2

3

Preservation and Effective delivery of

New Economic Model – A Smooth implementation of

VISION 2020

The 4 pillars of transformational programmes – NEM, GTP, ETPand 10 th MP will propel Malaysia towards a developed nation.Human capital is pervasive in these programmes.

1Malaysia

People First,Performance Now

April 2009

Government Transformation

Programme (GTP)

6 National Key Result Areas (NKRAs)

January 2010

Economic Transformation

Programme (ETP)

8 Strategic Reform Intiatives (SRIs)

March 2010

10th Malaysia Plan

Macroeconomic Growth Targets & Expenditure

Allocation

March 2010

Preservation and enhancement of unity in

diversity

Effective delivery of government services

New Economic Model – A high income, inclusive and

sustainable nation

Smooth implementation of government’s

development programme

Source: EPU, GTP, NEM

4

Malaysia’s global competitiveness ranking has improved fr om24th in 2009 to 21 st in 2011.

No. Country2011-2012 2010 – 2011 2009 – 2010

Ranking Score Ranking Score Ranking Score

1. Singapore 2 5.63 3 5.48 3 5.55

2. United States 5 5.43 4 5.43 2 5.59

3. Japan 9 5.40 6 5.37 8 5.37

4. United Kingdom 10 5.39 12 5.25 13 5.19

5

5. Australia 20 5.11 16 5.11 15 5.15

6. Saudi Arabia 17 5.17 21 4.95 28 4.75

7. Malaysia 21 5.08 26 4.88 24 4.87

8. China 26 4.90 27 4.84 29 4.74

9. Brunei Darussalam 28 4.78 28 4.75 32 4.64

10. Thailand 39 4.52 38 4.51 25 4.84

11. Indonesia 46 4.38 44 4.43 54 4.26

Source: Global Competitiveness Report 2009-2012, World Economic Forum

Although Malaysia’s overall competitiveness ranking has improved, its

performance in innovation and technological readiness is relatively low.

6

Country / Economy Score (0-100) Rank Income

Switzerland 63.82 1 HI

Sweden 62.12 2 HI

Singapore 59.64 3 HI

Hong Kong (SAR), China 58.80 4 HI

Finland 57.50 5 HI

Denmark 56.96 6 HI

United States of America 56.57 7 HI

Cyprus 46.45 28 HI

China 46.43 29 LM

In the Global Innovation Index 2011, Malaysia’s ranking is 31out of 125

countries.

China 46.43 29 LM

Slovenia 45.07 30 HI

MALAYSIA 44.05 31 UM

Spain 43.81 32 HI

Portugal 42.40 33 HI

Source: Global Innovation Index, INSEAD, 2011

125countries

INNOVATION INDEX2011 2009-2010 2008-2009

Score (0-100) Rank Score (0-10) Rank Score (0-10) RankGlobal Innovation Index 44.1 31 3.77 28 4.06 25Innovation Input Index 52.9 27 4.51 29 4.65 25Innovation Output Index 35.2 35 3.04 30 3.47 24

Innovation Efficiency Index *

0.7 77 NA NA NA NA

7

“Discovering, developing and utilising STI forwealth creation and societal well being towardsachieving a high income advanced economy thatis competitive, sustainable and inclusive.”

“To drive and manage STI for socioeconomic growth byintensifying creativity and innovation; strengtheningmarket driven R&D and home grown technology;sourcing and diffusing new technology; developing andattracting talent; deepening STI awareness; and forgingand strengthening international collaboration.”

8 Strategic Thrusts

10

Strategic Thrust Focus Areas

ST1. Developing human capital in STI towards generating and enhancing a knowledge/innovation-led economy

• Establishing institutional and support framework

• Developing local talent programmes• Implementing STI HCD

Programmes• Enhancing social capital

Strategic Thrusts and Focus Areas

ST2. Harnessing and intensifying home-grown R&D, technology acquisition and innovation for markets

• Increasing R&D capabilities and capacities

• Focusing on priority technology and economic clusters

• Encouraging private sector R&D and innovation

• Efficient exploration of R&D results and innovation

Ministry of Science, Technology and

Innovation11

1996 1998 2000 2002 2004 20065.1 7 15.6 18 21.3 17.9

Currently, the ratio of researchers per 10,000 workforce is 29.1 which is belowthe targeted 50 researchers by 2015. To achieve the target, t here is a need tointensify human capital development initiatives and progr ammes.

