Raslan Ahmad, Ph.D Yayasan Inovasi Malaysia

raslan@yim.myhttp://www.yim.my

Towards an Innovative Society and a High Income Advanced Economy”

Yayasan Inovasi Malaysia

Youtube.com/yayasaninovasimsia

Twitter.com/YayasanInovasi

Outline

• Who are we?• Where we want to go?• Where are we now?• What are the challenges?

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Outline

• Who are we?• Where we want to go?• Where are we now?• What are the challenges?

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• Yayasan Inovasi Malaysia (YIM) was established in November 2008 with the main goal to promote and inculcate creativity and innovation among Malaysian citizens, especially targeting children and youth, women, rural folk, people with disabilities and non-government organizations.

• YIM’s corporate objectives are to:– Promote & inculcate the awareness and culture of

creativity and innovation– Record, preserve, promote and rewards social

innovations– Provide institutional supports in scouting, spawning,

sustaining and scaling up grassroots green innovations

About Malaysian Innovation Foundation (YIM)

RU

RA

L

YOUTHS

SCHOOLS

WO

MEN

DIS

AB

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Outline

• Who are we?• Where we want to go?• Where are we now?• What are the challenges?• What can we do together?

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8

LOOKING BACK, MOVING FORWARD

Source:MoSTI, 9th Malaysia Plan

Agriculture Based Economy

Basic Input Factors Land Labour

1957 to late 1970s

Resource-Led Economy

Basic Input Factors Infrastructure Collateralized

risk- free capital

Labour

1980s to mid 1990s

Rewards are rapid and sustainable:• Wealth creation• Employment

creation• Societal well

being

Innovation-Led Economy

Knowledge based Critical Success Factors Technology Market Funding (risk

capital)

Late 1990s to 2020 and to 2057

To move the economy up the value chain

To raise the country’s capacity for knowledge, creativity and innovation and nurture “first class mentality”

To address persistent socio-economic inequalities constructively and productively

To improve the standard and sustainability of our quality of life

To strengthen the institutional implementation capacity of the country

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2

3

4

5

National Mission:

To Fulfill

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POST CRISIS, MALAYSIA’S GDP GROWTH HOVERS AT 5%

*China – urban available until 2005 only

Source:Global Insight, McKinsey Global Institute, 9MP

Malaysia was in the group of leading East Asian countries

Now: Most countries except China are facing challenging times

*Malaysia

*China

*China urban*

India

Korea

Taiwan

Russia *

*

Singapore

Brazil

Vietnam

*

Japan

UK

US

1990-1997 GDP % 2000-2006 GDP %

Asian bench-marks

Global bench-marks

Developed countries

*

*

*

*

*

*

*

Urban China GDP growth 3x of Malaysia

China’s exports already exceed US and is expected to pass Germany

3.02

1.63

2.02

2.93

1.44

2.52

2.40

2.90

3.44

4.63

5.41

7.01

7.24

Growth rate• Selangor 5.2%• Penang 5.0%

The New Economic Model Goals: Creating a high income nation

New Principles: High income, Sustainability and Inclusiveness. Priority: To eradicate poverty

YAB Dato’ Sri Najib Tun RazakPrime Minister of Malaysia

30 March 2010

“Creating a high income nation will mean higher wages throughout the economy as growth is derived not only from capital, but from

greater productivity through the use of skills and innovation, improved coordination, stronger branding and compliance with international

standards and Intellectual Property Rights. In a knowledge economy, investment in new technology, multi skills, innovation and creativity,

and increased competency are the drivers of public and private sector performance.”

