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Ensuring Malaysia’s Future: Enhancing the New Economy

via Research towards innovation

Prof Asma Ismail ( PhD), FASc

Deputy Vice-Chancellor, Research and Innovation,

Professor, Institute for Research in Molecular Medicine (INFORMM) - HiCoE,

Chancellory, Universiti Sains Malaysia, 11800 Penang, Malaysia

16 th June , 2011, World Bank

Outline of talk

Looking at the global trends

How serious is Malaysia about R&D to help move the New economy agenda of the country?

Why are we not there yet?

Innovation ecosystem

Innovative Human Capital

Performing R&D towards commercialization

Sharing of the USM experience

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Stages of Economy of Malaysia

Resource

-driven

economy

Investment

-driven

economy

Innovation

-driven

economy

© DAR 2002- Porter M, Enhancing the microeconomic foundations of prosperity

From resource-driven to Innovation-driven

Rubber, palm oil etc Multinationals at free trade zones Knowledge-based

About K-economy/New economy

In the K-based economy, knowledge and innovation are the driving force for business and economic development of the country.

Business and economic development are all about survival and sustainability

For survival we need to continuously have new and innovative products or value add to existing products

For sustainability we need to have new technologies that resulted in new innovations.

For Malaysia to survive in the new economy, it is imperative that R&D and commercialization of R&D products are the national agenda of the country.

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Expectations of Modern Universities in the New Economy

Generate knowledge Disseminate knowledge (local and

global/internationalization) Facilitate translation of knowledge into tangible and

intangible products in a trans-disciplinary manner (integration)

Train the human capital to be relevant and support the innovative culture

Enhance commercialization of R&D products and development of K-based enterprises (Innovation)

Provide sustainable solutions to the community via community engagement so as to enhance empowerment (outcome of knowledge)

We are expected to go through R –D –C – E

How serious is Malaysia about R&D and the New economy?

Political WillThe need to develop innovative human capitalAllocation of GDP for ResearchAllocation of Research grants

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R&D is the National Agenda of the country

Malaysia has the political will to ensure that R&D is the national agenda to drive the K-economy of the country (O.6% of GDP).

The government has provided a lot of national grants (at least RM 1.7 billion from 2006-2010) to promote R&D

In RMK 10 its RM741 million from MOHE ( first 2 years)

Technofund and Innovation funds are also allocated to promote commercialization of research products

POLITICAL WILL

Consistent policy

with current leadership

New R&D challenges

Challenge for R&D in the country would be how to move towards the requirements needed to succeed in the new economy: Own original scientific discoveries that will enhance the

competitiveness and provides the leading edge for the country.

Set new trends in technology and create our own technology platforms

Ability to combine scientific discoveries and technology platforms to create new innovations

Develop innovations that can create an impact to society and the global market

Universities are asked to undergo translational research

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Moving towards successful new economy:

R&D Challenge

Phase 1: Consolidating Research

Phase 2: Consolidating Development

Design, engineering and technology integration

Phase 3: Consolidating Commercialization

Patent, Marketing, Entrepreneurship and licensing

R

D

C

Phase 4: Consolidating Knowledge-based enterprise (Research Park)

E

Research discoveries, acquisition of technologies

•Spin off companies/ JV companies

Should see a

smooth and

continuous flow

of R-D-C-E

PHASE 1Making scientific discoveries

PHASE 2 Develop prototype

PHASE 3 Commercialize

PHASE 4 K-enterprise

Reality check: Status of R&D in Malaysia

Phase 1: Consolidating Research

Phase 2: Consolidating Development

Phase 3: Consolidating Commercialization/Innovation/Technology licencing

Commercial arm of the University•Entrepreneurship

•Spin-off companies

•JV Companies

•Licensing

R

D

C

E ???????

WHY are we

not there yet?

Phase 4: Enterprises

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Commercialization of research products

Commercialization of R&D products is not a simple process

Latest figure showed that among Malaysian IPTA, commercialization of local R&D products is at 5%

It is linked with the innovation ecosystem of the country.

Need to Create the Right Ecosystemfor an Innovative Society

Education

Industry VenturesInnovative Society

Government

Source: MOHE 2010

Innovation Ecosystem

Each component must move in harmony to

complement and synergize the efforts

of the others.

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To move the innovation-led economy for Malaysia requires the creation and development of a society that embraces a culture of creativity and innovation.

Human capital is the main driving force.

Why do we lack Commercialization of R&D?Human capital

Quality of Innovative Human Capital

• Curriculum lacks elements of creativity & innovation

• Limited pioneer mindset capability

Supply of Innovative Human Capital

• Need 50 RSE per 10,000 workforce to be a developed nation.