NUMBER OF RESEARCHERSPER 10,000 WORKFORCE (1992-2010)

63.5

87.0

113.5

123.2

133.9

United Kingdom

United States

Singapore

Republic of Korea

Japan

INTERNATIONAL COMPARISONRESEARCHER PER 10,000 WORKFORCE(2010)

TARGET:50 per 10,000 WF

by 2015

3.1

3.3

8.6

10.3

18.1

22.7

59.2

61.3

0.0 50.0 100.0 150.0

Philippines

India

Indonesia

Thailand

China

Malaysia

Hong Kong SAR

Germany

Source:UNESCO DATA CENTRE & IMD WCY 2010 (based on 2008 data)Source: MASTIC, R&D Survey Report 2008

12

Notes:2008: provisional data*2010: Forecast

1.7

2.24

2.27

2.77

2.94

3.36

3.45

China

Australia

Singapore

USA

Taiwan

Korea

Japan

Cou

ntry

Malaysia’s GERD / GDP was 0.72% in 2008 and 0.84% in 2009 which is belowthe GERDs of developed countries (2% to 4%). There is a need fo r more R&Dfunding to drive innovation of which human capital is the dri ving force.

GROSS R&D EXPENDITURE /GDP (1992 -

2009)

INTERNATIONAL COMPARISON

RATIO GERD/GDP (2009)

Target:

GERD 1.0% /GDP

by 2015

0.5

0.69

0.63 0.64

0.72

*0.84

0.5

0.6

0.7

0.8

0.9

%GERD/GDP

0.05

0.1

0.24

0.67

0.8

* 0.84

0.92

1.38

1.7

0 1 2 3 4

Indonesia

Phillippines

Thailand

Poland

India

MALAYSIA

South Africa

Spain

China

GERD/GDP

Cou

ntry

* Forecast

Source : IMD World Competitiveness Yearbook 2011

Note :GERD - Gross Expenditure on R&DGDP - Gross Domestic ProductSource : 1992-2006 : National Survey of R&D, MOSTI

2008-2009 : IMD World Competitiveness Yearbook

0.370.34

0.22

0.39

0.5

0

0.1

0.2

0.3

0.4

1992 1994 1996 1998 2000 2002 2004 2006 2008 2009%GERD/GDP

Year

* Forecast

13

Strategic Thrust Focus Areas

ST3. Mainstreaming STI, nurturing and acculturation of creative and innovative thinking

• Raising public awareness on S&T• Nurture the growth of S&T• Create a society which is able to

understand, absorb and utilise S&T

Strategic Thrusts and Focus Areas

ST4. Enhancing and strengthening strategic alliances (collaboration, cooperation and partnership)

• Develop a smart partnership with market driven R,D&C

• Leverage on the global talents and domain experts to support R,D&C competency

• Outsource researchers/experts from public and private institutions for R,D&C competitiveness

Ministry of Science, Technology and

Innovation14

259 program

31 Rakan Inovatif(Kerajaan, Swasta, NGO)

180,000 Pengunjung

335 Pameran ProdukInovasi Akar Umbi

649 PenyertaanPertandingan Inovasi

26,190 pesertaBengkel peringkat Zon

15

INNOVATION SUPPORT•Tech. Commercialisation office/ centre

• Incubators/ Tech Parks• IP Laws/ Regulations

•Business Consultants Clusters/ Networks

EDUCATION & TRAINING•School (Primary/ Secondary)

•Vocational/ Tertiary•Corporate Training•Family/ Community

•Service Organisation/ NGOMalaysia’s National

• )

GOVERNMENT•Policy Coordination

(EPU, MOF, MITI, MOSTI, MOHE, MOE, MOHR, etc)

•Regulatory & Administrative•Environment

•R,D&C Funding (Grants / Tax)

Enhancing and strengthening collaboration among the actors of the National innovation System (NIS)

R&D SECTOR•Universities (Public & Private)

•Govt Research Institutions• Industry R&D

ENTERPRISE•Manufacturers

•Service Providers•Entrepreneurs

•Managers•Customers•Suppliers

Malaysia’s National Innovation System

(NIS)

FINANCE•Venture Capitalists

•Bank•Business Angels

Investors

Source: National Innovation Model, MOSTI 2007

17

Strategic Thrust Focus Areas

ST5. Strengthening R,D&C funding • Providing conducive R,D&C management

• Centralised R,D&C planning, implementation and execution

Strategic Thrusts and Focus Areas

ST6. Harnessing commercialisation and intellectual property for wealth creation and societal well-being

