Sfes2211lecture5 Amended

Lecture 5

Accounting for S&T

Outline of Presentation

•Accounting for S&T•Nature of the Science system•Measuring output of S&T

When you can measure what you are speaking about, and express it in numbers, you know something about it; but when you cannot measure it, when you cannot express it in numbers, your knowledge is of a meagre and unsatisfactory kind" (Lord Kelvin)

"Not everything that can be counted counts and not everything that counts can be counted." (Albert Einstein)

What are S&T Indicators for?

•Describe the S&T performances of organisations, regions and countries and their dynamics; •used as a starting point for exploring possible areas of best practice in S&T policy.

Examples of indicators include:

• indicators of human resources in S&T, such as the number of researchers, • indicators of countries' financial efforts in research, such as R&D expenditure,

•indicators on scientific and technological performance, such as publications and patents, •indicators of the economic significance of S&T such as high tech employment or export of high tech products.

Why S&T Indicators?

Legitimisation: demonstrate support for existing policies/programmes

Accountability: information on how well funds have been utilised as well as performance of S&T system

Monitoring: performance of existing policies/programmes

Awareness: information on understanding and performance of the S&T system

Towards enhanced management of STI

Towards enhanced management of STI

A Cautionary Note on Indicators

No magic bullets – variety of indicators needed (input; output; outcome; impact; linkage etc.). Each indicator by itself is incomplete

Need to consider complementary information from case studies, evaluation studies for more complete picture/assessment;

S&T Indicators: What are they?

Input indicators•expenditures on R&D;•expenditures on education, training, S&T infrastructure•no. researchers, scientists and engineers (RSEs);

Output indicators•patents;•technology licences/sales;•royalties;•papers•citations•no. of start-up companies

Linkage Indicators

-number of collaborative research projects;-number of co-authored papers;-level of funding by industry;

In the context of National System of Innovation,

we need to measure knowledge flows such as

-technology transfer;-technological alliances-machinery diffusion

Knowledge creation/absorptiveCapacity

Input Indicators-e.g. % GDP spent on GDP; researchers per 10,000 labour force; R&D grants

Knowledge Acquisition

Acquisition indicators – e.g. imports in tech. balance of payments; no. of regional offices; no. of firms acquired;

Knowledge infrastructure capacity

Infrastructure indicators e.g. expenditure on capital items; ratings on facilities; no. of PRIs;

Knowledge Dissemination Capacity

Diffusion indicators e.g. % budget allocated for diffusion activities; no. of tech. fairs;

Knowledge Application Capacity

Application indicators e.g. % of workforce with university education; % of RSEs;

Knowledge Output

Output indicators e.g. no. of papers; no. of S&T graduates/post-graduates from universities; no. of patents

Knowledge Impact

Impact indicators e.g.No. of university spin-off companies; no. of companies exited from incubators;No of cited papers;Increase in exports/reduction in imports

Knowledge Linkages

Linkage indicators e.g. no of joint projects; no of co-papers; % industry sponsored funding;

Knowledge Society

Awareness indicators e.g. awareness on S&T issues; acceptance of S&T; internet penetration; PC adoption;

Knowledge governance

Governance indicators e.g. industry involvement in management of PRIs; univ; regulations favouring autonomy

ASSESSING SCIENCE, TECHNOLOGY & INNOVATION IN

MALAYSIA

Conceptual Framework of Indicators for Assessing Science, Technology and Innovation in Malaysia

The Science System

The science system or scientific infrastructure may be defined in terms of those institutions and social structures whose activities mainly consist in the discovery, articulation and propagation of scientific and technological knowledge.

GOVT.

Indu-stry

Acad-emia

Society

S&T System

Scientific accounting should be thought of more in terms of the ways in which resources are allocated over different categories of scientific expenditures rather than in input/output terms. The main reason for this is that scientific and technological expenditures are measured at cost since outputs are much more difficult to quantify.

Unlike social accounting, scientific expenditures have to be divided between (a) sector of source of funds; and (b) sector of performance.

Measuring Output of S&T

The main reason why it is hard to assess the output of S&T activity is because much output realises its value mainly within the context of later productive activity. Thus, it is impossible to place an unambiguous value on the scientific output itself since the value of final product is the result of a combination of many inputs of which scientific research is only one.

