Malaysian EconomyBachelor of Business Administration (BBA)

Professor Dr. Ahmad Bin OthmanSchool of Business and Management

University College of Technology Sarawak (UCTS)96000 Sibu, Sarawak

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Today’s Agenda (Week #6)

• Innovation and technological progressGovernment policyInnovation and technological progress

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Government Government policy policy On Innovation

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News

PM CHAIRS FIRST NATIONAL INNOVATION COUNCIL MEETING FOR 2011

KUALA LUMPUR, Feb 14 2011 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak Monday chaired the first meeting of the National Innovation Council (NIC) for this year, which was held in Putrajaya.

A statement issued by NIC stated that Najib, in his speech at the meeting which was attended by 28 council members, expressed the importance of innovation in boosting productivity and the country's competitiveness, as well as to drive the nation's transformation agenda into making Malaysia a high income country.

"He (Najib) also stressed the need to study weaknesses in the innovation institution structure in the context of the country's innovation ecosystem.

"He also emphasised the importance of creating a perfect seamless continuum in the development of innovative human capital through the national education system," it said.

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According to NIC, Najib urged the Higher Education Ministry and the Education Ministry, together with the relevant institutions, to study the serious gaps which existed in the development of human capital from the primary school level and how to overcome it with the best approaches.

The meeting discussed five working papers, including one on "The National Innovation Agenda: Strengthening the Role of the National Innovation Council to Support Innovation Led Growth under the Tenth Malaysia Plan“ as well as the report on the organising and achievement of the Malaysia Innovative 2010, a programme to be continued this year.

On producing innovative students, the Prime Minister had said that Science, Mathematics and English Language were important subjects which should be emphasised in school.

This year, the Science, Technology and Innovation Ministry will hold a Science and Mathematics promotional programme, with the theme 'Go Science, Love Maths' to enhance awareness and instill a culture to appreciate science and mathematics among Malaysians.

MIC also said that 2012 would be declared a National Science Year

Continue…

National Transformation throughCreattivity and Innovation

Emphasis on innovation aspect is importantbecause it is not only creating job opportunitybut also encourage national competitiveness.

The new economic model based on creativity, innovation and value added activitieswill multiply the people per capital within 10 years

2010 Tahun Kreativiti dan Inovasi2011 Gerak Kreativiti dan Inovasi2012 Sains dan Inovasi2013 Matematik dan Sains

YAB Najib Tun Razak, Perdana Menteri Malaysia

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… The Government is committed and serious in undertaking total innovation to elevate the nation to a more advanced economy. Innovation Leadership for 1United, Innovative Malaysia.”

-Y.A.B. Dato’ Sri Mohd. Najib Tun Abdul Razak,Prime Minister of Malaysia on Innovation

Budget Speech 2010 on 23th October 2009

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Parameters

Countries

Iceland Finland Singapore USA Korea Taiwan MALAYSIA Thailand

Overall 1 6 7 11 20 25 28 60Institutions 6 6 1 18 39 33 42 82

Human Capacity 1 1 11 5 23 48 33 55ICT and

Infrastructure 1 14 11 12 19 4 43 67

Business

Sophistication 5 5 3 2 18 9 26 54

Market

Sophistication 17 17 6 3 25 27 5 37

Scientific Outputs 1 10 11 14 6 3 23 73

Creative Outputs and Well Being 5 12 13 18 24 129 52 80

Malaysia’s overall is ranked at 28 out of 132 countries

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Top Ten 2013 ranking1. Switzerland (Number 1 in 2012)2. Sweden (2)3. United Kingdom (5)4. Netherlands (6)5. United States of America (10)6. Finland (4)7. Hong Kong (China) (8)8. Singapore (3)9. Denmark (7)10. Ireland (9)

Malaysia Ranking ?: ______

Source : Global Innovation Index 2013. Geneva, July 1, 2013http://www.wipo.int/pressroom/en/articles/2013/article_0016.html

Global Innovation Index 2013

32Rank 39 in 2011

Challenges in Research and Development

Strengthen the Entrepreneurship

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Companies, JVenture

Phase 4 :K Enterprise

Strengthen the Commercialization

C

Intellectual Property, MarketingEnterprise License

Phase 3 : Commercialization

Strengthen the Research

RNew Findings. Invent technology

Phase 1 : New Findings

Strengthen the Development

DDesign, Engineering, Technology Integration

Phase 2 : Prototype

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Market (to be

Identified) Technology

10 – 15 years 3 - years 5

ScienceBasic(

Research)

Science Grants Technology Grants Risk Capital

MarketIdentifiedTechnology

MarketDriven

Innovation

Acquisition

3 - 5 years

Risk Capital

Malaysia’s Strategic Positioning and Marketniche

Value-added products and

services

Income, Growth and

Jobs

Approach 2: Market Driven

Innovation (MDI)Approach 1 :Technology

Driven Innovation

)TDI(

Technology focused

National Innovation Model

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Components for Total Innovation Ecosystem

R&D Basic, applied,

strategic, prioritised , product -driven, value

added research, design & development

ENTERPRISE & INDUSTRY

Manufacturing and services, SMEs, GLCs,

MNCs

KNOWLEDGEINFOSTRUCTURE

Access to information and knowledge

INFRASTRUCTURE

ICT connectivity, transportation,

utilities

INNOVATION SUPPORT

Tech commercialisationoffices,/ centres /

incubators,Tech Parks, IP Laws & regulations, business consultancy,

clusters,networks

COMMUNITYUrban, rural, healthcare,

societal, branding, Business support,

mentoring,, grassrotsinnovation

LEADERSHIP & CULTURE

Leadership, empowerment,

community participation

NETWORKINGMarkets, expertise

and finance

MARKET ACCESSLocal and global

market, branding, technology and market intelligence, business

foresight, technology & IP acquisition

TALENT &EDUCATION

Primary, secondary, tertiary, vocational, corporate training, community service

GOVERNANCE & POLICIES

Policy coordination, Regulatory, transparency,

public services delivery, procurement, political

environment

FINANCIAL Private venture

capitalists, angels and business investment,

government investment in innovation infrastructure

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Focus on areas with high growth potential

Allocate sufficient resources to achieve critical mass of R&D personnel and for state-of-the-art facilities

Differentiated reward system between R&D and non-R&D personnel

Remove obstacles that discourage mobility of R&D personnel

Establish National R&D programme

Thank You

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