Title of Presentation Subtitle/other information 1 EU-ASEAN S&T cooperation to jointly tackle societal challenges Innovative Innovation in: Malaysia STI Days, Bangkok, 21 Jan 2014 Session: Innovation in ASEAN Sara Medina & Kai Zhang (SPI)

Agenda I.Context in Malaysia II.Innovation Support Instruments III.Observations 2

I.Context in Malaysia II.Innovation Support Instruments III.Observations 3 Agenda

I. Context in Malaysia 4 Overview Source: MASTIC National R&D Survey 2012/Innovation in Southeast Asia, OECD, 2013/ Intellectual Property Organization of Malaysia/MIDA, Performance Report 2012/Global Innovation Index Malaysia is ranked 15 th in the International Institute for Management Development (IMD) World Competitiveness Ranking in 2013 Malaysia is 2 nd to Singapore in terms of Gross Domestic Product (GDP) per capita within ASEAN, being a middle-income country according to United Nations (UN) standards Malaysia has a Gross Domestic Expenditure on Research and Development (GERD)/GDP rate of 1,07% (2011), 2 nd to Singapore within ASEAN Malaysia ranks 32 nd out of 142 countries in the Global Innovation Index Malaysia has among the world´s highest rate of Private Sector Proportion of R&D Expenditure : 56,7% (2011)

I. Context in Malaysia 5 Key Institutions in the National Innovation System (NIS) Source: OECD, Innovation in Southesast Asia, 2013 Government Agencies and Bodies R&D Sector Organizations Innovation Support centres Financing Institutions Education/ Training Institutions Commercial Enterprises

I. Context in Malaysia 6 Key Public Science, Technology and Innovation (STI) Policies Vision 2020 ( ) The 10th Malaysia Plan (10MP: ) National Policy on Science, Technology & Innovation (NPSTI: ) Malaysian Higher Education Strategic Plan (MHESP: )

Agenda I.Context in Malaysia II.Innovation Support Instruments III.Observations 7

II. Innovation Support Instruments 8 A.Applied Research B.Idea/Proof of Concept up to Commercialisation C.Venture Capital D.Foreign Direct Investment E.IPR Support

II. Innovation Support Instruments 9 A.Applied Research Example: ScienceFund B. Idea/Proof of Concept up to Commercialisation Examples: Commercialisation of Research & Development Fund (CRDF) Cradle Investment Programme (CIP) C.Venture Capital D.Foreign Direct Investment E.IPR Support

II. Innovation Support Instruments 10 Title of the Instrument: ScienceFund Website: ‎ Programme Owner: Ministry of Science, Technology and Innovation (MOSTI) Scope of Funding: Preliminary research leading to laboratory proof of concept/ development of new products or processes Scale of support: Up to RM 500,000 (around € 113,000) per project Beneficiaries: Research scientists and engineers from Government Research Institutions (GRIs), Government STI Agencies, Public/Private Institutions of Higher Learnings (IHLs) A. Applied Research - ScienceFund

II. Innovation Support Instruments ScienceFund Roles in Innovation: Carrying out high-impact and innovative R&D projects that lead to new ideas and the advancement of knowledge in applied sciences Supporting research that can lead to further product/process development and commercialisation Generating new scientific knowledge Strengthening national research capability Emphasizing and supporting National Research Priorities 11 A. Applied Research - ScienceFund

II. Innovation Support Instruments 12 Title of the Instrument: Commercialisation of Research & Development Fund (CRDF) Website: Programme Manager: Malaysian Technology Development Corporation (MTDC) Supporting Stage: Commercialisation Established year: During the 7th Malaysia Plan ( ) Types of Grants: CRDF 1 Commercialisation of R&D by a Spin-off company CRDF 2 Commercialisation of R&D by a Start-up company CRDF 3 a. Commercialisation of local R&D by SME b. Commercialisation of public R&D by non-SME B. Idea/Proof of Concept up to Commercialisation – Commercialisation of Research & Development Fund (CRDF)

CRDF Roles in Innovation: Enabling full commercialisation of R&D activities Supporting local innovation actors (universities/ research institutions, companies) Facilitating Public Private Partnership Generating IPs and new employment 13 II. Innovation Support Instruments B. Idea/Proof of Concept up to Commercialisation – Commercialisation of Research & Development Fund (CRDF)

II. Innovation Support Instruments 14 Title of the Instrument: Cradle Investment Programme (CIP) Website: Programme Owner: Ministry of Finance, Malaysia (MOF) Supporting Stage: Conceptualisation and Commercialisation Established year: 2003 Types of Grants: Prototype Development: Pre-Seed (CIP Catalyst & U-CIP Catalyst) Product Commercialisation: Seed (CIP 500) B. Idea/Proof of Concept up to Commercialisation – Cradle Investment Programme (CIP)

CIP Roles in Innovation: Creating an innovative ecosystem for technology entrepreneurs Answering the need of commercialisation support and pre-seed and seed funding to develop and transform ideas into market- ready products Supporting local technology entrepreneurs and start-ups Achieving commercialisation efficiency and sustainable entrepreneurship Representing the Government’s effort at boosting quantity and quality of innovations and technology start-ups 15 II. Innovation Support Instruments B. Idea/Proof of Concept up to Commercialisation – Cradle Investment Programme (CIP)

Agenda I.Context in Malaysia II.Innovation Support Instruments III.Observations 16

III. Observations Innovation is a key government focus A wide range of innovation support measures exist in the country The system would benefit from a stronger linkage between various key players and measures The fostering of Public Private Partnership is essential for further improvement of the innovation system 17

Contacts Sociedade Portuguesa de Inovação (SPI) Sara Medina & Kai Zhang 18 The final study will be available at: in June 2014 Thank you!