Social /Cost Benefit Analysis•conceptually, the most complete evaluative technique; used normally in the appraisal of large investment projects where the decision choice depends upon the costs and benefits likely to accrue and where there are limited investment funds available. Also, used to evaluate past projects so as to help determine the extent to which the project has paid off

But because scientific investigation is highly uncertain both in terms of technology and commercial viability, application of this technique to scientific expenditures must be treated with caution

Patentswidely used as a measure of inventive/innovative output; reflect capacity to generate change and improvement;

Adv: using patents - statistics are readily available;

Disadvantages•Major intersectoral differences in relative importance of patenting;•provide quantitative indices but no economic value attached to them;•tend to reflect inventive rather than innovative output;

•international comparisons using patent data are hazardous because of variations in patent law.

•Sometimes inventors do not patent since to do so would draw the attention of potential imitators;

Counts of Innovations

•innovations may be defined as the first commercial introduction of a new product or process;•indicator which more truly reflects the actual economic output of R&D activity;•disadvantage of this indicator is that there are few existing series of innovations;•This method does not capture process innovations

Licences•a measure of technological output frequently used in the assessment of international flows of technology;•licence is defined as the right on the part of one firm to make commercial use of a proprietary technology;

Adv: statistics on licence payments are readily available;

Disadv: licence fees are not the only form of payment in which suppliers of technology receive payment. Hence data on licencing fees need to be interpreted with caution.

Scientific and Technical Papers

•This is the main means through which scientists communicate to their peers and to the outside world;•However, there are variations across scientific fields as regards to publication and in some cases it is often impossible to publish at all. Also, journals vary in quality. To deal with this problem some authors have suggested the use of citation - that is counting the number of times over a given period, that a particular paper is cited by other authors either in its original field or in other fields.

Other Measures of Scientific Output

•counts of major discoveries;

•peer evaluation

•surveys/interviews

•case studies

•models of knowledge flows;

•models of productivity spillovers

Measures of scientific output should assist policy analysts in focussing not only on productivity of funding but whether resources have been directed in the right areas.

R&D Expenditure as a % of GDP

Year % of GDP

Indonesia 1995 0.20

Philippines 1997 0.22

Malaysia 20040.63Singapore 2000 1.89

UK 1998 1.83

Taiwan 1999 2.05

US 1999 2.65

No of researchers per 10,000 labour force

Year Number

Indonesia 1991 3.0

Philippines 1991 3.0

Malaysia 2004 21Singapore 2000 83.5

UK 1995 95.0

Japan 1999 136.0

US 1999 74.0

Malaysia ranked 52nd among 179 countries in terms of output of ISI publications for period of 2001-2005. We produced 5,688 publications or 0.14% of total for the period under review;

Among ASEAN countries:

Singapore – 35th ranking; 0.61%Thailand - 45th ranking; 0.45%Indonesia – 67th ranking; 0.06%Philippines – 70th ranking; 0.05%

Malaysia ranked 52nd among 179 countries in terms of output of ISI publications for period of 2001-2005. We produced 5,688 publications or 0.14% of total for the period under review;

Among ASEAN countries:

Singapore – 35th ranking; 0.61%Thailand - 45th ranking; 0.45%Indonesia – 67th ranking; 0.06%Philippines – 70th ranking; 0.05%

Cam

bodia

Indonesi

a

Laos

Mala

ysia

Myn

am

ar

Phili

ppin

es

Sin

gapore

Thaila

nd

Vie

tnam

0

5000

10000

15000

20000

25000

Quantity of ISI Papers (2001-2005)N

o. o

f P

ap

ers

Selected Asean Countries

All Fields Papers in Asean (2001-2005)

2161

24388 9542

2165 56882487

4.61%

20.4%52%

4.62%0.277% 12.1%0.273%

5.31%0.386%

Cambodia Indonesia Laos Malaysia Mynamar Philippines Singapore Thailand Vietnam

In terms of citations, Malaysia is ranked 57th with total of 10,667 citations;

Other ASEAN countries:Singapore – 37th; 76,666;Thailand – 43rd; 26,626;Vietnam – 64th; 7080;Indonesia – 65th; 6989;

