Dhaka, May 5 -- The smile curve is widely used to rank value in global production. At the two ends lie research, design, branding, and market control-the high-value segments. At the bottom lies manufacturing, often portrayed as the lowest-value activity. Bangladesh's ready-made garment (RMG) sector is therefore routinely placed at this lowest point. The conclusion seems obvious: to move up, the country must move out. This reading is widespread-and fundamentally wrong.

The problem is not with the smile curve itself, but the way it is interpreted. It is typically treated as a static ranking of activities. But production is not static. Industries evolve, productivity rises, technology improves, and firms learn. Once time is introduced, the ...