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INNOVATION: THE NATIONAL CONTEXT

The Prime Minister’s Vision - Transforming Malaysia

INNOVATION

The Prime Minister’s Vision - Transforming MalaysiaThe Two Pillars of the National Transformation Programme

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GovernmentTransformation

Plan (GTP)

Effective Delivery of Government Services

10th & 11th Malaysia Plan Roll-OutMacroeconomic growth targets & expenditure allocationImplementation of Government’s Development Programmes

Economic Transformation

Programme (ETP)

New Economic Model A High Income, InclusiveAnd Sustainable Nation

RakyatQuality of Life

RakyatQuality of Life

HighIncome

Inclusiveness Sustainabiliy

1Malaysia – People First, Performance NowPreservation and Enhancement of Unity in Diversity

New Economic Model (NEM)

Eight (8) Strategic Reform Initiatives (SRIs)All SRIs have cross-cutting impact over all sectors

SRI 6Building Building

knowledge base knowledge base infra-structureinfra-structure

Economic Transformation through Innovation •Transformation of the Agriculture and Industrial sectors through continuous

Innovation of significant technological advancement• Access to specialised skills needed to drive the sector

• Protection of IP rights• Fostering R & D links between institutions of higher learning and private sector

• Align R & D to national growth objectives •R & D funding through an open access system through competition

• KPIs for Universities based on commercialisation•Research Powerhouse and centre of excellence run on a commercial basis

• Promoting basic research with perceived significant potential impact on economic development

• Reward for excellence in Research• R & D be made attractive to business enterprises• Incentives for International l Networking in R & D

• Strengthen the role of Universities as research institutes• Establish strong research teams

• Increase emphasis on research training of young scientists in internationally competitive environments

•Promote technology innovation and commercialisation•Support infrastructure for scientific research and development of human

resource in S&T•Seek and provide foreign funding sources

•Create stronger incentives for international networking

Possible Policy Measures

Policy PurposesPolicy Purposes

1. Create ecosystem for

entrepreneurship2. Promote an environment for

innovation3. Establish

stronger enabling

institutions

Other ministries/agencies/

univ/research institutions

•To support innovation activities in their respective

areas

National Innovation Council (NIC)Chaired by PM

Provide Strategic leadership

Policy decision making

MOSTI•Secretariat to NIC

•Formulate policies for S&T development

•Oversee resource allocation for technological innovation

MITI•Promote enterprises

innovation

•Oversee resource allocation for non-technological

innovation

National Science & Research Council •Set priorities for R&D

investment

•Evaluate R&D programmes & monitor outcomes

MTDC •Nurture Technology based

enterprises

•Provide support services for commercialization

MPC•Undertake productivity

enhancement research & activities

•Advisory & training to enable enterprise innovation

Institutional Structure Supporting Innovation and R & D

Institutional Structure Supporting Innovation and R & D

Source: Tenth Malaysian Plan 2011-2015, Pg 85

Innovation Malaysia, PM’s Department•Provide policy input to NIC

•Oversee functioning of the NIS•Undertake evaluation of policy instruments and

programme•Assess innovation outcome

Innovation Malaysia, PM’s Department•Provide policy input to NIC

•Oversee functioning of the NIS•Undertake evaluation of policy instruments and

programme•Assess innovation outcome

Outline

• Who are we?• Where we want to go?• Where are we now?• What are the challenges?• What can we do together?

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Transformation involvesinnovation on novel ways of

working (i.e doing things)....

the 3rd outcome of innovation

What does it mean by“Action” ?

• Innovative ways of prioritization / focus (KRAs)

• Innovative ways of problem-solving (eg: lab)

• Innovative ways of instituting discipline (PSM, DTF)

• Innovative ways of delivering results (KPI, performance assessment / ranking)

GTP & ETP are innovative to achieve Big Result Fast

ImplementImplement

LabsLabs

Open DayOpen Day

1Msia GTP Roadmap

1Msia GTP Roadmap

Radical / Innovative

Roadmap / Strategy

Roadmap / Strategy

Feedback / Syndication

Feedback / Syndication

Action PlanAction Plan

ImplementImplement

Conventional

1.5 yrs

1.5 yrs

2 mth

1 mth

The outcome of GTP…. innovating to get Big Result Fast

16%

drop inIndex Crime

Jan-Sep 2009

Jan-Sep 2010

157,537

132,355

-16.0%

-25,182

38%

drop inStreetCrime

Jan-Sep 2009

Jan-Sep 2010

29,596

18,299

-38.1%

-11,297

2.4 million

increase in LRT ridership

538 km

of rural roads completed

54,569 children

are benefiting from 1,358 pre school

classes

9,816 schools

(primary & secondary)have been

ranked

49% reduction of

hardcore poor

Jan 2010 Sept 2010

44,463

22,559

3716

government contracts

have been published on line

myprocurement.treasury.gov.my

648

people were arrested

for corruption

Outline

• Who are we?• Where we want to go?• Where are we now?• What are the challenges?