Philippines – 71st; 5765

Country US Patents granted, 1977-2004

% of Total

Australia 15,876 0.5

Canada 63,944 2.1

China 2,593 0.08

Finland 10,802 0.3

India 1,921 0.06

Ireland 1,843 0.05

Israel 12,348 0.4

Japan 574,865 18.5

MALAYSIA 547 0.02

Netherlands 28,256 0.91

Singapore 2,719 0.09

South Korea 35,673 1.15

Switzerland 36,802 1.19

Thailand 348 0.01

United Kingdom 83,991 2.7

United States 1,725,549 55.6

US Utility Patents granted to Selected Countries, 1977-2004

0 10,000 20,000 30,000 40,000

Israel

Singapore

Malaysia

S.Korea

Ireland

India

Finland

China

no. of patents

US Utility Patents granted to Selected Countries, 1977-2004

Limitations of OECD Indicators

•Based on input-output analysis-not able to represent technology as a stock – does not take into account accumulated scientific/technological knowledge;

•R&D expenditure captures only a part of the expenditure on innovation. It does not reflect the development effort. Activities like marketing are also not reflected though they are critical in innovation.

Impacts of R&D are partly captured in input-output balance sheets. In reality these impacts are exceedingly complex.Utility of patents weakened by:

-differing patent laws and procedures;

-patents issued for inventions of unequal value;

-many patents issued for invention which are never used long after the patent is issued

-patent applications governed by market pull as well as by technology push – lower tendency to patent in small markets

OECD S&T output indicators not generally applicable in the developing countries. Technological balance of payments relevant only to payments incurred in formal contracts of tech. transfer between countries.

Malaysian Science and Technology

Indicators Report 2006

DRAFT FINAL REPORT

DECEMBER 2006

Objective of this Presentation

•Findings•What the findings are telling us

•Scoreboard

To inform and obtain feedback from MASTIC and members of Technical Committee on:

Scope of this presentation

I. Education in STIII. Human Resources for STIIII. R&D ActivitiesIV. Public Support for STIV. Innovation in the Manufacturing SectorVI. Trade in TechnologyVII. Publications and CitationsVIII. Patenting in MalaysiaIX. ICT Profile of MalaysiaX. Awareness, Knowledge and Attitude

towards STIXI. Our STI Scorecard and Way Forward

I. Education in STIII. Human Resources for STIIII. R&D ActivitiesIV. Public Support for STIV. Innovation in the Manufacturing SectorVI. Trade in TechnologyVII. Publications and CitationsVIII. Patenting in MalaysiaIX. ICT Profile of MalaysiaX. Awareness, Knowledge and Attitude

towards STIXI. Our STI Scorecard and Way Forward

Figure 2.2: Registration for Science and Mathematics Subjects at SPM Level

2,987

12,70

4

132

5,278

12,49

7

7,850

732

4193

13,80

8

138

6455

13,65

2

7820

662

4306

16,75

0

68

6571

16,49

1

10,50

2

772

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

Maths. S Maths. T Further Maths.T

Physics Chemistry Biology Add. Science

Subject

No. o

f Stu

dent

s

2003 2004 2005

Increase in student registration for science and mathematics at SPM and STPM levels

Field of Study

Academic Year

2002/2003 2003/2004 2004/2005

Number of

students

Percentage Number of

students

Percentage Number of

students

Percentage

Art 14,142 55.40 15,496 56.73 20,810 59.96

Science 8,064 31.59 8,986 32.90 10,208 29.41

Technical 3,321 13.01 2,834 10.37 3,686 10.62

Total All Fields

25,527 100 27,316 100 34,704 100

Enrolment in Doctoral Degree Courses at Public Educational Institutions by fields of study, 2002-2005

Field of Study

Academic Year

2002/2003 2003/2004 2004/2005

Number of

students

Percentage Number of

students

Percentage Number of

students

Percentage

Art 1975 50.88 2514 49.61 3361 52.09

Science 1468 37.82 2034 40.13 2160 33.48

Technical 439 11.31 520 10.26 931 14.43

Total All Fields

3,882 100 5,068 100 6,452 100

•Significant increase in postgraduate enrolment during past 3 years;

•More enrolment in Arts than that of Science or Technical courses at postgraduate level in public universities

Enrolment in Master’s Degree Courses at Public Educational Institutions by fields of study, 2002-2005

Graduations in First Degree Courses in Public Universities by fields of Study, 2004/2005

