1 STI POLICY IMPERATIVES (With Special Reference To The Malaysian Experience) Tan Sri Datuk Dr Omar Abdul Rahman Senior Fellow & Founding President, Academy of Sciences Malaysia; Coordinator, STI Policy Consultative Unit, UNESCO‟s International Science, Technology and Innovation Centre for South-South Cooperation (ISTIC), Kuala Lumpur, Malaysia; Chairman, Commonwealth Partnership for Technology Management – CPTM Ltd., London; Science Advisor to the Prime Minister of Malaysia (1984 – 2001) 2010 ISTIC-KISTEP R&D MANAGEMENT PROGRAMME FOR HIGH LEVEL POLICY MAKERS CAIRO, 7 – 11 NOVEMBER, 2010
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STI POLICY IMPERATIVES
(With Special Reference To The
Malaysian Experience)
Tan Sri Datuk Dr Omar Abdul Rahman
Senior Fellow & Founding President, Academy of Sciences Malaysia;
Coordinator, STI Policy Consultative Unit,
UNESCO‟s International Science, Technology and Innovation Centre
for South-South Cooperation (ISTIC), Kuala Lumpur, Malaysia;
Chairman, Commonwealth Partnership for Technology Management –
CPTM Ltd., London;
Science Advisor to the Prime Minister of Malaysia (1984 – 2001)
2010 ISTIC-KISTEP R&D MANAGEMENT PROGRAMME
FOR HIGH LEVEL POLICY MAKERS
CAIRO, 7 – 11 NOVEMBER, 2010
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ABSTRACT
In the Innovation Economy, policy consideration must span the whole
concept and processes of Science, Technology and Innovation. The
Ecosystem of the Innovation Economy must include the sub-systems
of creativity, entrepreneurship and commercialization. Basic concepts
are discussed and generic policy frameworks will be presented. The
achievement of Malaysia in the context of these frameworks are
presented.
The Malaysian experience will be useful to policy makers.
Improvements to the generic policy frameworks which are more
country specific may emerge from the discussions.
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CONTENTS
A. The Essentials of the K-Economy / the Innovation
Economy
B. STI Policy for the Innovation Economy – sharing
Malaysia‟s Experience
C. STI Policy Imperatives – Proposed Framework
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A. The Essentials of the K-Economy /
The Innovation Economy
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A.1 THE K-BASED ECONOMY
The K-Economy is essentially about increased application of knowledge in:
Traditional economic sectors using various available enabling
technologies : ICT, biotech, nano-tech, new materials, etc.
New Economic Sectors which are ICT – enabled : e - or i – businesses
Green Economy Sectors
Governance – application of relevant technologies in public and
corporate governance for improved productivity, efficiency, profitability.
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A.2 K-ECONOMY = INNOVATION
ECONOMY
Knowledge (science) does not impact economy directly
Technology and Innovation Do
Hence K-Economy = Innovation Economy
Innovation Economy –
Growth through economic restructuring and diversification into
production of manufactured goods and others modern goods
and services with high value added, including green
products
Innovation is the Driver (+ Green Innovation)
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A.3 GREEN ECONOMY
New emphasis related to sustainability
Green technologies; green innovation
Sustainability consideration; scientific basis;
technological feasibility; economic viability
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A.4 AREAS OF INNOVATION
Science & Technology
Governance – policies and implementation
Business practices
Geo-politics
Socio-economic issues
Strategies & alliances
TECHNOLOGICAL INNOVATION Vs SOFT INNOVATION
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A.5 SOFT INNOVATION
Changes in aesthetics more than changes in technology
i. Changes in products in the creative industry
ii. Aesthetic innovation in goods and services primarily functional in nature
Soft innovations significant if economically important
Soft Innovation, NESTA, UK
Research Report July 2009
MASS INNOVATION – GRASSROOTS INNOVATION
NOW EVERYONE CAN INNOVATE !
