1. INNOVATION Presented by: Sabrina binti Kamin 5 – 8 December 2011 Hanoi, Vietnam

2. PRESENTATION OUTLINE 1. Background of National Survey of Innovation, Malaysia 2. Objective 3. Methodology 4. Survey Activities 5. Coverage 6. Data collection 7. Sample size 8. Response rate 9. Malaysia Experience 10. Main finding 11. Timeline

3. BACKGROUND  1995 - National Survey of Innovation in Industry  1997 - 1999 : National Survey of Innovation  2000 - 2001: National Survey of Innovation  2002 - 2004 : National Survey of Innovation  2005 - 2008 : National Survey of Innovation  2009 - 2011 : NSI-6 (2012)

4. OBJECTIVE  To collect and compile time series of data pertaining to innovation activities in the manufacturing and services sectors.  The output from the study shall be used by policy makers in analysing and understanding the diffusion, usage and practice of innovation in Malaysia.

5. OBJECTIVE (cont.)  To monitor and develop national innovation parameters (specific to Malaysia) for the purpose of comparison at international level;  To provide suggestions in improving the innovation level of the Small and Medium Enterprises (SME);  To identify major challenges in implementing innovation;and  To identify the impact and effectiveness in the diffusion and practice of innovation.

6. METHODOLOGY  Based on the OECD’S OSLO MANUAL (Third Edition, 2005)  Type of survey: Not compulsory to the respondents  Survey method: Sample

7. SURVEY ACTIVITIES 1. Basis For Methodology Development 2. Coverage 3. Sampling Strategy 4. Data Collection 5. Design of Questionnaire 6. Actual Survey 7. Data Processing And Analysis 8. Quality Assurance

8. BASIS OF METHODOLOGY DEVELOPMENT  Development of The Term of Reference (TOR) - Methodology and Scope  Guidelines set out by OECD as found in the latest Oslo Manual

9. BASIS OF METHODOLOGY DEVELOPMENT (cont.)  The research methodology used in the previous studies so that the data collected can be compared with the previous findings.  Current needs as well as the need to produce better/improved findings.  The need for enhancement and modification to suit current demand.

10. COVERAGE  Manufacturing Sector (22 industries) Category of small, medium and large scale industry Recommended from previous study and OSLO manual  Services sector (8 industries)

11. The definitions of the categories of small, medium and large industries were based on the definitions currently adopted by the Department of Statistic, Malaysia (DOS) as follows: i.Manufacturing Sector a)Small: Sales turnover between RM 250,000 and less than RM 10 million or full time employees of 5 to 50; b)Medium: Sales turnover between RM 10 million to than RM 25 million or full time employees of 51 to 150; and c)Large : Sales turnover of more than RM 25 million or full time employees of more than 150. COVERAGE (cont.)

12. ii.Services Sector a) Small : Sales turnover between RM 200,000 and less than RM 1 million or full time employees of 5 to 19; b) Medium:Sales turnover between RM 1 million to than RM 5 million or full time employees of 20 to 50; c)Large: Sales turnover of more than RM 5 million or full time employees of full time employees more than 50.

13. DATA COLLECTION PROCEDURE 1. Sample data - Department of Statistic, Malaysia (DOS) 2. Sending out the questionnaire (postal survey), with returned envelopes 3. Telephone/Follow-up calls made to respondents who did not return the questionnaire as well as those whose responses were incomplete. 4. Workshop / Seminar

14. SAMPLE SIZE  The sample size; 4,000 manufacturing companies and 1,000 services companies from the Department of Statistic, Malaysia (DOS)  Stratified random sampling was used to ensure a fair distribution; according to zone in Malaysia

15. SAMPLE SIZE (cont.) ZoneManufacturingServices North1006142 Middle1123499 South1123160 East27460 Sabah16160 Sarawak31379 Total40001000 National Survey of Innovation Malaysia in manufacturing and services sector 2005-2008

16. Response Rate Sector InnovatingNon-InnovatingTotal No% % % Manufacturing 52451.5249348.481,01783.91 Services 10051.289548.7219516.09 Total 62451.4958848.511,212100.00 National Survey of Innovation Malaysia in manufacturing and services sector 2005-2008

18. How? Staff training -> expert Term of Reference (TOR) Administrative report Visiting/workshop/seminar survey Survey respondent Endorsement - Steering &Technical Committee Launching of Innovation Survey Carry out briefing Sending out survey kit Road show

19. Data Collection Instrument The study shall use suitable methods for data collection; Survey respondent Survey kit Survey questionnaire Data collection ○ Interviews ○ follow up calls; and ○ site visits to companies with potential of implementing innovation activities

20. Survey Kit  Questionnaire  Guideline to Questionnaire – a simplified set of instruction to guide them to fill up the survey form.  Malaysian Standard Industrial Classification (MSIC)

21. OPERATION MAJOR ACTIVITY Preliminary Work Preparation of Inception Report Preparation of Questionnaire and Pilot Test Preparation of Sample Frame and Respondent Recruitment and Training of Enumerators Field Work Data Processing Analysis Preparation Interim Report Preparation Summary and Recommendation Preparation Draft of Final Report - input from technical and steering committee Final Report

22. OPERATION (cont.) Preliminary Work  Preliminary work include but not limited to: Clarifying and understanding the TOR especially the objective and scope of work Studying and understanding Oslo Manual Examining the questionnaire of the harmonized Community Innovation Surveys and other related surveys Discussing with DOS pertaining to sample frame  The bulk of the preliminary activities will be done during the first two months.

23. OPERATION (cont.) Field Work  Field activities toward completing the survey would involve: Sending out questionnaires Follow up calls Group briefing Personal visits and interviews

24. Issues and Challenges  No population in number of innovation company  Awareness program  Not enough staff - outsource to consultant  Procurement process  Low response rate Telephone hot-line - was made available to respondents Training the enumerators - for follow up calls as well as for personal interviews. Reminder letters – to encourage higher response rate QA – need to ensure correct interpretation of question.

26. Level of innovations The results of the survey showed that 51.49% of the totals responding companies were innovative companies (Manufacturing & Services Sector) Source: National Survey of Innovation 2005 -2008

27. Innovation in the Manufacturing and Services Sector

28. Number of Innovations

29. Percentage of Innovating Companies by Expenditure

30. CHARACTERISTIC OF THE COMPANIES SURVEYED

31. The percentage of foreign owned companies that had undertaken innovation activities was higher at 61.90% compared to locally-owned companies at 48.75%. Locally Controlled Local and Foreign Ownership Companies Foreign Controlled

32. Innovating and Non-innovating Companies According to Firm Size

33. TIMELINE  12 months/ 1 year  Coming survey for 2009- 2011: will be conducted in 2012

34. Contact: Ms. Sabrina Binti Kamin TEL: +603-8885 8110 FAX: +603-8889 2980

35. Website: http://www.mastic.gov.my Website: http://krste.my