CourseNumber of Graduates Percentag

e

Male Female Total

Arts Arts and Humanities Economics & Business Law Others

7,2511,9854,200 471595

16,5814,8159,7107381,318

23,8326,80013,9101,2091,913

54.50

Science Medicine and Dentistry Agricultural Sciences Natural Sciences IT and Computer Sci Others

4,3934811581,7021,656386

8,1961,0153073,4582,672744

12,5891,5064655,1604,3281,130

28.75

Technical Engineering Architecture, Town Planning and Survey Others

4,4433,528756159

2,9622,043769150

7,4055,5711,625309

16.85

Total 16,087 27,739 43,826 100

•More students are graduating from Arts disciplines than the Sciences-but % Arts graduates declining;

• Also, more female graduates than males in both the Arts and the Sciences

Stocktake 1: Education in STI

Increase in students registration for science and mathematics at SPM and STPM levels;

Decline in proportion of Arts students in first-degree enrolment in public IHLs

Sharp increase in postgraduate enrolment and graduation where Arts students predominate. Ratio of PG to UG enrolment increased from 1: 14 (1994) to 1: 6.7 in 2004;

First degree enrolment at private HEIs almost 50% that of public IHLs;

More women enrolment and graduates at first-degree level in both Arts and Sciences

•Significant increase in R&D personnel from 24,937 to 30,983 in 2004 due to increase in R&D personnel in IHLs and industry.

•Also, substantial increase in FTE. Ratio of FTE to headcount increased to 0.55 in 2004 (0.43 in 2002);

•No. of support staff and technicians static in recent years

•Significant increase in R&D personnel from 24,937 to 30,983 in 2004 due to increase in R&D personnel in IHLs and industry.

•Also, substantial increase in FTE. Ratio of FTE to headcount increased to 0.55 in 2004 (0.43 in 2002);

•No. of support staff and technicians static in recent years

Rising trend in number of R&D personnel in terms of headcount and FTE

(a) Number

Stocktake 2: R&D Manpower

•Substantial increase in RSEs both in headcount and in FTE. However, numbers of support staff static;•Increasing representation of women research personnel;•Trend of increasing qualification among researchers;

•Slight increase (RM 340 million) in national R&D expenditure from 2002 - RM 2.84 billion in 2004. •However, the research intensity (GERD/GDP ratio) has declined from 0.69 in 2002 to 0.63 in 2004 due to faster expansion in national GDP during same period

•Slight increase (RM 340 million) in national R&D expenditure from 2002 - RM 2.84 billion in 2004. •However, the research intensity (GERD/GDP ratio) has declined from 0.69 in 2002 to 0.63 in 2004 due to faster expansion in national GDP during same period

Research expenditure small when compared to China (RM 69 billion). S’pore – RM 10.0 billion (2005)

(a) Overall

National R&D Expenditure by Sector (1996 – 2004)

  1996 1998 2000 2002 2004

R&D Expenditure        

Total GERD (RM million) 549.3 1127.0 1,671.5 2,500. 6 2,843.7

Total GDP (RM million) 253,732.0 283,243.0 340,706.0 360,658.0 449,609.0

Ratio GERD/GDP (Research Intensity) 0.22 0.39 0.50 0.69 0.63

GRI (RM million) 108.7 247.3 417.5 507.1 296.9

IHL (RM million) 40.4 133.6 286.1 360.4 513.3

Private Sector (RM million) 400.1 746.1 967.9 1,633.1 2,033.5

Proportion of R&D Expenditure          

GRI(%) 19.8 21.9 25.0 20.3 10.4

IHL(%) 7.4 11.9 17.1 14.4 18.1

Private Sector (%) 72.8 66.2 57.9 65.3 71.5

National R&D Manpower (Headcount)

45

45

42

43 62

49

15

02

2 17

79

0

23

09

2

16

66

13

21

16

97

22

89

30

90

29

195

26

1

36

69

41

81 59

51

40

57

49

72

114729233

12127

23262

24937

30983

0

5000

10000

15000

20000

25000

30000

35000

1994 1996 1998 2000 2002 2004

Researchers

Technicians

Support Staff

Total Headcount

NUMBER OF RESEARCHERSPER 10,000 LABOUR FORCE (1992-2004)

5.8 5.17

15.6

18

21.3

NA0

5

10

15

20

25

1992 1994 1996 1998 2000 2002 2004Year

Re

se

arc

he

rs

pe

r 1

0,0

00

La

bo

ur

Fo

rce

Researcher per 10,000 labour force has increased to 21.3 in 2004 from 18 in 2002 – …but well below that of developed countries