• Current status: 21 RSE per 10,000 workforce

• Insufficient number of postgraduates

• Brain drain due to weak strategies to retain talent

Moving idea to The-Market-Place

• Weak internal ecosystem for innovation

• Low number of IPs and commercialization efforts

• Insufficient pre-commercialization grants

• Limited entrepreneurial skills and business know-how

• Limited communication between academia and industry

• Absence of full-fledged incubator facilities

Why are we not there yet? Serious gaps exist in the

development of the Human Capital

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Quality of Innovative Human Capital

Supply of Innovative Human Capital

Moving idea to The- Market-Place

Recommendations from IHC Initiatives

• Review, revamp

tertiary

curriculum for

TEST and IHLs to

incorporate

creativity,

innovation,

collaboration and

entrepreneurship

• Enhance Brain

Gain initiatives

Create an Innovation Fund for

Human Capital Development

(also included in 10MP).

- To increase output of PhDs

- To increase quantum of

scholarships

- To provide Fellowships for

postdoctoral attachment at

Centers of Excellence & with

industry

- To provide Fellowships for

industry and international

scholars to be attached to

IHL/TEST/TEVT

• Strengthen internal and

external innovation

ecosystem

• Allocate sufficient R-D-Pre-C

grants for research at

IHL/TEST/TEVT

(MOHE launched PRGS)

• Establish/consolidate

professionally managed

technology transfer and

licensing offices

(incorporate training and

mentoring to establish

responsible IP governance

and exploitation )

• Provide full-fledged

incubator facilities to

nurture spin-offs

JAWATANKUASA KABINET MENGENAI PEMBANGUNAN MODAL INSAN BIL. 1/2011

HIGH INCOME

SUSTAIN-ABILTY

INCLUSIVE-NESS

HIGH QUALITY OF

LIFE

NEW ECONOMIC

MODEL (2010)

PrerequisiteScenario is dependant on a proper and appropriate education process from

pre-school to tertiary level.

Education

Industry VenturesInnovative Society

Government

INNOVATIONECOSYSTEM

MOHE implementation Plan for the Development of Innovative Human Capital

at Tertiary Level

JAWATANKUASA KABINET MENGENAI PEMBANGUNAN MODAL INSAN BIL. 1/2011

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Pre-School Primary Secondary Pre-Tertiary

TEST: Certificate Diploma

IHL: BSc Masters PhD

Required Core

Knowledge& Skills

Required Core

Knowledge& Skills

Required Core

Knowledge& Skills

Required Core

Knowledge& Skills

Required Core Knowledge

& Skills

Need for a seamless continuum from pre-school to tertiary level

Innovative Human Capital through Education

Creative

Creative & Innovative,Collaborative, Entrepreneurial

Creative & Innovative, Collaborative, Entrepreneurial

Creative & Innovative

MOHEMOE

JAWATANKUASA KABINET MENGENAI PEMBANGUNAN MODAL INSAN BIL. 1/2011

First badge of IHC in 21 years

IHL &

TEST

12 Pillars

45 Strategies

112 Action Plans

108 KPIs

Milestones for 5 years

13 Responsible Main Agencies

MOHE Implementation Plan for the Development of

Innovative Human Capital at Tertiary Level

MOHE, MOE,

MOSTI, MOHR,

MOF, JPA,

MATRADE,

MIDA, MyIPO,

MICC, MCMC,

MITI, EPU

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MOHE IMPLEMENTATION PLAN

The book lists the suggested ideas

of what needs to be done and how

to measure its success.

It also suggests the responsibilities of

the various agencies

Launched by Minister of MOHE

April 24,2011

ISBN 978-983-3669-64-4

JAWATANKUASA KABINET MENGENAI PEMBANGUNAN MODAL INSAN BIL. 1/2011

Strategies to enhance the number of K-

workers and K-products

By the setting up of Research Universities (RUs) RUs

Provide support for quality postgraduate training (allowance and operational budget)

Make the infrastructure and environment more conducive for learning and research

Provide funds for training of human capital Change in governance for matters pertaining to

research Encourage Universities to undergo translational

research Launching of Innovative Human capital (in April, 2011) by

MOHEHuman Capital Innovation FundLaunching of pre-commercialization grants (PRGS) University Innovative Incubators

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How to ensure Public-Private-Industrial

(PPI) partnership in Malaysia

To remain as a competitive player and at the

same be able to collaborate with the

industry/private sector, we need to undergo a

paradigm shift in our approach towards R&D.

Changing the paradigm to do

research

In the new economy, a discovery has no value until it can benefit the public. Publishing and winning gold medals for the products created are not enough.It has to be commercialised.

Discoveries and products cannot reach the public until it has been commercialized (now termed as innovation).

Research performed must be client-based rather than researcher based. It must be priority driven rather than investigator driven

Experimental design strategy must be from Z to Arather than A to Z.

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Changing the paradigm to do

translational research

Perform R&D that has impact by combining fundamental and applied research.

Work in a cluster/team of multi disciplinary experts to provide solutions to problems.

Learn concepts of entrepreneurship so that product designed is commercially viable.

Choose technology platform well. Must have the technology foresight to predict the trend of technology.

We need to be prepared years in advance so that the products we produce will remain technologically competitive in the global market.