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A.6 INTER-RELATION BETWEEN SOFT
INNOVATION AND TECHNOLOGICAL
INNOVATION
TECHNOLOGY-BASED BUSINESS
BUSINESS DRIVER TECHNOLOGY PROVIDER BUSINESS ENABLER
Sales and Marketing Products Work Force
Promotion,
Advertisement
Devices Business Processes
After sales services Accessories Cost cutting and
productivity increases
Customer loyalty Financial
management
SOFT INNOVATION TECHNOLOGICAL
INNOVATION
SOFT INNOVATION
Soft innovation often possible only because of
Technological Innovation
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A.7 PRIMARY POLICY CONSIDERATIONS
FOR THE INNOVATION ECONOMY
Total National Capacity in Science, Technology and Innovation
Integrated Human Capital Development
Status of STI in Industry – Industry‟s appetite for STI
Information Flow And STI Advisory System
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A.8 TOTAL NATIONAL CAPACITY IN STI
Innovation Economy dependent on Total National Capacity – (TNC) in
STI :
A scientific community able to contribute to and draw from the global
pool of scientific and technological knowledge.
A government committed to providing a comprehensive STI
Infrastructure (soft and hard: institutions, funds, processes, etc)
A private sector capable of creating wealth through application of
technology and innovation in all sectors of the economy.
A society imbibed with a culture of creativity, innovativeness and
entrepreneurship.
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A.9 IMPLICATION OF TOTAL NATIONAL
CAPACITY (TNC) in STI
Doing good Science is not good enough.
Good Science must translate into innovative technologies at the
marketplace
TNC in STI therefore requires an STI Policy encompassing
Capacity to develop (R&D) and to acquire technology (technology
transfer)
Capacity to commercialize, apply and utilize technology and
innovation
Management of the interface between the two
(in both Government and Industry)
The above constitute the Core Elements of STI Policy
for the Innovation Economy
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A.10 CORE ELEMENTS OF
STI POLICY
Technology Generationand Acquisition
Technology UtilizationAnd Commercialization
(Interface)
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A.11 STI POLICY FRAMEWORK
Enhancement of science advisory and consultative system and
processes.
Enhancement of capacity to generate and acquire STI.
Enhancement of capacity to evaluate, acquire, utilize,
commercialize and manage STI.
Development of human capital.
Creation of the right environment (Ecosystem) for the
Innovation Economy.
(all the above apply to both government and industry)
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A.12 THE ECOSYSTEM OF
INNOVATION ECONOMY
K-Generation
and Acquisition
K-Utilization and
Commercialization
Human Capital Development
• Capacity and capability building
• Entrepreneur development
Smart Partnership Practices
K-Intensive
Governance
(Public/Private sectors)
Culture of Creativity and Innovation
Science Ethics Practices
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A.13 THE INNOVATION ECOSYSTEM
MUST BE SUPPORTED BY:
Creativity Ecosystem
Entrepreneurship Ecosystem
Commercialization Ecosystem
AND
Smart Partnership Practices
Science Ethics Practices
“Human Capital Development”
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B. STI Policy For The Innovation Economy
– Sharing Malaysia‟s Experience
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B.1 STI POLICY – MALAYSIA’S
EXPERIENCE
Rukun Negara
5 - year Development Plans – starting 5th Plan (1986 – 1990); current: 9th
Plan (2006 – 2010); 10th Plan (2011 – 2015)
National Science and Technology Policy I (1986) and Policy II (2003)
Action Plan for Industrial Technology Development – 1990
Vision 2020 – February 1991
Industrial Master Plan I (1986 – 1995); II (1996 – 2005); III (2006 – 2020)
K-Economy Master Plan – 2002
Sub-sectors – IT, Biotechnology, Aerospace, etc
National Innovation Model - 2009
The New Economic Model (NEM) - 2010
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B.2 VISION 2020
To be developed nation in our own mould by year 2020 characterized
by … “a united nation, with a confident Malaysian Society, infused by
strong moral and ethical values, living in a society that is democratic,
liberal and tolerant, caring, economically just and equitable,
progressive and prosperous and in full possession of an economy that
is competitive, dynamic, robust and resilient ”.
- Mahathir Mohamad, 28 February 1991
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B.3 VISION 2020 – STI CHALLENGES
6th Challenge
“ . . . Establishing a scientific and progressive society that is innovative
and forward looking, one that is not only a consumer of technology but
also a contributor to the scientific and technological civilization of the
future.”
9th Challenge
“ . . . . Establishing a prosperous society with an economy that is fully
competitive, dynamic, robust and resilient ”.
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B.4 INDUSTRIAL MASTERPLAN II
(1996 – 2005)
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B.5 THE FIVE THRUSTS OF 9TH
MALAYSIA
PLAN (2006 – 2010)
Thrust 1 : Moving the economy up the value chain;
Thrust 2 : Raising the capacity for knowledge and innovation