• Increase level of awareness among the researchers and inventors for IP; and

• Increasing commercialisation and creating activities for the public funded research

Ministry of Science, Technology and

Innovation18

NATIONAL R&D AREAS

Information &

Communications

• Communications

• Computer architecture

• Knowledge technology

• Software engineering

Cross cutting & Converging Technologies

Biotechnology

• Agriculture Biotechnology

• Environmental

Biotechnology

• Industry Biotechnology

• Medical Biotechnology

• Advanced & new materials

• Advanced & new processes

Materials Sciences

Nanotechnology

• Medical Biotechnology

• Nano-Devices

• Nano-Materials

MOSTI RETREAT 3-4 February 2012

NATIONAL R&D AREAS

• Breeding

• Pest & Diseases

• Post Harvest

• Production

• Product development &

Processing

Food & Feed

Production

• Brain research*

• Cancer research*

• Drug discovery &

development

• Human development &

aging

Medical &

Healthcare

National Issues

National Security

• Information security

• Informatics

Processing

• Climate Change

aging

• Major diseases & disorders

• New & emerging diseases

• Stem cells

• Traditional &

Complementary medicine

Transportation &

Mobility

• Assistive technology

• Infrastructure

• Systems & operations

• Vehicles

MOSTI RETREAT 3-4 February 2012

NATIONAL R&D AREAS

Environment &

Climate Change

• Air & atmosphere

• Biodiversity & natural

resources

• Land use & forestry

• Marine & Coastal resources

• Waste management

• Alternative energy

• Energy efficiency

Energy Security

• Alternative food

• Nutrition

• Productivity & distribution

• Seed technology

Food Security

Global Issues

• Waste management

Water Security

• Clean water

• Water resources

• Water quality & conservation

MOSTI RETREAT 3-4 February 2012

RESEARCH DEVELOPMENTINDUSTRY

INCUBATIONCOMMERCIALISATION

Accelerating Market-Driven Innovation

SPEED TO MARKET

Research Components

Technology Platform

Product Development

• Products• Applications• Solutions

Acquired Existing New Component

Strategic Thrust Focus Areas

ST7. Empowering society through STI for sustainable development

• Sustainable development through the effective use of STI

• Improving quality and standard of living through enhancing S&T services, its applications and carry out viable CSR programmes

Strategic Thrusts and Focus Areas

out viable CSR programmes

ST8. Internationalisation • Increase global market share of M’sian products and services;

• Enhance delivery mechanism for global competitiveness;

• Enhance incentives and environment to promote globalisation; and

• Nurture domestic and attract world class talents

Ministry of Science, Technology and

Innovation23

JEJAK INOVASI

Kawasan Bil. Produk

Melaka 17

Zon Pedalaman Sabah 11

Bahagian Mukah 11Bahagian Mukah 11

Challenges for the Globalisation of Local Technologies

BRANDING

• Dependent on

GO-TO-MARKET

• Products centered

TECHNOLOGY

• Too much

TALENT

• More generalists • Dependent on foreign brands

• Poor brand recognition for Malaysian products

• No brand loyalty to Malaysian products

• No concerted national brand strategies

• Products centered towards Malaysian markets

• Not fully compliant with global standards

• Insufficient global distribution channels

• Poor market entry strategies for new technologies

• Too much adoption of foreign technologies

• No true Product Companies

• Lack of in-country showcases of homegrown technologies

• Lack of technology edge (novelty) to compete globally

• More generalists than domain experts

• Majority of key talents reside in MNCs

• Not tapping the best talents abroad

• Ecosystem not conducive to attract best talents

Moving Forward: Strengthening our

Foundations

Building our Foundations in STI

Generating,Generating,Generating,Deploying and

Utilizing Knowledge for National Advantage

Intensifying Talent

Development for an

Innovation Economy

Energizing Innovation in

Industry

Transforming Governance Framework for STI to support

Innovation

Malaysia’s STI Challenge

Science

Technology

Solve

Transform

Prosperous

SustainableTechnology

Innovation

Transform

Impact

Source: R.A. Mashelkar presentation at World Bank global Forum, 2007

Sustainable

Inclusive

Innovation-led Economy

Innovation

Market

Funding(Buy technology)