Stocktake 3: R&D Expenditure

•Slight decline in research intensity (0.69% to 0.63%);

•Industry leads in R&D expenditure. Most R&D expenditure by large firms;

•Most expenditure devoted to applied research;

•Foreign firms accounted for 44% of total industry R&D expenditure

•Bulk of R&D conducted in Malaysia

R&D Project Approved Incentives, 2001-2005

1

45

12

10

241.11

83.8767.95

15.82

0.870

2

4

6

8

10

12

14

2001 2002 2003 2004 2005Year

No. of Companies

0.00

50.00

100.00

150.00

200.00

250.00

300.00

Total Investment (Million)

No. of Companies Total Investment

Figure 5.6: Number of R&D Approved Incentives by Type, 2001-2005

1

1

3

42

11

2

1

3

1

7

1 1

5

2

95

5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2002 2003 2004 2005 TOTAL

YearR&D Contract R&D Company R&D In House Pre-Packaged

Increasing importance of pre-packaged incentives

Stocktake 4: Public Support for S&T

•The total amount of R&D grant approved under the various grant incentives declined in 2004;•Sharp increase in amount granted under double-deduction tax relief;•Increasing investments by foreign companies in provision of R&D services;•Need to address grouses of industry when applying for incentives

Figure 5.2: Incidence of Innovation by Industry

67

43

50

71

67

76

57

63

47

56

58

32

62

57

25

41

56

55

62

29

73

46

33

57

50

29

33

24

43

37

53

44

42

68

38

43

75

59

44

45

38

71

27

54

0 10 20 30 40 50 60 70 80 90 100

Recycling

Furniture

Other transport equipment

Electrical machinery

Other machinery and equipment

Fabricated metals

Basic metals

Non-metallic mineral

Rubber and plastics

Chemical

Publishing and printing

Paper

Wood

Wearing apparel

Textiles

Food and beverages

Percent (%)

Innovating Non-Innovating

Tanning and dressing of leather

Source: Mastic

Radio, television and communication equipment

Coke, refined petroleum and nuclear fuel

Office, accounting and computing machinery

Scientific equipment, watches and clocksMotor vehicles, trailers and semi-trailers

Figure 6.3: Incidence of Innovation by Size,

Manufacturing

0

10

20

30

40

50

<20

20-49

50-249

>249

Non-InnovatingInnovating

Stocktake 5: Innovation in the Manufacturing Sector

•Improvements in incidence of innovation over previous periods;•Dominance of large firms reporting innovation. Decline in local firms;•Decline in firms reporting new product development. Also, increase in firms reporting falling innovation-related expenditure;•Low incidence of intellectual property registration•Most firms reported favourable environment particularly role of universities and government support;

Stocktake 6: Trade in Technology• Despite some improvements services

account continues to be negative with the deficits remaining high.

• The high deficits in royalty payments for intellectual property suggests that Malaysia is still a net technological learner typical of economies still located low in the technological ladder.

• There is thus a need to strengthen government policy to quicken further learning and innovation in firms in Malaysia.

• The growth in surplus involving construction and engineering involving other economies also suggests that the government should encourage diversification of service markets.

1419 29111

182 192

2.55%

33.2%35%

3.47%

0.182% 20.3% 0%

5.29% 0%

Cambodia Indonesia Laos Malaysia Mynamar Philippines Singapore Thailand Vietnam

ISI-based publications in the field of Biotechnology and

Applied Microbiology in ASEAN (2001-2005)

SINGAPORE THAILAND MALAYSIA0

200

400

600

No

. o

f P

ap

ers

Org.Chem & Poly.Chem

Physics

0

200

400

600Mat. Sci & Eng

0250500750

10001250 Phys.Chem & Chem.Phys

0500

1000150020002500

BioChem & BioPhys

0

200

400

600

Comparison of selected top research fields for selected ASEAN countries (2001-2005)

0

500

1000

1500

2000

2500

3000

Fre

qu

enci

es

UM USM UPM UKM

Papers

Citations

0 100 200 300 400 500

No. of Papers

Ng, SWFun, HKChantrapromma, S

Usman, ARazak, IA

Yamin, BMAhmad, HIsmail, H

Gao, SHuo, LH

Sci

enti

sts/

Au

tho

rs

Publication and Citations in Malaysia by selected IHLs (2001-2005)

