Dr. Raju M. Mathew discusses the potential of developing knowledge industries in Kerala, emphasizing a shift from traditional industrial models to knowledge-based models that leverage the skills and brainpower of its population. He introduces 'knowmatics' as a new approach to knowledge processing that can generate marketable products and services, ultimately aiming to transform every household into a knowledge processing unit. The document outlines the challenges and opportunities in utilizing knowmatics to enhance global competitiveness and human development.