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We are not innovating and we need to for sustainable growth.Low R&D capabilities compared to the rest of the world

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GNI per capita (USD)

No. of scientific & technical journal articles

50,000 210,00020,00010,0000

USAUK

Sweden

Spain

Norway

Slovenia

Canada

Singapore

Australia

Malaysia

S. Korea

Japan

ItalyGermany

Denmark

Czech Republic

GNI per capita (USD)

No. of researchers in R&D (per million people)

USA

UK

Sweden

Spain

Norway

Slovenia

Canada

Singapore

Australia

Malaysia

S. Korea

Japan

ItalyGermany

Denmark

Czech Republic

Number of researchers2006

R&D articles2006

Source : World Bank Indicators 2008

Country scientific infrastructure ranking

Ranking 1997 2008

China 28 6

Indonesia 35 25

Malaysia 24 28

India 29 29

Ranking based out of 55 countries

Expenditure on R&D (% of GDP)

Source : DOS Malaysia, World Bank and IMD, BNM

We continue to lose out to our Asian neighbours and spend less on scientific research

Regional & Local Scenario on R&DRegional & Local Scenario on R&D

Is Creativity & Innovation Understood?

To begin with...To begin with...

let’s hear how Malaysian define let’s hear how Malaysian define CREATIVITYCREATIVITY and and

INNOVATIONINNOVATION

In general, Malaysian understood

the meaning of creativitycreativity and

innovation…BUTinnovation…BUT

There are some misconceptions

Let’s clear some Let’s clear some MENTAL MENTAL BLOCKSBLOCKS

Mental Blocks Mental Blocks that seriously hinderthat seriously hinder

Creativity & InnovationCreativity & Innovation

The FOURThe FOUR

about about CREATIVITYCREATIVITY andand INNOVATIONINNOVATION

greatgreat MISCONCEPTIONSMISCONCEPTIONS

Mental Block Mental Block No.1No.1

The thinking thatThe thinking thatonly only MUSICIANSMUSICIANS

and and ARTISTSARTISTS are are CREATIVECREATIVE

But is this the case? But is this the case? Is this type of thinking sound? Is this type of thinking sound?

Mental Block Mental Block No.2No.2

The idea that onlyThe idea that onlyINVENTORS INVENTORS andandSCIENTISTSSCIENTISTS are are

INNOVATIVEINNOVATIVE

But is this valid?But is this valid?Is this point of view correct? Is this point of view correct?

Mental Block Mental Block No.3No.3

But is innovation only confined to product development?But is innovation only confined to product development?

The idea that The idea that INNOVATIONINNOVATION is all about making is all about making

new and better new and better PRODUCTSPRODUCTS

Mental Block Mental Block No.4No.4

Is it true?Is it true?

The idea that The idea that INNOVATIONINNOVATION is all about new is all about new TECHNOLOGY & TECHNOLOGY &

SOLUTIONSSOLUTIONS

Young and old, kids and adults, male and femaleYoung and old, kids and adults, male and female

But the truth is...But the truth is...

CREATIVITYCREATIVITY and and INNOVATIONINNOVATION is by and for is by and for

ALLALL

Plus the fact that...

CREATIVITY CREATIVITY && INNOVATION INNOVATION can be applied in can be applied in MANY AREASMANY AREAS!!!!

EVERYONEEVERYONE can be and should becan be and should be

encouraged and equippedencouraged and equipped

to to THINKTHINK and and ACTACT creativelycreatively andand innovativelyinnovatively

we believe...we believe...thatthat

Thank You..

www.yim.my