and export base from low technology to a higher-end, value-added economy.

In view of the success of technology zones around the world, the government of Pakistan has established STZA with a mandate to provide world-class digital and physical infrastructure by setting up Special Technology Zones (STZs).

The ability to leverage entrepreneurs and knowledge workers to innovate is a key tool that some developing countries have relied on to be able to leapfrog ahead and produce goods and services required by the global markets; thereby adding the much-needed jobs and alleviating poverty.

China’s Zhongguancun (Z-Park), which has emerged as a supercluster of Asia’s leading entrepreneurs, South Korea’s Daedeok Innopolis and Singapore’s Sichuan Hi-Tech Innovation Park, have played a crucial part in their countries’ rise in economic and technological prosperity in competition with the rest of the world.

Combined with a vibrant academia and venture capital firms in the vicinity, these super clusters have produced successful start-ups and hosted manufacturing and research and development plants for some of the world’s largest technology companies.

Perhaps, the key reason for the rise of these clusters of innovation has been that the respective governments have been their supporters, facilitators, cheerleaders, advocates and investors.

In view of the success of technology zones around the world, the government of Pakistan has established the STZA with a mandate to provide world-class digital and physical infrastructure by setting up Special Technology Zones (STZs) to put Pakistan on the global technology map.

Special Technology Zones are meant to be a knowledge ecosystem in a geographical parcel that comprises technology companies, startups, R&D facilities, universities and incubators. The players take advantage of the tax incentives, establish strong linkages with one another and partake in knowledge-intensive activities for the shared goals of technology entrepreneurship and innovation that ultimately contribute to the socio-economic development of the country.

The authority hopes to champion a customer-oriented mindset in the government, translating the red tape into a red carpet experience for the relevant stakeholders. It will provide companies with a direct link to the government through its one-window facility, mitigating the hurdles that come with red tape and act as one of a kind customer-oriented state authority. Ultimately, the STZA has to show that the state must be the leader in taking a bet on its talent and facilitating it to grow, thrive and flourish.

From the US to China, it is state funding and policies that have been behind the rise of some of the world’s greatest innovators and businesses. Mazzucato has also argued in her work that governments have played the role of lead investors in innovation to spur the growth of their knowledge economies.

It is time for the government to take the lead in investing in new talent. With the support of provincial governments, the STZA is a strategic initiative through which the government can lead the way towards technology-led economic development.

The writer is the linkages and publications manager at the Special Technology Zones Authority (STZA). She holds an undergraduate degree in social research and public policy from the New York University. She tweets at @malik_warda7