NBS 2020 – Impact study:Key Excerpted Takeaways

Prepared for 1MBAS - National Biomass Strategy Delivery Unit (execution of NBS 2020) 

About Lux Research

Helps clients find new business opportunities from emerging technologies in physical and life sciences

Offers ongoing technology and market intelligence, as well as market data and consulting services

Over 250 clients on six continents – multinational corporations, investors, governments, and SMEs

Global reach, with offices in Boston, New York, Amsterdam, Singapore, and Tokyo

Combines deep technical expertise with business analysis to support strategic decisions

More at www.luxresearchinc.com

2

Coverage areas Advanced Materials Agro Innovation Alternative Fuels Autonomous Systems 2.0 Big Data Bio-based Materials and

Chemicals BioElectronics Connected Objects and

Platforms Energy Electronics Energy Storage Exploration and Production Food and Nutrition Future Computing Platforms Intelligent Buildings Sensors Solar Sustainable Building

Materials Water Wearable and Flexible

Electronics

Lux leveraged a range of sources to ensure the completeness of the outside-in benchmarking activity

Lux leveraged internal data, 50 bespoke primary interviews across all target countries, and additional secondary research to complete the study

Existing Lux data:• Alternative Fuels and Bio-

based Materials & Chemicals capacity trackers

• Policy databases• Prior reports and models• Client-derived insights• Ongoing insights from

briefing targets

Secondary research• Supplement institutional

knowledge with desk research

• Sources include: industry magazines, company announcements, conference proceedings, SEC filings, white papers, government websites, patents, and publications

Primary interviews:• 50+ interviews with

corporations, VC’s, policy-makers, start-ups, and other industry stakeholders to validate benchmarking metrics and relative scoring

Global biomass industry benchmarking

3

The framework measures the inputs and outputs of the entire ecosystem to deliver comprehensive benchmarking

Public financing

Government policy

Presence of centers of excellence; industry

consortia

Mentorship for start-ups

Private funding

Quantity and quality of scientific output

Intellectual property

Local demand / consumption of product

Jobs impact

Total production of product

Concentration of commercial projects

Local industry presence

Inputs are measured as “Robustness of infrastructure”

Outputs are measured as “Commercial impact”

Biomass industries

4

Between 2010-2013, barring Australia and Indonesia, all ten countries have made meaningful strides in the biomass arena

Of the 10 focus countries, 8 made improvements in both of their composite scores

Indonesia improved its “Commercial impact” composite score, but lower oil prices (driven by subsidies) made it more attractive to export the biomass and import fossil fuels

5

1.0

3.0

5.0

1.0 3.0 5.0

Rob

ustn

ess of

Infras

truc

ture

Commercial Impact

US

MYFI

DE

IN

AUID

THCN

BR

2010 2013

Malaysia (MY)

United States (US)

Thailand (TH)

Finland (FI)

India (IN)China (CN)

Indonesia (ID)

Austrialia (AU)Germany (DE)

Brazil (BR)

Indonesia (ID)

1.0

3.0

5.0

1.0 3.0 5.0

Rob

ustn

ess of

Infras

truc

ture

Commercial Impact

An “ecosystem” approach separates the leaders from the laggards; Malaysia truly dominates, especially in ASEAN

Malaysia and Thailand are the only two ASEAN countries making it to the top-quadrant, where India in particular lags behind in the bottom-left quadrant.

Malaysia made a giant leap, especially in robustness of infrastructure, thanks to great improvements in government support (available mentorship, financial support, and mandates).

Indonesia slips behind in robustness of infrastructure compared to the other ASEAN countries. Due to a shift in government incentives, private finance shifted away from biomass towards other renewables.

2010

2013

Malaysia (MY) Thailand (TH)

India (IN)

China (CN)

Austrialia (AU)

MY

TH

IDIN

CN

AU

Thailand exemplifies a country with rich resources that falls short on successfully implementing an ecosystem approach

Thailand proactively incentivizes end products

Thailand also funds clusters such as the BIOTEC research units in Thailand Science Parks, which is coordinated by the NIA, part of the Royal Thai Government

A lack of mentorship and early-stage support for small biotech companies results in a lack of domestic start-ups

Thailand has yet to have tangible scientific impact on the global research community

Overall, the country’s neglect of a few critical infrastructure inputs threatens healthy industry growth

Government financial support

Government mandates

Scientific impact

Scientific outputMentorship

Presence of industry

Private financial support

0

2

4

Infrastructure scores

2014 2010

7

Malaysia has strong gov’t mentorship and scientific output; global impact and private sector growth are the next hurdles

Malaysia’s ease of doing business allows it to attract more FDI than neighbors

Malaysia claims among the fastest-growing volume of scientific output; impact, however, could be improved

Overall, Malaysia has seen great growth in government support (available mentorship, financial support, and mandates) over the past 5 years

Although Malaysia’s private sector activities have yet to bear fruit, recent momentum has proved promising

The Malaysian government has made impressive strides; private sector should quickly mobilize to ensure growth

Government financial support

Government mandates

Scientific impact

Scientific outputMentorship

Presence of industry

Private financial support

0

5

Infrastructure scores

2014 2010

8

Malaysia has several vehicles to support the bioeconomy; streamlining could help accelerate overall impactGovernment agencies and implementation vehicles:

Ministry of Science, Technology, and Innovation (MOSTI)

Malaysian Biotechnology Corporation (BiotechCorp)

Malaysian Investment Development Authority (MIDA)

Agensi Inovasi Malaysia (AIM)

Malaysian Palm Oil Board (MPOB)

Sustainable Energy Development Authority Malaysia (SEDA)

Independent agencies:

Malaysian Industry-Government Group for High Technology (MIGHT)

Malaysian Palm Oil Council (MPOC)

Policies and strategies:

National Biotechnology Policy (NBP)

National Biomass Strategy 2020

National Green Tech Policy

Renewable Energy Act

Economic Transformation Plan - Pemandu NKEA Labs

Biotechnology Transformation Program (BTP)

30,000 foot view of the Biomass sector in Malaysia

Global Context

• Optimism• Uncertain

market demand • Immature/

unproven technology

Current Positives

• Multi-pronged strategy

• Financial support

• Strong momentum

Future Focus Areas

• Coordination• Communication• Consistency

10

The 3 Cs