Top 10 individual Scientists by No. of Papers (2001-2005)

0 100 200 300 400 500 600 700

No. of Papers

Co

llab

ora

tion

Countries that collaborated with Malaysian-based authors sorted by number of publications (2001-2005)

Stocktake 7: Publications and Citations

•Malaysia’s contribution to global scientific publications is low – both in terms of output as well as quality; stagnant global share (0.09%);

•growth in output for some strategic fields such as Applied Physics/Condensed Matter/Materials Science and Material Science & Engineering as well as in Biotechnology and Applied Microbiology;

•Huge gap in publishing between IHLs and GRIs;

•Publishing in top journals is minimal.

  1996-2000

2001-2005

Variation (Percentage increase or decrease during the two 5-year period under review)

Malaysians 1,017

2,013

+ 97.9%

Non-Malaysians

29,039

25,648

- 11.7%

Total applications

30,056

27,661

-8%

Patent Applications Filed in Malaysia by Malaysians and Non-Malaysians for period 1996 – 2000 and 2001 – 2005

Patents Granted to Malaysians and Non-Malaysians by the Intellectual Property Corporation of Malaysia (MyIPO) for period 1996 – 2000 and 2001 – 2005

  1996 - 2000

2001 - 2005

Variation (Percentage increase or decrease during the two 5-year period under review)

Malaysians 215 142 - 34%

Non-Malaysians

4,067 9,253 +127%

Total granted 4,282 9,395 +119%

Time Taken For Obtaining a Patent in Selected Countries

Country Time Taken Remarks

European Patent Office

7 – 8 years Request for examination must be filed within 2 years from the filing date of the European Patent application

Japan 7-12 years Request for examination can be filed up to 7 years from the filing date of the Japanese Patent application

Malaysia 4-5 years Request for examination must be filed within 2 years from the filing date of the Malaysian Patent application

Singapore 2-4 years Request for examination must be filed within 2 years from the filing date of the Singapore Patent application

United Kingdom 4 years Request for examination must be filed within 2 years from the filing date of the UK Patent application.

United States 3-4 years Applicant must provide the US Patent Office all the disclosures in order to expedite grant.

Source:Manual For the Handling of Applications for Patents, Designs and Trade Marks Throughout the World, Kluwer Law International, 2005 and Guide For Applicants Issued by the Various National Patent Offices

Stocktake 8: Patents

•119% increase in patents granted for period 2001-2005 over previous 5 year period •Declining number (142) of patents granted to Malaysians although applications have increased; •Patenting activity abroad insignificant;

•Time taken for obtaining a patent (4 - 5 years)

behind that of Korea, Singapore and US

Number of Computer per 1000 peoplein Malaysia and Selected Countries, 2004

Source: Computer Industry Almanac, IMD World Competitiveness Report 2005

Computer ownership in Malaysia highest in ASEAN (after Singapore) but well below that of developed countries

Number of Internet Users per 1000 peoplein Malaysia and Selected Countries, 2004

Source: Computer Industry Almanac, IMD World Competitiveness Report

2005

• ICT spending in Malaysia reached US$3,261 million in 2005 and forecasted to grow at CAGR of over 12% from 2004 to 2009;

• Highest percentage of ICT spending in the field of hardware; IT services (25.2%), and packaged software.

IT Spending by Hardware, Software, and Services 2004-2009

Stocktake 9: ICT

•Surge in cellular phone subscription while decline in DEL segment;•Steady increase in Internet usage although largely (88%) through dial-up;•Similar upward trend in computer ownership;•Expansion in e-commerce transactions;•Malaysia’s declining share of global ICT market

Stocktake 10: Public Awareness of Science and Technology Malaysia.

•Attitude of Malaysians towards S&T has improved appreciably over the years.

•An analysis of trends from 1998 to 2004 revealed that interest of Malaysian public towards S&T has remained relatively constant

•Malaysians have a relatively good understanding of scientific concepts and knowledge but poor on questions that require higher order scientific knowledge. Also, we do not fare well on questions that impinge on religious sensitivities

What are the findings telling us?

