Hence, the Penang clusters have not achieved R&D intensities comparable to Korea and Taiwan. In the last decades, Penang’s output share to the nation’s agriculture fell from less than 4% in 1975 to less than 2% by 2006. Since the 1970s, the region has been seen as an industrial centre for the country with dynamic economy and free trade zones (FTZ) that encouraged foreign investment in export-oriented activities. The first FTZ was established in Bayan Lepas in 1971.