Takes 3-5 yearsMarket-driven

Technology -driven

Research Technology Innovation

Market

Takes 10-15 years

Funding

National security

S&T Human CapitalS&T Human Capitalis crucialis crucial

Technology -driven

Paradigm shift: The New Research approach

Generate Generate new industriesnew industriesCreateCreate newnew

Scientific Scientific discoveriesdiscoveries

• Strike a balance between fundamental and applied in order to undergo Translational Research (Move R to D to C )

• Work in multi-disciplinary clusters

• Generate Patents• Publications

Produce relevant scientists and postgraduates to be drivers of K-economy

Consolidate Consolidate existing existing

industriesindustries

discoveriesdiscoveries

DevelopDevelopnew technologynew technology

or valueor value--add add existingexisting

technologytechnology

STRATEGICFUNDAMENTALRESEARCH +

• Incentives for scientists

• Incentives for industries

Enhance Enhance sustainabilitysustainability

Ensure products remain technologically competitive

Z

Work with end in mindCheck market/client requirements

Z Problemsto address

INNOVATIONSINNOVATIONSthat reduce

inequity

Digital Malaysia … building an ecosystem that

promotes the pervasive use of ICT in all

aspects of the economy

Ministry of Science, Technology and Innovation 31

Source: mscmalaysia.my

Why Bioeconomy?

Development of

BIOECONOMYBIOECONOMY

Population growth

Climate change GNI

Human

32

BIOECONOMYBIOECONOMY

Unsustainable reliance on

non-renewable resources

Pressures on global

production systems

Human

Capital

Innovation

Vision: Science, Technology and Innovation for knowledge generation, wealth creation and societal well-being.

Mission:Championing scientific discovery and transforming innovation to achieve a K-based society for sustainable development through R&D planning, funding and commercialisation.

The Mission is driven by the

Strategic Innovation Model

composed of 8 critical

thrusts (T 1–8); four core

(T2,3,6,8 ) forming the

innovation pipeline and four

supporting. K-generation &

Wealth creation are driven

primarily by T2&3 and T6&8,

Societal Well-being

Wealth Creation

Knowledge Generation

Virtuous Circle

The 3 key components of

the Vision support one

another in a virtuous circle.

MOSTI’sMOSTI’s DASHBOARD: Aligning Vision, Mission, DASHBOARD: Aligning Vision, Mission, KRAsKRAs and and KPIsKPIs

commercialisation.

Key Result Areas (KRAs)

KRA1:

Generating innovation-led economy via STI.

KRA2:

Intensifying RD&C & entrepreneurship in STI.

KRA3:

Increasing quality &quantity of RSEs; knowledge & skillworkers; innovative small & medium technoprenuers.

KRA4:

Nurturing innovative and creative culture and increasing STI awareness, appreciation andapplication.

KRA5:

Energising the innovation ecosystem.

Key Performance Indicators (KPIs)

KPI1:1.1 No of new MSC Malaysia and

BioNexus companies1.2 Revenue generation1.3 Amount of investment1.4 No of technopreneurs created1.5 No of high value jobs1.6 Export value for innovative

products and services.1.7 % Contribution to GDP:

• Profit of companies (MSC Malaysia & BioNexus)

• Gross wages (no of jobs and average salary)

KPI2:2.1 Increased no of emerging

technologies transferred to companies.

2.2 Increased no of international publications

2.3 Increased no of internationally registered IP’s

2.4 Increased no of entrepreneurs / start- up companies

2.5 Increased in % of GERD/ GDP

KPI3:3.1 No of RSE’s per 10,000

labour force3.2 EIU Innovation Performance

Index3.3 No of IP filed per 1 million

population3.4 % of returning and imported

skilled RSEs

KPI4:4.1 STI awareness index4.2 No of communities benefitting

from STI CSR programmes4.3 No of communities benefitting

from STI awareness programmes

4.4 Clients and stakeholders’ satisfaction towards STI services and initiatives for societal well-being

KPI5:5.1 No of Collaborative

Innovation Network Systems (COINS) established

5.2 Enabling Innovation policies and STI Strategic and Action Plan established

5.3 Review of National Technology Policy and Roadmaps

5.4 Number of new technology incubators

respectively.

Five (5) KRAs arise

from the 8 thrusts of

the Strategic

Innovation Model.

34

http://www.mosti.gov.mymadinah@mosti.gov.my