Title of Presentation

1. Title of Presentation Innovative Innovation in: Malaysia STI Days, Bangkok, 21 Jan 2014 Session: Innovation in ASEAN Sara Medina & Kai Zhang (SPI) saramedina@spi.pt; kaizhang@spi.pt Subtitle/otherinformation EU-ASEAN S&T cooperation to jointly tackle societal challenges

2. Agenda Context in Malaysia Innovation SupportInstruments Observations

3. Agenda Context in Malaysia Innovation SupportInstruments Observations

4. I. Context in Malaysia Overview • Malaysia is ranked 15th in the InternationalInstitute for Management Development (IMD) World Competitiveness Ranking in 2013 • Malaysia is 2nd to Singapore in terms of Gross Domestic Product (GDP) per capita within ASEAN, being a middle-incomecountry according to United Nations (UN) standards • Malaysia has a Gross Domestic Expenditure on Research and Development (GERD)/GDP rate of 1,07% (2011), 2nd to Singapore within ASEAN • Malaysia ranks 32ndout 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) 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

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

6. I. Context in Malaysia KeyPublicScience, Technologyand Innovation (STI) Policies • Vision 2020 (1991-2020) • The 10th MalaysiaPlan(10MP: 2011-2015) • NationalPolicyonScience, Technology & Innovation (NPSTI: 2013-2020) • Malaysian Higher Education Strategic Plan (MHESP: 2007-2020)

7. Agenda Context in Malaysia Innovation SupportInstruments Observations

8. II. Innovation Support Instruments AppliedResearch Idea/ProofofConceptup to Commercialisation Venture Capital ForeignDirectInvestment IPR Support

9. II. Innovation Support Instruments AppliedResearch Example: ScienceFund B.Idea/ProofofConceptup to Commercialisation Examples: Commercialisationof Research & Development Fund (CRDF) Cradle Investment Programme (CIP) Venture Capital ForeignDirectInvestment IPR Support

10. II. Innovation Support Instruments A. AppliedResearch - ScienceFund TitleoftheInstrument: ScienceFund Website: http://ernd.mosti.gov.my/eScience/frmLogin.aspx ‎ ProgrammeOwner: MinistryofScience, TechnologyandInnovation (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 scientistsandengineersfromGovernment Research Institutions (GRIs), Government STI Agencies, Public/PrivateInstitutionsofHigherLearnings (IHLs)

11. II. Innovation Support Instruments A. AppliedResearch - ScienceFund 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

12. II. Innovation Support Instruments B. Idea/ProofofConceptup to Commercialisation – Commercialisation of Research & Development Fund (CRDF) TitleoftheInstrument: Commercialisation of Research & Development Fund (CRDF) Website: http://www.mtdc.com.my/crdf.php Programme Manager: Malaysian Technology Development Corporation (MTDC) SupportingStage: Commercialisation Establishedyear: Duringthe 7th MalaysiaPlan (1996-2000) 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

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

14. II. Innovation Support Instruments B. Idea/ProofofConceptup to Commercialisation – Cradle Investment Programme (CIP) TitleoftheInstrument: CradleInvestmentProgramme (CIP) Website: www.cradle.com.my ProgrammeOwner: Ministry of Finance, Malaysia (MOF) SupportingStage: ConceptualisationandCommercialisation Establishedyear: 2003 Types of Grants: Prototype Development: Pre-Seed (CIP Catalyst & U-CIP Catalyst) Product Commercialisation: Seed (CIP 500)

15. II. Innovation Support Instruments B. Idea/ProofofConceptup 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

16. Agenda Context in Malaysia Innovation SupportInstruments Observations

17. 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

18. Contacts Thank you! The final study will be available at: www.sea-eu.net in June 2014 Sociedade Portuguesa de Inovação (SPI) Sara Medina & Kai Zhang saramedina@spi.pt;kaizhang@spi.pt