We need to prepare Malaysia today for tomorrow.

Showcase: Rapid diagnostics @ USM

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Newsweek March 30, 2009

Where is the future market?

Performing R&I to

address the needs

of the bottom billion

=REALITY

REALITY

Determining directions

of R&I

Ensuring Malaysia’s Future:

Blue Ocean StrategyKim,W.C. and Mauborgne,R. (2005).

How can we ensure that we are in the lead and ahead of our competitors?

How do we make our competitors irrelevant?

How can we create an impact to the nation and to society?

Photograph by Zulfigar Yasin

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Blue Ocean Strategy: Stop playing catching up and turn around the way we do research

•The world’s population is 6.7 billion

•Address the needs of the 4.7 billion people on the planet living below

poverty line (including 40% Malaysian households that are below

poverty line).

•Concentrate on research outcomes that will reduce inequity and

enhance sustainability that includes availability, affordability,

accessibility, appropriateness and quality of our innovations to those

who need it most

• Provide local solutions to answer global problems. Impact

Vs Impact factor

Bottom

Billions4.7 billion Rich

2 billion

Rich2 billion

Advise from a Nobel Laureate

“If we work on research topics

that the West is not interested

in, we will always be 20 years

ahead. If we work on topics that

the West is interested in, we will

always be 20 years behind”.

...... Ahmad Zewail1999 Nobel Prize

in Chemistry

Blue ocean strategy

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Rapid protein or DNA - based diagnostics for the following diseases

Typhoid

Cholera

Campylobacteriosis

Filariasis

Tuberculosis

Dysentery

Paratyphoid

Nosocomial infections

Drug response to TB

Focus on diseases

relevant to S.E Asia

Example: Contribution to K-economyMolecular Diagnostics

Rapid

Specific

Sensitive

Easy to perform

Built-in controls

Cost effective

Transported without cold chain

Criteria for design and development

Scientific

discovery

Technology

platform

•Dot EIA

•Dipstick

•Sensor technology

•Thermostabilised PCR

•PCR DNA chipPatent separately

Working from Z to A: Market foresight requirements for rapid diagnostics

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Innovation, Technology & Business Development (ITBD)Prototype development facilities

“Developing Malaysian indigenous technology”

Protein product development

DNA diagnostic development

Investment in staff training, infrastructure and equipment

Dipsticks

Thermostabilised PCR

ORIGINAL

DISCOVERIES

Commercialization Track record:

Antibody-Based Biotech kits

6 kits commercialised

1994TyphiDot

1996TyphiDot M

2002TYPHIrapid

1994BrugiaRapid

2005Bancroftian Filariasis

2006Pan Filariasis

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Commercialization Track record: DNA-based Biotech kits

EZCholera AmpITEX 2003 Silver Medal

EZDNA AmpExpo S&T 2003 Silver medal Commercialized by MBDr M’sian Patent: PI 20051471

2003 2004 2005 2006 2007

EZEBV AmpITEX 2004 Gold medalWIPO Gold MedalKASS Award 2004Geneva 2005 Gold Medal

EZAmp Octaplex Cholera ITEX 2004 Gold medalWIPO Gold MedalGeneva 2005 Gold Medal

EZTB Amp ITEX 2004 Silver medal

Commercialized by MBDr

EZVRE AmpITEX 2005 Gold medalGeneva 2006 Gold Medal

EZTyphi Carrier DNAITEX 2005 Gold medal

ITEX 2005 Best Invention in BiotechnologyGeneva 2006 Silver Medal

EZDysentry DNAITEX 2005 Silver Medal Cholera Genosensor

EZCampy DNAExpo S&T 2005 Silver MedalGeneva 2006 Silver Medal

A total solution

Courtesy: M Ravichandran, USM

2 kits commercialised

ORIGINAL DISCOVERIES

Global Distribution of the Kits

From idea to market:Affordable diagnostics

PakistanIndiaPhilippinesSouth AfricaGuamPapua New GuineaThailand VietnamEgyptTurkeyUnited Arab RepublicIndonesiaBangladeshChinaSudanCameroonNigeriaUSA

R&D is necessary to make the product

technologically competitive

Outputs

•>20 Publications

•10 Patents attained

•23 patents pending

•Created spin-off

biotech company

•Creation of 500 jobs

•Supported local industries

•Generated income to country,university,

Inventors

•Won >80 awards

•RM14 million grants

obtained

Commercialised to at

least 18 countries

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Development of sustainable

Diagnostics for developing and

Underdeveloped countries

Prize: USD 100,00

THANK YOUasma@usm.my

www.usm.my/r&i

The future is not about where we are going

but what we are creating

•Development of technologically

competitive product/device/

process/expertise is no longer a

luxury.

•It is a necessity

•R&D must be relevant and

positioned to capture the Asian

market

•We need to move into the Blue

Ocean before it becomes the

Red Ocean

• Offer local solutions to solve

global problems

CONCLUSION