•Increasing Gross Expenditure R&D;•Increasing no. of researchers;•Increasing science enrolment both at first degree and post-graduate levels;•Expanding range and scope of incentives for STI;•Attracting foreign investments in R&D•Increasing incidence of innovation;

PROGRESS in

•Reducing deficit in technology balance;•Reducing time for patent to be granted;•Increasing internet and computer access;•Increase in publications in selected fields;•Increase in attitudes towards STI

BUT, we need to address the following:

Education in STI•need to increase science and engineering PG enrolment to boost research activity;

•Need to strengthen postgraduate education in private HEIs

R&D Manpower

need to address problem of static growth of supporting staff and technicians

Anecdotal evidence suggest exodus of senior researchers over next 2-3 years – succession planning/mentoring must be in place

R&D expenditure

•Our R&D spending is increasing steadily but our competitors are investing more in R&D – need to enhance returns from our R&D investments;

•Our IHLs and PRIs are overly dependent on public funding for R&D – expand joint/collaborative efforts;

•Most R&D undertaken by large firms - Need to ensure more SMEs engage in R&D – issues pertaining to strengthening absorptive capabilities of SMEs have to be addressed;

Public Support for STI

Noticeable decline in R&D grant approved under the various grant schemes since 2004 – does not bode well for industry to seek such funding. Efforts must be made to encourage more firms to apply for these incentives as well as to enhance the administrative machinery governing the approval of these grants;

Innovation in the Manufacturing Sector•Importance of innovation recognised but mainly undertakan by large firms – Need to support SMEs;•Also, need to address:-Declining number of firms reporting increase in new product development and increase in firms reporting falling innovation-related expenditure

Trade in Technology

Despite some improvements services account continues to be negative with the deficits remaining high. There is thus a need to strengthen government policy to quicken further learning and innovation in firms in Malaysia. The growth in surplus involving construction and engineering involving other economies also suggests that the government should encourage diversification of service markets.

Patenting

Low patenting call for :

•Enhancing awareness of patenting among firms (SMEs) and public institutions;•Provision of funds/incentives to encourage patenting;•Strict enforcement of patent rights

Publications

•Our scientific publication performance is low. We are even losing out to our ASEAN neighbours in terms of citations;•Our record of publishing in high impact journals is also poor;•Low publication performance by GRIs

Public Awareness

Our lower scores on understanding of S&T necessitates more proactive measures to increase public awareness of S&T, and to review the effectiveness of the programs.

Category Indicator Year 2004 Year 2002 Trend Average/Selected OECD

R&D Investments and expenditure

Overall R&D Intensity 0.63 0.69 -ve 2.331

Industry R&D expenditure as % of GERD 71.5 65.3 +ve > 622

Human Resources

Total R&D Personnel (Headcount) 30,983 24,937 +ve > 100,0003

Researchers per 10,000 labour force 21.3 18.0 +ve 614

Total FTE per researcher 0.55 0.40 +ve 0.745

Science and engineering enrolment as % of total first degree enrolment

48.2 51.8 -ve 44.66

Science and engineering enrolment as % of total post-graduate enrolment

40.6 44.2 -ve 32.47

Proportion of postgraduate enrolment to undergraduate enrolment

1: 6.6 1:8.4 +ve 1:11.68

Women researchers as proportion of total researchers (%)

35.8 33.7 +ve 279

Interaction and Cooperation

% of public R&D financed by industry/external funds 2.0 NA - >1010

Outputs and Outcomes

Total number of publications in ISI-indexed journals, (1981-2005)

1179 938 +ve 16,62811

Total Citations (2001-2005) 1360 2716 -ve 37,50212

No of patents applied (Malaysians) 522 322 +ve > 10,00013

No. of patents granted (Malaysians) 24 32 -ve > 6,30014

No of USPTO patents granted per million population 3.6 2.5 +ve 15215

Knowledge Infrastructure and Diffusion

No. of computer per 1000 people 192 137 +ve > 50016

Internet users per 100 population 38.2 31.9 +ve > 6017

Cellular phone subscription per 100 inhabitants 56.5 36.9 +ve > 6018

S&T Knowledge, Understanding and Awareness

Mean Score of perceived interest in S&T 2.40 2.41 - NA

Mean Score of perceived knowledge in S&T 2.22 2.32 - NA

Attitude towards S&T#

Index of Scientific Promise#;Index of Scientific Reservation#

63.7;71.9;

47

62.3;-

+ve US (79); Europe (67);US(45); Europe (53)

STI Performance Scorecard 2006